Analysis of the reasons for the difficult survival of small LED lighting brands

Analysis of the reasons for the difficult survival of small LED lighting brands. With the rapid development of the LED industry and the low barriers to entry in the lighting industry, more and more entrepreneurs have joined the ranks, and the LED lighting brands that followed More and more, various small brands have sprung up in batches. For those small lighting brands that have just entered the market, there is not much money to start the lighting market, nor can they use the power of the lighting brand to influence the market. Coupled with the influence of many objective factors, the survival of many small brands has already fallen into In a quagmire. New regulations put pressure on small brands to suffer even worse. In recent years, the LED lighting industry has developed rapidly, and its application range has also grown. However, the European Union introduced new regulations in 2017, which put forward higher requirements on the functionality, safety, and energy efficiency of LED lamps and related equipment. This means that the LED industry, especially LED companies that export to Europe, will face More new tests. Indeed, the many pressures brought by the implementation of the new regulations can be said to be another heavy hammer for the LED industry. In order to make the LED lighting products produced meet the newly issued standards, LED companies have to pay more attention to quality when choosing materials and parts, so the cost will also increase greatly. This can be tolerated for large-scale brand LED companies, but for small-brand lighting companies, it is undoubtedly worse. Especially for those small lighting brands that have just entered the market, in this state, the pressure to survive becomes more and more heavier. The quality of small brands with uneven quality has been questioned for many years. Not only has the international inspection of lighting products in my country been strengthened, but the domestic testing standards and efforts have also been greatly strengthened. Many of the most popular products have also been detected as substandard products, not to mention small brands, it is not uncommon for LED lamps to be detected with quality and safety problems. At the same time, when consumers use LED lighting products, the proportion of small-brand products with quality problems is much higher than that of *** products. In terms of after-sales issues, many small-brand companies have no way to protect them. These reasons have caused consumers to lose confidence in LED products, and many distributors are reluctant to operate such products. More and more consumers and distributors would rather choose high-quality, after-sales guarantees, which also makes it more and more difficult for small brands to circulate in the market. Naturally, not all products of small brands have quality problems. Among the many small brands, there are still many who really want to make products and enterprises bigger. However, as the saying goes, 'a mouse poop ruins a pot of porridgeIncreasing distrust. Coming step by step to compress the living space of small brands. With the global LED light source replacement tide, the LED lighting market is 'bright'. Driven by favorable policies and good market prospects, many traditional domestic lighting companies have stepped into the LED lighting field in recent years. Due to their solid foundation and strong strength, these companies have obvious advantages for brands with less brand influence after transforming to LED. Coupled with its original customer base, the competitive advantage of small brands has disappeared. In the past few years, small-brand products still have great advantages in price compared with ***, but after the LED industry becomes more mature and standardized, the operating costs of LED companies are getting higher and higher, and their profit margins are greatly reduced If you are small, fighting a price war is tantamount to self-defeating. Coupled with the gradual increase in the price-performance ratio of *** products, the price advantage of small brands has gradually become negligible. The current market distribution situation is that *** occupies the first-tier market and extends its tentacles to the second- and third-tier markets, while small brands can only survive in the cracks and are forced to position the market in the second- and third-tier markets, and their living space is greatly compressed. .