China's driving power market has developed rapidly in recent years, and the competition in the industry has been intensified. Among them, the use of indoor functional lighting LED lighting small and medium power drive power because of the relatively low technical threshold, more entrants, the market competition is particularly fierce.
Because of the complex and changeable economic environment at home and abroad, in the past two years have led power companies to give notice, because of overcapacity and industry debts lead to cash flow difficulties, decided to clean up and hold suppliers to declare and liquidate the claims.
According to GGII analyst analysis, "Faced with fierce price competition, power supply manufacturers in the constant adjustment of prices, product prices have been bottom, more difficult is some raw materials and labor costs are still rising." Therefore, in the next year or two there will be a large number of small-scale power supply manufacturers closed. ”
The market tends to centralize, the small and medium-sized enterprises live "uncomfortable"
Since the second half of 2016, led indoor functional lighting industry high-speed development, LED power supply output value of the scale also increased rapidly. According to the Institute of LED Research (GGII), the 2016 China indoor functional lighting Drive power output value of 13.1 billion yuan, a year-on-year growth of 13.2%, the growth rate compared with 2015 increased by 6.9%.
From the data, China led indoor lighting driving power Market shows a rapid growth trend. Ggii predicted that in 2017, China led indoor functional lighting power supply output value of more than 16.1 billion yuan, the year-on-year growth rate can reach 23.4%. 2020, China led indoor functional lighting drive power output value of 24.6 billion yuan. 2017-2020, China led indoor functional lighting drive power supply output value scale annual composite growth rate of 15.2%.
Although 2017 will still be a hard year, but the huge market space for a certain size and better customer quality of the enterprise is a full of fighting for a year, with the reduction of competitors, market concentration of the promotion of these enterprises to the future of the market full of confidence.
Lefford Project manager Li Shaoko said, "in the first half of this year, the industry as a whole better than in previous years, large led power supply manufacturers to maintain the growth, but for small and medium-sized power companies will still live more" uncomfortable. ”
Reporter to check the financial data found that the first half of this year many new Sanbanxi led driving power enterprises to achieve profit double. For example, the section Valley Power Supply (836751) first half of the net profit growth of 58.14%, the Ming Smart (871128) first half of net profit growth 45.41%, the first half of the Power (838918) net profit year-on-year growth 141.37%.
"Division Valley power in the first half to achieve profit double growth, mainly because the company increased production automation equipment, reduced staff costs, in the supply chain centralized procurement, effectively reduce procurement costs. In addition, the company's overall order growth this year digested part of the operating costs. "Tyco Power marketing director Li Chengbiao told the senior engineer led.
In addition, such as Igor, Lefford, Euchips, Zhang Fei power supply and other power companies have also achieved a different range of growth. It is reported that Lefford after the research and development, business, management, production and other aspects of adjustment, the first half of the revenue growth of about 60%.
According to the research, ggii analysts concluded, "The future led power industry is bound to be focused on the direction of development, that is, the larger the large factories, small plants, even to be annexed or closed down." ”
Li Shaoko also thinks, "as the industry reshuffle intensifies, the degree of centralization of the market increasingly high." Next, small and medium power enterprises want to break out of only two ways, either to invest in the development of differentiated routes, or face transformation or elimination. ”
Return to quality and increase gross profit
Earlier, small and medium power supply overall low price makes the product gross profit margin has exceeded the reasonable range, plus more and more enterprises followed the influx, in fact, we do not make money. With the increase of material cost more than the profit of the finished product elastic space, resulting in small and medium-sized power supply gross margin further decline.
Into the 2017, although the LED industry as a whole gradually warmed up, small and medium-sized Power Drive power supply companies have the opportunity to breathe, but the small and medium-sized power supply industry price competition, low gross margin problems still have not been effectively improved. In this context, small and medium power LED power enterprises to enhance the gross margin of the way out?
"The current market price of the entire power supply continues to decline, the human cost is higher, in the future we will vigorously explore overseas markets and high-end control products line." At the same time, in the second half of this year we will increase the capacity of 50%, improve automation, reduce manufacturing and management costs, to improve gross margin. Li Chengbiao said.
Because of the fierce market competition, the technology renewal cycle has become one of the main factors affecting gross profit margin. Li Shaoko Frankly, "in this context, enterprises to improve the gross margin needs to ensure the quality of the basis of cost optimization, which requires us to meet market demand for continuous product innovation, improve product function." ”
Indeed, technological innovation, the application of new technology and the development of new products are the key factors of the core competitiveness of enterprises, if enterprises can not maintain the ability of continuous innovation, or not timely and accurately grasp the product, technology and industry development trends, will weaken the existing competitive advantage of enterprises, thus affecting the competitiveness of enterprises and sustainable development.
Raw materials prices, small power supply price reduction is basically 0
As we all know, led high-end power supply has a large power, the use of harsh environment and expensive features, especially high-end power supply expensive problem is more prominent. For example, street lamp market, the overall street lamp market competition is more and more fierce, the price of products has been increasing, but the cost of power supply in the total cost of the ratio has been high, which leads to a gradual compression of profit space.
Many industry insiders predict that the next few years high-power outdoor power prices will continue to be lowered until the next smooth point. And the relatively small profit space of small and medium-sized power supply in terms of price still have room to reduce prices?
According to Li Chengbiao, "Indoor power prices in the first half of the 8% decline, but from the current trend of raw materials prices, the second half of the room power price reduction is basically not." Mainly because the general power scheme is basically mature, upstream supplier prices are also rising factors (plastic, PCB, transformers, packaging materials, etc.). ”
After several years of training, the current LED lighting industry has now gradually bid farewell to the past a price war market competition, enterprises also return to focus on product quality, service and other fundamental construction, better deep market to improve gross margin. The same is true for led Low-power power supplies.
"Today's market competition is already the product of quality and brand competition," said Zhang Fei, general manager of Power Yang Dong. For enterprises, if there is no profit, then the material will be considered repeatedly, dare not use high quality materials, products will not progress, let alone improve value-added, improve cost-effective. ”
Believe that, as the power users of the product safety and convenience of the pursuit of more and more high, a product as long as safe, long life, low rate of bad, even if the price is higher, customers can accept.
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