LED lighting vendors and players in the retail channel in the Greater China market, due to high inventory levels, are expected to reduce prices to promote sale before the 2015 Lunar New Year in late February, according to Taiwan-based supply chain players.

LED lighting vendors placed orders for large-volumes in the first half of 2014, resulting in price increases of LED lighting devices and large inventories of LED lighting products, the sources said.

In the China market, there are at least 15,000 LED lighting vendors and makers and price competition is intense, with prices for LED light bulbs having fallen by 10-18% in the past month, the sources indicated. LED lighting prices in the market are expected to continue to drop over the next 2-3 months and prices for LED light bulbs in particular will slip by 20-30% in 2015, the sources noted.

In the Taiwan market, the government in July 2014 required that LED light bulb to be produced or sold in Taiwan pass national standards on safety, service life and luminous efficiency, the sources said. As of the end of July, 25 models of LED light bulbs launched by Philips, GE, Osram and Taiwan-based China Electric Mfg., Everlight Electronics and Delta Electronics had passed the national standard certification, the sources indicated. According to China Electric Mfg., the proportion of all lighting products for LED light bulbs and downlights in the Taiwan market has risen to 50% currently and will further rise to 70% in 2015.