LED lighting fierce competition for the survival of the fittest brand quickly come down quickly

Review: these companies due to a solid foundation, the strength of the transition to do LED, the brand's influence is more obvious advantages of smaller brands. Coupled with its original customer base, small brands in the competitive advantage is gone.

Press the small brand living space compression

With the global LED light source to replace the tide after another, LED lighting market bright up. It is in favor of good policy and good market prospects, in recent years, many traditional lighting companies have set foot in the field of LED lighting. Due to the solid foundation of these companies, the strength of the transition to do LED, the brand's influence is more obvious advantages of smaller brands. Coupled with its original customer base, small brands in the competitive advantage is gone.

In a few years ago, the small brand products in the price compared with the big brands still have great advantages, but in the LED industry increasingly mature, LED enterprises increasingly high operating costs, the profit space is greatly reduced, then the price war is tantamount to suicide. Coupled with the gradual increase in the price of big brand products, small brands in the price advantage has gradually become negligible. Market distribution is now big brands occupy a market, and extends to the two or three line of the market, while small brands can only survive in the cracks and forced the market positioning in the two or three line of the market, the living space has been greatly compressed.

LED lighting fierce competition for the survival of the fittest brand quickly come down quickly

The survival of the fittest brand quickly come down quickly

The trend continues to expand LED market, and LED is the downstream business investment is small, which makes the input of LED lighting enterprises "ruguojiangzhiji". To have the lighting of the ancient town, for example, the number of enterprises reached tens of thousands, and which accounted for more than 90% of SMEs, especially small businesses, accounting for a large part, there are many even in the form of workshops. In the ancient town, you may also see that today there is a small business to do the establishment of LED, may also have an enterprise bankruptcy tomorrow. This phenomenon is not uncommon in the ancient town. The cause of this phenomenon is the LED industry entry threshold is low, very easy, as long as there is a certain understanding of the product, there is a certain amount of money, you can live on their own. However, this enterprise will be a bottleneck in the operation of a certain stage, will face a lot of problems, such as funds can not keep up, the product positioning is not accurate and a series of problems. Many small brands because they can not get through these difficulties, was forced to collapse.