Strategies Unlimited analysts believe that the LED lighting market is growing, provided a review and forecast of the LED lighting industry. The presentation included a few product-specific market statistics & 2013 new LED lighting industry trends analyses from China LED lighting suppliers. Despite earnest governmental support and the awareness among lighting manufacturers of the need to develop LED lighting to upgrade the industry, China’s LED lighting industry, albeit having seen some progress, has a long road ahead.
While LED lighting is touted by especially makers to be the energy-saving, durable and remarkably performing lighting of the future, the lack of quality standards, and also effective enforcing agencies, prevents efficient development of the sector in China. In short, LED lighting calls for technologies that are likely sorely deficient in China, where most SMEs are sheepish to jump on the LED lighting bandwagon sans requisite background nor professional ethics, hence often producing subpar products.
LED Wardrobe Light LED Spot Light LED Cabinet Bottom Light
As usual China’s government stepped in to support the LED lighting sector to make up for its late entry, which has inadvertently spoilt the game by breeding reliance on official support, as well as discouraging private investment.
While competition has intensified in LED lighting with some operators managing to carve out niches, the game has veered out the weak, incompetent and also-rans, with governmental support, though necessary, able to benefit a few qualified manufacturers.
As in many other markets, most LED lighting businesses in China are also SMEs that have been sidelined due to competition, which some industry executives feel as beneficial for the sector in China, with which some disagree for they believe large-scale phase-out should happen upon market saturation.
Industry executives say public projects outnumber LED lighting markers, who should sensibly develop business in private sectors for sustainability.
As a late entrant, China’s LED lighting industry depends on the health of international and local economies. The EU debt crisis in 2011 and anemic recovery of the American economy that has sapped Chinese economic growth, have forced China to loosen monetary policy to fuel growth but control inflation. While Chinese wages have risen, LED lights remains relatively expensive to other options. So the slower economic growth in China has impacted the LED lighting sector to undermine sales. Leading to capital-shortage and de-stocking pressure.
On Jan.262011,Beijing banned multiple-home owners from buying more property, with over 40 cities adopting such rule. Depressed home buying also impacts the LED lighting sector, a trend exasperated by rising costs to LED lighting makers, who can choose between filling profit-less orders or go under.
In July 2012,the EU and the United States raised qualitative standards for imported LED lighting, which some industry executives say will sharpen China’s LED quality and competitiveness. However, those with dated LED technologies, especially ones with inadequate capital and expertise, may simply be left by the wayside by the higher standards. A crude example is to force a lowly-educated subcontractor of LED lights in rural Shandong to learn and turn out products that meet higher standards of CRI, per-unit-area luminosity, lumen-per-watt etc.
Despite having steady clientele worldwide, many Chinese LED lighting makers won’t be able to expand customer base due to the higher entry threshold.
Besides being a late entrant in LED lighting, China also lacks patented technologies that burden cost to the sector as the nation eagerly develops such lighting to save energy.
Amid many hurdles, an increasing number of LED-lighting manufacturers in China build brands and distribution channels as well as develop customized products to enhance competitiveness.
Quality China LED Cabinet Lighting Manufacturer:
Foshan Colourful Lighting Co., Ltd.