2013 LED backlight market demand exceeds expectations

On January 16, 2013, the 3rd Tokyo Lighting Show 2013 began. The exhibition lasted for three days. Many manufacturers aimed at the Japanese LED lighting market. Taiwan’s LED makers such as Jingdian, Yiguang, New Century, Guanglei, Lunda, and Liyuan, etc. Have participated. Among them, Taiwan's LED godfather Yi Geng, chairman of Ye Guang, said that the state of the LED industry in 2013 was much better than that of 2012; Jing Bing Chairman Li Bingjie also stated that the market demand for LED backlighting exceeded expectations in 2013 and will enter the peak season from March onwards. It is expected that the market will take a turnaround earlier than previously expected (2014).

Traditional lighting companies make their fortune through distributor channels, and the facts prove that the traditional distributor channel is successful. Even if it is a traditional strong brand such as NVC, Op, and Sanxi, it still depends on traditional dealer channels. However, with the advent of LED lighting products, it has caused great impact on traditional lighting companies, and its traditional dealer channels have become more crowded. LED lighting has since entered a diversified era.

According to statistics, the domestic LED lighting companies have exceeded 10,000, LED application companies nearly 7,000, and most LED lighting business personnel from traditional lighting companies turn over, because of the shackles of the mode of thinking, most of the market strategy using the layout of the terminal channel market To join dealers based.

The 2013 Tokyo Next Generation Lighting Fair began on January 16, 2013. The exhibition lasted for three days. Numerous manufacturers are targeting the Japanese LED lighting market. Taiwan’s LED makers, Crystal, Everlight, New Century, Guanglei, Lunda, and Liyuan All have participated. Among them, YiGuang Chairman Yipiao Ye (Taiwan LED Godfather) stated that in 2013, the status of the LED industry improved a lot compared to 2012; Jingdian Chairman Li Bingjie also stated that in 2013, LED backlighting market demand exceeded expectations and will enter the peak season from March. And it is expected that the market will take a turnaround earlier than previously expected (2014).

Investment Highlights

The LED lighting era is expected to come early. Luminous efficiency continued to increase, production efficiency gradually improved, and equipment yield steadily improved. LED epitaxial, chip, package, and lighting product prices steadily declined. The price gap between LED lighting terminal products and conventional energy-saving lamps is gradually narrowing. From the end of the year to the end of the year, new products are intensively released by various manufacturers, and the technical indicators are further upgraded. The prices are even more favorable. It is expected that with the 2013 Tokyo Next Generation Lighting Fair. (January), Tokyo International Lighting Fair (March), Hong Kong Spring Lighting Fair (April), Frankfurt Lighting Fair (April), Las Vegas Lighting Fair (May), Lighting Exhibition of Lyon, France ( In June, such as the International Lighting Exhibition held, LED lighting will become the protagonist, is expected to catalyze the accelerated penetration of LED lighting.

The LED lighting industry in the electronics industry or ahead of schedule is expected to continue to make major contributions to LED backlighting in 2013. With the increasing proportion of TV sizes and LED penetration rate, TV backlight applications are expected to continue to grow. In addition, with the popularity of flat panels, new areas of LED backlight applications will be filled. As a whole, it is expected that backlight will still exist in 2013. With good performance, mainland China is expected to outperform the world as it replaces with localization.

The performance is expected to usher in a rebound in January-February 2013 after the Spring Festival. As the main application of LED is still backlighting, it has seasonal characteristics. Since November 2012, it has shown a gradual decline in the ring ratio. It is expected that with the supply of backlight inventory in the January-February period of the Spring Festival, it is expected to drive the industry to gradually recover and drive the industry. The performance rebound continues into the middle of the year; in the second half of the year, it is estimated that from the beginning of August to September, along with holiday promotions, the cost performance of entrained lighting products will further increase, and it is expected that the backlight will be gradually renewed, which will drive the LED industry as a whole.

Due to seasonal characteristics and poor overall performance in 2012, although the market has already anticipated, the stock price of the entire sector is still restrained before the annual report.

Investment Strategy and Recommendations:

LED backlight: Infiltration continues to increase and domestic transfer substitution accelerates. It is expected that the space will remain large in 2013. It is recommended to pay attention to: Ruifeng Optoelectronics, Dongshan Precision, and Zhaochi. LED lighting: In the second half of the year, it is hopeful that the backlight will be continued in the second half of the year. The era of LED lighting may come early. It is recommended to pay attention to export and LED street lamp related companies, Hongli Optoelectronics, Maoshuo Power Supply, and Sunlight Lighting.

Traditional lighting companies make their fortune through distributor channels, and the facts prove that the traditional distributor channel is successful. Even if it is a traditional strong brand such as NVC, Op, and Sanxi, it still depends on traditional dealer channels. However, with the advent of LED lighting products, it has caused great impact on traditional lighting companies, and its traditional dealer channels have become more crowded. LED lighting has since entered a diversified era.

According to statistics, the domestic LED lighting companies have exceeded 10,000, LED application companies nearly 7,000, and most LED lighting business personnel from traditional lighting companies turn over, because of the shackles of the mode of thinking, most of the market strategy using the layout of the terminal channel market To join dealers based.

It is difficult to compete for distributors

At present, excellent dealers in various provinces in China are scarce resources and are still monopolized by traditional lighting companies. The second and third-tier lighting dealers are affected by the regulation of state real estate. The days are even more difficult. As far as the Shenzhen market is concerned, since July of this year, some dealers in the building materials market have been withdrawing due to capital chain breaks. For example, art dealers withdrew from the 6th, another withdrew from the 3, and Huaqiangbei LED procurement center. The average monthly withdrawal of two and so on.

Obviously, when the lighting distributors in the country are facing the cold market, traditional lighting companies and LED lighting companies have to seize the end market, and the result must be the channel for most companies to die.

Since last year, LED export enterprises have turned to domestic sales due to sharp drop in orders. For LED lighting companies, entering the terminal channel market either finds franchisees or directly enters terminals to open branded outlets. However, it is very difficult to develop franchise dealers. Most lighting dealers choose LED lighting companies to be more cautious. The reason is that the terminal market is flooded with inferior LED products, and there is no real LED brand in the terminal market.

Provoke price war to build brand

At present, there are too many LED companies in the market, and some companies have provoked a price war. If they want to eliminate their opponents and land on the beach, the representative is Mulinsen. Mulinsen's 3W bulb lamp gives the dealer a price of 8 yuan, and the distributor sells the terminal at a price of about 14 yuan. The price of the Mulinsen 3W bulb lamp is already very close to the price of the 5W energy-saving lamp on the market. It poses a threat to 5W energy-saving lamps.

The looting of the terminal market around lighting dealers has become more intense. The rectangular lighting adopts the exhibition board mode to open the door of the dealer. As long as the dealer is willing to sell the rectangular lighting products, they send the exhibition boards, prepare the model, and do not need the distributors to press the stocks. The sales are completed and then delivered to the door.

Long-range lighting quickly deploys the national market in this way, which is also the current market strategy adopted by most LED companies. In the current situation of the entire terminal market environment is uncertain, dealers can not press inventory, and LED lighting companies to adopt this channel layout model, many lighting dealers are very happy to accept, but this model requires companies have a strong logistics and distribution capabilities .

Although most of the LED lighting companies have succeeded in the initial operation of the terminal market, such as rectangular lighting, Mulinsen occupies the terminal market share by low-cost bulb lamps, and then stepped into the public through LED bulbs to establish a brand in the minds of consumers. Vision, but this strategic model is entirely the old line of traditional lighting companies.

Previously, by defining ceiling lamps, NVC entered the public view by defining the lamp cups and transformers and by defining ballasts. There are fluorescent tubes, T8 lamps, in fact by the Foshan lighting, Philips and other lighting companies to redefine, Philips defines the high-end price line, Foshan lighting definition of the low-end price line and thus began to popularize T8 lamps and fluorescent tubes. From the perspective of the development of the traditional lighting industry, in the next 1-2 years, there will be LED lighting companies or traditional lighting companies to define a certain category of LED product categories, which began to popularize LED lighting.