Three Major Bottlenecks in China's LED Industry Development
September,21.2010

In China there are more than 3,000 led enterprises, 70% of them concentrating in the downstream industry. The LED packaging products have ranked first level in the world, but the technical level and products quality are uneven. At present the LED mainstream technology patents are mostly hold by the developed countries, and the independent intellectual property and core technologies are lacking in China. Even the enterprises development are facing the growing patent risk, the backward production equipments, and the hard industrialization of research findings. These reasons bring the current situation of the middle-stream and upstream shrinkage, while the light downstream expansion in Chinese LED industry.

Mr. Zong Peimin, the board chairman of Zhe Jiang Huarui Investment Management Co., Ltd., as the investor for several LED enterprises, he thinks there are some obstacles should be overcame for China's LED industry:

First of all, to improve the uv light luminous efficiency. If LED lights indeed want to enter into the common consumer families, the warm white color series of the LED luminous efficiency need to be increased to more than 100lm/W (lumens/watt). Therefore the lighting costs can be decreased by 25% and its electricity costs will have more advantages than traditional bulb's.

Second, to solve the cooling problem. The high-power LED has high requirements in cooling air cleaner techniques, when the ambient temperature reaches a certain height the LED will produce luminous decay that can result in the LED life decreasing. So only if the cooling problems of high-power LED are solved can the applications of high-power LED be promoted in large scale.

The last point, to cut down the lamp prices. Price is the key factor that directly affects the speed of LED lighting popularity. Although the total cost of LED lamps (including the acquisition cost + Energy cost + maintenance cost + waste disposal cost) is lower than the incandescent and fluorescent outdoof furniture, but the acquisition cost is still the top selection standard for consumers and they do not care about the high quality or versatility.

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Europe and United States-Imported Wood is Widely Favored By China Household Cabinet Enterprise
September,13.2010

Subject to the timber Certificate of Origin, material environmental certification and a series of export barriers, the imported wood from Europe and the US has drawn wide attention in furniture export enterprises. It is reported that the Europe and America timber kitchenware imported by China agents including the North American red oak, white plug, and the European red beech, white beech, pine and so on.

China is a solid importer of timber. As our existing forest resources can not meet the community demand for wood, so the importing volume increase year by year especially the high-grade kitchenware wood most of which rely on import. The cookware requirements for raw material quality are very strict when furniture manufacturing high-end furniture, cabinets, flooring cookware products in China, even stricter for products export to developed countries and regions, such as Europe and America. Therefore, the imported timber from European and American is much easy favored by import enterprises from China.

The uv light expert believes that the increased trade barriers from Europe and America have boosted the domestic sales of outdoor furniture imported timber. The timber Certificate of Origin of Europe and the United States are recognized by importing kitchenware countries, so we could say it’s also an advantage for manufacturers to export the wood products including wooden doors, cabinets and furniture.

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Latest Analysis for China Kitchenware Industry
September.10.2010

Kitchenware, as a necessary in family’s daily life, has a very large market space in China, which has a 1.3 billion population. China kitchenware sales have been increasing by 35% for years.

In recent years, there are some new trends in China kitchenware industry as follows:

The development of information technology brings kitchenware opportunities and challenges to business. Speaking from the opportunities, the information technology can help to optimize company process, reduce administrative costs and get advantages in the competition. And those who can not adopt IT to improve production process are evidently at a disadvantage in the competition.

The cookware product structure evolves towards the trend of beauty, fashion, environmental protection and low energy consumption. Low value-added products must continue to withstand the impact and deeper competition from the domestic industry.

Changes are brewing in the cookware distribution channels. Recent years with the spring up of home appliance chain industry, it has become the important channel for current appliances sales. But because of the high entry and operating costs for appliances chain stores, some manufacturers have been seeking other ways, such as furniture entering into the building materials city and the whole kitchen showroom.

The competition will be more intense for kitchen market in future, and the whole industry reach the re-shuffle state. However, most enterprises are small-scaled and in difficult situation, while some large enterprises have started to hold kitchenware market to gain the huge profit, which caused the competition upgraded rapidly outdoor furniture in the countrywide. In particular many multinational companies come again together with advanced technology, brand and furniture marketing advantage which makes the domestic competition more and more intense.

With the rapid and steady growth of domestic national economic, the housing needs of urban residents have changed greatly and it brings a greater stimulus to the relevant industries including chairs industry. Meanwhile, the vast rural market is on developing procedure, coupled with the demand for urban upgrading, kitchenware finally would maintain steady growth in demand.

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Three Areas of China Will be Changed by LED
september.07.2010

In today's rapid development of led, what changes would bring to China is much concerned on the worldwide. In the China LED Industry Summit Forum Conference which held in Tianjin, Tang Guoqing think that the light will change China in three areas: the government will promote China through government projects and guidance documents, such as Olympic Games and World Expo; the market demand will expedite LED development into China lamp in family lighting, backlighting and landscape; during the process of LED popularization, the awareness of low-carbon society and environmental protection will go deep into the Chinese people's mind.

There is a sum-up of the 2009 LED development by Tang Guoqing, which shows there are more than 40 domestic uv light enterprises engaged in production of LED chip and their MOCVD has exceeded 150 sets. Thereinto, the already installed-type GaN MOCVD production are more than 135 sets and the number of the production-based quaternary MOCVD is about 18 lamps sets. The research facilities of domestic scientific institutes have also increased. Also, the air cleaner extension of chip enterprise investment is accelerated further, which has exceeded what people expected in early 2009.

Dr. Liang Bingwen from Suzhou Nanocrystalline pointed out the direction to China's LED industry. That is, to accelerate the outdoof furniture standards establishment, testing and supervision, and establish the professional training system, to set up professional job evaluation systems and procedures, and establish the patent pools and market demanding information platform. Let’s wish the LED development has a better tomorrow!

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EU's New Policy Affect China's Furniture Exports, Enterprises Need Self-improvement Right The Moment
August 30, 2010

The European Commission recently approved the resolution about granting the eco-labeling standard for wooden furniture --2009/894/EC [1]. The eco-label is an EU provision for a voluntary product labeling system, which focus on the environmental for product, and it’s use and application are expensive and application standard is strict. After more than ten years development, ‘labeled products’ has gain a high reputation in European market as a high-threshold of "green barriers."

2009/894/EC decided to promote the reduction of influence to environment and human health when use wood furniture, adhesives containing organic halides, nitrogen, C ring, poly-N-C ring, dyes and additives containing heavy metals and additive flame retardants are prohibited. In addition, the formaldehyde emission limits in fibreboard and particle furnitures was restricted, and the content that some material including certain phthalates which should achieve R-class and so on were prescribed. This decision was implemented from November 30, 2009, valid for 4 years.

With 20 years development of China's furniture industry since the reform and opening up , furniture production value increased by 130 times, grew 29.27% annual and furniture exports increased by 294 times, increased 34.90% annual. In 2009 the industrial output value of furniture is about 7,000 billion yuan, export of the year is 25.329 billion U.S. dollars which accounting for 25% of the world outdoor furniture trade of the same year. And the exports to the EU accounted for more than one third. The introduction of 2009/894/EC will affect Chinese furniture industry profoundly. Although for the EU market, products can be approved without an eco-label if they comply with the existing European Union health, safety and environmental standards, but the eco-labeling would help enterprise to upgrade their products to won a wider range of customer base if they get it. At today's chairs development trends of ‘green’ products in global consumer market, eco-labeling is becoming the best passport for big Europe market.

Therefore, the EU eco-label of wooden furniture has increased the difficulty of market-possessing for wooden enterprise and the production cost. The Quarantine and Inspection Services suggest that export enterprises need to improve the forward-looking and establish their own product advantages in soonest to be ready for the future development.

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