Singles Day sales push down LED light bulb prices in China in November, says LEDinside

The global average price of 40W LED replacement light bulbs fell 3.4% on month to US$10.80 in November, while 60W counterparts saw a 3% drop to US$14.60.

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 Europe and US 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 China 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.

LED package prices have fallen each month since the start of 2015, 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 makers 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 makers are still suffering low capacity utilization. In the short term, Yu expects price slump to persist in China's LED package market.

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 UK 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 UK, 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.