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Compare the price war participants and opponents to see the LED industry situation
In April 2015, Philips launched a three-month promotional Philips LED A19 in the North American market, with two LED bulbs for $4.97. On April 20th, Philips Lighting released a new Mingshang family in Hangzhou. At the meeting, Philips said that in the future, the price of Philips lamps may be lower than the price of lamps in Foshan Lighting and Mulinsen Lighting. As soon as this statement came out, the industry was in turmoil. The price war between LED bulbs and lamps has kicked off. Then, Opp launched a 1.2M LED T8 lamp with a price of 9.9 yuan for the hardware channel. In mid-May, Foshan Lighting issued a price adjustment notice, 1.2M LED T8 glass tube, the price was adjusted from 13.5 yuan to 9.98 yuan. In June, Mulinsen lowered the price of the market to 8.5 yuan from 12.5 yuan. Huaqiang Benbang even announced that the T8 lamp shipments are expected to be at the price of 6.8 yuan. The LED price war has entered a comprehensive heat, which has a serious impact on the entire LED industry. In the second half of 2015, the price of cheap, simple-design LED bulbs introduced by Philips has dropped to the lowest level of US$11.2, but it does not stop, requiring ODMs/OEMs in China and Taiwan (original designer manufacturer/original equipment) Manufacturers) lowered the LED bulb ex-works price to $0.8 in 2016. The pros and cons of LED price wars have caused widespread debate in the industry. Now, 2015 is over, and for the price war, it is time to conclude. In fact, LED price wars are not happy, LED price war is not a winner! Philips: unable to make ends meet, quality exposure According to reports, Philips announced a net loss of 39 million euros ($ 42 million) in the fourth quarter of 2015, compared The net profit for the same period last year was 134 million euros, a very large gap. Philips said its healthcare division benefited from strong orders and favorable exchange rate effects, with sales up 15%. The reason for the loss is largely due to pensions and other special project expenditures, which make it impossible to make ends meet. Philips lighting business sales increased by only 3%, which is equivalent to the global LED industry growth rate of 2% in 2015. Moreover, this 3% growth rate comes from the divestiture of the lighting business, and its operating results have improved, otherwise, the performance may be even more bleak. The quality of Philips lighting products was exposed twice in Europe and the United States in the second half of 2015. The US Consumer Product Safety Commission imposed a $2 million civil penalties on Philips Lighting North America for several accidents caused by the company's fluorescent lights. In addition, the Swedish Consumers Association has criticized the Philips lighting product's virtual standard parameters, a 28-watt Philips halogen bulb is 24% lower than its claimed brightness. Although the products of these two exposures are not LED products, the cost of LED products under the price war is severely compressed, and the quality problems are also seriously tested. Op Lighting: The market is unfavorable, and the pain has just begun as a large enterprise in the domestic LED lighting industry (revenue of more than 2 billion yuan), but it still suffers from the IPO, and the LED companies of the same level have already The listing of A shares was completed. The reason is alleged that the performance of Ou Pu is too volatile, and the IPO official has asked him to re-count the performance. In 2012 and 2014, compared with the steady growth of about 10% of revenue per year, the growth rate of Opp's net profit was 186%, 11% and -38%, respectively, and the fluctuation was very obvious. Although OP has not released its 2015 performance report, it is still not optimistic. Ou Ding China CEO Ding Long once said: The painful days have just begun! For the fundraising of about 1.2 billion yuan for IPO, Op has also admitted that in the fiercely competitive environment, there are factors such as unfavorable market development, resulting in idle capacity. risk.