At the beginning of 2021, LED lighting industry is facing a major price increase. In fact, the cost of LED mainly includes: switching power supply (LED driving lighting chips), resistors and capacitors, PCB boards, diodes, etc. Among them, the LED-driven lighting chip is the heart of LED lighting, but in the entire proportion of LED, the cost of LED-driven lighting chips is not too high. In the past, even a few cents could be settled, but it will rise to a few cents from 2021. It's bucks.
The above figure clearly explains the general situation of the rising cost of lamps and lanterns. It can be seen not only the price increase of IC, but the the capacitors, resistors, diodes, and PCB materials has increased in different degrees. Any more, packaging, precious metals, glue, cardboard boxes and other raw materials used in the upper and middle reaches of LED lighting industry have also price increases to varying degrees.
IC rise: LED lighting driver chip leader BPS has issued five consecutive price increase letters since the beginning of 2021. The latest price increase letter shows that from April 19, 2021, all previously effective but not yet fully delivered orders and new orders are applicable to the adjusted new price. The adjusted price is valid for April 19, 2021 From the effective date of the next price adjustment notification letter, it is applicable to all orders shipped within the validity period.
PCB board rise: Due to the price increase of upstream bulk commodities, the price of PCB upstream material CCL has risen sharply. In the first quarter of 2021, the printed circuit board realized revenue of 39.744 billion yuan and net profit of 2.974 billion yuan, up 41.63% and 42.86% year-on-year.
ADAYO lighting is actively negotiating with suppliers during the price increase of raw materials, and negotiates with customers on time. Through forecasting and preparing materials, to help customers to obtain a buffer of phased price increases. Some
Of the customers give the order in advance for half year even one year,In order to lock in materials and guarantee delivery at the original price of the main products such as WIFI bulbs, DIY spotlights,fire rated down light GU10 spotlights, etc.
But in the long run, price increases are already an irreversible fact. In order to enhance subsequent competitiveness and bring better value to customers, we will make continuous improvements from the following three aspects:
1. Starting from the technical level, iterate products and upgrade ERP to make more cost-effective solutions and products;
2. Negotiate with customers and suppliers to make a long-term material reserve plan, and centralized purchase to reduce costs;
3. Update program of IC,make a variety of alternative options, to avoid material shortages or even supply cuts.
Website: https://www.adayoled.com
HUIZHOU FORYOU OPTOELECTRONICS TECHNOLOGY CO., LTD
Add: Foryou Industrial Park Area B -- Plant NO.6 No.1North Shangxia Road,Dongjiang High-tech Industry Park, Huizhou City,Guangdong Province
Tel: 0086-752-5300601
Fax: 0086-752-5300099
mail: [email protected]
