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Home  > Knowledge  >  Low Price is not Equal to Low-end, Domestic LED Urgently Need Identity Correction

Low Price is not Equal to Low-end, Domestic LED Urgently Need Identity Correction

2016-01-12

In the domestic LED market, the hat of low cost is on the head of domestic companies no matter you like it or not. When lots of supplier companies buy domestic LED, they equated domestic with low price unconsciously.

Recently, when GG LED was visiting a packaging equipment company, the chairman of the company said, one of a domestic equipment enterprise launched the wire bonding machine, the R&D team are the same people as ASM, the core components are imported. It is just the same quality as ASM, but the price is 30% cheaper than ASM. The most important thing is they are not recognized by customers.

Judging from the reaction of the market, homemade LED are doubted by people, while they are high quality and cheap in price. Does homemade LED should be labeled ”low price”? Is low price equal to low-end?

For this, Zhou shuiming, the manager of Jiamei Time Lighting said, low price is not equal to low quality, enterprises can reduce production costs through technological innovation and management norm, ensuring the quality while reducing cost. Thus, price has become a big advantage for domestic manufactures to counteract international manufactures.

In fact, only from the product the boundaries in domestic LED and international LED are not clear. In recent years LED localization rate is rising, which can see from the LED domestic market. 

The reason why some companies are questioning domestic products, and repeatedly asking reduce price, the Tongyifang LED manager said, the main reason is that, before this low price competition forced enterprise to reduce quality control standards, save costs from raw materials, which lead to uneven domestic LED product quality. 

However, after 10 years development of China LED industry, both the technology and the manufacturing capability has been close to the level of major international companies, the biggest difference is brand premium, Yangfan said.

One of the insiders said to GG LED, the reason why international LED product is expensive, part of the reason is its brand value, but their product value may not be able to reach their height of the mark price. Homemade LED main consider the price should meet the level of consumption of domestic customer. So the price is much cheaper than international LED.

The difference between the price will be a big advantage of domestic LED in the future. For the domestic LED has higher cost performance. But before this, we should let the - realize the quality between substantial domestic LED and expensive international LED is consistent, the insider said.

Domestic companies must insist on high quality, high standards, let product approach first-rate large scale factory by raw materials, production management, technology, development, stay the course, the brand value of China LED will rise gradually, said Yangfan.

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