Price war in front of the smart lighting companies out of their policies

Introduction: in recent years, the performance of LED lighting products gradually mature, lighting market has been the LED ocean. However, behind the bustling market price of LED products is gradually declining, the bottom of the profit so that manufacturers face a crisis of survival. But if not on LED products, lighting companies are also facing the fate of being eliminated by the market. Faced with such a dilemma, LED lighting companies only to find ways to get rid of the crisis of price competition. Different enterprises, in the face of price competition to develop the market strategy is different, the results are also different, the author will be listed one by one.

Strategy 1: follow the trend to reduce prices

In the field of lighting specific, when individual companies launched a price war, some LED lighting companies tend to follow, the product prices continue to go down, the price will be lower than that of other enterprise products sold, in order to compete for market share, product sales and profits sufficient. In this trend, the individual enterprise product prices often fell to the lowest point of the market in the face of production costs, staff salaries, plant rent pressure, some of the overall strength of weak enterprises to be out of the market situation often appear.

On the other hand, the price of the products involved in the torrent of enterprises in order to get more profits, will save the cost of production, which will reduce the requirements of these enterprises on the quality of raw materials, production testing process and some companies even will shrink products, which will lead to product quality play Festival buckle, finally let the consumer product use rights damaged. This result will inevitably lead to the temptation of low price conscious consumers to lose confidence in the price of the enterprise brand, so that the price reduction enterprises are facing a crisis of integrity, followed by the plight of survival. It can be seen that enterprises to follow the price competition is a major force in the price war to defeat a failure strategy. Small and medium enterprises in the price may be completely lost the hope of development, and gradually decline. Because of the impact of the quality of the large enterprises and the integrity of the crisis, its brand influence will be greatly affected.

Therefore, the price reduction strategy can only solve the individual consumers "cheap" simple psychological appeal and the enterprise in the price competition in the survival of short-term profits, the long-term development of the enterprise is not good.

Strategy 2: stick to the original price

When some LED lighting enterprises to fight when playing in the market with low price, some companies tend to make their own price war ignored, prices still, in order to ensure its deserved market profits. However, due to the impact of consumers of low-priced products many psychological First impressions are strongest, the market share will gradually be enterprises to seize the price, let's stick to the original enterprises lose the long-term development of the market space, is bound to decline. Enterprises adhere to the original price, the quality of products and the protection of corporate brand reputation has played a key role, while allowing enterprises to obtain a stable market profit. But this strategy if there is no follow-up development strategy, enterprises only wait for the demise of the share.

Therefore, enterprises to maintain the original price basis in the price war at the same time, must develop the ideas in the production, marketing and research fields to develop innovative, to ensure product quality, brand reputation and market profit at the same time, gather more positive energy development, enhance their market competitiveness.

The price war in front of intelligent lighting enterprises each of its strategy

Strategy 3: innovative ideas to add value to the product

In the face of fierce competition in the price war, many LED Lighting Companies in the price and stick to the original price between wavering. But aside from the price, smart business operators may find a good way to get yourself out of the price war, which is to make the product more valuable. Turning to the added value of products, the most important part is the product quality.

At present, many enterprises with strong LED lighting market in the face of fierce price competition, and not focus on the value of the product on the surface, but by strengthening research and development, production process, production specification means testing procedures, to improve product quality level a. To enhance the quality of products, enterprises simply do not care about the price of the product, because quality products have no market, as long as the product price in a reasonable range, stable position of competitors would be difficult to shake their products in the minds of consumers. After upgrading the product quality, even if the product price is raised, consumers are still willing to accept, the price war is bound to allow enterprises to easily untie. For the technical type of LED lighting companies, improve product performance is also an important means to get rid of the price war quagmire. With more functional features of LED lighting being tapped, more companies are shifting their vision from the price competition in the market to technological innovation.

At present, the modularization of the lighting device and the intelligence of the lamp become the main direction of the two development of LED lighting products. Especially this year, parts of manpower in R & D and production of products with powerful intelligent lighting lighting enterprises invested a lot of LED, and the high performance products to the market, get a good market response, so that the price competition of the enterprise despair in conventional products. Driven by the trend of intelligent products in this technology, some of the conventional products will be gradually eliminated by the market, which makes some companies in the conventional product price competition becomes meaningless. With the continuous introduction of LED lighting technology, with innovative thinking of the company's products with the added value of the product will be greater and greater. It is driven by this trend, the price war may disappear in the field of vision of the lighting industry. However, the price war is the product of every step of the development of the industry, the enterprise only to improve product quality, continuous technological innovation, to create more value-added products, in order to jump out of the big price war.

Strategy 4: flexible introduction of strong market strategy

The price war on the surface is a LED lighting enterprises between product and price competition, but the essence of the fight is put in the market strategy of the enterprise. In the price war in the enterprise so as to attract low-end consumer products through the low price as the flash point, in order to cope with the inertia of thinking of consumers "cheap", the enterprise can through flexible marketing strategies for consumers to reshape the reasonable price of confidence. At present, the increase of after-sales service is the main strategy for enterprises to deal with price competition, through a strong product tracking service, so that consumers set up confidence in the product and corporate brand, thus giving up the temptation of low prices. On the other hand, the increase of advertising investment, also can let the price war against the enterprises will transfer function of superior quality, unique products to consumers, so that consumers understand the importance of the use of high-quality products from the media channels. In addition, the company held a regular product promotion activities, and participate in exhibitions and other market activities can also resist the price war on a protective clothing. Therefore, through strong and changeable market strategy, enterprises can not only let the price war smoke away from their own, but also allow consumers to establish a correct awareness of product purchase, and promote the healthy development of various sectors of the lighting industry.