Hidden secrets behind price war in LED industry

When there is fierce competition in the mall, is it only the price war that is the key to reversing the profit and loss? What kind of quality and safety problems are hidden behind the price war? Let's take a look. Price can greatly reduce the price of LED lighting products, which also means that the disadvantage of high price of LED lighting products is beginning to reverse. Compared with other lighting products, LED lamps have a big disadvantage and a bottleneck of popularization, namely, high price. Although the price of LED lighting products will drop to an acceptable level with the improvement of production level and technological progress, there is no doubt that the price war has brought this level ahead of schedule, it has promoted the development of LED lighting market and the popularization of LED lighting. But the problem is also obvious. LED lighting manufacturers are fighting a price war, which has reduced the profits of manufacturers. In order to maintain profits, a large number of manufacturers use low-priced raw materials to manufacture products, which has LED to a decline in product quality, causing users to less trust in LED, leading to the occurrence of a vicious circle, which is not conducive to the development of the industry. In fact, there are many ways to deal with price war. LED enterprises should also formulate development strategies based on their actual situation, the low-price strategy puts forward higher requirements for the comprehensive strength of the enterprise, such as technology, capital and scale. Blindly following the trend may cause losses to itself. Therefore, price war is not the way out for LED enterprises. The exchange of low prices for the market should be the means of market competition, not the ultimate goal. LED enterprises should not only reduce costs and obtain profits by improving production technology and improving production efficiency, but also increase technical content, enhance product value and shift product competition from the price battlefield, in order to obtain more comprehensive and long-term development and occupy a favorable position in the fierce competition; The core strategy of the Enterprise must be to return to shaping the brand value, firmly grasp the bottom line of quality, and seek the road of management and quality improvement in the long-term competition, let the products occupy a place in the domestic and international markets.