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A look at the road of brand development in the LED industry in 2014

With the advent of the post-financial era, major industries around the world have experienced crises, causing layoffs. The LED lighting industry, benefiting from the successive introduction of many national and local subsidy policies, is prosperous, but often in a good market, it should maintain a sense of crisis.

    What does a brand developer mean? Our most direct impression is that the first is that there is money, and the code of a listed company is directly marked in the media advertisement. At present, some powerful companies are accelerating the promotion of the brand. This is similar to the capital of some LED companies. Strong, spend money on the media, accelerate the quality and innovation of its own products.

    LED lighting is a revolution in light source technology. The future market must belong to companies with brand, scale, channels, and product innovation. Under the conditions of a market economy, brand building has brought new opportunities to LED companies, and has also brought new risks and challenges to the development of companies. Brands are the product of market competition and largely determine the market share of products and even companies. , Determines the survival and development of the enterprise.

    LED lights beware of repeating energy-saving lamps "low-quality door"

    At present, the LED lighting market in my country and even the world does not have a unified standard to constrain product quality, which also gives small manufacturers an opportunity. Facing the ever-growing emerging lighting market, small LED workshops began to work hard to identify users of their products. They hyped up low-priced products in the market and took advantage of the fact that consumers did not understand the products. Some manufacturers began to focus on product quality. A big fuss, by using inferior raw materials and reducing the use of due materials, lower product costs can be obtained, thereby reducing product prices, and also bringing catastrophic losses to the development and reputation of consumers and the entire industry.

    In recent years, the country has vigorously promoted energy-saving lamps, on the one hand to achieve environmental protection and energy saving, on the other hand, it can also save money for ordinary consumers. However, many consumers lack understanding of LED lights, and some do not even know about LED lights and The difference between traditional lights.

   "Quality is the king of survival for an enterprise. The core strategy of an enterprise must be to return to shaping brand value, firmly grasp the bottom line of quality, and seek management and quality improvement in the long-term price struggle to build a century-old brand enterprise. "Nowadays, the concept of domestic mainstream consumer groups has changed. Low-quality products will only gradually lose the trust of customers, while high-quality products are prone to a higher degree of acceptance. Too many domestic companies have experienced the pain of not having a brand, but the establishment of a brand is by no means an overnight effort. Quality is the prerequisite of the brand. If you want to use inferior products to occupy the market and increase the company's reputation, you can only say that it is fishing and drinking to quench your thirst. .

    Just imagine, when a company’s products are labeled as low-quality, is it easy for the company to try to reshape its brand? Lower quality may reduce costs, but the profit slashed by the price war will make the company walk. On the tight wire of the capital chain, if you are careless, you will lose everything.

    Do not let "price war" become the "killer" of LED brand devaluation

   "Price war" is a topic of discussion in every industry. Prices in any industry cannot be avoided. However, the development of enterprises is definitely not a low-price strategy. This vicious competition method that hurts one thousand enemies and hurts 800 people is actually positive. Respected by the entire industry. No wonder people in the industry sigh that the formation of a brand can lead the company to real development.

    In June 2012, the State Council decided to arrange a financial subsidy of 2.2 billion yuan to support the promotion of energy-saving lamps and LED lighting fixtures. The 2.2 billion yuan has not been officially allocated, and the price war for LED lights in the market has started ahead of schedule.

    Starting from the second half of 2012, LED lighting companies represented by Philips, NVC, and Everlight have unanimously lowered their prices. Data in the first half of 2013 showed that the prices of LED bulbs from top-tier manufacturers Tsinghua Tongfang and NVC Lighting 7w fell by 37.3% and 36% respectively from the same period last year, and some companies even dropped as much as 40%.

    The subsidy rules have not yet been implemented, and the price of LED lamps on the market has plunged in advance. The current LED lighting companies seem to have beaten their blood. No matter the scale, product, or market, they are roaring into the turbulent wave of the lighting market like a wolf. At the same time, the price war has once again become the sharpest open axe in the hands of LED companies. There is no lowest, only lower, and there is a tendency to refuse to kill the opponent. A 7W LED bulb can sell for 40-50 yuan last year, and some small-brand products even cost more than 20 yuan. This drop far exceeds the 15% to 20% drop expected by the industry.

    Many companies said that under the healthy development of the market, there will be fewer and fewer production companies in the future, but the scale will become larger and the profits will become higher and higher. The end of the price war is not a long-term solution. As the current global semiconductor market continues to heat up, the development of the LED industry is showing the characteristics of continuous expansion of industrial scale, continuous improvement of technology level, and perfect industrial chain. Companies are positioning themselves, identifying breakthroughs, planning layouts, and leading the market.

    The formation of a well-known brand will be the king of enterprise development

    In the context of the rapid internationalization of China’s LED industry environment, the rapid rise of LED brands that originally relied on manufacturing scale to win means that domestic companies have begun to abandon traditional cost competition methods and shift to brand-oriented, strategic leadership, technological innovation, In terms of comprehensive superiority competition with management as the basic element, this is of innovative significance for local enterprises to stabilize the domestic market and open up the international market.

    In recent years, whether in the domestic market or in the overseas market, Chinese LED products have a strong deterrent to foreign manufacturing companies, but this deterrence mainly comes from the price of the product, ultra-low prices plus good products Quality once caused panic in western developed countries. However, from the analysis of the global industrial environment, this cost competitive advantage of Chinese LED companies is not worth showing off at all, because this advantage is basically given by China’s special manufacturing environment, rather than a single enterprise in the true sense. The improvement of competitiveness.

    Therefore, the competition among enterprises enters the stage of brand competition, and the competitiveness of the brand is directly related to the profit of the enterprise and the future development prospects. Enterprises are facing a more fierce competitive environment. This fierce market competition is the competition of factors such as product quality, technical services, and price, which will ultimately be achieved through the promotion of CIS and brand extension. In the modern consumer environment, a brand is actually a kind of credit guarantee. The increase in brand value means that consumers have an increased trust in it, which means that the company can obtain more user resources. This is where the current core competitiveness of the company lies.


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