Recently, an LED price war started by Dongguan Qinshang Optoelectronics Co., Ltd. has gradually started: at a recent press conference, the company announced that it will implement a "lighting replacement" wealth creation plan to capture a larger market share, and will reduce the price of many products. For example, a T8 lamp only sells for about 14 yuan. This move is most likely to be a loss-making sale, with a strong price reduction to swamp the LED lighting market.
Once the price war starts, who will win in the end?
As we all know, despite the large scale of the domestic LED optoelectronics industry, most of it still occupies the middle and lower reaches of the industrial chain. In key upstream areas such as chips, there are still no major innovative breakthroughs, making it difficult for domestic LED lighting product prices to come down. Especially in the field of civil lighting, the cost bottleneck has almost become the "Achilles heel" of domestic LED companies, and there is still no solution.
Of course, Qinshang Optoelectronics may rely on its large-scale mass production level to form a certain degree of product bargaining power, causing the price of product raw materials to fall relatively. Coupled with intensive procurement and its supply chain resources, it may become a "catalyst" to reduce product prices. But concentrating all these advantages cannot change the fact of "low profits" or even "sales at a loss".
In addition, for the LED street lighting industry, difficulty in payment is a common problem. In this regard, many ordinary LED companies have lost orders, but have been faced with long settlement times. However, in this round of price war, Qinshang Optoelectronics still claims to implement "free lamp replacement" and implants its innovative EMC+BT model to help owners carry out "zero risk, zero investment, high return" LED lighting energy-saving transformation.
This time, Qinshang Optoelectronics relied on its book cash of more than 1.7 billion to offer prices that may be lower than cost to attract downstream engineers and dealers to play with fire. But how long can Qinshang last?
It is still difficult to determine whether Qinshang can become the final "winner".
ANNA