LED fully penetrates the secondary market

In the first half of this year, corporate refinancing channels were opened, and the policy environment was excellent. New products and technologies in the field of semiconductor lighting emerged in an endless stream. The development momentum was thriving. The supply and demand in the middle and lower reaches of the industrial chain flourished, and the companies represented by listed companies were more profitable. As the booming market conditions, industry investment expansion and mergers and acquisitions more normal and diversified, "strong demand and intense competition in parallel" is the industry's most prominent performance.

In terms of the domestic market, China's LED lighting products market performed outstandingly in the first half of 2014, with a rapid increase and a decrease in the price. With the sinking of corporate channels, the second-line market has performed outstandingly, and the growth of commercial lighting has become clear. Despite the impact of real estate and the impact of e-commerce, lighting product distributors have a good overall efficiency, maintaining an overall growth rate of more than 20% and a gross profit margin of about 25%. It is expected that with the advent of the renovation season in the second half of the year, the growth rate for the whole year of 2014 will reach new heights.

Full penetration and transformation of LED In 2014, LED lighting began to fully penetrate the domestic market, and retail sales achieved rapid growth. According to relevant research data, in the first half of the year, the growth rate of sales of LED lighting products in the dealer channel in China's domestic market was around 27.8%. More than 88% of dealers reported that the sales of LED lamps and lanterns in 2014 had a relatively significant increase compared with 2013, with nearly 30% of the merchants saying that the growth rate exceeded 30%.

The rapid growth of LED market sales mainly comes from the substitution of traditional lamps. In the case of sluggish growth in the overall lighting market, the increase in LED penetration directly promoted the outbreak of the market in the first half of the year. As of the end of June, the overall penetration rate of LED lighting products in the physical channels has reached an average of 57%, which is 14% higher than the 45.7% at the end of 2013.

The second-line market broke out. The market in the central region is starting to be lured by the huge profits of the LED market. Manufacturers and distributors are increasingly promoting LED, and the first and second markets have already entered the popularization stage. The third and fourth-level markets are also closely following .

Judging from the market level and channels, the outbreaks of the second-tier markets (mainly referred to as second-tier cities and cities) broke out in 2014. The penetration rate increased by a full 15.5 percentage points, and the sales in the second-tier market increased by about 30% from the same period of last year. From the perspective of dealers, the growth rate of 40% of the second-tier market distributors exceeds 30%, while the growth rate of 75% of dealers is above 10%. After more than one year in the second-line market, "deep cultivation", the major lighting companies in the second-tier market channel distribution and marketing results are significant.

The growth rate of the first-line market and the third-line market should not be underestimated. In the first half of the first-line market, sales increased by 19.27% ​​compared to 2013, and penetration rate climbed to 62% and stabilized; in the county-level cities of the third tier, LED began to gradually become known to the people, and many companies have begun to strengthen promotion. However, there is still a gap between the LED penetration rate and the first- and second-tier cities. In the first half of 2014, the market growth rate was about 20%.

The rapid growth of the e-commerce market, close to double the past two years, the growth rate of online sales of LED lighting products is more apparent than the physical channels.

The overall Taobao lighting market is gratifying. From January to July 2014, Taobao (including Tmall) sold 5.3 billion yuan of lamps and light sources, an increase of 144.43% year-on-year, including light source of 210 million yuan, an increase of 95.4%, and lighting of 5.08 billion yuan, a year-on-year increase of 147%.

In terms of trading volume, Taobao (including Tmall) lamps and light sources traded 23.42 million units, an increase of 85.26% year-on-year, including 6.99 million single lamps, an increase of 98.99% year-on-year, and 16.43 million lamps, a year-on-year increase of 79.88%; Classes sold 330,000 products.

According to the data statistics of Taobao (including Tmall), from January to July 2014, the sales of LED light source products (including spotlights) was 100.59% higher than that of the same period of last year, reaching approximately 175 million yuan, accounting for the proportion of total light source products. It is 82.76%. Looking at the number of orders, the total number of orders for LED light source products sold by Taobao in the first 7 months of 2014 totaled about 5.9 million, which is an increase of 122.14% from the previous year. At the same time, the number of LED products on Taobao increased to 60,000, an increase of 33.22% over the same period of last year.