Many business-related people, either merchants or CEO from giant enterprises, in many conditions, they have to admit that the price war is an invincible magic weapon to capture the market, but it will bring huge losses as well. However, what happens next? Growth or elimination? Taobao is a successful case. After holding the market (almost), Taobao started to collect all kinds of fees which higher than state standards. But this situation is very rare. In most cases, merchants will be end in death, eliminated forever. LED lighting technology has been developed in China for only 10 years. Theoretically it is an emerging and immature market, full of opportunities but also challenges. Although price war of LED lights is a double edged sword, but it is inevitable, just like certain fixed theorem for the market.
Competitions in the market is cruel, Taobao’s experience is non-repeatable. It is cleared that for most media and small sized companies, price war of LED lights can only cut down your income furthermore, Taobao is just a legend. Maybe people doing business in LED lighting industry should pay more attention on NVC, which has been seen as a successful example in this area. It has been proved that LED market development should start from projects, followed by retails (including specific shops and online shopping). However, no matter what method you are taking, earning money is the most important thing. Then someone my asked, how to make money among such intense competitions? How could I survive and finally success in an emerging industry? Occupying channels is an essential point. There are countless articles online about LED marketing channels: concentrating on management and reducing costs, concentrating on technology and applying for patents, focusing on the minority of personalized products. If you have adequate strength to pump prime, you can focus on each point mentioned above.
Price wars were always end up with injuries of everyone. Only those giant companies with abundant fund and advanced technologies can service in the end. The start of LED lighting market will be a long induction period, after which is the sudden coming outbreak period. Outbreak will not be last long (several years maybe). Then LED lighting market will enter the long period of downfall. Replacements will quickly emerge in the market, such as OLED lamps. When you spend most of your money and your energy on price war of LED lights and success finally, you will find out that the “prime” of LED lighting industry has passed. It is a double edged sword