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With the global demand for LED lighting caused by the global whitening effect, the domestic LED enterprise has entered a period of high growth, and with the recovery of the European and American economies, the industry has shown a warmth. However, a number of lighting companies exhibiting at the Canton Fair said that policy support for the development of LED lighting may lead to a vicious price war between the industry and the loss of exchange rate fluctuations.
Orders in Europe and the United States have ushered in growth for nearly two years. The economic downturn in Europe and the United States has caused the Chinese LED lighting industry, which is dominated by overseas markets, to fall into a trough, and export orders have fallen sharply. In mid-2012, the European and American markets have also raised the implementation of new LED energy efficiency standards, which has made enterprises export to face higher thresholds and risks.
At that time, nearly half of our LED orders fell. Mao Jianjun, general manager of Ningbo Qincheng Foreign Trade Co., Ltd. said that the export losses to Europe and the United States were particularly large in 2012, and the product standards were difficult to meet the European and American market conditions. Later, they gave up the European and American markets and turned to Southeast Asia, South America and other places.
This situation also occurred in Gaoshan Lighting Co., Ltd., Foshan City, Guangdong Province. However, lighting companies are now feeling the recovery of the European and American markets at the Canton Fair. Qiu Jianlong, manager of Gao Xun Lighting's foreign sales center, revealed that at the Canton Fair in the previous two years, there were not many European and American customers coming to the booth. This year is obviously more than in previous years. Old customers have also increased orders. As for the sales in the first quarter, it has increased by 10.
Ningbo Xuri Lighting Co., Ltd. specializes in the European and American Christmas market. Its deputy general manager Lou Lusong told reporters that the current order volume has increased by 20.
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Policy support or price wars have intensified Although the improvement of the European and American markets has given the lighting companies a strong shot, companies are still worried about the losses caused by policy changes and exchange rate fluctuations.
According to the relevant national planning, from October 1, 2014, incandescent lamps will complete the historical mission and exit the lighting stage. Energy-saving lamps have also been included in the list of environmental protection. LED lamps will completely replace traditional light sources with high-quality features of energy saving and environmental protection. In 2014, the global LED lighting market will grow rapidly. As the main production base of global LED lighting, China will usher in explosive growth.
Qiu Jianlong told reporters: The state's support for the LED industry is good for enterprises, but if it is as supportive as supporting PV companies, it will be impossible to avoid price wars between peers and may bring vicious competition.
In addition, foreign exchange fluctuations affect the development of the industry. Mao Jianjun suffered a loss in the impact of foreign exchange fluctuations. He calculated the account for the reporter: When the customer quoted, the exchange rate of the RMB against the US dollar was 6.3 yuan, but the exchange rate may change to 6.2 when the customer settles, and the RMB appreciates. After that, the business of doing one million US dollars will cost 100,000 yuan. In the first quarter of this year, the RMB depreciated, and profits will rebound a little. In order to avoid this risk to the greatest extent, the companies where Mao Jianjun and Qiu Jianlong are located have chosen to buy the exchange rate cyclically.
For this year's sales situation, many LED exhibitors have indicated that the foreign market is improving, which will be much better than in previous years, but the product profit is too low, and the company is also investing in research and development of new products to increase market profits.
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