"Price War" Is Not The Only Factor to Win Market LED

LED chip

2013 has become the past, had by virtue of new blood into the LED industry enterprises will gradually found a cavity: blindly rely on improving product quality and cup soup is not easy in the LED industry, the price war has been the product is to follow the product development process. All along, the users want cheap, we can see the price advantage is still one of the key factor to win share in the enterprise, of course, it is still the industry brand shackles.

Price War Baptism Maturity Far Upstream And Downstream Industries

Currently, the global LED industry, although in the jungle, princes disputes "war era", but expansion of the market has become an inevitable trend. According to statistics show that from 2010 to 2012, just three years, LED chip capacity expansion over 10 times; and capacity big bang directly accompanied by, a sharp decline in LED chip prices, the cumulative decline over the same period of the LED chip is more than 50%, which makes industry has gone through a winter.

However, the downstream demand lighting applications market pull, 2013 MOCVD capacity utilization rose to 52% operating rate rose to about 70%, and some companies even achieve full production. Despite this, but there are companies said the feedback is still conservative, they think the price may have to slowly chip to fall.

In the LED downstream, because each foot between enterprise sites to each other, interlocking industry competition, close combat. Coupled with the outbreak of LED lighting industry, many listed companies have cut into this area, but as a traditional enterprise market will be more reluctant to hand over to the opponent, they resorted to the price of the knife to maintain their comparative advantage in the LED lighting industry.

But when the industry experienced a baptism of the price war, industry slowly began to erupt from the further development to maturity, the entire number of competitors will be less, because the middle someone will be eliminated in this "killing" in the process, it must be profit or even a loss, only to the more mature industrial development time will appear relatively stable profits.
Channel war intensified industry brand also reshuffle

However, although the surge in corporate orders on hand, but the fierce price war almost throughout the whole industry chain downstream. The industry believes that, in the current and future competition in the market, if companies can not build their own brand, will probably in the meager profits, price competition has been submerged in the large market tide.

Currently, both the LED lighting coming transformation of traditional business or businesses, are facing rewritten market pattern, enhance the significant opportunities to reshape the brand.

Compared with the traditional lighting industry and products, LED lighting has a significant difference, the new means of market transactions and the environment but also for the promotion of innovation model provides the possibility and space.

The current follow the traditional store channel system is not the most main LED lighting business sales channels, exploring a variety of new enterprises in the market model to achieve two-way communication market.

It is understood that domestic enterprises have begun to plan this "theme Industries + + integrated marketing services," the industry body integrated services.

In short, LED lighting market "systemic" turn has begun. Needless to say, no matter what different force direction, any channel requires enterprises to invest a lot of time, energy and manpower.