Why do companies in the LED lighting "Red Sea War" win?

As the product is on the road, as the LED lighting application market gradually spreads, LED companies are wrapped up in their fist products, and continue to strengthen competition for market resources. The scale competition and price sluggishness among LED companies have intensified. At present, there are more than 10,000 LED manufacturers registered in mainland China alone. In the first half of 2012 alone, there were more than 1,800 new LED indoor lighting companies in China.

In addition to thousands of LED small businesses, traditional lighting manufacturers, international lighting manufacturers, LED display manufacturers have been recruiting in the field of LED lighting to prepare for the fight. LED lighting is already a red sea. In the next year, the LED lighting industry will usher in a fierce battle. Only a few companies that can survive in the field of LED lighting upstream may be more than a dozen. The Red Sea has already blew the horn.

In the battle of the Red Sea, how to win? High cost performance is not only the primary condition for consumers to choose products, but also become the magic weapon for LED companies to win.

Do not make price butcher, do price definition
Currently, from a consumer perspective, the biggest market barrier for LED lighting products is price. Therefore, industry analysts believe that LED lighting in order to have a bigger market is to minimize prices.

For example, Galanz is a well-known price butcher in the home appliance industry, but after it has pulled the price of microwave ovens to the lowest in the world, it seems that it has not died. It has become the best-selling company in the microwave oven. In the process of expanding the market and attacking the city, the price war was once the killer of many achievements.

"Now the domestic market, which products between the market stifling the final foothold is not price competition?" Sun Qinghuan, chairman of Mulinsen Co., Ltd. said that in the television industry, such as TCL, Konka, Changhong, the price competition of major TV products is very fierce. In the competition of the same comparable products, the price will eventually turn to price competition, and the price can become the advantage of the enterprise. However, like Apple's mobile phone, due to the small comparability between other brands of mobile phones and Apple mobile phones, the competitive advantage in natural prices is not obvious. ”

With a keen eye, Mulinsen took the lead in launching the LED lamp price revolution, and drastically adjusted some LED bulbs and LEDT8 tubes. The price adjustment rate exceeded 40%. The LED high-end light source will enter the era of 1 US dollar, which shocked the industry. The price of Mlinson's 3W LED bulb to the dealer is 8 yuan, the price of the dealer in the terminal sales is about 14 yuan, the price of the Mulin 3W bulb is very close to the price of 5W energy-saving lamps on the market. It poses a threat to 5W energy-saving lamps and quickly occupied the lighting market.

The price of the washing machine cannot fall to the price of cabbage. The price of the car cannot fall to the price of the chopsticks. In a certain way, there will be a price for everything. "We Mulinsen is to produce cost-effective products, we pursue large quantities, standardization, etc., and strive to be the leader in the price of LED products." Sun Qinghuan, chairman of Mulinsen Co., Ltd. said with confidence.

In the past, by defining the ceiling lamp, NVC defined the lamp cup and the transformer, and the three males entered the public's field of vision by defining the ballast. There are also fluorescent tubes and T8 tubes, which are actually redefined by lighting companies such as Foshan Lighting and Philips. Philips defines high-end price lines, and Foshan Lighting defines low-end price lines to popularize T8 tubes and fluorescent tubes. From the development law of the traditional lighting industry, in the next 1-2 years, there will be LED lighting companies or traditional lighting companies to define LED products in a certain field, and thus begin to popularize LED lighting. There is no doubt that Mulinsen wants to enter the public's field of vision by establishing a brand of bulbs and defining the price of LED products. If you want to be the first one, and dare to be self-employed by price advantage, I am afraid that it is not a forest.

Do not make three products, do it as the preferred product
As the current LED industry is in the ascendant, the profit is slightly more than traditional lighting products, especially in the domestic channel terminals, coupled with the lack of national unified standards and related institutions to supervise, resulting in a large number of workshop-type small enterprises springing up in the industrial cluster base. Long. But these workshop-style LED products have no quality at all.

In addition, some companies have even won the market in order to win the market with price wars. This year, LED quality door incidents frequently broke out. The Guangdong Provincial Quality Supervision Bureau announced the results of provincial-level special supervision and inspection of the self-ballasted LED lamp products in Guangdong Province. The results showed that 23 batches of self-ballasted LEDs in the spot check failed. Batch, the failure rate is as high as 73.9%.

"To pursue the price blindly, it is easy to completely ignore the quality, which is equal to the three products. But we are looking for a cost-effective product, we must be the first product under the same product quality conditions. Choice is the preferred product of consumers.” Sun Qinghuan, chairman of Mulinsen Co., Ltd., said with determination.

Big waves and sands began to see gold. In the battle of LED Red Sea, LED companies with cost-effective products will eventually go further.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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