Some Predictions on the White LED Market Situation in the Second Half of 2013
If I had to use a single word to summarize the market trend of white LEDs in the first half of 2013, I personally believe 'bizarre' is the most appropriate. Just when major companies were still feeling the downturn of 2012 at the beginning of the year, news of an industry recovery had quietly spread among the industry; just when major media outlets were touting a recovery in the white LED industry, the disappearance of Xiongji's boss and Everlight's legal representative gave them a resounding slap in the face; just when industry insiders were still debating whether the market recovery was 'excessively overheated', the door of general lighting had quietly opened to LED lighting. "It is not that we don't understand, but the market is changing too fast." This statement is truly the best footnote to the market dynamics of white LEDs in the first half of 2013. However, merely summarizing the past is far from enough; our goal is to make reasonable predictions about the future based on summarizing the past. For the upcoming future, here are some predictions:
1. Quality and price remain the unchanging main themes: quality is the foundation, a powerful guarantee of product value; without quality, nothing can be discussed at all. This point can be proven by the incident of Xiongji's boss disappearing — companies that sacrifice product quality in pursuit of low prices will be on a dead end, but this statement is also true in reverse: products with high prices can easily be out of touch with the market. In view of this, grasping quality and positioning price are indeed important issues that test white LED companies. However, in our view, based on precise market positioning and market research, these are not problems. Therefore, companies that make decisions by guessing need to be careful — perhaps the next one will be you.
2. The explosion of white LEDs will not keep people waiting too long: I believe every LED person has such a dream in their heart — wake up one morning and ordinary families are all using LED lamps. From the 2013 market situation, in the not-so-distant future, this dream will become reality. Yes, you read that right — after the backlight source market has gradually matured and engineering lighting has risen vigorously, the general lighting market has opened its arms to white LEDs. Opportunities and challenges will be placed on the desks of corporate decision-makers at the same time. I believe the plans to enter general lighting are now on the desks of corporate CEOs.
3. Technology and distribution channels will be the two key tools for the future development of white LED companies: In an era when engineering lighting dominates the white LED industry, relationship marketing has always been a topic that companies and salespeople love to discuss. However, as orders for general lighting and engineering lighting ebb and flow, the position of distribution channels in marketing will become increasingly important. We can clearly see this in the channel competition between Everlight and NVC. In the future, companies with leading technology or channel advantages will occupy a place in the market, while companies that emphasize both technology and channels will gradually grow into industry leaders.
4. The era of standardization has arrived: All along, the lack of standards and the coexistence of multiple standards have always been the source of criticism of the white LED industry. In certain fields, national standards, local standards, and corporate standards have proliferated and even clashed with one another, plaguing the development of companies. In the not-too-distant future, industry standards will evolve toward greater clarity and stronger enforceability.
Standing on the past and gaining insight into the future is the foundation for companies to make decisions, and grasping and seizing the future is an embodiment of a company's soft power. In the second half of 2013, the white LED industry may experience explosive growth, and the opportunities it brings will be reserved only for companies that are prepared.