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They all say that LED is a "revolutionary party", although it is not a millet plus a rifle. Indeed, LED leather has a lot of traditional lighting life, not only products, research and development, design, etc., but also channels, brands, trust and so on.
A LED company executive who has been in the business for three years said that it is enough: "The LED revolution is the accumulation of the traditional industry, and now the pampered person can charge the so-called 'noble' life even if he plays mahjong."
Another traditional business executive who has been immersed for 10 years is even more helpless: "Shiyi is moving. It used to be a dealer to be our brand and take the initiative to send a deposit to the door. Now because the price is floating every month, it is reversed. Companies need to make a deposit to the dealers in order to protect their enthusiasm for purchases without losing money."
The price is like the Achilles' heel of LED. When you touch it, the "grandson" is inverted and flows into the river.
"There are still 8 to 10 points of floating per month. Now everyone is engaged in price wars, so there are so many profits. If I am a dealer, I dare not do inventory." This is a traditional lighting with an annual output value of 200 million. The voice of a brand enterprise.
"Almost every day I run the accessories market, my gross profit is 8 points. Once the quotation is wrong, it is equal to losing money." This is the sound of the assembly plant in the ancient town of Dangju.
In this way, under the pressure of LED prices constantly falling, the margin between manufacturers has been upgraded to life-saving gold, and the softness of brands, trusts, channels, etc. among manufacturers is maintained by this “life and property insuranceâ€. With.
Indeed, price changes may occur on the production line, perhaps in the shipping lanes, or in the warehouses where the provincial-level general generation is ready to distribute to county and city stores.
Who should pay for the bills for variables and stocks? Who needs the profit growth point most, the manufacturers need, but the channel is the king, the winning terminal, and the LED is flowing out from the source of the manufacturer, the promotion right is upstream, and the right is selected downstream. What else to say?
What is even more terrible is that the price rises and falls not only from the adjustment of the industry chain itself, but also the industry giants have come to "spoil the board."
Zhen Mingli's advertisements have placed LED bulbs with a price tag of more than 30 yuan; Mulinsen's 1.2-meter-1000 lumens T8 tube distribution price has been as low as 39 yuan; the product of Changfang Lighting has evaporated 65% in half a year.
It is true that cheap can also be good, but it is also on the premise of ensuring the quality of the enterprise, this logic can stand up, it is impossible to achieve a stage of one watt and one dollar, you have to overpower the overlord. Whether you are a listed company, it is easy to make money, or rely on the government to transfuse blood without fear, or take another six months to plan to run. In short, when you do inappropriate things when you are not appropriate, you want to take the risk and fight the sloppy eyes of the people. Obviously you are destined to lose the city.
Recently, the low-cost strategy of Changfang Lighting has finally become a “recall doorâ€, and the “quality door†produced by Ai Bison’s defective products is evidence. The "price butcher" who operates on quality often does not slash others and castrates himself first.
However, as a result, the second and third-line brands are even more frightened. People have shown their hands, and they still do not follow, becoming a nightmare. Well, I don’t have this kind of enthusiasm and stamina; if I don’t follow it, the dealer who just negotiated may have to “change the festivalâ€, even if the deposit is for the enterprise.
Once the channel is lost, will it be reduced to a foundry, or else...
When a company is in an unclear state of scale, strategy, positioning, etc., and can't compete with its competitors, but can only passively compromise from the price, once the opponent draws a salary, then it can only be a toddler. In the face of stagnation, companies must lose their pace and worth. Moreover, it is important to know that dealers who are only "golden" rather than "hearted" will only smile at the lowest price of the same product.
However, the author is still seeing hope in some LED up-and-coming stars with precise positioning and focusing on market demand: such as only brand chain projects, only high-end shop lighting, only non-standard hotel projects, and even only OEM/ODM for brand enterprises. and many more. They are less interested and more rational. A 3 watt downlight terminal sold for 180 yuan, and can also achieve a national uniform price.
In the face of the LED price war, do you want a meal or a rice bowl? 
[Source: "High-tech LED-Lighting Market" editor's message in August]