LED lighting in advance to start a price war
Currently the major LED brand market share, have started a price war, resulting in profitability at the bottom. Only through business model innovation in order to avoid the Red Sea competition, products and services for the breakthrough point in the layout of the future while maintaining good profitability, promising new model vertical electric provider, EMC, etc., in addition to focus on foreign markets, corporate profitability stronger.
Domestic price war LED light source is turned on, the product price significantly lower than the global average. To advance to seize the home LED lighting market, domestic enterprises to open a new round of price wars, the market's most promising prospects to replace 40W incandescent LED light source prices substantially lower than the global average. Data show that in September 2014, the domestic replace 40W and 60W incandescent LED light source price was $ 6.30 and $ 16.40, respectively, the global average of 44.68 percent of similar products and 90.11%.
Promotion of LED lighting products through the electricity supplier channels can significantly reduce the cost of sales, and cater to the needs of young consumers. 2014, LED electricity supplier rapid growth in sales, according to CSA Research data, from January to August 2014, Taobao sales of LED light sources for 230 million yuan, an increase of 126%, and the overall lighting products accounted for 88.9%, increase penetration a 9 percent; LED light source lamp sales of about 3.2 billion yuan, penetration is about 45% higher than in 2013 increased by more than 1 times.
2015 LED lighting products in the electricity supplier's sales channels will continue to maintain rapid growth. It is worth mentioning that, for the emerging LED lighting brand, because there is no conflict of interests and pricing issues and traditional physical channels, its willingness to open up the electricity supplier channels more intense, the pace will be carried out more quickly.