2015 LED lighting market chaos to win

In 2014, the LED lighting market is very hot, and even more big giant lighting companies. Philips split, Osram layoffs, Samsung focus on semiconductor devices, NVC disputes, the market "chaos", the industry is more "chaotic." Entering 2015, how companies can win in the LED lighting market is the key to a decisive battle in the future.

Authoritative organizations predict that LED lighting will usher in a rapid growth of three years. In the past three years, the pattern of LED lighting industry will gradually be established and the industry reshuffle will become even more apparent. In the downstream applications, only companies that occupy the advantages of channels and have a competitive edge can survive.

LED lighting market broke out in three or four-tier cities

According to authoritative agency channel survey data, in the first half of 2014, the sales growth of LED lighting products in China's internal market entity dealer channel was around 27.8%. In the second half of the year, the growth of LED lighting products has slowed down due to the slowdown in economic growth in the country and the shrinking of real estate. In the first three quarters, the year-on-year growth rate of the entity dealer channel in the domestic market was approximately 25.5%, which was still much higher than that of other industries. According to the data from the National Bureau of Statistics, the average growth rate of China's GDP in Q3 2014 was 7.3%.

Judging from the market level and channels, in the first half of 2014, the second-tier market (mainly the second-tier cities) broke out, the penetration rate increased by a full 15.5 percentage points, and its sales increased by about 30% from the same period of last year. The performance of the third and fourth-tier markets in the third quarter was outstanding and became a bright spot. According to statistics, as of August 2014, sales in the third- and fourth-tier markets have increased by about 26% compared with the same period of last year, and its growth has contributed more than 40% to the overall market growth.

End-market competition creates new brands and impacts traditional brands

In addition, the survey data shows that the brand competition pattern of China's LED lighting product terminal market has taken shape. In the first three quarters of 2014, the market share of TOP3 brands in physical channel distributors was approximately 22.1%, a decrease of 18.4 percentage points from 2013, and the brand concentration of LED lighting market was significantly reduced.

From the perspective of market competition, traditional lighting brands still have certain advantages due to the resources they have accumulated over the years. Among the top 20 brands in the sales ranking, Optics, NVC, Foshan Lighting, Philips, Sanxi Aurora and other traditional brands still account for 15 seats. The other 5 seats were seized by emerging brands such as Mulinsen, Yiguang, Qinshang and Teyoushi. From the perspective of growth rate, the growth rate of emerging brands is much higher than that of traditional lighting brands. Mulinsen and Everlight are the two brands with the fastest expansion. At the same time, from the standpoint of single product, emerging brands began to attack traditional strong brands, and some brands have obvious competitiveness.

China's LED lighting industry network has recently learned that Mulinsen Lighting has learned that since the beginning of the year, Mulinsen has been “becoming able” to carry out the “Baihui Project”, Mulinsenwang Season, “Last Kilometer” channel competition, and other ordering and promotion activities. The channels have been expanded to four levels in cities, counties, townships, and communities. 17,000 effective sales outlets have been established nationwide, activating the capillaries of LED lighting. From March to April, 32 distributor conferences across the country harvested on-site orders of RMB182 million; sales from January to August were five times higher than the same period of last year; September was only 10 days and 12 conferences were held across the country; on-site orders were 105 million RMB. ... Mulinsen not only set off a sales climax in the industry, but also achieved a "three-step leap" from "corporate brand" to "channel brand" to "industrial brand", and became the most active and most dynamic brand in 2014.

Lin Linliang, general manager of Linlinsen Lighting, said that in 2015, Mulinsen continued to expand in the packaging field, while the downstream market should continue to expand the channel strategy, sank three or four-tier cities, and strive to become a well-known LED lighting brand.