A LED panel light manufacturer executive also echoed the same observation that sliding net profits were caused by rising product volume, declining prices, and malignant competition.“In the past, I would consider a 5,000 panel order as a large order, but now I’m used to 10,000 to 20,000 LED panels orders. If they gave me a 1,000 LED panel order, I probably wouldn’t even consider anymore.”he said.
How competitive was the Chinese LED lighting industry in 2014? Last year the industry was prone with disappearing manufacturers and bankruptcies, which continued into 2015. Regardless of the cause of each manufacturers eventual bankruptcy, there is no question all of them were affected by cutthroat competition.
Compared to 2013, LED lighting product prices dropped over 25% in 2014. In the past, a panel light could be sold for RMB700~800, but it only sells for RMB200~300 right now. To acquire orders, manufacturers are often sacrificing profitability.