LED lighting ushered in rapid development

With the strong potential demand in the LED lighting market brought about by the white ban effect, the development of domestic LED enterprises has entered a period of high growth. Coupled with the economic recovery in Europe and the United States, the industry has shown a slight warmth. However, a number of lighting companies participating in the Canton Fair told reporters that policies to support the development of LED lighting or lead to a vicious price war between the same industry, as well as the loss of exchange rate fluctuations is also a problem. Orders from Europe and the United States have ushered in growth. In the past two years, the economic downturn in Europe and the United States has caused China's LED lighting industry, which is dominated by overseas markets, to fall into a trough and export orders to fall sharply. In the middle of 2012, the European and American markets raised the implementation of new LED energy efficiency standards, which made the export of enterprises face higher thresholds and risks. At that time, our LED orders fell by nearly half. Mao Jianjun, general manager of Ningbo Qincheng Foreign Trade Co. , Ltd. told reporters that the export losses to Europe and the United States were particularly large around 2012, moreover, the product standards are difficult to meet the conditions of the European and American markets. Later, the European and American markets were abandoned and turned to Southeast Asia and South America. This situation also happened to Foshan gaoxun Lighting Co. , Ltd. in Guangdong province. However, lighting companies now feel the recovery of the European and American markets at the Canton Fair. Qiu Jianlong, manager of Gao Xun lighting's foreign sales center, told reporters: at the Canton Fair two years ago, there are not many European and American customers who come to the booth for consultation. This year is obviously more than in previous years. Some old customers have also increased their orders. In terms of sales in the first quarter, it increased by 10. Ningbo Xuri Lighting Co. , Ltd. specializes in the European and American Christmas market. Its deputy general manager Lou Lusong told reporters that the current order volume has increased by 20. Policy support or lead to the intensification of price war. Although the improvement in the European and American markets has given lighting enterprises a shot in the arm, enterprises are still worried about the losses caused by policy changes and exchange rate fluctuations. According to the relevant national plan, from October 1, 2014, incandescent lamps will complete their historical mission and withdraw from the lighting stage. Energy-saving lamps will also be included in the list that hinders environmental protection. LED lamps will completely replace traditional light sources with their high-quality energy-saving and environmental-friendly characteristics. Some organizations predict that the LED lighting market will grow by in 2014. As the main production base of LED lighting, China will see explosive growth. Qiu Jianlong told reporters: it is good for enterprises to support the LED industry by the state, but if the support is excessive like supporting photovoltaic enterprises, price wars cannot be avoided among peers, which may lead to vicious competition. In addition, foreign exchange fluctuations affect the development of the industry. Mao Jianjun suffered losses on the impact of foreign exchange fluctuations. He calculated an account for the reporter: when quoting with customers, the exchange rate of RMB against the US dollar was 6. 3 yuan, but the exchange rate may change to 6 when settling with customers. 2, after the appreciation of the renminbi, doing a business of 1 million US dollars will lose 100 thousand yuan. In the first quarter of this year, the RMB depreciated and profits rebounded a little. In order to avoid this kind of risk to a large extent, the companies where Mao Jianjun and Qiu Jianlong are both choosing periodic buyout exchange rate. For this year's sales situation, many LED exhibitors have said that the foreign market has improved, which will be much better than in previous years, but the product profit is too low, and the company is also investing in research and development of new products to increase market profits.