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Recently, the EU issued the "Latest Energy Efficiency Regulations for LED Lighting Products", which puts higher requirements on the functionality, safety and energy efficiency of LED lamps and their equipment. This means that the LED enterprises exported to Europe will soon accept new ones. test.
In my opinion, the improvement of technical requirements and costs will be a blow to LED SMEs, but it is good news for big companies. Luo Xuecheng, director of the Strategic Development Center of Zhejiang Deep Optoelectronics Technology Co., Ltd. said that in the past few years, because of the fierce competition for homogenization, LED products are facing the pressure of falling prices while the material costs are rising. The LED industry, which is facing the survival of the fittest, will accelerate the reshuffle after the EU introduces new regulations.
The new energy efficiency requirements of the new standard 2.2 times the export production cost increased by 20%. The reporter learned that according to the recent EU Energy Efficiency Regulations for LED Lighting Products, the new energy efficiency regulations are aimed at LED bulbs and directional light sources, which are divided into three stages. Implementation: September 1, 2013, September 1, 2014 and September 1, 2016. Among them, after September 1, 2014, LED lights with an energy efficiency index above 0.2 can enter the EU market. This standard is 2.2 times the current implementation standard in China. In addition, the official website of the AQSIQ shows that after the implementation of the new regulations, it is necessary to increase the cost of certification and random inspection of individual products by about 10,000 yuan. According to the previous requirements, most export enterprises can meet the standards. After the new regulations come into effect, more costs will be needed to improve the energy efficiency of the products. Luo Xuecheng said.
Indeed, the technical barriers brought about by the implementation of the new regulations are undoubtedly another heavy hammer after the export pressures such as the appreciation of the renminbi, the reduction of export tax rebates, the rise in raw material prices and anti-dumping. The increase in export costs of LED companies is mainly reflected in the cost of materials. Before you can use ordinary drivers, you must use more energy-efficient components to increase the cost to some extent. In the past, some weaker companies did not strictly follow the international standards for product design and certification in order to reduce costs. Now the implementation of the new regulations will definitely lead to the corresponding adjustments in design, material selection and packaging methods. In order to meet the requirements for entering the European market. Some analysts pointed out that in order to meet the new energy efficiency standards of the EU, the production cost of the relevant export business of enterprises needs to be increased by 20~30.
Low-price competition is no longer a problem, and SMEs are either exporting or being trapped because the new energy efficiency regulations have just been implemented, which will have a great impact on the company. It is not easy to say at present. But one thing is certain, that is, for small businesses, this is undoubtedly a good one, either to choose product upgrades or to be rejected. Luo Xuecheng said.
For the domestic LED market, Luo Xuecheng used the word chaos to describe it. The domestic LED market is mainly based on midstream and downstream products. Due to the lack of upstream core technology, the emerging market in China, which is developing rapidly with LED, is deeply immersed in homogenization competition. Luo Xuecheng said that the price of LED is falling by 30% every year. The reason for this price drop is a vicious price war. Therefore, companies can only use inferior materials to alleviate cost pressures.
In exchange for the price advantage in exchange for quality is the true portrayal of the domestic LED industry. Zheng Xingliang, the person in charge of Zhejiang Dapu Electric Co., Ltd., also said this. He gave an example: Zhongshan Zhongshan is the main production base of LED products, including thousands of small and medium enterprises. In order to reduce costs and seize the market, many companies use scraps as materials, and the LED lamps produced have a shelf life of only a few months. This practice has made domestic enterprises lose their reputation while winning the market. Zheng Xingliang said: Now, the improvement of new energy efficiency standards has led to an increase in the production cost of enterprises, which means that small enterprises with low profits will no longer exist and will face greater difficulties.
In Luo Xuecheng's view, it is not a very unexpected thing for the EU to introduce new energy efficiency regulations for LEDs. It can be said that this will happen. China's LED exports account for 65% of the world, of which exports to the EU accounted for half. Although most domestic enterprises are mainly OEM, the independent research and development capabilities are weak. However, it is undeniable that domestic entrepreneurs still value the industry. The total investment in these two years has exceeded that of Europe and the United States. Moreover, more and more people are paying attention to independent research and development. In some aspects of technology transformation, domestic enterprises even exceed European and American enterprises. This allows European and American countries to raise standards to limit the export of our products, so as to protect the development of their domestic industries.
Some insiders have analyzed that the technical barriers of the EU will not be the only one in the world. Domestic LED lighting companies should be alert to the risks of international trade friction. With the rapid growth of LED lighting exports year after year, the international market is becoming saturated. It is bound to adopt anti-dumping and countervailing trade sanctions against China's LED industry. Enterprises should strengthen the construction of core technologies and carefully study the relevant laws, regulations and standards of foreign markets. Do a good job in dealing with trade frictions, and actively explore emerging markets such as Latin America, Africa, the Middle East and Southeast Asia, and reduce dependence on European and American markets.
The market is pushing for technological upgrading. In fact, both Zheng Xingliang and Luo Xuecheng believe that the introduction of new regulations is a risk and opportunity for enterprises: a group of products that fail to meet the standards will be blocked and gradually become market. Eliminated; and those with good quality will go better and better.
Moreover, the country has successively introduced a series of policies from last year to guard against overcapacity in the LED industry. This is also the adjustment made by the relevant departments after they realize that the industry has been in trouble. It can be said that the EU's new energy efficiency standards only accelerate the reshuffle of domestic LED companies. Luo Xuecheng said that demanding technical standards will eliminate enterprises without quality assurance and value bottom line, in order to produce quality products.
Raising standards and limiting exports does not mean that demand is decreasing. In fact, in recent years, both domestic and international markets, the demand for LED products is growing at a rate of 20 to 30. Orders placed under the new regulations will be divided up by some big companies with strong technology. In Luo Xuecheng's view, the technical threshold of the new regulations will keep some of the low-quality products that rely on price wins out of the door, clean up the market, and provide opportunities for high-quality products to regain market share.
When asked if he would worry that the EU's new energy efficiency regulations would affect the export of Deep Optoelectronics, Luo Xuecheng did not care. The impact should not be too big. Now the company's exports are mainly aimed at the Americas, Southeast Asia, the Middle East and other regions. These are emerging markets and relatively easy to enter. Luo Xuecheng said that in the LED industry, the EU is a very mature market. Most companies have set their sights on it. The competitive pressure is too great. It is better to develop some emerging markets and seize market share in advance. Although the threshold of emerging markets is relatively low, Deep Optoelectronics has a sense of crisis early, putting independent research and development in the first place. In addition to the development of a rotary LED lamp automatic assembly machine to replace the traditional manual assembly technology to achieve machine substitution, the company is also developing technology and green communication system for controlling lamps through WiFi, combining routers and LED lights to Seize the market.
Zhejiang Dapu Electric Co., Ltd. is more willing to face the EU's new energy efficiency standards. Now, our company's main export market is in Germany, Italy and other countries, how to seize market share? We can only work hard on technology and quality. Zheng Xingliang said that the cost of production of our company's products is particularly high. The chips of our products are imported from well-known companies, and the life of the lamps produced is up to 50,000 hours. Moreover, we are also very willing to invest in the material. In terms of the lamp shell (the bottom of the shell), most of the lamp shells produced in Zhongshan, Guangdong, are only 1.5 kilograms, while ours has 2.5 kilograms, which is completely unwilling to cut corners. This has allowed us to be recognized by many customers. Zheng Xingliang gave an example. The LED product produced in Shenzhen is priced at $3, and his product is priced at $10, but there are still many orders.