LED bulb prices took a vicious cycle

According to the latest survey conducted by global market research institutions, the price of LED bulbs in all regions basically stabilized and dropped in June. The global retail price of LED bulbs that replaced 40W LED bulbs fell slightly by 2.7% to US$15.6, with the most significant decline in prices in China. The global average price of globally replaced 60W LED bulbs dropped slightly by 1.6% to 23.4 US dollars.

China's average price dropped significantly after replacing traditional 40-watt incandescent bulbs

According to the LED industry research institute, the global retail price of LED bulbs that replaced 40W LED lamps showed a slight decline of approximately 2.7% in June 2013, reaching US$15.6. Among them, the price in the UK in June showed a 4.4% decline, the original commodity prices have been steadily declining, and fewer items have been added this month. The average price of commodities in Germany showed a 1.3% increase in June, and the original commodity prices showed slight fluctuations, mainly due to the decline in the exchange rate and the increase in prices. The average price of goods that replaced 40W in Japan showed a decrease of about 4.2%, and the prices of original goods steadily dropped. No new items appeared in the region. The average price of commodities in the United States fell by 5.4% in June, and the original commodity prices have basically declined, with fewer new items added this month. South Korea's June price dropped slightly by 2%. The original commodity prices remained basically unchanged, and the price fell due to the exchange rate increase. In addition, the price of commodities that replaced 40W in China showed a 7.9% decline, and the average price reached US$10.2. The prices of the original commodities dropped and no new items appeared this month. The commodity prices in Taiwan showed a 5% increase in June. Some of the original commodities such as Toshiba bulbs rose due to the end of the promotional period, and no new items appeared in the region.

In place of traditional 60-watt incandescent bulbs, prices in various regions have steadily decreased

The global average price of LED bulbs that replaced 60W in June showed a slight decline of 1.6% to US$ 23.4. Prices in all regions have basically stabilized and declined. Among them, Japan's prices in June fell by 3.3% to reach US$21.9. The original commodity prices fluctuate slightly, mainly due to the decline in exchange rates, which led to price increases. There are no new items in the region. Prices in South Korea fell by 2.1%, and there was no change in the prices of the original commodities, which was mainly due to the rise in exchange rates leading to price declines. In addition, prices in the UK and Germany showed a decline of 3.7% and 4.2% in June, respectively, and the original commodity prices in the two regions both steadily declined. Prices in the US showed a slight decline of 0.9%. Most of the original commodity prices were stable or declining, and fewer items were added. The commodity prices that replaced 60W in China and Taiwan showed a decrease of 2.1% and 0.5%, respectively, and the prices of the original commodities in the two regions remained basically stable or declined slightly, mainly due to the increase in the exchange rate and the decrease in the average price.

First-line brands have adopted low-price strategies in succession, and a virtuous cycle has gradually formed.

LED research institutions observed that in addition to the recovery of some commodities due to the end of the promotional period, most of the commodity prices in other regions showed a stable or declining trend in June. In China, local brands such as Shangyu and BYD have successively lowered the prices of their products. Leitanya, the lighting brand of Hongli Optoelectronics, also opened an online flagship store in June and promoted LED bulbs at a low price. In Taiwan, after Toshiba entered the market with low-priced products, Philips also announced the launch of a new generation of light bulbs in July, a price drop of more than 20% compared to last year.

LED professional organizations believe that the gradual increase in market demand and recognition of consumers in various regions has prompted international first-line brands to step up their prices and product layout, and narrow the price gap with local brands in various regions. The low-price strategy of these leading brands, in turn, will have a strong driving effect on the market penetration rate of LED lighting, and will also intensify the pressure of local brand competition everywhere. Therefore, a virtuous cycle is gradually taking shape. The price competition in the LED lighting market has gradually moved away from the vicious stage of sacrificing product quality to reduce costs, and it has entered a truly cost-effective upgrade.