LED companies in the economic downturn in the market segments can fight?

New, had cast NetEase, Jingdong, vip.com, public comment and other exciting cases. At the recent meeting of the 2015 NetEase in the future technology summit, she mentioned the product to a particular market segment focus, taking into account the differentiated market segments, such as the "category killer, I must make a cake, durian cake is proposed category first, to go into the first subdivision, to have a future. "

This word is used in the LED lighting industry, many enterprises are reluctant to estimate. Today, few companies have publicly declared their products to achieve a market segment of the NO.1, according to the above point of view, many companies focus on LED lighting market segments are difficult to have a future".

Grasp the three principles of market segmentation

To illustrate this problem, we must start from the definition of market segments. Market segmentation is based on the different needs of consumers, the market of a product is divided into a number of consumer groups in the market classification. Different from geographical location, population groups and other classifications, usually referred to as lighting market segments often refers to the classification of products.

In recent years, the rapid development of LED lighting industry, market space, but at the same time intense competition in the industry, in order to gain profit margins, many companies have begun to try to break through in the field of survival. In the classification, such as intelligent lighting, automotive lighting, agricultural lighting, hospital lighting, building lighting, lighting and other museum classification market, but also on the basis of the classification of further market segmentation. At present, in the market segments to achieve good results and continue to grow and develop a lot of enterprises, which to some extent also reflects the development potential of the LED lighting industry.

But on the other hand, despite the broad market segments, but the number of enterprises, the competition is wide, focusing on various segments of the market of the enterprise also, even the first to enter certain segments, is also facing many competitors to join, competition for market share. But different product areas have different application environment, technical conditions and other characteristics, is not suitable for every company, such as blind attempt, only a waste of human power enterprise, make the enterprise operation good system into chaos, seemingly busy scene but indicates that the survival pressure and not sustainable, plus if there is no good sales channels and capital chain support, equal to the enterprise in dangerous places.

Moreover, to take the opportunities in the market, often need to increase investment in technology and product distribution channels, but this has increased the cost of the product, the price and cost of high impact on competitive advantage. If the market segment is not large enough space, the demand is not strong, then blindly expand the development of enterprises, the same risks and pressures.

Therefore, the market segmentation must grasp the following principles:

1, measurable principle

Refers to the consumer demand for goods on the market segments to be clearly reflected and explained, can be clearly defined; after the breakdown of the market scope, capacity, potential, but also to be able to quantitatively explain.

2 principle of possession

We should make the scale, development potential, the purchasing power of various market segments will be big enough to ensure a certain degree of sales at the same time it is possible to use the existing conditions of enterprises to enter the market after the occupation of the enterprise.

3 relative stability

After the occupation of the target market to ensure that the enterprise in a long period of stable operation, the target market changes too fast to avoid the risks and losses of the enterprise to bring, to ensure the long-term stable profit.

It can be seen that the enterprises focus on market segments, the premise must have: one is the market capacity is large enough; the two is the marketing channel accessibility of products; three is the difference of the products is obvious, for example, there are obvious differences in technology innovation, category, function and style.

Poor economic environment, the development of sub market feasible?

However, with the current economic environment changes, the overall slowdown in economic growth, the market downturn, weak demand, coupled with the LED lighting industry is very competitive, especially the price war as one falls, another rises product prices, fierce, almost is the bottom, excess capacity, industry oversupply. The product decline in market demand, market space and capacity relative contraction, to open up the markets under such a situation, especially to develop market segments and unfavorable, helpless enterprise development, but will bring pressure and risk to the enterprise. In such a situation, and do not say how to become the first enterprise market segments, how to live better, keep a good advantage is the key to the problem.

But now there are two different points of view, the spread between managers of enterprises, some people think that it is because of the bad economic situation, industry competition, enterprises are facing the development dilemma, we must follow the road of market segments, open up a new market, can let the enterprise in the blaze a way to break out.

But some people think that the economic environment is not good, not good to do the whole industry market business, when the first shooting is often focus on market segments of small and medium-sized enterprises, such as "solitary throw", once the market price of the segments decreased or decreased demand, market contraction, no direct influence endanger the enterprise survival becomes profitable. Rather, product diversification, scale development, reduce the operating risk.

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