2014 LED Illusions

In 2013, China's LED lighting applications have been developing at an alarming rate. Traditional lighting brands have accelerated their deployment in the field of LED lighting. Freshmen have sprung up and launched their efforts in the market, aiming at this opportunity to re-division the market. The market is experiencing an extremely fiery scene, and industry experts are happily rushing around. In 2014, LED lighting was blue and blue, and the market is about to usher in a real outbreak.

It has been observed that in 2014, both home LED lighting, road LED lighting, and commercial LED lighting have all taken off. With the continuous release of the LED lighting market, in the face of this tempting cake, various companies are no longer calm, and they are ready to go. Some experts pointed out that the LED lighting industry in 2014 will be more intense competition, the company's living environment will be more cruel. In the world of LED lighting, there is an exclusive melody every year. In 2013, regardless of the size of the harvest, the number of gains and losses, and the success or failure of the game, the end of the song has been discrete. At the beginning of the new year, you are invited to imagine the main theme of the LED lighting industry in 2014, so that each key word as a musical note, arranged in a stave, sing 2014 LED lighting industry.

One, the battle of prices

"Price warfare" has become an attractive phenomenon in China's current market economy. No matter what the industry's enterprises, they will adopt a certain price strategy in order to form a larger scale effect, and "price war" often leads to the vicious between manufacturers. competition. From the analysis of China's current LED lighting industry market structure, product competition in large circulation has shown obvious oligopolistic competition characteristics. The specific performance in the natural increase in the scale of the company, with economies of scale, and the products produced by the companies have a certain degree of homogenous characteristics, each other to a certain extent, the alternative.

The development of the LED lighting industry has been accompanied by the bloody turmoil of the “price war.” Large companies hope to continue to maintain their initiative in the market by transforming their scale advantages into price advantages; SMEs hope to use low prices as “heavy guns” "," Bombing the market. The result of the price war may be beneficial to consumers, but it has caused a large number of enterprises in the industry to experience a decline in profits, difficulties in survival and even bankruptcy. Some economists believe that "price war is a destructive competition. After the price war has passed, among them, including the provoked person himself, he is scarred, exhausted and has no winner." However, many companies have enjoyed this and continued to provoke price wars one after another, claiming that this is "corporate action," "marketing means," and "the most effective strategy for expanding market share." However, the price war makes the profits of the operators decline, it is not conducive to technological innovation of enterprises, distorts the consumer's consumption psychology, and it is unfavorable for the long-term development of enterprises. However, it is an indisputable fact.

Of course, price wars are not harmful and they do nothing. The price war is a double-edged sword. In the course of competition, it is inevitable that blood flows into the river. However, in the period when the LED lighting industry has not entered into sound development, price competition will help expand the market share of LED lighting products and accelerate the replacement of traditional lighting with LED lighting. The cycle will enable industrial restructuring of the survival of the fittest to achieve a transition from price competition to technology competition. In spite of this, the price war still cannot be used as a means of long-term market competition. In 2014, traditional lighting accelerated its transformation and new-type companies began to make efforts. The LED lighting market is still a price war.

Second, mergers and acquisitions integrated into the wind

In the past few years, China's LED lighting industry has emerged a case of mergers and acquisitions. Whether in the form of corporate mergers, asset acquisitions, or equity acquisitions, the motives for mergers and acquisitions are all to increase their competitive strength and gain competitive advantage.

Weston synergy believes that "mergers and acquisitions will bring about an increase in the efficiency of production and operation of enterprises. The most obvious effect is the achievement of economies of scale, that is, the effect of 1 1>2." In 2014, M&A will become a new melody in the LED lighting industry with the advancement of price wars and the acceleration of shuffling. Industry M&A awards rewrite the current industry structure and become a new growth point for future business operations.

The LED lighting industry is in a period of reshuffle, and business failures happen from time to time. To develop, we must first solve the problem of survival. LED lighting companies wishing to achieve long-term development hope to use M&A integration to make up for their deficiencies in LED lighting products, brands, technology and channels, and M&A is the fastest way to address these deficiencies.

However, mergers and acquisitions are easy and integration is difficult. There are inevitably differences in the management, culture, and values ​​of the two companies. Although the benefits of mergers and acquisitions are obvious, if you want to go light on the battlefield and resolve turbulence that can easily occur after mergers and acquisitions, you must do it gradually, otherwise it will be difficult to achieve the desired results.

Third, market segments into desert oasis

In the LED lighting industry, many companies want to do more and more products, and few companies pursue precision and expertise. Some companies believe that it is not wise to position the brand service in a specific area, and it will “become small”. However, with the traditional lighting companies accelerating the layout of LED lighting products, in the face of capital, teams, brands, channels, technology, and other advantages of many companies attack, how does the existence of small and medium enterprises?

In the field of LED lighting, the homogenization of products is very serious and plagiarism has become common among enterprises. If there is no unique product design and technological upgrading capability, enterprises will not have any risk-resisting ability at the time of the industry reshuffle, and they will always be out of danger. SMEs should take the specialization route and achieve the most specialization and refinement in the market segmentation field. Only then can there be opportunities for survival and development.

Market segmentation is the inevitable result of the development of the LED lighting industry to a certain stage. Consumers are increasingly demanding products in terms of quality, performance, etc. Enterprises must win consumer trust with professionalism. Comparing with other mature industries, we can find that products are more and more subdivided. For example, daily necessities such as washing and dying are differentiated according to functions, gender, and other conditions to meet the different needs of consumers.

The popularity of LED lighting products is getting higher and higher, and the fields of application are getting wider and wider. Some companies must avoid the brands in the large circulation field and must enter the subdivided areas and adopt the development path with a few points. In 2014, the market segments will become the “Songs” that SMEs compete for.

Fourth, the brand battle into market gospel

Many LED lighting companies place their brand strategy at the heart of market competition. As the name suggests, brand strategy is the business strategy that companies use as their core competitiveness to gain differential profit and value. When the LED lighting industry is disturbed by the price war, the brand is highly praised by the company as a unique symbol that has bargaining power and is favored by consumers.

The competition in the LED lighting market has become more intense, and it is hard to say that companies operating high, medium and low-end products must distance themselves from each other. Even companies in the same camp are struggling to compete. Some LED companies also hope to quickly establish their own brand influence in the chaotic industry competition in order to win market share. From the price war to brand warfare, this is the general trend of the LED lighting industry.

In recent years, LED lighting industry has experienced advertising warfare, channel warfare, terminal warfare, price warfare, and sales promotion warfare. Some companies have become increasingly familiar with tactical operations after long-term “war” baptism. Although these "tactical tactics" are faster and more effective than the brand battle, lighting products, as an important part of the mass consumer goods, are increasingly showing the brand's decision to determine the value ratio and profitability.

After being devastated by the price war, some LED lighting companies have reflected on their own positioning and product brand value, and implemented a series of measures such as brand value return and brand strategy upgrade. Any industry will have a period of confusion, confusion, and confusion before it matures. Eventually, it will enter the path of sound development with constant adjustment and standardization. The battle of price wars to value warfare is the trend of the times, and the brand is the best manifestation of product value.

V. Baotuan Cooperation for Development

LED lighting industry is different from real estate, Internet and other industries, it seems to get used to "single fight alone," rather than "hugging warm." Cooperation can exert a synergistic effect and play a market competitiveness of 1 1 > 2, but there are many companies that talk about cooperation, and few companies actually achieve cooperation.

The development of LED lighting industry is too fast. In terms of professionalism, innovation, and speed, enterprises' “everything” must not be as effective as complementary resources. Regarding the current LED lighting industry structure, whether it is out of the group to break through, strengthen the advantages, ahead of the opponent's consideration, or to establish the status of China's LED lighting industry, to create a national industry, resist the needs of foreign enemies, "aggression", Integration and cooperation with enterprises have become an irreversible trend. In 2013, in the major LED lighting industry conferences, “cooperation” was set as a key word. Industrial development has entered a real integration period. Enterprises need more adaptability and anti-risk ability in complex and changing markets. The collaboration model requires the vertical, horizontal, and even vertical linkages of the industry chain. Those companies that leverage each other will know how to use each other's strengths to co-exist.

The most important thing for cooperation between enterprises is to break through the original thinking mode and change the concept of confrontation and competition. We must not unilaterally highlight ourselves. Instead, we must adopt a win-win attitude and choose the right one according to our own advantages and shortcomings. The partners, through cooperation to optimize the allocation of enterprise resources, enhance the competitiveness of enterprises. In 2014, it is expected that more "Borague" and "Zhongzi period" will be able to communicate with each other and play a "mountain flow" that belongs to the LED lighting industry.