No profit, no market led price war is not a long-t

2022-07-23
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Seeking market without profit is not a long-term plan. Led price war generally refers to a kind of commercial competition between enterprises through competing to reduce the market price of commodities, promoting the chain development of non grain bio based materials industry, and also refers to various market competition behaviors through taking price as a competitive strategy. Its main internal driving forces are market pull, cost push and technology push. Its purpose is to suppress competitors, occupy more market share, digest inventory, etc. it has many advantages, such as strong lethality, short and fast, and is favored and adopted by the majority of manufacturers. In the increasingly competitive LED industry, there is also a price war. Price war generally refers to a kind of commercial competition between enterprises by competing to reduce the market price of commodities, and also refers to various market competition behaviors by taking price as a competitive strategy. Its main internal driving forces are market pull, cost push and technology push. Its purpose is to suppress competitors, occupy more market share, digest inventory, etc. it has many advantages, such as strong lethality, short and fast, and is favored and adopted by the majority of manufacturers. In the increasingly competitive LED industry, there is also a price war

the price war is raging.

rectangular lighting recently announced its third quarter financial results. According to the report, the monthly operating income and net profit of the company were about 404million yuan and 40.6228 million yuan respectively, an increase of 27.78% and a decrease of 14.88% over the same period last year

as for the reasons for the decline in profits in the first three quarters, rectangular explained that in order to consolidate and expand market share, provide customers with cost-effective products and take the initiative to reduce prices; At the same time, the company implemented the brand strategy of synchronous promotion of the three major brands of rectangular office lighting, Tongyu home lighting and Eastern Han commercial lighting. The initial cost investment was high, resulting in a decline in net profit

led price trend is true. In January last year, a LED lamp of rectangular lighting was reduced from 70 yuan to 50 yuan, and later the price was reduced to 30 yuan, opening a price war in the LED lighting industry. In 2012, a number of enterprises including rectangular lighting, mulinson, zhenmingli and Dehao Runda participated in the price war

with the rapid development of LED lighting, the prototype made by the domestic l development team is only the result of four and a half months' research and development, and the competition in the ED industry is becoming increasingly fierce. In this situation, LED manufacturers need to come up with their own ways to compete for the market, and the eight immortals cross the sea to show their magic power. With the fierce competition, the price war also began to spread. Many manufacturers' sales strategies are inclined to price, and many manufacturers follow suit and enter the price war

dilemma between profit and market

it is easy to see that rectangular lighting has occupied the market by reducing prices, that is, fighting a price war, which has led to a decline in its profits, which has also led to new problems

the high price of LED products makes it difficult for consumers to accept. With the continuous development of LED lighting industry, the acceptance of energy-efficient lighting is getting higher and higher, and the potential market of LED lighting is also growing. One result of this is the expansion of LED lighting market, while the market share of businesses is very fragmented

in order to occupy the LED lighting market, LED manufacturers do not hesitate to fight a price war to carry out the enclosure movement and seize the emerging lighting market, with the subsequent decline in profits. The profits of manufacturers in the price war have decreased significantly, which also makes it difficult for these enterprises to use profits for further development in the future. However, if they do not participate in the price war, LED manufacturers may lose their favorable position in the market, which will be disadvantageous to their future development

the scale of China's LED lighting market

profit or market has also become a dilemma for LED manufacturers: high pricing can bring high profits, but it is difficult to increase sales; low pricing can seize the market, but it is difficult to ensure profits. In this way, the choice of manufacturers becomes more difficult, and it is easy to make irrational choices in the face of an increasingly large market

price war is very important for development

there is no doubt that the price war has greatly reduced the price of the tensile winding film tensile testing machine of Jinan new era Gold Testing Instrument Co., Ltd., which is mainly used to test the tensile performance of the tensile winding film used for the transportation and packaging of non-direct contact food. At the same time, it means that the disadvantage of high price of LED lighting products has begun to reverse. Compared with other lighting products, the biggest disadvantage of LED lamps and lanterns is the high price. Although the price of LED lighting products will drop to an acceptable level with the improvement of production level and technological progress, 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 the popularization of LED lighting

the decline in price makes it easy to promote LED lighting. The expansion of market scale also stimulates businesses to start building their own brands and channels and try to occupy a favorable position in the market. Obviously, the original intention of the previous price war of rectangular lighting is the same. It hopes to use the price war to occupy the market and sacrifice short-term interests in exchange for a more sustainable product outlet

global LED lighting market scale

price war can also promote led enterprises to improve production technology, improve production efficiency, make more advanced production processes and more technical patents applied to production, and also improve the productivity level of the whole industry

it is worth noting that the hot price war has also heated up LED lighting products, and LED products' popularity has increased. All kinds of publicity that cannot be avoided in the price war have made the reputation of LED known to more and more consumers, and the corresponding market has gradually expanded. From this perspective, the price war has promoted the development of the industry, which is worth affirming

improving product quality is the key

the price war of LED lighting products is good for the development of the industry, but it does not mean that the price war is a long-term solution. Some businesses are not prepared and measured before entering the price war, so they are vulnerable to impact in the fierce market competition, which will affect the future development of enterprises

another result of the price war is that some LED manufacturers focus on quantity rather than quality when manufacturing products, which reduces the overall quality of LED products. This also weakens one advantage of LED lighting products and is not conducive to the development of the industry. Therefore, the price war in the LED industry is not a panacea. It is not advisable to rely solely on the price war for development

led lighting efficiency development trend

similar to rectangular lighting, mulinson and other enterprises, they hope to expand channels and build brands through low prices, and compete for the overall competitive strategy from products to after-sales service. How to minimize the cost, seize the market and shape the brand requires a comprehensive layout. The price war cannot be separated from the overall enterprise development

there are many ways to deal with the price war. Led enterprises should formulate their development strategy in combination with their own actual situation. The low price strategy puts forward higher requirements for the comprehensive strength of the enterprise, such as technology, capital and scale. Blindly following the trend may cause losses. Therefore, the price war is not the only way out for led enterprises

trading low prices for the market should be a means of market competition, not the ultimate goal. Led enterprises should not only reduce costs and gain profits by improving production technology and production efficiency, but also increase technology content, enhance product value, and shift product competition from the price battlefield, so as to achieve more comprehensive and long-term development and occupy a favorable position in the fierce competition; The core strategy of the enterprise must be to return to the problems of shaping brand value and low industry concentration, firmly grasp the bottom line of quality, seek the way of management and quality improvement in the long-term competition, and let the products occupy a place in the domestic and even international market

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