Restrict the development of LED lighting business reasons

　　LED lighting industry should clearly recognize their own situation, for now, LED lighting industry in the three major difficulties in restricting the development of LED lighting business.

　　First, the operating margin reduced

　　In order to establish the size advantage, some companies adopt cost leadership strategy, active low prices in order to plunder the market, expect a competitive threshold, forcing the price of other brands can only follow up on the way to the use of special promotional ship, particularly in the T8 tube bulb, the T5 stents and other sources circulation category is particularly intense. Compared to traditional lighting stage, bringing the industry average gross margin dropped significantly;

　　Second, the cost of greatly increased channel marketing

　　For the rapid construction of the marketing network, regardless of the cost invested some companies marketing costs, many marketers into various delivery Showcase, send samples, advertising, distribution and other preferential policies one after another, those in the traditional lighting of the times is unthinkable.

　　Third, the significant increase in hidden costs

　　In line with the enterprise switching products, continue to improve and enrich the product line, larger research and development costs; to meet the sales, stocking factories to quickly causing sluggish stock, followed by corporate cash flow will be affected, resulting in lower capital utilization efficiency . These hidden costs led to increased business is difficult to achieve from the side edge of hematopoietic development.