Is the price war in the LED lighting era a weapon or a key?


Looking back on the Internet in 2012, there is a self-deprecating humor in the world, and there is a Jiangnan style exaggerated and cheerful dance. At the end of the year, the Maya predicted the end of the 2012 world, but spent the funny time of "People Re-Thai"; and looking back at the 2012 semiconductor lighting industry, Key words such as overcapacity, policy subsidies are not bad, and industry reshuffles are flooding the industry. The fierce price war has become an important form of market competition. Faced with the homogenization of products, excessive competitors, market confusion, etc., small and medium-sized LED lighting companies have opened the era of LED lighting, is the price war a weapon or a key?

With the maturity of semiconductor lighting technology, the gradual reduction of chip and material prices, and the promotion of policies, LED lighting has gradually entered the era of product application. However, there are still many problems in the LED lighting application market. As Professor Zhang Shaogang, professor of the Institute of Building Physics at the China Academy of Building Research, said, there are still some problems in the application of LEDs. The main two aspects are: First, the technical aspects, such as LED light efficiency is not enough, there is light decay, heat dissipation, Drive power and other issues. Second, in terms of economy, LEDs are expensive and are many times more traditional lighting products, which are difficult to apply. It can be seen that the expensive price is one of the major reasons why LED lighting is not good. Faced with such a situation, many companies have rushed through price wars, in order to compete for greater market share, at the expense of profits.

In January 2012, the price of a lighting fixture for Changfang Lighting dropped from 70 yuan to 50 yuan. Since then, the price has once again dropped from 50 yuan to 30 yuan, opening the price war in the LED lighting industry. The LED bulbs are carrying out crazy price wars and responding to fierce competition. Dongbei and Nanya Optoelectronics have officially started fully automated production. It is understood that the monthly production of LED bulbs produced by South Asia Optoelectronics has reached a production scale of 400,000. The industry estimates that the rapid output will make the price of the entry-level LED bulbs fall by 30% this year. In 2012, many companies including Changfang Lighting, Zhen Mingli, Dehao Runda and Mu Linsen started price wars. In the face of many enterprises competing for the market, many small and medium-sized enterprises are unable to compete with the well-funded and large-scale enterprises for price wars as a weapon to seize the market due to capital and scale. However, if he does not participate in the price war, he is afraid that he will lose his favorable position in the market and will not develop in the future. Therefore, long-term price wars may lead companies to neglect the establishment of product brands and neglect their efforts in technology, quality, product development and innovation.

Thousands of Lighting Viewpoints: Due to market pull, cost and technology promotion, price decline is a major competitive advantage for enterprises to exploit emerging channels, but it is not conducive to branding in order to suppress competitors, exchange prices with good prices, and drive out good money. Establish and develop the entire industry. As the saying goes, playing a price war is not as good as playing a value war. In addition to promoting reasonable price positioning in terms of cost control, technology enhancement, talent management, etc., while focusing on product development, product quality and brand building, price can become the key to the era of LED lighting.

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