"This is the best time and the worst time." Dickens famous quotes used to describe the current LED lighting industry seems to be the most appropriate: On the one hand, the LED lighting industry has received unprecedented attention from the state sector, a variety of positive The policy has been vigorously promoted; the enthusiasm of many investment groups has been aroused, and long-term inflow of various funds; emerging LED companies have sprung up and various talents have joined them. It can be said that this is the best era of LED lighting.
But at the same time, some people say that this is the worst era: the LED industry has no standard, all its actions, gathering of fish and dragons, vicious competition; eager for instant benefits, eager to grab more money, concentrate on making products less; simple copy more, less innovation . Blind construction, low-level duplication, and homogenous competition are serious phenomena. The industry also looks like it has entered a vicious circle: continuous influx, continuous failure; continuous closure, continuous influx. So this is the worst era of LED lighting. As various problems emerge in an endless stream, how can we escape the vicious circle and seek to survive in a severe environment, I believe that this is the problem most LED companies are most concerned about.
LED lighting is the most controversial three major keywords
Closed tide, price war, channel dispute
The surface prosperity of LED lighting is not related to the environment. The favorable macro policies and the availability of various types of government subsidies have made it possible for companies that can get government support to go smoothly. Some companies even rely on government subsidies to achieve profitability. However, when LED lighting is valued by speculators as a piece of cake, hot money inflows into the industry, and the industry raises questions raised at the beginning of the article. The pursuit of capital has led LED lighting to usher in an unexpected Xiao Yangchun; however, as the regulation continues, which factors have become the dominoes that push down the LED lighting capital chain is worth exploring.
Closed tide
We still cut from the tide of closure. The tide of closures sounds startling. However, Xiao Nanfang, Marketing Director of Marketing Center of Qiaosen Electric (China) Co., Ltd., Weng Zhiqin, General Manager of Zhongshan Zhiyuanshijia Lighting Co., Ltd., Partner of the Hong Kong International Lighting Industry Research Center, and Liu Yongquan, Chief Consultant of the Lighting Industry Research Center When Deng Mingjie, the general manager of Zhongshan Deng Deng Street Lighting Appliance Co., Ltd. visited the Sohu conference room, the view on the collapse of the closure was almost the same: the collapse of the closure was an inevitable result of the industry's reshuffle. No need to be overwhelmed, the closure tide should be regarded as normal. The necessary stage of the evolution of the industry.
From the surface, the root cause of the flashing of LED lighting is the downturn of the entire market economy. The country's macro-control over the upstream property seems to be the main reason. However, companies that are more important in their internal causes, products, markets, management, and funds that are capable of systematic development and balanced development in all aspects will remain and will go further. Some enterprises that are eager for quick success and profit, speculation, and money-trapping have been doomed from the very beginning. For example, the owner of a decoration company suddenly found that lighting companies make money, invest a billion in, but soon after buying the equipment closed down. This is because there is a lack of core technologies, products do not have cores, market management does not follow the laws of the lighting industry, and there are multiple defects from the beginning. It can be said that blind speculation in the LED industry is a cost-free bet. When "speculation" becomes "investment," enterprises will move from the betting nature to normalization, and the advent of closures will inevitably come. Wang Xiaofeng, chief editor of lighting, summed up the root cause of the collapse of LED with one word—not professional. The failure of unprofessional companies and the survival of companies that have been baptized by the market is the survival of the fittest.
Price war
In the course of competition, there is a hot word in the LED lighting industry shuffle in no one can avoid, it is the "price war." Price warfare, as the name suggests, refers to the commercial competition behaviors that enterprises compete through to reduce the market price of goods in order to suppress competitors, occupy more market shares, and consume inventory. The use of price as a competitive strategy means that the LED lighting industry is in the spotlight. In this regard, with packaging technology as a competitive advantage, in the LED lighting market to provoke a price war, Mu Linsen lighting may be more powerful. Mulinsen Weng Zhiqin believes that the price war is determined by market demand. When M. Linsen’s two price cuts boosted sales by more than twice, it is now possible to export 200,000 LED products a month. So this is the market demand that determines the price war. Deng Mingjie analyzes price warfare from the perspective of marketing principles. He believes that the most important factor in the development from 4P to 4C is convenience. The decline in prices can better suit consumers and maximize the ultimate interests of everyone. A product market that can meet people's needs for high, medium, and low prices is not a problem. The focus is on meeting different needs.
Another idea is to focus on the short-term or long-term development of the company. Qiao Sen Lighting South used a comparative image metaphor: price war, to see whether the company "requires food" or "to rice bowl." First of all, we should look at which companies provoked a price war: It is the small companies that are eager to survive that provoke price wars. They continue to seize every single list to survive and sacrifice their prices. For them, survival is the first. This is "requiring food." However, for some brand enterprises, it is necessary to pay attention to the hematopoietic function of the brand and focus on sustainable development in the future. From this perspective, aggressive price cuts can damage brand genes. However, the competition between brand enterprises and “three-nothing†companies will cause the LED industry to have the tendency of bad coins to expel good money.
Because of this, the industry calls for a price war. The powerful big brands have launched a price war that can sweep the industry's "three nos" companies and hunt down irregular "bad money" so that the industry can be standardized and normalized. The use of price wars, raising the investment threshold of LED lighting, you can destroy the investment value of the LED lighting industry, to avoid the influx of hot money, from this perspective, the price war is more conducive to the interests of brand companies.
In fact, regardless of the price war or other marketing strategies, the ultimate goal is to occupy the minds of consumers, or occupy the minds of dealers, and use the advantages of scale manufacturing to sweep off batches of small factories. It should be the LED lighting industry. Another phase must be passed. ‖
Channel dispute
If we say that the "closed tide" and the "price war" belong to the industry phenomenon that we can see, another kind of competition that breeds in the dark is even more crucial. The "channel dispute" is a deadly magic for every LED lighting company. NVC has been listed, the founder Wu Changjiang only his 36 operating centers, the country's 10,000 sales outlets independent of the listed company system, this is Wujiang Changjiang gripped the bargaining chips. In the fight between Ng and Changjiang who had two out of NVC, these channel players have played a major role.
As Deng Mingjie, the general manager of Taojin Street, puts it, there is no distinction between advantages and disadvantages of the channels. With respect to the positioning of the company, it is necessary to return to the essence of lighting and set the terminal form according to the characteristics of the product. Just as the consultant Liu Yongquan cited, in the era of color television, Shenzhen also produced black-and-white televisions, and the company’s production efficiency was very good. It was sold to Africa. Ultimately, whether it is emerging LED lighting or traditional LED lighting, it should be determined by the product channel, according to the product to seize the channel, not the other way around. The only difference between the emerging LED lighting companies and the traditional LED lighting companies is that the SMEs need more flexibility, and the planning cycle and time-to-market of large companies may be very long. Such as Op, its last LED product, a series of products to enter the market at least six months, some small companies may occupy the market in three months or less.
LED lighting business survival guide
Boss, positioning, strategy, subtraction
In the face of fierce competition, how should LED lighting companies respond? If you want to win in the industry's "price wars" and operate steadily "do not close down," and also effectively view the distribution "channels", then the following LED lighting business survival guide, have to look.
Survival Guideline 1: Business leaders need to define their own positioning and build core teams. It is still the old saying: The competition in the 21st century is the competition for talent. The LED lighting industry is particularly in short supply. The boss is very important. A successful entrepreneur will inevitably engrave his company with an indelible mark. This is the “spiritual leader†of the company. However, at the same time, the limitations of individual entrepreneurs will also become the biggest bottleneck in the development of enterprises. The development of this LED lighting industry is now more evident. As consultant Liu Yongquan puts it: "If the boss raises one meter, then the whole company will not only increase ten meters." The change from businessman to entrepreneur largely determines the success and height of the company. The core team supports the sustainable development of the entire company. The so-called "middle lanes", the company's middle-level personnel are the mainstays, the largest and most effective when used.
Survival Guideline 2: Recognize enterprise positioning, brand positioning, product positioning, and allow customers to "pay the bill." In the early stages of the development of a new enterprise, the search for a "blue sea" may be a company's passion. This is to find a position for the company to find opportunities. An interesting share is Op. Originally, Op Art started with kitchen lights and quickly seized kitchen and toilet lights. This was Op Art’s “blue seaâ€. Ops grows, but now the chance of opportunistic growth by a product does not exist. The market has gradually matured and strategic growth is more critical. Companies need to position themselves accurately and subdivide the market. LED lighting removes the dream value that is looming outside the industry. Do not understand the corporate positioning and brand positioning, there is no clear corporate self-positioning, it is very likely to have a species of dragons, the harvest is a flea.
Survival Guideline 3: Focus on strengths and strengths, and give companies a "subtraction strategy." How to make a good brand? An industry voice believes that long-term planning and market strategies are very important. So how do long-term planning? In the industry chain, some companies are good at full bloom, stretch the front, and stretch the front in some companies and even across industries. For example, Youngor, who has crossed from the apparel industry to the real estate industry, has grown from a small home appliance industry to a BDO Runda in the lighting industry. Nowadays, Youngor has returned to its main business—the apparel industry. It is time for BDO Runda to develop its lighting “Blue Oceanâ€.
However, for companies that are already more specialized in the LED lighting industry, they do not have cross-sectoral cross-industry development, and they may be more likely to focus on their own resources, develop a variety of products, and occupy areas nationwide. But this is only an appearance. The essence is that no matter what strategy a company makes, a clear and ruthless business logic must abide by: "pursuing the maximization of commercial interests within a reasonable range." When the country blossoms and it is generally occupied but it is not profitable, companies should think about the advantages of focusing on strengths and act as "subtraction strategies." Concentrating on the advantages of fighting annihilation may be more conducive to corporate development. For example, a company serviced by the consultant Liu Yongquan, the owner of technology, wants to insert the banner of the company throughout the industry, so last year to do lighting, landscape lights, five-star hotel, but the resulting output value has doubled, the profits did not increase. When his company did subtraction and focused on R&D-driven, the profit value of one category of production had exceeded all the sum of all projects in the past.
It should be clear that these guidelines for the survival of LED lighting companies need more practice. We also understand that the LED lighting industry has not yet produced an industry giant and leading brand. In the turbulent competition, competitions to establish industry rules and industry standards are still in progress. On a larger scale, the struggle for LED lighting power is still going on, but for LED lighting companies alone, it is not just the power struggle that is so simple, because this is the survival proposition of every LED company first.
But at the same time, some people say that this is the worst era: the LED industry has no standard, all its actions, gathering of fish and dragons, vicious competition; eager for instant benefits, eager to grab more money, concentrate on making products less; simple copy more, less innovation . Blind construction, low-level duplication, and homogenous competition are serious phenomena. The industry also looks like it has entered a vicious circle: continuous influx, continuous failure; continuous closure, continuous influx. So this is the worst era of LED lighting. As various problems emerge in an endless stream, how can we escape the vicious circle and seek to survive in a severe environment, I believe that this is the problem most LED companies are most concerned about.
LED lighting is the most controversial three major keywords
Closed tide, price war, channel dispute
The surface prosperity of LED lighting is not related to the environment. The favorable macro policies and the availability of various types of government subsidies have made it possible for companies that can get government support to go smoothly. Some companies even rely on government subsidies to achieve profitability. However, when LED lighting is valued by speculators as a piece of cake, hot money inflows into the industry, and the industry raises questions raised at the beginning of the article. The pursuit of capital has led LED lighting to usher in an unexpected Xiao Yangchun; however, as the regulation continues, which factors have become the dominoes that push down the LED lighting capital chain is worth exploring.
Closed tide
We still cut from the tide of closure. The tide of closures sounds startling. However, Xiao Nanfang, Marketing Director of Marketing Center of Qiaosen Electric (China) Co., Ltd., Weng Zhiqin, General Manager of Zhongshan Zhiyuanshijia Lighting Co., Ltd., Partner of the Hong Kong International Lighting Industry Research Center, and Liu Yongquan, Chief Consultant of the Lighting Industry Research Center When Deng Mingjie, the general manager of Zhongshan Deng Deng Street Lighting Appliance Co., Ltd. visited the Sohu conference room, the view on the collapse of the closure was almost the same: the collapse of the closure was an inevitable result of the industry's reshuffle. No need to be overwhelmed, the closure tide should be regarded as normal. The necessary stage of the evolution of the industry.
From the surface, the root cause of the flashing of LED lighting is the downturn of the entire market economy. The country's macro-control over the upstream property seems to be the main reason. However, companies that are more important in their internal causes, products, markets, management, and funds that are capable of systematic development and balanced development in all aspects will remain and will go further. Some enterprises that are eager for quick success and profit, speculation, and money-trapping have been doomed from the very beginning. For example, the owner of a decoration company suddenly found that lighting companies make money, invest a billion in, but soon after buying the equipment closed down. This is because there is a lack of core technologies, products do not have cores, market management does not follow the laws of the lighting industry, and there are multiple defects from the beginning. It can be said that blind speculation in the LED industry is a cost-free bet. When "speculation" becomes "investment," enterprises will move from the betting nature to normalization, and the advent of closures will inevitably come. Wang Xiaofeng, chief editor of lighting, summed up the root cause of the collapse of LED with one word—not professional. The failure of unprofessional companies and the survival of companies that have been baptized by the market is the survival of the fittest.
Price war
In the course of competition, there is a hot word in the LED lighting industry shuffle in no one can avoid, it is the "price war." Price warfare, as the name suggests, refers to the commercial competition behaviors that enterprises compete through to reduce the market price of goods in order to suppress competitors, occupy more market shares, and consume inventory. The use of price as a competitive strategy means that the LED lighting industry is in the spotlight. In this regard, with packaging technology as a competitive advantage, in the LED lighting market to provoke a price war, Mu Linsen lighting may be more powerful. Mulinsen Weng Zhiqin believes that the price war is determined by market demand. When M. Linsen’s two price cuts boosted sales by more than twice, it is now possible to export 200,000 LED products a month. So this is the market demand that determines the price war. Deng Mingjie analyzes price warfare from the perspective of marketing principles. He believes that the most important factor in the development from 4P to 4C is convenience. The decline in prices can better suit consumers and maximize the ultimate interests of everyone. A product market that can meet people's needs for high, medium, and low prices is not a problem. The focus is on meeting different needs.
Another idea is to focus on the short-term or long-term development of the company. Qiao Sen Lighting South used a comparative image metaphor: price war, to see whether the company "requires food" or "to rice bowl." First of all, we should look at which companies provoked a price war: It is the small companies that are eager to survive that provoke price wars. They continue to seize every single list to survive and sacrifice their prices. For them, survival is the first. This is "requiring food." However, for some brand enterprises, it is necessary to pay attention to the hematopoietic function of the brand and focus on sustainable development in the future. From this perspective, aggressive price cuts can damage brand genes. However, the competition between brand enterprises and “three-nothing†companies will cause the LED industry to have the tendency of bad coins to expel good money.
Because of this, the industry calls for a price war. The powerful big brands have launched a price war that can sweep the industry's "three nos" companies and hunt down irregular "bad money" so that the industry can be standardized and normalized. The use of price wars, raising the investment threshold of LED lighting, you can destroy the investment value of the LED lighting industry, to avoid the influx of hot money, from this perspective, the price war is more conducive to the interests of brand companies.
In fact, regardless of the price war or other marketing strategies, the ultimate goal is to occupy the minds of consumers, or occupy the minds of dealers, and use the advantages of scale manufacturing to sweep off batches of small factories. It should be the LED lighting industry. Another phase must be passed. ‖
Channel dispute
If we say that the "closed tide" and the "price war" belong to the industry phenomenon that we can see, another kind of competition that breeds in the dark is even more crucial. The "channel dispute" is a deadly magic for every LED lighting company. NVC has been listed, the founder Wu Changjiang only his 36 operating centers, the country's 10,000 sales outlets independent of the listed company system, this is Wujiang Changjiang gripped the bargaining chips. In the fight between Ng and Changjiang who had two out of NVC, these channel players have played a major role.
As Deng Mingjie, the general manager of Taojin Street, puts it, there is no distinction between advantages and disadvantages of the channels. With respect to the positioning of the company, it is necessary to return to the essence of lighting and set the terminal form according to the characteristics of the product. Just as the consultant Liu Yongquan cited, in the era of color television, Shenzhen also produced black-and-white televisions, and the company’s production efficiency was very good. It was sold to Africa. Ultimately, whether it is emerging LED lighting or traditional LED lighting, it should be determined by the product channel, according to the product to seize the channel, not the other way around. The only difference between the emerging LED lighting companies and the traditional LED lighting companies is that the SMEs need more flexibility, and the planning cycle and time-to-market of large companies may be very long. Such as Op, its last LED product, a series of products to enter the market at least six months, some small companies may occupy the market in three months or less.
LED lighting business survival guide
Boss, positioning, strategy, subtraction
In the face of fierce competition, how should LED lighting companies respond? If you want to win in the industry's "price wars" and operate steadily "do not close down," and also effectively view the distribution "channels", then the following LED lighting business survival guide, have to look.
Survival Guideline 1: Business leaders need to define their own positioning and build core teams. It is still the old saying: The competition in the 21st century is the competition for talent. The LED lighting industry is particularly in short supply. The boss is very important. A successful entrepreneur will inevitably engrave his company with an indelible mark. This is the “spiritual leader†of the company. However, at the same time, the limitations of individual entrepreneurs will also become the biggest bottleneck in the development of enterprises. The development of this LED lighting industry is now more evident. As consultant Liu Yongquan puts it: "If the boss raises one meter, then the whole company will not only increase ten meters." The change from businessman to entrepreneur largely determines the success and height of the company. The core team supports the sustainable development of the entire company. The so-called "middle lanes", the company's middle-level personnel are the mainstays, the largest and most effective when used.
Survival Guideline 2: Recognize enterprise positioning, brand positioning, product positioning, and allow customers to "pay the bill." In the early stages of the development of a new enterprise, the search for a "blue sea" may be a company's passion. This is to find a position for the company to find opportunities. An interesting share is Op. Originally, Op Art started with kitchen lights and quickly seized kitchen and toilet lights. This was Op Art’s “blue seaâ€. Ops grows, but now the chance of opportunistic growth by a product does not exist. The market has gradually matured and strategic growth is more critical. Companies need to position themselves accurately and subdivide the market. LED lighting removes the dream value that is looming outside the industry. Do not understand the corporate positioning and brand positioning, there is no clear corporate self-positioning, it is very likely to have a species of dragons, the harvest is a flea.
Survival Guideline 3: Focus on strengths and strengths, and give companies a "subtraction strategy." How to make a good brand? An industry voice believes that long-term planning and market strategies are very important. So how do long-term planning? In the industry chain, some companies are good at full bloom, stretch the front, and stretch the front in some companies and even across industries. For example, Youngor, who has crossed from the apparel industry to the real estate industry, has grown from a small home appliance industry to a BDO Runda in the lighting industry. Nowadays, Youngor has returned to its main business—the apparel industry. It is time for BDO Runda to develop its lighting “Blue Oceanâ€.
However, for companies that are already more specialized in the LED lighting industry, they do not have cross-sectoral cross-industry development, and they may be more likely to focus on their own resources, develop a variety of products, and occupy areas nationwide. But this is only an appearance. The essence is that no matter what strategy a company makes, a clear and ruthless business logic must abide by: "pursuing the maximization of commercial interests within a reasonable range." When the country blossoms and it is generally occupied but it is not profitable, companies should think about the advantages of focusing on strengths and act as "subtraction strategies." Concentrating on the advantages of fighting annihilation may be more conducive to corporate development. For example, a company serviced by the consultant Liu Yongquan, the owner of technology, wants to insert the banner of the company throughout the industry, so last year to do lighting, landscape lights, five-star hotel, but the resulting output value has doubled, the profits did not increase. When his company did subtraction and focused on R&D-driven, the profit value of one category of production had exceeded all the sum of all projects in the past.
It should be clear that these guidelines for the survival of LED lighting companies need more practice. We also understand that the LED lighting industry has not yet produced an industry giant and leading brand. In the turbulent competition, competitions to establish industry rules and industry standards are still in progress. On a larger scale, the struggle for LED lighting power is still going on, but for LED lighting companies alone, it is not just the power struggle that is so simple, because this is the survival proposition of every LED company first.
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