Low price strategy of LED lighting enterprises

Review: at present, the LED lighting market competition disorder, price war has become a tool for many companies compete in the market. As a means to seize market share and a means of low-cost strategy to allow more consumers, this is understandable. However, there is no bottom line price competition, it is easy to bring the whole industry into a vicious cycle of unhealthy, if blindly follow the trend of the enterprise, it is extremely easy to eat the bitter fruit. Here, talk about a bit of individual opinion of low-cost strategy.

In terms of technology, low price strategy should be to meet the necessary quality, safety and performance parameters such as the premise, the complexity of LED products in the standards are not perfect and the products of their own parameters, so that manufacturers no limits in the definition and treatment of color difference, color, light, heat, reliability, RoHs curing electromagnetic interference and so on, more and more the problem, every problem may lead to small and medium-sized enterprise instant destruction.

In terms of sales, the low price strategy should be based on the premise of maintaining a reasonable profit and a more secure manner. Manufacturers are heavy asset management, rather than capital operation, let the income balance day today is expected after the capital behavior, it is not realistic for manufacturers, the more profit operation more difficult to see tomorrow's sun (except nouveau riche).

For payment, it is best to hand money hand goods, followed by the third party guarantee (the influential brand supplier can be credited). Million yuan, business with a small capital should be more heavy weight. (above, reference to a number of annual turnover of 20 million yuan, profits of around 30% small factory mode of operation, but they can only do single).

In terms of business, low-cost strategy should focus on resources to do a single product category, the scale of the product to achieve the ultimate, so there is an opportunity to meet the quality, profitability and performance and other aspects of the data. Small and medium-sized manufacturers to do resource limited for suppliers, can do a good job in a category is not easy or even a style of products, shop stalls too will lead to adverse business structural problems, which supply chain scheduling and quality control personnel training, each problem is the cost.

All in all, the price can not be allowed to survive, the profits on the product or to insist on, the level of waste oil products are not seen tomorrow's sun.