LED lighting product price falls below average price

BANGALORE, INDIA: Due to the oversupply of LED chips and other key raw materials, LED lighting product price has dropped to a more reasonable level. LEDinside's statistics showed that in the Chinese market, 7W bulb price was between 45RMB-55RMB ($10 per Klm ), showing a price decline of more than 40 percent within one year.

Knowing that the price-performance of LED lighting products has been accepted in the Chinese market, many LED lighting companies have started to do brand management and seize market channels. Traditional lighting manufacturers with brand resources and market channel advantages have also increased the LED lighting product lines in order to compete with newcomers.

Currently, the LED lighting marketing in China is mostly based on project and distribution channels. After four years of LED promotion by the government, the distribution channel has expanded from traditional shops to exclusive LED lighting stores and shopping centers. Moreover, in order to provide customers with a familiar shopping platform, lighting manufacturers have also started to sell LED lighting products with high replacement needs (such as light bulbs and light tubes) via the internet. LEDinside estimates that by 2015, the ratio of distributors and online shopping malls will increase to around 40 percent.

In 2013, most of the LED lighting companies have started to re-examine their market channels. To traditional foreign trade enterprises, distributors are their domestic customers; to online businesses, distributors are their direct consumers; to companies that transferred from package to LED lighting, distributors are their downstream customers.

Lighting distributors have clearly become the critical market channel of all types of LED lighting industries; realizing the economic advantages of LED lighting, they have continued to expand their LED lighting product line and participate in tenders of each LED lighting brand. Related industries are all aggressively investing in LED lighting in order to seize the business opportunities brought by the popularization of LED lighting.