LED lighting future competition lies in the price war

Introduction: a few years ago, the company is mainly practicing internal strength, and now it is to the internal organs, brands, prices and other full-blown.

Said 2014 is the LED lighting industry, the golden period of development, the lighting business, the opportunities and challenges of the year 2014. From the beginning of 2013, LED lighting market to accelerate the development, not just the domestic market, the global market are in rapid development, and this trend will continue until 2014, the prospects for LED lighting is very good. A few years ago, the company is mainly practicing internal strength, and now it is to the internal strength, brand, price and other full-blown. So, as a trader, in the face of the LED industry blowout, in this industry touch roll over a dozen years, he will have to deal with it?

LED lighting future competition lies in the price war

Identify differences in response to price war"

The current LED enterprises are facing three major problems:

First, the price competition, which is a headache for all companies but can not bypass the problem;

Two is the quality problem;

Three is the public's awareness of LED lighting and confidence issues.

Regardless of the size of the LED enterprise brand, market share, at a certain time node, the price war is inevitable, even the giants will play a price war. Only the balance in the market game, basically reached the same level of the company's gross margin, profitability and cost structure, not through a price war to bring more money, will try to avoid a price war.

The current market oversupply, in the case of rapid development of the industry, the price war can not be avoided. So, how to deal with the inevitable "price war"? Only a complete homogenization of the product is the real thing of the price war. But the basic type of products, such as bulbs, lamps and other relatively mature products can not avoid the price war. For enterprises, it is necessary to identify their own unique competitive advantage, and in this advantage to find a profit space. If there is no difference in the layout, manufacturers of products have entered the price war, the enterprise is very dangerous.

On the other hand, the product portfolio is very important, corporate profits have products to collocation of high-quality products, which requires enterprises to Lianhaoneigong, including strengthening product development capabilities, enterprise management capabilities, supply chain control ability.

In general, the price war can not be avoided, LED enterprises to achieve steady growth, the industry needs blowout stage, to find their own competitive advantages, forming unique competitive point of difference in segments, and with the competition points for maximum gross margin, so as to ensure the steady development of enterprises.