Roadblocks for Chinese LED Manufacturers to Overcome

Quotes/ Perspectives from LEDinside： 

"Consumers have only heard about LED lights, but do not really understand its benefits. Aside from energy saving benefits, the lights also have exceptionally long lifetime...Our long term goal is to lead Chinese enterprises out of China and introduce them to the world." -Roger Chu, Director of LEDinside.

In the midst of China’s tightening natural resources, serious environmental pollution, degrading ecosystems, society is increasingly focused on the “beautiful China, ecological civilization, and green development.” The LED technology has become an emerging industry comprised of a two core business strategies, a new generation of communication technologies and energy saving technology. LED companies in lighting, display and backlight industry have sprung out like young bamboo shoots after spring showers. 

However, the industry’s development has not been a smooth ride. Foreign manufacturers have monopolized the technology market in China. The industry in China also faces challenges of being overtly small, incomplete supply chains, and oversupply in the midstream and downstream markets. Despite being the “star” of the era, the industry is facing a bottleneck. How can companies cope pragmatically during an industry low tide? How should social awareness change to create a better environment for industry development? How can the Chinese government speed up industry standardization and corresponding development policies?

Recently, LEDinside Director Roger Chu and Lawrence Lin, Marketing and Sales General Manager at MLS were invited as guest speakers to “China’s Positive Energy” (literal translation), a TV program produced by Xinhuanet. The two shared insights on LED green lighting industry. 

Below are excerpts from the interview:

TV host: LED has been viewed as the “green lighting” of the 21st century. It has naturally become the focus of society since the day it was made and continues to be appraised. LED advantages and its groundbreaking technological progress has earned it the honorable title of “the fourth revolution in human lighting history.”

Lawrence Lin: The LED lighting era might be similar to a saying from the “Records of the Grand Historian: Biography of the Marquis of Huaiyin”—“After Qin Dynasty collapsed everyone came fighting over the kingdom. However, only the most talented and fastest won the kingdom.” It can be foreseen that the LED industry will be able to quickly replace Compact Fluorescent Lamps (CFL) in the near future.

Lawrence Lin,Marketing and Sales General  Manager at MLS speaking on the "China's  Postive Energy" TV show, the hostess listens attentively as he explains the questions. Roger  Chu, Director of LEDinside straightens his tie as the MLS manager speaks. Front left:  Xinhuanet TV host. Front right: Lawrence Lin, Marketing and Sales General  Manager at  MLS. Back left: Roger Chu, Director of LEDinside. (LEDinside)

TV Host: However, conceptual, innovative, or R&D waves in the LED industry have failed to introduce the technology to ordinary homes.

Lawrence Lin: The global LED lighting market penetration rate is less than 10 percent, which means the industry still has 90 percent of room for growth.

TV Host: What challenges and changes will the LED industry face when it enters the lighting market? Compared to traditional lighting, what are some of its incomparable advantages? 

Roger Chu, Director of LEDinside at the TV show interview. (LEDinside)

Roger Chu: Consumers have only heard about LED lights, but do not really understand its benefits. Aside from energy saving benefits, the lights also have exceptionally long lifetime.

TV Host: Over a long 16 year period, the LED world of large enterprises was built on top of dreams, defeats, and silent reflections. How should these enterprises deal with the industry low tide pragmatically, and find innovative development opportunities?

Lawrence Lin: Government policy support is one option, the other is urbanization projects in China. Objectively, there are massive numbers of urbanization projects in the country. On its own, these offer a huge momentum for lighting demands. 

We are confident that in the next two to three years, we will be able to build a LED lighting enterprise worth millions of Renminbi.

Roger Chu: Our long term goal is to lead Chinese enterprises out of China and introduce them to the world.