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Singles Day Sales Pushed Down LED Light Bulb Prices in China in November
December 8, 2015 | TrendForceEstimated reading time: 2 minutes
The latest report from LEDinside, a division of TrendForce, finds that the global average price of 40W LED replacement light bulbs fell 3.4% monthly to US$10.8 in November, while the 60W counterparts saw a 3% drop to US$14.6.
LEDinside analyst Allen Yu said that the price decline for LED lighting products in November was more significant in China because of online promotional activities during the Singles Day sales. In the European and the U.S. markets, prices returned to downtrend during the same month after experiencing an uptick in October. As for China’s LED package market, demand has been picking up compared with the third quarter but still lags far behind expectations. Currently, the downtrend in the Chinese package market is caused mainly by the decline of mid- and high-power LED package products. The room for further price reduction is relatively smaller for standard LED package products.
Mid and high-power LED package prices in China suffered relatively large price decline in November as the market recovery fell short of expectations
LED package prices have fallen each month since the start of this year, with decline being most noticeable in the standard package segment. Mid- and high-power LED package products are still seeing rapidly falling prices. In particular, more manufacturers are producing 0.5W 2835 LED products due to rising demand. As a result, the average monthly decline of the products reached 3.3% in November and was responsible for the overall price drop for mid- and high-power LED package products. Yu pointed out that the present recovery of LED industry has not been as smooth as initially believed, and manufacturers are still suffering low capacity utilization. In the short term, Yu expects price slump to persist in China’s LED package market.
LED light bulb prices sank worldwide in November
During November, 40W-equivalent LED light bulbs saw the steepest price decline in China as local lighting companies had lowered their prices in that regional market in response to Singles Day sales. The monthly decline in China thus reached 9.9%. Prices in the U.K. and Germany swung sharply downward after a significant recovery in October, with monthly declines respectively at 5.2% and 7.2%. In Japan, the monthly drop was 3.4% because some products were on promotion there.
As for the prices of 60W-equivalent LED light bulbs during November, monthly decline in China reached 7.9% due to local lighting companies cutting prices during the Singles Day sales. International lighting companies also substantially lowered their prices. In the U.K., 60W-equivalent LED light bulbs suffered a relatively large monthly decline because of most of these products were promotion there as well. By contrast, prices in Germany and Japan fell 4% and 2.7%, respectively.
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