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The global 40W equiv. LED lamps Average Selling Price (ASP) dropped 2.7% to USD 15.6 in June 2013, according to a recent LED lamp retail survey by LEDinside, a research subsidiary of TrendForce.
Overall regional market prices continued to fall steadily, in which China’s decline was the most evident. Global ASP dipped 1.6% to USD 23.4.
LEDinside: Top Brands Low Price Strategies Gradually Forms Benign Cycle
LEDinside observed, although termination of promotions has allowed some product prices to rebound in June, prices in most areas are either stable or falling.
In China, local brands SunSun Lighting and BYD have lowered prices, while Ledia Lighting, a company of HONGLITRONIC, has opened its online shop in June to promote low-priced LED bulbs.
Following Toshiba’s footsteps of entering Taiwan’s low-end market, Philips announced the launch of a new low-priced bulb series in July, which is priced 20% lower than last year’s products.
As the market gradually warms up and consumer awareness increases, top brands are quickening product and pricing strategies to shorten its price difference with local brands, said LEDinside.
In turn, the brands low price strategies are strong propellers for market penetration and production capacity, and will drive up competition among local brands.
Eventually, a benign cycle is formed to bring forth real price/performance ratio, while offering an exit from malevolent LED lighting market price wars that often sacrifices product quality to lower costs.