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Now, whether it is for expanding market share or for other reasons such as stimulating the consumer market, price wars are already a favorite tool for businesses, and small profits but quick turnover has also become one of the development paths. The first companies to pick up price-cutting weapons are often the most vulnerable to criticism, as peer companies either go down the price together or see their markets dilute a little.
Then, for the recent price war campaigns launched by lighting brands such as Changfang Lighting, Mulinsen, Zhenmingli, Dehao Runda, etc., how do people in the industry view it?
Gaogong LED reporter visited a large lighting store in Chengdu. When talking with dealers about the price wars launched by listed companies in the near future, some of them expressed understanding, but some dealers said they were not optimistic about price wars.
Fuhe Lighting City, auspicious lighting store Ms. Chen said that the listed company's half-price drop in half a year, she is the first time to see that the price war of listed companies or not to play too much, after all, they need to be responsible for shareholders. "In fact, it is a big risk for listed companies to engage in price wars. It does not mean that there is sufficient funds to reduce prices at will, because listed companies are affected by factors such as rising and falling stock prices, announcement of results, and intervention by investors." Ms. Chen said The price war is a form of "short-handedness". When the treatment is not good, the result may be "the loss of money."
In response to the recent price war phenomenon, the reporter interviewed Chen Rongdong, director of the president office of Sichuan Xinli Light Source Co., Ltd., and he expressed his opinion.
Gaogong LED reporter : Does Xinli have implemented price wars in the lighting channels under industrial upgrading? What do you think of the price frenzy that has been set up by many well-known companies in the near future?
Chen Rongdong: So far, Xinli has not yet participated in the price war plan, because the price war is not the only way for the company to profit and occupy the market. For the entire industry, the price war will coexist, and what impact it will have on the overall development of the industry. We will wait and see.
Because each company's positioning, development direction and focus are different, the market strategy adopted is not the same. In the fierce market competition, some companies will adopt a price war strategy according to their own development needs, which is inevitable. The price war itself is not a bad thing. It will speed up the industry's reshuffle process. In the chaotic LED industry, the fishermen will be squeezed out of the market and the industry will become more formal. This is what we all want to see. However, the price war itself is a double-edged sword. If it is not used well, it may hurt itself and even hurt the image of the entire industry. Therefore, we believe that launching a price war cannot be at the expense of product quality and brand value.
The positioning of Xinli Light Source is clear and our target market is clear. At present, the price war is not our choice to hit the market.
Gaogong LED Reporter: Then, do you think that listed companies should go to the low-end market, should they engage in price wars?
Chen Rongdong: Because each company has its own different positioning, the strategies adopted are not the same. Some listed companies rely on economies of scale to take advantage of the market. The price war is to effectively suppress competitors and even push the opponent out of the market. Price wars are not necessarily carried out only in the low-end market, and there are price wars in the high-end market.
Listed companies may not be able to do low-end products because in the current China, low-end products also have a large market space. Now the market segmentation is very clear. As long as it meets the needs of the consumer market, it has sufficient market share, which is also beneficial to the development of listed companies that locate low-end products.
Gaogong LED Reporter: Do you think that the price war strategy of listed companies has an impact on the development and market share of unlisted companies? why?
Chen Rongdong: The impact is inevitable. This influence not only affects unlisted companies, but also affects listed companies themselves. At present, the LED industry is still quite chaotic, and investments that are optimistic about the prospects of this industry have been involved, regardless of whether they understand the technology of this line. In the midst of chaos, the use of price wars is a killer, and it is also an option. After the smoke has been exhausted, it is really true to stay in this industry.
Gaogong LED Reporter: How should companies from unlisted companies deal with the price wars that listed companies launch under the conditions of abundant capital?
Chen Rongdong: This is a bit like a philosophical question. The listed company's capital strength may be better than the unlisted enterprises, and it can occupy a certain dominant position in the market competition. However, market competition is not just the competition of capital. The gains and losses of the market largely depend on the comprehensive competitiveness of enterprises, including enterprise management, technology research and development, cost control, and brand. As long as you know your position, you can choose the appropriate way to deal with it.
Of course, many companies with relatively strong capital strength will choose to drop me and see who is laughing. However, we feel that there are many ways and means to participate in market competition. But the most important thing is that enterprises should make great efforts in their own management, technology research and development, and cost control. In particular, market differentiation adopts differentiated strategies and creates unique brands to win sufficient market share. Heavenly rewards, this world is not all things, only recognize money and not recognize people.
Summary: Through communication with business leaders and distributors, the reporter summed up some of the typical countermeasures they made in response to the price wars of listed companies. It mainly includes the following three points:
First, follow the price cuts. After the company launched a price war, in order to compete with the market, get more sales and profits, and follow the price reduction strategy. The end result of this strategy is that when the price drops to the lowest point, one side is squeezed out of the market to end, or both lose. At this time, it is the overall strength of the enterprise, and some SMEs are at a distinct disadvantage in the competition.
Second, stick to the original price and not fall. Although others are cutting prices, if they follow suit, they will not only make money but also post money. This coping style has one drawback: it retains profits and lacks market share. When you want to cut prices, you have missed the opportunity, and in the end it is still dead, the company is in a dilemma.
Third, change the positioning method and increase the added value of the product. When everyone cuts prices in full swing, they do not adopt price reduction strategies. Instead, they focus on improving the added value of products, such as increasing product after-sales service, etc., so that prices can be sold to sell products and sell their own brand value.
The price war of enterprises such as Changfang Lighting is the product of the current stage of corporate development strategy in which the listed companies in the lighting industry focus on quickly occupying the market and laying more sales outlets. In the face of price wars in which listed companies have sufficient funds, many unlisted companies must also adjust their mentality.
The price war is inevitable, and the industry needs to develop, and there will be a reshuffle situation. What unlisted companies can do is to look at the market and constantly adjust their strategies to survive and develop. For listed companies, we must always keep in mind: price wars, focus on marketing strategies, but we must not ignore product quality! 
[Source: "High-tech LED-lighting market" August issue Qiu Zuling]