Market shrinks Japan's LED bulb sales are in the doldrums

Japan is pushing the country to promote the LEDization of lighting. Under the demand for electricity after the Great East Japan Earthquake, LED bulbs became popular in Japan at an unexpected rate in 2011. However, lighting manufacturers who should have been pleased with the popularity of advance arrival are facing a busy situation. LEDization has indeed spawned new growth areas, bringing a glimmer of light to the lighting market. On the other hand, the long life has reduced the demand for replacement of light bulbs, and the rapid increase in the number of companies involved has made the competitive environment even more severe. Large lighting manufacturers that have been holding on to the stable domestic market in Japan have had to convert their business structures.
In early August, in the large appliance store in Osaka City, a boxed LED bulb with mountains stacked in the corner of the corner was placed. All the labels on the outside of the box are labeled with low prices, such as three 4,650 yen and five 7,750 yen.
Occasionally, customers who stayed in front of the counter would look at the light bulb, but then they went to the wide ceiling light store in the center of the floor.
The sales staff of the patrol store said: Compared with this time in 2011, the sales of LED bulbs have fallen into a downturn. As the price fell, there were many people who took a Wait-and-see attitude, and the expectations of the sellers fell through.
The full restart of the Japanese nuclear power plant has no eyebrows. The jurisdiction of Kansai Electric Power requires ordinary households to save more than 10 yuan. However, in Osaka, which is owned by the Kansai Power Region, LED bulbs with energy-saving as a selling point have been slow-moving.
The same is true of Japan. The official lighting company Toshiba Lighting Technology's executive Sato Koshiji said that the sales of bulb-type products this year is about 80 in 2011. The original forecast will peak in 2013-14, and it seems that 2011 may already be the peak.
In the general lighting market with a global scale of 7 trillion to 10 trillion yen, the domestic scale is about 800 billion yen. In 2011, although the scale of LED lighting products expanded to around 140 billion yen in the early 17th, the sales of LED bulbs that should have led the way began to appear.
Discontinued ordinary incandescent bulbs. In the future, LED bulbs will be used to send light to everyone.
In March 2010, Toshiba’s 120-year-old incandescent bulb has been in production since its inception. LED bulbs designated as follow-up products began to show sales below the same period last year.
It is a bit ironic to say that the main reason for the demand stall is that due to the increased awareness of power saving after the Great East Japan Earthquake in 2011, the popularity of LED bulbs in the general family has advanced. Moreover, LEDs that have a longer life than incandescent bulbs typically do not have replacement requirements for 10 years.
Toshiba's lighting technology executive Sato sighs that nearly one-third of the approximately 250 million bulbs used in ordinary households in Japan are currently LED bulbs. From the perspective of the life of LEDs, there is no expectation of substantial growth in the future.
The decline in prices over flat-panel TVs has led to a sharp decline in the price of LED bulbs.
On the price comparison website operated by Kakaku.com, the best-selling product is Panasonic's LED bulb EVERLEDS series. In late July 2012, the average price of a new product in the series dropped from 4,480 yen in late January to 3,302 yen, a drop of 26.
According to Kakaku.com, the price of LED bulbs is reduced by 3 to 50% for half a year.
The company's CEO, Suda, predicted that although LEDs are in full-scale introduction, they cannot be compared simply, but they are more than flat-panel TVs in terms of price declines. The average price of bulb-type products in 2012 will fall below 1,000 yen.
The popularity of LED bulbs in the general consumer was in 2009. In the summer of the same year, Sharp launched the equivalent of 40W incandescent bulbs at a price of 3,900 yen. This price was only half of the mainstream products at that time, which caused an impact on the industry. In the following three years, although LED bulbs are still high-priced products compared with incandescent bulbs of 100 to 200 yen, the difference between the two is rapidly shrinking.
Although the lighting companies are vague about the profitability of LED bulbs, there is no doubt that the price reduction rate exceeds the mass production effect. The person in charge of a well-known component manufacturer pointed out that if the minimum price is not 2,000 yen, there should be no high profits.
The reason for the sharp drop in prices is the structural characteristics of LED lighting.
LED lighting sources replace conventional filaments and fluorescent tubes with special semiconductors that emit light when energized. The light of the blue LED is irradiated onto a fluorescent material such as yellow in a light-emitting element (chip) corresponding to the heart portion, or the LED of the three primary colors is combined to create white light similar to natural light.
In terms of LED chips, Nichia Chemical Industry, Toyota Synthetic, Philips, Germany, Osram and Cree have patents. To produce high-quality lighting products, you need to purchase chips from these five companies.
Conversely, with the required components such as chips, circuits and sockets, it is easy to assemble lighting fixtures. It is the same product as digital home appliances such as flat-panel TVs that realize the road-to-road through horizontal division of labor. It is easy to fall into price competition compared with previous lighting products that have a dedicated automatic production device from design to manufacturing.
There are already thousands of factories producing LED lighting products in China (large LED material manufacturers). Grasping the perfect opportunity for the transition of lighting products to LEDs, other industry companies that have commissioned overseas factories to produce are also involved in the lighting field.
At present, Kakaku.com's website has more than 30 other manufacturers in addition to well-known lighting manufacturers such as Panasonic and Toshiba lighting technology. There are many computer companies, small and medium-sized business companies and Taiwanese companies.
The survey company also predicted that the market will definitely shrink. The Fuji economy speculates that the Japanese domestic LED bulb market, which expanded to 37.7 billion yen in 2012, will shrink to 36.3 billion yen in 2015 and will shrink to 30.1 billion yen by 2020.
Expanding the strategy to start braking In the increasingly severe market environment, the number of companies that have begun to stop expanding their strategies is increasing. The number of vendors that are new to the enterprise is also increasing, and not only that.
Alice Oyema, a well-known LED lighting manufacturer in Japan, quickly increased the production of LED bulbs in its factory in Dalian after the earthquake in 2011. The company has saved the cost of low-cost intermediate production and multi-variety production experience as a weapon. Since its full involvement in the lighting business in 2009, its LED bulb market share has exceeded 20 (the company speculated ).
Even Alice Oyema, whose performance is so good, its president, Oyama Kentaro, now believes that the price of light bulbs is falling too fast. We will not continue to follow.
In the fall of 2011, NEC Lighting completed its plan to strengthen the LED bulb production line in China's production support factories in phases.
Even Philips, which plans to expand its lighting business in the Japanese market, has adopted a strategy of not operating bulb-type products in Japan. The company said it is meaningless to fight in a market that has already been marketed.
As a countermeasure against power saving, the Japanese government asked various manufacturers to limit the sales of incandescent light bulbs in June 2012. With the advancement of the global warming measures and the revision of the energy conservation law, LED has also bathed the island's policy. But its pioneer LED bulbs have a strong feeling of end.

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