The hidden secret behind the LED industry price war


In the fierce competition in the mall, is it only the price war that is the only key to reverse the profit and loss? Let us look at the quality and safety issues behind the price war.
The price can make the price of LED lighting products drop drastically, which means that the disadvantage of high price of LED lighting products begins to reverse. Compared with other lighting products, one of the biggest disadvantages of LED lamps is that it is also a bottleneck for popularization. Although the price of LED lighting products will drop to an acceptable level along with the improvement of production level and technology, there is no doubt that the price war has brought this level ahead of time, which has promoted the development of LED lighting market and LED lighting. Popularity.
But the problem is also obvious. LED lighting manufacturers have fought price wars and compressed the profits of manufacturers. A large number of manufacturers use low-priced raw materials to manufacture products in order to maintain profits. This has led to a decline in the quality of products, causing users to be less distrustful of LEDs, leading to viciousness. The occurrence of the cycle is not conducive to the development of the industry.
There are actually many ways to deal with the price war. LED companies should also formulate their development strategies based on their actual situation. The low-price strategy puts higher demands on the comprehensive strengths of the company's technology, capital and scale. It is possible to follow the trend blindly. To make yourself suffer losses, so the price war is not the only way out for LED companies.
Replacing the market with low prices should be the means of market competition, not the ultimate goal. LED companies not only need to improve production technology, improve production efficiency to reduce costs and gain profits, but also increase the technical content, enhance product value, and shift product competition from the price battlefield to achieve more comprehensive and longer-term development. The fierce competition has a favorable position; the core strategy of the company must be to return to the brand value, firmly grasp the bottom line of quality, and seek management and quality improvement in the long-term competition, let the products in the domestic and international markets. Take a place on the top.

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