Last year, the scale of mainland LED application market exceeded 200 billion yuan, of which indoor lighting accounted for nearly 30%. It is estimated that by 2015, the proportion of indoor lighting will further increase to more than 40%.
With strong support from the government, increasingly mature technology, falling costs and further opening up of the market, Foshan lighting companies have begun to develop "blood-making" capabilities in promoting LED products. LEDs are entering thousands of households. At the same time, price wars have begun to appear in the market. Last year, the decline in some products even reached 50%, which worries Wu Yulin. He pointed out that price cuts by leading companies play an important role in accelerating the popularity of LED products, but price cuts will be a severe test for the survival space of many companies.
Long-term reliance on policy support and blind participation in price wars are not long-term solutions. Wu Yulin received inspiration from the Frankfurt International Lighting Fair held this month and believes that there is great potential for enterprises in Foshan and Germany to jointly develop the LED market. He said that he has participated in lighting exhibitions for 10 years. In previous years, some European exhibitors were relatively repulsive to Chinese companies. However, this year, they were uncharacteristically recognized for the Chinese market and expressed a strong intention to cooperate.
He further analyzed that "Buddhist enterprises have good manufacturing capabilities and financial strength, and combined with Germany's cutting-edge technology, they will definitely be able to generate strong market competitiveness." According to reports, Foshan has established a special working group to serve foreign-funded enterprises investing in Foshan. For this purpose, the German VJP law firm has also been introduced.
In addition to conventional cooperation methods such as "OEM", Wu Yulin also emphasized the introduction of German technology to make up for the shortcomings of domestic cutting-edge LED technology. He said that although domestic R&D technology has improved, it is still more than ten years behind the international top level. In the future, if domestic companies want to dominate the industry, the most efficient way is to "borrow their brains." "To make the overall price competitiveness of the Chinese industry strong, we must break through chip technology problems. In this regard, we can cooperate with foreign chip companies."
In addition, Wu Yulin also talked about the importance of improving product design. "With the increase in labor costs and energy costs, the original advantages of domestic enterprises have gradually disappeared. One of the keys to achieving sustainable development of the industry is to focus on design and improve the artistic level of design, thereby increasing the added value of products."
ANNA