LED lighting industry is developing rapidly, and even “excesses.” Cross-border companies have invested LED industry, traditional lighting companies gradually transition LED market, companies frequently build on the middle and lower reaches of LED applications, leading the LED lighting market saturation, overcapacity. At the same time, competition among enterprises has become increasingly fierce, LED lighting industry also presents a different situation.
Status of one, price war waged.
In 2014 more than half, we still see a price war “hero” attitude, occupying LED lighting topic of the charts, the industry continues to tilt bloody. Large companies want to scale advantages will translate into a price advantage by continuing to maintain the initiative in the market; SME wants to lower the price as “heavy artillery”, “bombing” market. Price war results may be beneficial to consumers, but to make the industry a large number of corporate profits decline, survival difficult or even bankruptcy.
Status Second, the brand battle into the market gospel.
Brand war with “dark horse” posture squeeze industry attention, many LED lighting companies placed in the heart of the brand competition in the market, strong play in the various channels of brand advertising, the implementation of the difference between profit and value to get the business strategy.
Status of three, the wind and the merger integration.
Recently, mergers and acquisitions accelerated, we see the pattern of the early LED lighting industry. The companies want to have a solid strength with merger integration approach to make up for their deficiencies in terms of LED lighting products, brands, technology, and other channels, and mergers and acquisitions are just the fastest way to solve these problems. However, mergers and acquisitions and easy, integration is difficult. Inevitable differences in terms of both the company’s management, culture and values. Despite the obvious benefits of mergers and acquisitions, but to move forward with ease, resolve after the merger prone to instability, must be gradual, otherwise difficult to achieve the desired results.
Status of four, closures birth of a new pattern.
Industry almost unanimously believe, LED industry is entering a reshuffle, adding to the traditional lighting LED lighting giant battlefield, be more failures, usher in the real “closures.” However, does not explain the closures into LED lighting industry is good or bad. LED lighting industry into the low threshold, known to do a lot of LED lighting products, “screwdriver” plants into pieces, mixed, quality of personnel, skill levels, leading to confusion competition in the industry, LED lighting industry reshuffle is market development the inevitable result. And after the merger integration, closures baptism, some companies will focus on the advantages of resources, competition to the strong stronger and the weak weaker trend of development, the pattern of LED lighting industry will initially became visible, the last laugh is winner.
Status of five, segments into the desert oasis.
LED lighting field, product homogeneity is very serious plagiarism rife among enterprises. If there is no unique product design and technology to enhance the capabilities of enterprises in the industry reshuffle comes, there is no ability to resist risks, any time there is danger out. Therefore, the SME market segments become competing looting “meat and potatoes.” SMEs to go the route of specialization in the market segments most refined to the most dedicated, will have a chance of survival and development.