[Text / high-tech LED Gan Qin] This year, LED lighting companies feel the rapid development of the industry, another important feeling is that the market is constantly away from them.
Chen Bin, chairman of Mingcheng Technology, said at the 2015 Gaogong LED annual meeting that at present, enterprises are facing external factors including price wars, product wars, channel wars, and poor controllability of manufacturing costs. difficult.
“Especially in the face of price wars, do we still have an advantage? Where is the way out? How should we make changes?†Chen Bin threw a question in the special round-table dialogue titled Mingcheng Technology.
In fact, in the state where the price and quality of the LED market are mature, each company has different gameplays due to different scales. The main performance is that large manufacturers compete for scale and small and medium-sized manufacturers are subdivided.
Lin Yan, deputy general manager of Sanxiong Aurora, said that in the face of price wars, many companies are fighting against the market when they fight, and Sanxiong Aurora is actively taking the initiative. “We increase production scale through automation, from scale, automation, and upstream. The supplier gets the profit."
Different from the path taken by Sanxiong Aurora, the lighting is divided into the sub-fields. “We chose to go to the high-end market. Previously, we mainly deployed the Japanese market. Currently we extend the field to North America and the domestic market. Super transformation.†Xiao Ling, chairman of Juji Lighting, said that in the face of price wars, it is very important to find out where to position and direction. SMEs need to put their survival first.
In fact, when lighting companies put forward price cuts, the most miserable thing is their upstream.
Chen Zhenghua, general manager of Yunxing Electronics, said helplessly, "We mainly provide electrolysis for lighting companies. When the price war on the lighting side is more severe, our pressure will be greater, so we hope to do it from internal factors, including internal management, business model, etc. Some changes, try to match the needs of lighting companies."
In the face of price wars, the mindset of many companies is to obtain a certain market share by reducing prices, but for consumers, the price is not the lowest, only lower, if only through the blind price reduction, it will only be in the price war cycle. The vicious circle goes on.
Different from the practice of many companies, Chen Bin believes that the more price wars can not be reduced, "we must find ways to increase prices, think about how to increase the added value of products, and hold your market through price increases. I hope that LED companies will be in the future. Can get a good profit, don't go through the price cuts to cater to the price war."
In fact, "orderly" price competition can promote reasonable market competition, promote cost reduction, structural adjustment and the survival of the fittest. The "disordered" price competition, blindly playing "malignant price wars", is bound to bring about both losses, not only bad for business development, but also cause certain damage to the normal market economic order, which is undoubtedly a next step.
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