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Polarization becomes more apparent LED industry from the price war to the value of war(II)
- Jun 09, 2017 -

In the lighting application side, with sunshine lighting, Foshan lighting as the representative of the domestic manufacturers, and has not been affected by market competition, through the automated production line import, supply chain and management cost control, both in revenue and net profit show two-way growth trend.

Shenzhen City trillion Chi Energy Lighting Co., Ltd. Deputy General Manager Zheng Haibin believes that the LED industry is gradually return to reason, now is the time to do practical work. "Whether it is price increases or price cuts are caused by the law of market development, which is the industry must be a stage." Facing the uproar "price tide", Zheng Haibin so.

But in Ruifeng photoelectric CTO Pei Xiaoming view, from a technical point of view, regardless of how the current single product prices rise, but the overall price of the future product will continue to decline. This is because the future survival of the scale must be large enterprises, with the expansion of business scale and technological progress, the product price must be higher and higher, which also determines the overall product prices will continue to decline.

From price war to value war

Indeed, LED industry to today, the industry pattern has been basically formed. In the city full of "price tide" today, we should jump out of prices to see prices, if the LED companies are busy paying attention to price cuts or prices, then who care about the quality of the product? What is the original intention of the enterprise?

At the 2016 China Semiconductor Industry Development Analysis Conference held on December 9, OSRAM Opto Semiconductors (China) Co., Ltd. Marketing Director Liang Zechun frankly, prices will not increase the profits of enterprises. If the company's products only rely on the cost of raw materials, that product "value" and where?

Price behind the cold thinking: LED from the price war to the value of war

Liang Zechun proposed that enterprises should put the "value" in the first place, from the light source itself to think about how the industry should develop, rather than blindly concerned about the price. At this stage the value of LED products can be reflected in the health lighting, plant lighting, visible light communications, and intelligent lighting and so on. By doing fine, stronger, do high value-added things, to find their own positioning.

In the industry gradually mature development, relying solely on price competition, the traditional marketing strategy has become some "powerless", LED industry has been spent extensive, explosive growth of the initial stage, the price war is no longer the main business mode , But transferred to the development of high-end products to technology upgrades to meet the new needs of consumers as the core strategy. Fortunately, there are already many LED companies began to realize the importance of the "value" of the product, from the price war to the value of war, and through the "differentiation strategy" in the market to find their own position.

In view of the current market competition, Guangdong Semiconductor Lighting Industry Joint Innovation Center Director / Shenzhen LED Industry Association Sui Shirong suggested: the face of rising raw material costs, enterprises must first ensure their own survival problems, the rise is up, The product quality in the first place, at the same time to put an end to homogenization of competition, identify the differentiated positioning.

"When the technical threshold is crossed, the next task is to find the breakdown and differentiation of the market, to make high value-added products, which is the next step in the development of the industry to think and explore the problem." Sui Shirong said.

A new round of price increases also indicates that the LED industry is from the attention to the price to focus on value. Perhaps, LED companies are aware that price increases do not mean that the industry pick up, can not give the enterprise how much real profits. Industry to develop, still need to continue to innovate, starting from the nature of light, to explore more high value-added features to promote the industry's long-term sustainable development.

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