As the capital of lighting fixtures in the country, Ningbo has more than 1,000 companies related to the LED lighting industry. With the gradual launch of the domestic market, Ningbo LED companies, which have always been export-oriented, began to compete for business opportunities in the domestic market.
Favorable policies and large expansion of the domestic market
With the advancement of energy-saving and emission reduction demonstration projects in key domestic fields, Beijing has implemented an action plan to phase out incandescent lamps. However, when it comes to the choice of alternative lamps, the city last year included LED lamps in the government subsidy promotion catalog for the first time. Last year, Beijing used government subsidies for the first time to promote 450,000 LED lights.
At the "Citywide Energy Saving and Consumption Reduction and Evacuating Cages and Birds Work Conference" held on April 24 this year, information came out that our city will implement LED lighting renovations for government offices and promote LED street lighting renovations. This also means that LED lighting products are becoming one of the government's products of choice in terms of energy conservation and emission reduction.
More and more cities are including LED lighting products in their promotion catalogues, which has also led to a major expansion of the domestic LED lighting market.
A research report released by Shenyin Wanguo Securities believes that due to the maturity of LED lighting industry technology and continued cost reduction, the LED home lighting market has opened up. LED product prices have dropped significantly while technical indicators have become increasingly good. From 2013 to 2015, the penetration rate has continued to increase rapidly. It is expected that global LED lighting will grow by 90% in 2014, and the quantity penetration rate will reach 20%.
According to the "Semiconductor Lighting Energy-saving Industry Plan" jointly issued by the National Development and Reform Commission, the Ministry of Science and Technology and other ministries and commissions, the output value of the LED lighting energy-saving industry will grow at an average annual rate of about 30%, reaching 450 billion yuan in 2015, of which 180 billion yuan will be in LED lighting application products.
The product sales structure of Ningbo lighting industry also confirms this judgment. Statistics from the Ningbo Lighting Association show that last year, the number of companies engaged in the production of LED lighting products in our city reached a record high of more than 1,100. The total sales of the lighting industry were approximately 45 billion yuan, of which LED accounted for 23 billion yuan, surpassing traditional lamps for the first time. Sales of LED products last year increased nearly seven times compared with 2008.
Ningbo LED companies have opened online stores to build brands
Ningbo is a well-known lighting production center in the country. In the field of LED lighting, Ningbo also has more than 1,100 finished product or accessory companies. The LED products of some large companies have mature technology and reliable quality.
But for a long time, the products of Ningbo LED lighting companies have mainly been oriented to the international market. However, with the rapid launch of the domestic market, Ningbo LED companies have also increased their efforts to expand the domestic market. "Most of Ningbo's LED lighting companies are export-oriented. Although their technology and product quality are good, their brands and sales channels are relatively weak," Ren Fengbo, secretary-general of the Ningbo Electronics Industry Association and Ningbo Semiconductor Lighting Branch, told reporters. But this situation is quietly changing.
On the roads of Hongtang Street in Jiangbei, the street lights here have been replaced by LED street lights. It is reported that these LED street lights are produced by Ningbo Liaoyuan Lighting Co., Ltd. In the future, they will also target the city's road lighting market. According to reports, due to being one step ahead in the road lighting market, Liaoyuan Company's products have been used in street lighting and landscape lighting projects in many domestic cities.
Like Liaoyuan Lamps, Sengpu Optoelectronics is also targeting the domestic market. At the end of last year, Ningbo SUNPU Optoelectronic Semiconductor Co., Ltd., located in the High-tech Zone, officially opened a store on Tmall under the brand "SUNPU LED" and launched five series of LED lighting products. This is Ningbo’s established LED company’s attempt at e-commerce.
Another fast-growing export-oriented lighting company, Ningbo Kaiyao Electrical Manufacturing Co., Ltd., has also set its sights on the domestic market. Shen Yanwei, general manager of Kaiyao Electric Co., Ltd., told reporters that Kaiyao's LED products are mainly indoor lighting. The LED product development plan covers household, industrial and mining, office, commercial lighting, hotel, outdoor, construction, sports venue lighting, etc. Currently, Kaiyao has built a dealer network covering all parts of the country and plans to spend 3 to 5 years to achieve both domestic sales and foreign trade.
"The domestic market is huge, and governments across the country are currently considering including LED in new promotion plans. At the same time, due to lower prices, it is a general trend for LED products to enter home lighting, so business opportunities in the domestic market must not be missed." Ren Fengbo said. According to her, there are currently hundreds of Ningbo LED lighting companies taking various measures to expand the domestic market.
Continuously develop new products to improve competitiveness
In the process of expanding the domestic market, LED lighting companies in our city are still working hard on their strengths - technology and quality, and strive to provide products to domestic customers with optimal product cost performance and service life to ensure competitiveness in the domestic market.
Shengpu Optoelectronics originated in 1990 and is one of the earliest LED packaging companies in my country. In order to provide LED products with the best cost performance and diversified expressions, the company has been committed to technological updates and product research and development to avoid the "dead end" of homogeneous competition. Shengpu Optoelectronics invited LED experts from well-known Taiwanese companies to conduct in-depth cooperation with Shengpu Optoelectronics, and established a R&D department with local R&D personnel as a technical backing for the company's market expansion. Shengpu Optoelectronics chose integrated light source COB packaging technology. This technology not only reduces production costs, but also makes efficient LED light sources possible. With COB packaging technology, Shengpu Optoelectronics began to enter the LED lighting finished product industry. In addition to producing high-end LED device packaging, automotive LED devices, COB integration technology development, COB light engines, street lights and tunnel lighting engines, system integration technology development and other products, it also developed LED fluorescent lamps, spotlights, bracket lamps, ceiling lamps, industrial and mining lamps, light strips and other products. Zhang Riguang, general manager of Shengpu Optoelectronics, said, "As an enterprise occupying the midstream market of LED lighting, we cannot give up the downstream market, but technology will always be the main force for market expansion."
On April 24 this year, the United Nations Development Program, the China International Economic and Technical Exchange Center of the Ministry of Commerce and Ningbo Kaiyao Electrical Manufacturing Co., Ltd. signed an agreement to promote energy conservation projects. According to the cooperation agreement, the United Nations Development Program will assist Ningbo Kaiyao Electrical Manufacturing Co., Ltd. to establish a United Nations Development Program energy-saving production demonstration base in Ningbo. Ningbo Kaiyao will obtain advanced foreign technology and equipment through the platform jointly established by the United Nations Development Program and the China International Economic and Technical Exchange Center of the Ministry of Commerce, so that Ningbo Kaiyao's production equipment and manufacturing processes will be in line with international standards and enhance market competitiveness. Ningbo Kaiyao will invest 10 million yuan in this project for a period of three years. Shen Yanwei, general manager of Kaiyao Electrical Appliances, said that cooperation with the United Nations will, on the one hand, enable Kaiyao to demonstrate in terms of energy conservation and emission reduction, enhance the brand's influence and promote the expansion of the domestic market; on the other hand, it will also help Kaiyao reduce energy consumption in the production process, thereby reducing costs.
As one of the earliest companies in Ningbo to enter the LED industry, Self Electronics has become the fourth company in my country to have CTDP laboratory qualifications awarded by the U.S. UL Laboratory after world giants such as Osram, Philips, and General Motors. This means that the company has an excellent product quality monitoring system.
"Ningbo's LED lighting industry is not the largest in the country, but it is relatively advanced in technology. Among the 10 companies in the National Semiconductor R&D Alliance, Ningbo companies account for 3, which also illustrates Ningbo's technical strength in the LED lighting industry." Ren Fengbo believes that with the expansion of the domestic market, Ningbo will form a large-scale modern LED lighting industry with a complete industrial chain and independent leading technology while providing technology and products to both domestic and international markets.
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