Discussion on the main melody of LED development in 2014

2014 LED industry competition will be more intense. How to fight the battle for the channel LED lighting into the rapid development period of 3-5 years, the channel was the world. Channel is a key resource for lighting applications market.

One side is the overall LED market continues to improve, while the other side is that this may not be able to make the performance of the enterprise boom. Analysts pointed out that, in order to grab market share, each enterprise has long been eager for a fight, in addition to the price war, in the brand, channel competition will be started. 2014 LED industry competition will be more intense.

Discussion on the main melody of LED development in 2014

How to fight for the king

LED lighting into the rapid development period of 3-5 years, have to channel the world. Channel is a key resource for lighting applications market. The brand and channel is the main barrier of lighting applications, master sea brands will occupy the initiative. For different segments of the market and customer needs, lighting manufacturers to take appropriate channel strategy. The quality of the distribution channel helps manufacturers to control the turnover of accounts receivable, and avoid excessive bad debts, thereby enhancing the company's operations and profitability.

Manufacturers compete to seize the commanding heights of the channel

LED lighting into the era of channel warfare, traditional lighting manufacturers and new LED application vendors are aware of the importance of distribution channels. The main traditional manufacturers in the original dealers, stores and other channels to promote the new product LED, developed in recent 10 years in the local manufacturers to strengthen cooperation with the dealers at the same time, also increase the store investment; from the LED package extends to the downstream application vendors for cost control considerations, the channels of their own investment relatively conservative, to the dealer mode.

Channel and price driven LED lighting penetration speed up

Lighting manufacturers increase investment channels and strong distribution, will help speed up the replacement of traditional LED lighting. Brand manufacturers have launched a lower priced LED bulb new products, in the same performance as the premise of the brand, LED bulbs and energy-saving lamps have been reduced to 1-2 times the spread.

At present, LED lighting into the rapid increase of permeability, international companies and mainstream institutions generally forecast 2015 LED lighting penetration rate will reach more than 50% (12 ~ 5%), and the channel to promote the rapid decline in prices will create more market demand, is expected to exceed the expected increase of permeability.

To sum up, the following three types of manufacturers experience is worth learning from:

1) the diversification of channel structure, in the commercial lighting, home lighting and other segments have the corresponding reserve manufacturers.

2 years of continuous investment, a wide range of channels, has formed a clear advantage of the first mover.

3) a company with a strong foundation in the field of subdivision and its competitiveness is not easily copied.