LED lighting companies need to find a differentiated response to price wars


As a trader, from the perspective of long-term stable business development, we must consider how to achieve enterprise increments and increase profits. Enterprises must have long-term and stable development in terms of financial status, market share, brand building, etc., and profitability is very important. At present, due to fierce competition in the industry, circulation products are facing a decline in gross profit. At this time, in order to ensure profitability, enterprises should have a clear understanding of their own differentiated advantages, and realize the leap-forward development of enterprises through advantages. Li Wei said that 2014 is the golden development period of the LED lighting industry. For lighting companies, opportunities and challenges coexist in 2014. Li Wei, president of Shenzhen Weiwei Photovoltaic Lighting Co., Ltd. believes that since 2013, the LED lighting market has accelerated its development, not only in the domestic market, but also in the global market, and this development trend will inevitably continue into 2014, LED lighting The prospects are very good. In the past few years, enterprises have mainly practiced internal strength, but now it is time for internal power, brand and price to break out. Then, as the trader of the enterprise, facing the blowout of the LED industry, what measures will he have to deal with in this industry for more than ten years?
Finding the difference to deal with the price war The current LED companies mainly face three problems: First, price competition, which is a problem that all enterprises have headaches but can not be bypassed; Second, quality problems; Third, the public's perception of LED lighting Degree and confidence issues.
Li Wei said that regardless of the LED brand size and market share, at a certain point in time, the price war is inevitable, even the giant companies will also fight the price war. Only when the market game reaches a relative balance, and the gross profit margin, profit level, and cost structure of each enterprise basically reach the same level, and it is impossible to bring more profit to the enterprise through the price war, the price war will be avoided as much as possible. At present, the market is oversupply, and in the case of rapid development of the industry, the price war cannot be avoided.
So how do companies respond to this inevitable price war? Li Wei believes that only the products of complete homogenization will have a price war of real guns. The company has always insisted on research and development of products with differentiated competitive advantages, avoiding real guns and naked price wars. However, basic products such as bulbs, lamps and other relatively mature products cannot avoid price wars. For companies, they must find their own unique competitive advantages and find profitable space in this advantage. If there is no differentiated layout, the manufacturer's products are entering the price war, then the enterprise is very dangerous. On the other hand, product portfolio is very important. Enterprises must have profitable products, that is, they must be matched with cost-effective products. This requires enterprises to cultivate internal strengths, including strengthening product research and development capabilities, comprehensive management capabilities of enterprises, and control of supply chains. Ability, etc. In general, the price war can not be avoided, LED enterprises to achieve steady development, need to find their own differentiated competitive advantages in the industry blowout stage, form a unique competitive point in the segmentation of the field, and rely on this competitive point to obtain the largest hair Interest rates, thus ensuring the steady development of enterprises.
Regarding product quality issues, Li Wei pointed out that product quality is closely related to price war. Many small and medium-sized enterprises are constantly challenging the bottom line of product quality in order to survive in the price war. This is very dangerous for the development of the industry, and it also seriously affects the public's awareness and confidence in the industry. If the general public left him with an inferior and inapplicable impression after purchasing the LED product for the first time, it would have a reluctance to accept or even reject the LED product, which would seriously affect the development of the enterprise and the industry. To create a healthy development environment for the LED industry, this is the responsibility of every LED lighting company.
The channel may not be king. Quality and technology are the key factors in the LED lighting industry. The e-commerce model that has emerged from a sudden rise is highly valued.
As a trader, Li Wei said that companies must pay close attention to the e-commerce model. He said that although the current e-commerce model has not really promoted the LED industry, this trend has become more apparent. According to the development speed of the industry, it is obviously impossible for LED companies to market with the inherent thinking of the past. At present, LED companies must combine traditional marketing methods with innovative marketing methods to formulate effective travel according to their own strategic goals. Marketing model.
The channel is almost the consensus in the LED industry, but Li Wei does not agree with this statement. He said that the channel is really very important for the company. The channel is actually the king of marketing, but is marketing really a king? Li Wei pointed out that channels include distribution channels, dealer channels, invisible channels and e-commerce channels. In the short term, channels can play a key or even decisive role in the development of enterprises. But in the long run, whether companies can grow up is based on the products they provide. From the perspective of short-term industry fluctuations and industry hotspots, long-term operations of enterprises will eventually fall into their products and services. Marketing is just a step in the company to speed up the delivery of products to customers. Almost all companies in the past 100 years use the products they produce or the services they provide as the key to promotion. It does not point out that it is an effective channel model to help enterprises achieve long-term stable development. . Channels are important, but more important are the product quality and R&D technology of the company. LED companies can only achieve long-term stable development by practicing internal strength and efficient channel means, in order to divide the cake of LED lighting enterprises.
Talents are the core power companies can not be separated from the development of talents, but in the context of rapid development of the industry, too much brain drain is plaguing many LED companies. Li Wei told the author that the company was one of the earliest companies to enter the photovoltaic industry. During the rapid development of the photovoltaic industry, many of the company's technical talents were dug up, which seriously affected the development of enterprises at that time. However, because this time the talent rectification, the company has redefined a more scientific and practical mechanism for introducing talents and retaining talents. Therefore, Weiwei shares can be developed when LEDs are rapidly developing. In the short term, we have gathered a group of outstanding talents in the industry.
Li Wei said that talent is the core driving force for enterprise development. How to retain talent is a major issue for enterprises. He believes that on the one hand, we must truly respect talents, give play to the subjective initiative of talents, regard talents as the core wealth and core value of enterprises, let talents grow with enterprises, and help talents achieve value pursuit. This is the key to retaining talents. . The development of industry and enterprises is also crucial to retaining talents. The executives of enterprises must have a good overall view, control the development direction of the enterprise, grasp the development opportunities, and lead the development of enterprises and talent teams step by step. Only then can we truly retain talent.
Brand is the core asset how to distinguish good companies, general enterprises, and poor companies? The biggest difference is the brand. Brand is undoubtedly a very important core asset of the company. Li Wei said that third-rate enterprises are making products, second-rate enterprises are making brands, and first-class enterprises are setting standards. He believes that the establishment of a brand must be a long-term process, and the company's products, publicity, etc. must strive for the improvement of brand value. When conducting brand promotion, enterprises must combine the business development goals of the company, and conduct external promotion and internal research and development to ensure the supply of quality products to meet the brand influence.
Li Wei revealed that while the brand is promoting brand, it has invested more energy and funds for product research and development, logistics system construction and back-end system construction to support the market development needs. In 2014, the LED lighting brand battle has been in full swing, and the shares will be added to it, but I hope that every penny will be spent on it.

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