LED lighting companies face four major survival battles


2014 is the golden development period of LED lighting, and it is also the most competitive period. Traditional lighting giants have transformed and exerted their strengths, taking advantage of their brand, cost and channel advantages to gain market initiative. Cross-border enterprises are rushing to prepare for looting the LED lighting industry. So where will new LED lighting companies go? How will the representative enterprises of the major camps break through the competition?
The living environment is integrated with the LED lighting application in the middle and lower reaches. With the continuous development of LED technology, the market competition in the LED lighting industry has become increasingly fierce. Some companies have invested heavily in LED lighting, and the results have been minimal; some companies have focused on R&D and obtained many patents, but their LED lighting products are not in the interest; others are blindly playing price wars, which has made the industry unprofitable. .
The price war in the LED industry is the first to break out in the upstream chip industry. According to statistics, in the short period of 3 years from 2010 to 2012, the LED chip capacity expanded more than 10 times; directly with the capacity explosion, the price of LED chips fell sharply. In the same period, the cumulative decline of LED chips exceeded 50. It is predicted that China's LED upstream chip technology will continue to improve in 2014, and the production capacity will be released faster. The survival of some small and weak-powered chip companies will become more and more difficult. The number of chip companies will also gradually decrease, and the concentration will further increase.
LED upstream chip companies have experienced a torment, and midstream companies have ushered in a contrarian growth. LED packaging companies represented by Wanrun Technology, Hongli Optoelectronics, Ruifeng Optoelectronics, etc., have improved their profits while their 2013 revenue growth. In addition to the growth in demand in the downstream lighting market, it is also related to the company's own competitiveness. In addition, in order to obtain a larger living space, LED packaging companies also choose to expand downstream.
2014 is a key year for the LED industry to break out. The application field of LED is expanding continuously, but the largest market is still the general lighting market, so many companies have also cut into the downstream lighting application field. LED lighting companies have been competing for high-quality channels and grabbing market share in recent years. Faced with the end consumers, LED lighting companies will build brands and channels on a large scale at a cost, coupled with huge marketing expenses, so that LED products are not as profitable as traditional lighting products. LED lighting companies actually have hardships.
Survival environment two major brand competitions and SMEs from the industry development analysis, the current LED lighting penetration is not high, with the decline of technology and cost, is showing its huge development potential, and the backlight and display market gradually It tends to be saturated, and the room for growth will not be large. The traditional lighting market has been severely impacted by emerging LED lighting, and the profits from traditional lighting products have gradually decreased, so many traditional lighting brands have turned to LED lighting.
In the field of LED lighting applications in 2014, LED companies are mixed, and the final industry competition will be reflected in the game of all-round and multi-link. The competition of enterprise competitiveness is no longer a competition of single funds, but an all-round competition of comprehensive competitiveness, system capability and management level. The shortcomings of any one link may lead to the elimination of enterprises.
Enterprises must develop the LED lighting market, and cost-effective products are the only sword. Based on the promising forecast of LED lighting, traditional lighting giants, cross-border LED companies and new LED lighting companies are all in full bloom, competing in the same field and competing against each other to see who can seize the opportunities of the times.
In order to consolidate market share, traditional lighting giants are ready to war on LED SMEs at any time. The traditional lighting giant has mastered the important weight of developing the market because of its important technology, large-scale production strength and abundant funds. Especially in the light source market, it will be more and more difficult for SMEs to compete with the giants. The challenges and competition facing LED SMEs are not just that. At present, many foreign LED lighting companies have begun to enter China, such as Philips, Osram and other foreign brands, which has a great impact on domestic LED lighting small enterprises.
In this case, the market segment has become a life-saving grass for LED SMEs. At present, whether it is lighting, backlighting or display, it is relatively saturated. If companies can focus on one or two segments, they may have the opportunity to make good profits, and they can strive to integrate the tide of tides and price wars in the future. Its own living space. In addition, LED SMEs also need to master the level of their customer base, track the dynamics of new technologies, accurately control the direction of the market, the implementation of industrial policies and the impact of e-commerce on traditional channels.
The three environments of the living environment tend to be rational. At this stage of the enterprise's survival and inferiority, countries have begun to ban the incandescent lamps to stimulate the development potential of LED lighting. The LED lighting market as a whole continues to improve, and the market consumption has gradually become more rational. After the gradual rationalization of market consumption, it is not so easy for SMEs to want to fish in troubled waters. They can only have two ways out. One is to change their face and even get out of the game. The other is to return to the right path from good to good, to do their best to make products, and to manage their own brands with care.
After several years of LED scuffle, in 2014, LED lighting companies have extended to patents, innovations, channels and other aspects based on past price and brand competition, and launched a new round of survival and defense.
Industry forecasts, in addition to a few or because of strong financial strength, or because of their own superior product technology, or because the pre-branding has been quite good, the number of large LED lighting companies that can really grow up is rare.
The development trend of the LED lighting industry has been very clear, and the market will further accelerate the industry reshuffle and survive the fittest. Therefore, 2014 will be the year in which the three camps officially kicked off the battlefield. The test is the company's brand precipitation, channel precipitation, marketing team execution, technology, capital and other comprehensive strengths and the market's soil and water adaptability.
Survival environment is still integrated or integrated. 2014 is the blowout period of LED lighting demand. The market competition is more intense. LED lighting enterprises with products, channels and brand advantages will enter a stage of high elastic growth and stand out. At the same time, the policy tilt, industry integration and cross-border cooperation will also promote the orderly development of the LED lighting industry and accelerate the pace of replacing traditional lighting.
For the overall market, integration has always been the hottest keyword in the LED industry. From the perspective of the industry, the integration of many large-scale LED companies is very strong. Many companies are also facing the crisis of being integrated. Of course, there are opportunities and crises.
The gradual maturity and cost reduction of LED light source in the field of lighting can be said to be the beginning of cross-border competition in the lighting industry, and the rise of the global low-carbon economy, the elimination of incandescent lamps in many countries, the admiration of LED lighting, subsidies for energy conservation policies, etc. The outside capital has entered the lighting industry for profit, and more and more companies outside the lighting industry have participated in the competition.
In the past few years, many companies and groups that have done hardware, electronics, sanitary ware, home appliances, display, packaging, real estate, and even entertainment have invested their money in the LED lighting industry. The LED lighting market has had a tremendous impact on the lighting industry landscape and traditional markets, especially in the low-end market. The LED lighting companies' opponents are not each other, and the real opponents are these cross-border players. The professional optical environment solution is the core competitiveness that LED lighting companies must possess in order to meet the challenges of cross-border players.

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