[Annual Meeting] Zhongheng Paiwei special round table dialogue (2): price reduction is not possible to reduce the cost of LED power system

[Text / high-tech LED Gan Qin] Although the demand for LED lighting continues to rise, but the reduction in profits caused by price cuts has caused many manufacturers to face losses, it is understood that the overall price of LEDs this year fell by 30 to 40%, especially under In the past six months, there has been a dip-like decline, and some product prices have even reached the material cost level.

Even if the price has fallen and then fell, the downstream lighting companies' demand for price cuts is still very strong. In order to meet the needs of lighting companies, power companies are also racking their brains to consider how to reduce costs.

“As the application-side customers become more and more professional, the requirements for power supply are gradually improved. In the current situation of more and more attention to product quality, it is also necessary to take into account the price reduction demands of lighting companies. Does LED power supply have room for price reduction? How much can it be reduced? How to drop?" In the special roundtable dialogue of the 2015 high-tech LED annual meeting, the chairman of Zhongheng Paiwei, Ye Jianbo, the chairman of the board, raised questions.

In fact, LED power supply as an important part of lighting, the proportion of its cost is increasing year by year, coupled with the added value it can bring in the future, the price reduction of power supply will not be too high.

"The price of the overall power supply product is down by 10%. The fact is that it is difficult to reduce the cost of electronic components and processing costs in the power supply." Liu Hai , general manager of Zhongheng Paiwei said, "I don't think the future focus should be Consider how to cut prices, but think about how to make the LED power supply level higher."

Usually, the power supply company is pushing the product in advance and pushing the product in advance. However, this year, the industry has found that there is no good plan to push it again. This shows that the various programs in the industry are very mature, and the more this is the case. The future form is also more severe.

In the face of such a living environment, how should power companies respond to the price cuts of downstream companies?

Zhao Nannan , director of Igor's LED business unit, said, “You can't just fight the price war. Igor will use the scale effect under the premise of ensuring quality, and improve the management level and profit space in labor.”

To be sure, although LEDs are still facing pressure to continue to cut prices in the short term, prices are close to the production costs of many manufacturers. It is expected that as more and more manufacturers exit the market, power companies will focus on how to improve product performance. .

Wang Caixiang, general manager of Kegu Power, hopes to achieve the goal of price reduction in disguise by introducing new products and improving product performance without lowering the price. “We have introduced two-stage products to replace the previous monopolar products. The price is almost the same as a single-level product."

Ye Jianbo, chairman of Zhongheng Paiwei, suggested that in the case that it is difficult to reduce prices with a single product, it is possible to try to reduce costs by introducing a system. "With intelligent lighting as an example, if a complete set of intelligent control systems is available, The role of cost reduction."

In addition, Ye Jianbo also proposed a cross-industry cooperation approach to get the full use of customer resources. “At the moment, we are working with Samsung to focus on the same positioning and maximize resources.”

In the lighting industry, nearly 4,000 companies have disappeared today, and the situation is not optimistic. As the front-end industrial chain of lighting enterprises, we must not only focus on how to cut prices, we must open up ideas, change concepts, and seek new profit models for enterprises.

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