The status quo of LED lighting enterprises in China in 2016: fierce competition in the industry

From shop to business, from Zhejiang Jiaxing to Zhongshan Ancient Town, Huang Chuan and always walk in front of the lighting road, never stop. As he said, "choosing this road is the only way to move forward and not to retreat." There must be enough effort to face the waves of desire, to be modest and unaffected. Yong rushed south from Zhejiang to Zhongshan Ancient Town. What impressed Huang Chuanhe most is that the situation is far from his original vision. Huang Chuanhe sighed, "when the sea salt opened shop in Jiaxing, Zhejiang, the market environment was good, and the work was done smoothly. In the past few years, the pressure and power were in the same place." After five or six years of operating cartridge spotlights and lanterns, Huang Chuanhe began to fight with the other three partners in street lighting. However, because street lamps have always been dominated by government projects, they can not form a brand, so it is difficult to do so in the channel. So Huang Chuanhe decided to turn to the merchants. According to the global LED lighting industry market depth survey and the 2014-2018 year investment development analysis and Research Report data, from 2011 to now five years, Huang Chuanhe admitted that the development of Zhejiang's national light has been fairly smooth, and the choice of the ancient town to do business according to the product, this is a bad assessment of the right and wrong decisions. But he can be sure that in the five years of running Guzhen in ancient towns, the pressure is not small. Because of the importance of knowing the channel, the light of national light began to build in the old town when it was just landing. However, in fact, it is not as smooth as planned. The national light spent nearly 20 million of its funds on the establishment of channels, but in the end it failed to achieve the desired results. The failure of this investment in the channel is, in Huang Chuanhe's words, "there is no water without flowers," which can be said to give him a valuable lesson. In 2016, the light of Guo learned the lesson and adjusted the strategy. Abandoning the original "nationwide net laying" construction channel, and using the "thunder action" way, first swept Shandong Province in half a month. Although the cost of doing business in the way of cross province operation is relatively high, the effect is better. Next, the thunder action is about to enter Shenyang. Good knives are used in the face of the impact of the market environment over the past two years. The profit margin of products is about 10% different from that of last year. However, because of the enlargement of the channel area this year, the Shandong province was increased in 2016 based on the stable points of last year, namely, Zhejiang, Shanghai, Jiangsu and Anhui. This year's order of light increased by 20-30% compared to 2015. "Good Dao is on the knife edge" - the channel strategy adopted by the national light is to stabilize a province first and then develop another province. This has saved the cost and reduced the investment risk of "spreading the net across the country". Although the investment in the store is not directly proportional to the income, Huang Chuanhe is indifferent to it. He believes that the gains from practicing the company strategy may be reflected in 5 or even 10 years. Without a precipitate of time, an enterprise will not have any "details". To abandon the "price war" industry competition is very intense, especially in the product price. Because of the price advantage, many dealers choose to purchase goods in Linyi, Shandong. On the "price war", Huang Chuan used a word to describe this vicious competition: "no the cheapest, only cheaper." The consequences of "price war" can neither guarantee product quality nor guarantee after-sales service. For this year's product adjustment strategy, he insisted that some old products should be "eliminated and eliminated". If we want to improve customer loyalty, the quality of national light must be stabilized before we can consider improving product cost performance.