For most LED lighting companies, this year is not a good year. According to data from the China Market Research Institute, 17% of LED-related companies have closed down or stopped production in the first ten months of this year, with Guangdong enterprises accounting for the majority.
At the "2011 China Low Carbon Economy Industry Development Forum" held in August, Deng Weiye, chairman of LED lighting company Lai Di Optoelectronics Technology (Shenzhen) Co., Ltd. revealed to the media that 90% of LED companies are currently losing money. However, failure has become a worse manifestation of this loss. On the one hand, due to the country's stimulus to energy-saving emission reduction policies, companies flooded into the industry; on the other hand, the market could not reach the expected value, leading LED companies to collectively “suddenly dieâ€.
Low-priced vicious competition is a deep-seated reason why many companies cannot make money. As the current price of LED lighting products is still relatively high compared to traditional lighting products, the price difference of five or six times makes LED lighting products fail to reflect the advantages of cost performance, and the vast civilian market has not yet opened. Most LED lighting companies rely on government procurement to maintain capacity. According to industry consensus, it takes five years for LEDs to truly enter the home. One question that comes from this is: Who is willing to buy LED products besides the government paying the bill?
Some of the LED companies with capital advantages will focus on commercial and home lighting. In May of this year, major lighting brands collectively made efforts to hold dealer meetings. Relevant strategic positioning, product planning, talent reserve, and channel strategy gradually surfaced. A battle for “breakthrough†has been quietly opened. prelude.
Is commercial and home lighting the way out for LED breakouts? From the current market point of view, these LED companies not only face high cost, but also face fierce market competition. In recent years, the penetration rate of LED household lighting in first-tier cities such as Beijing, Shanghai and Shenzhen has not increased significantly. The proportion of channel construction expenses of related companies in total sales has exceeded 30%, and the road ahead seems not to be a smooth road.
Since October, the consistently styled conservative Longteng Lighting Group has begun to make high-profile appearances in major industry media, and has launched a large-scale advertisement to enter the highly competitive LED lighting market. Where does his enthusiasm come from?
The reporter interviewed Peng Guangyuan, assistant to the chairman of Longteng Lighting Group. Peng Guangyuan said that, first of all, the LED industry is the general trend of the lighting industry. This is unquestionable. The reasons for the current industry dilemma are that the cost performance of LED products has not been solved, and the second is the positioning of products and market acceptance. The disconnection, the third is whether LED companies themselves have a competitive advantage. Looking at the essence through the phenomenon, most LED lighting companies that have problems have not solved these problems and rushed to launch the project. They are looking forward to sharing the LED feast. It is normal to have a collective weakness.
At the beginning of the preparation of the LED project, Longteng Lighting Group has been carefully prepared for two years, half of which is to conduct market research and analysis. In terms of products, thanks to the experience of many years of professional and engineering lighting business cooperation, adhere to the principle of unfamiliarity, take engineering lighting routes, develop a series of stable quality according to the characteristics of outdoor products and the demand of engineers for products. LED full range of outdoor products with generous appearance, easy installation and simple maintenance, and good cost performance.
In addition to accurate positioning and reasonable price, Longteng Lighting LED products are more deeply related to the cooperation relationship with the majority of engineering customers. The services that most lighting companies can provide are limited to the product level, and the cooperation with customers is only around the product. The experience of more than ten years of service engineering customers tells us that products are only a small part of customer demand! Most customers need engineering lighting for the full cooperation of the entire project. Longteng Lighting Group has the qualifications of “National First-level Lighting Construction Qualificationâ€, “Class A Design Qualification†and “Civil Aviation Airport Special Equipment Licenseâ€. It can start from the early stage of the project and provide customers with tendering, project design, product customization, construction, The comprehensive one-stop service such as acceptance can reduce the loss of manpower and resources for engineering customers and reduce operating costs. The “engineering lighting integrated operator†has always adhered to the business philosophy and is our unique competitive advantage.
At the "2011 China Low Carbon Economy Industry Development Forum" held in August, Deng Weiye, chairman of LED lighting company Lai Di Optoelectronics Technology (Shenzhen) Co., Ltd. revealed to the media that 90% of LED companies are currently losing money. However, failure has become a worse manifestation of this loss. On the one hand, due to the country's stimulus to energy-saving emission reduction policies, companies flooded into the industry; on the other hand, the market could not reach the expected value, leading LED companies to collectively “suddenly dieâ€.
Low-priced vicious competition is a deep-seated reason why many companies cannot make money. As the current price of LED lighting products is still relatively high compared to traditional lighting products, the price difference of five or six times makes LED lighting products fail to reflect the advantages of cost performance, and the vast civilian market has not yet opened. Most LED lighting companies rely on government procurement to maintain capacity. According to industry consensus, it takes five years for LEDs to truly enter the home. One question that comes from this is: Who is willing to buy LED products besides the government paying the bill?
Some of the LED companies with capital advantages will focus on commercial and home lighting. In May of this year, major lighting brands collectively made efforts to hold dealer meetings. Relevant strategic positioning, product planning, talent reserve, and channel strategy gradually surfaced. A battle for “breakthrough†has been quietly opened. prelude.
Is commercial and home lighting the way out for LED breakouts? From the current market point of view, these LED companies not only face high cost, but also face fierce market competition. In recent years, the penetration rate of LED household lighting in first-tier cities such as Beijing, Shanghai and Shenzhen has not increased significantly. The proportion of channel construction expenses of related companies in total sales has exceeded 30%, and the road ahead seems not to be a smooth road.
Since October, the consistently styled conservative Longteng Lighting Group has begun to make high-profile appearances in major industry media, and has launched a large-scale advertisement to enter the highly competitive LED lighting market. Where does his enthusiasm come from?
The reporter interviewed Peng Guangyuan, assistant to the chairman of Longteng Lighting Group. Peng Guangyuan said that, first of all, the LED industry is the general trend of the lighting industry. This is unquestionable. The reasons for the current industry dilemma are that the cost performance of LED products has not been solved, and the second is the positioning of products and market acceptance. The disconnection, the third is whether LED companies themselves have a competitive advantage. Looking at the essence through the phenomenon, most LED lighting companies that have problems have not solved these problems and rushed to launch the project. They are looking forward to sharing the LED feast. It is normal to have a collective weakness.
At the beginning of the preparation of the LED project, Longteng Lighting Group has been carefully prepared for two years, half of which is to conduct market research and analysis. In terms of products, thanks to the experience of many years of professional and engineering lighting business cooperation, adhere to the principle of unfamiliarity, take engineering lighting routes, develop a series of stable quality according to the characteristics of outdoor products and the demand of engineers for products. LED full range of outdoor products with generous appearance, easy installation and simple maintenance, and good cost performance.
In addition to accurate positioning and reasonable price, Longteng Lighting LED products are more deeply related to the cooperation relationship with the majority of engineering customers. The services that most lighting companies can provide are limited to the product level, and the cooperation with customers is only around the product. The experience of more than ten years of service engineering customers tells us that products are only a small part of customer demand! Most customers need engineering lighting for the full cooperation of the entire project. Longteng Lighting Group has the qualifications of “National First-level Lighting Construction Qualificationâ€, “Class A Design Qualification†and “Civil Aviation Airport Special Equipment Licenseâ€. It can start from the early stage of the project and provide customers with tendering, project design, product customization, construction, The comprehensive one-stop service such as acceptance can reduce the loss of manpower and resources for engineering customers and reduce operating costs. The “engineering lighting integrated operator†has always adhered to the business philosophy and is our unique competitive advantage.
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