According to the latest LED light bulb retail price survey by LEDinside, a research institution, TrendForce, in June this year (2014), the global average retail price of LED light bulbs that replaced 40W showed a slight increase of about 0.9%, reaching $14.4. Among them, the price decline in the United States was more obvious. The global average price of LED bulbs replacing 60W dropped by 0.6% to US$19.4.
In the first quarter of China, the prices of products replacing 40W and 60W products fell significantly, with the overall quarterly decline reaching 19.7% and 9.8% respectively. Mainly due to the rapid price reduction of local brand goods, such as Foshan Lighting and Haide Lighting, etc., have continued to lower product prices. In addition, some high-priced items of international brands have temporarily withdrawn from the market due to adjustments in sales, which has also contributed to the decline in average prices. Currently, the overall price in China is the lowest among major regions in the world.
There is still a clear price difference between local brands and international brands in China's LED bulb market. Different from the low-price strategies adopted by major international manufacturers in the United States and Europe, the prices of bulbs from brands such as Philips and Osram in China are still much higher than the average. In addition, due to the disadvantages of cost and resources, it is currently difficult for international brands to compete with Chinese brands in terms of price. However, the low-price products of local brands are generally weak in terms of brand image and product performance, which also leads to the inability to quickly increase consumer acceptance and trust. Therefore, the growth of LED bulb market penetration cannot match the rate of price decline.
Price trends vary across regions, and the global average price fluctuates slightly
The average price of goods replacing 40W in the United States showed a sharp decline of 5.3% in June. The price of some original products has been significantly reduced during the promotion period. For example, the price of GE's 9W bulb has dropped by 30% in June. In addition, the price of Philips' 8W dimmable bulb has also been significantly reduced this month. The average price of replacement 40W light bulbs in other regions has not been significantly reduced this month.
Replacement of 60W products, prices in Germany dropped sharply by 25.4% in June. The prices of original products are basically stable or declining, and the prices of some products have been significantly reduced. For example, the price of LG 12.8W bulb has been reduced from US$14.8 to US$7.9. In addition, some of the original high-priced products have temporarily withdrawn from the market. For example, some OSRAM bulbs priced at more than US$30 have been discontinued this month. The price in Japan showed a sharp increase of 9% in June, reaching 18.3 US dollars. The prices of original products have been fluctuating, and some low-priced items have been temporarily discontinued, such as the KEIAN 12W 880LM bulb, which originally sold for about US$13.80. In addition, exchange rate changes also led to an increase in average prices.
ANNA