Integration and intelligent design drive down the price of LED lights
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LED lamps that can replace 20W and 40W incandescent lamps are priced from $5 to $10. But for 60W, incandescent lamps that are similar in price to compact fluorescent lamps (CFLs) can be replaced by solid-state lighting (SSL) lamps. The high price means that the LED lamp market has lost its appeal to most countries and regions, with the exception of Japan. In terms of LED sales, Japan far exceeds the sum of North America and Europe.
With the arrival of integrated solutions, including more efficient design, easier manufacturing, and easier commercial negotiations with sales channels, the price of LED lights will decrease, said Vladislav Bougrov, executive vice president of OptoganGroup.
The new definition of the bulb replaces the traditional lamp. The LED lamp has the same energy saving, lumens, similar color temperature and high CRI characteristics, but the traditional lighting is difficult to define in these aspects. . Consumers are forced to quickly learn about LED lights and understand the factors that affect the price of LED lights.
Buying an LED light is like buying a durable, money-saving device. Japanese manufacturers popularize LED knowledge for consumers in all markets: packaging can see the difference between light distribution and lumen output between traditional and LED lights; the store is full of interaction, showing practical applications and LED lights and other types of lights The contrast between. US retailers’ efforts to spread knowledge to consumers have been slightly lost.
Manufacturers offer the same luminaires that replace traditional light sources with the same lumen output and chromaticity as traditional light sources. However, Vladislav Bougrov said that Optogan plans to introduce the company's new 400 to 600 lm 2700K lamps to the Russian and Eastern European markets, and the price of the products is much lower than the current market. Their marketing team has selected the product.
LED lamps are designed to provide an alternative to providing similar form factors and lumen output. However, consumers are only currently learning about the quality of new light sources, not knowing why they are not providing them with multiple lumen costs. The unique feature of LEDs is that they allow manufacturers to innovate with traditional factors as a guide. For example, light source manufacturers are improving LED components based on the purpose of interchangeability - LED lights can also benefit from this approach. This simple design simplifies the production process of LED lamps.
Sales channels - the relationship between the gatekeeper and the sales channel is very important, directly affecting the price level of the market LED lights. A recent article published in "LEDsMagazine" said that the current high retail price of LED lights is partly due to the multi-level price increase of sales channels. According to the LED manufacturer, in some cases, the price increase of the sales channel reached 100% of the average selling price of the manufacturer. Existing relationships can create advantages for companies that are leaders in the lighting industry and create greater difficulties for companies with low visibility. Can such a pattern be broken?
Fiscal stimulus measures in the commodity market The fiscal stimulus in the discount situation can both reduce the cost of producers and the price that consumers can afford. However, for the commodity market, the discount system not only lacks the continuity and feasibility of the geographical distribution of LED lights, but also is constrained by capital, time and political environment. Large companies have better opportunities to build relationships with organizations that issue fiscal stimulus. For smaller or foreign producers who want to enter new markets, the discount system will not always work. Manufacturers are best still dependent on their technology, production capacity, supply chain and their relationship to the sales channel.