Growth Forecast and Manufacturer Dynamics of China's LED Lighting Market in 2013

China's LED lighting market size (RMB 100 million) source: ledinside

Ledinside said that thanks to intensive investment in lighting distribution by various manufacturers, the terminal sales price of LED lighting products fell rapidly and consumer acceptance improved. In 2013, China's LED lighting market had 24%, 96%, 28% and 46% growth in commercial, home, industrial and outdoor lighting respectively, and officially entered the era of mass distribution, The battle between traditional lighting and LED manufacturers to seize the LED lighting market is white hot. Whether LED lighting manufacturers can successfully occupy the market in the future depends on their distribution ability.

Observing the revenue of lighting manufacturers in 2012, traditional manufacturers such as Rex, OPP, Sanxiong aurora and Foshan Lighting have started to introduce LED lighting products to varying degrees. However, from the perspective of overall revenue, the proportion of LED lighting products is still very low. In order to avoid direct impact on traditional business, traditional lighting manufacturers are more conservative in the introduction of LED lighting product line and investment promotion policies.

With the cost advantage of packaging components, LED manufacturers such as Chinese manufacturer Mu Linsen and rectangular lighting officially entered the terminal pipeline Market with the image of "price butcher" of LED, which not only has more advantages in price than LED products under traditional brands, but also launched attractive investment promotion policies such as making up the price difference within three months in order to reduce the inventory risk of dealers. China's lighting pipeline controlled by the four major brands has gradually loosened, and many dealers have switched to emerging LED lighting brands under the encouragement of the huge business opportunities of LED lighting.

Taiwan manufacturers Yiguang, Addison and Dongbei are also active in the layout of the LED lighting market. Yiguang officially established a dealer system in China in 2013 to distribute and build through dealers, while Addison took the way of cooperation with traditional lighting plants to grab the big cake of China's LED lighting market. Dongbei cooperated with Hongyan Electric Appliance of Putian group to launch "Hongyan Dongbei" lighting products.

Ledinside said that for the industry, how to quickly sell the products and occupy the market has become a top priority. The sales channels of early LED manufacturers mainly focused on engineering and export, while the revenue model of pipeline models such as dealers, agents and specialty stores has not really taken shape. According to statistics, the revenue of Chinese LED manufacturers adopting channel mode accounted for less than 30% in 2012. With the increasing popularity of LED lighting products, manufacturers' sales channels can no longer be limited to engineering and export. In the future, LED lighting will be the same as traditional lighting, and distributors will win the world.