Brand war and price war in the LED lighting industry, which one is more important?

Until now, the world still immersed in the sad atmosphere of economy crises and euro crises. Under such circumstance, many industries slowed down their path of development, except for LED lighting industry. Instead of falling into recession, domestic LED lighting industry is now in a state of prosperity. Regardless of scale, product quality, market reputation, LED Panel Light companies large and small swarmed in this market, causing surging waves. At the same time, the price war has once again become the sharpest sword in this battlefield.

 

Brand war and price war in the LED lighting industry, which one is more important?

 

However, can the price war really be a sword that enables LED lighting companies dominated the market? Throughout the history of other domestic industries, the price strategy has been widely used by a lot of companies. Usually, the consequence of doing so is not only harms the interests of the market but also harm the interests of companies. The price war is a double-edge sword.

 

As an emerging market, LED is in the process of replacing traditional lighting technologies. There must be a stage of sharp prices dropping, which is inevitable. But the decline in prices should be established on the basis of mature technologies and scales instead of no-bottom-line prices dropping at the cost of reduction of products’ qualities. Seizing the market by this way will only lead to the end of this company. Companies lacking of core technologies will not survive in the along developing river.

 

Ultimately, the price war can never rise to the strategic height in any market, which only can be used as a temporary tactic. The core strategy of LED manufactures must return to the concept of building brand values, firmly seizing the bottom line of product quality, stably developing the core technology. Only LED companies that followed such sustainable developing steps can achieve a long-term development in the LED lighting market.

 

Presently, the consuming concept of the mainstream customer group has changed. Cheap products usually mean low-quality products. And customers started to recognize and accept the premium caused by the brand effect. There are so many domestic enterprises tasted the pain of this. When a company’s products are marked with low-price low-quality label, it is almost impossible for them to re-establish their brand. It is the brand war that LED lighting industry needed desperately rather than the price war.