LED enterprises are deeply trapped in the 'Red Sea'. Where is the new blue sea?1

Since 2015, the strategy of seizing the market at a low price by international giants has caused the price war Whirlpool to become bigger and bigger. The LED lighting market has entered the stage of the whole Red Sea, and enterprises with scale advantages can only make small profits from it. Such a bloody red sea makes us feel strongly that the industry is reshuffling, the mountains are coming, and the wind is full. However, after the storm, everything will return to calm, LED lighting companies will be in the competition, after the reshuffle, reloaded and re-launched. If you do not break out in silence, you will perish in silence. How to break away from the Red Sea and find the blue sea requires the whole industry to ponder. The author believes that in order for LED enterprises to stand out, they must have a blue ocean strategy to break through the Red Sea. Instead of tearing the market at a price, it is better to examine themselves, refine their advantages, and then attack the differences. with a perfect marketing model and value innovation, it may be more effective. Technological innovation and intensive cultivation of market segments lighting are distinctive industries. Its Personalization, customization and specialization determine that quite a number of lighting products cannot adopt large-scale production methods and need to be treated differently. Therefore, subdivision and professional market provide LED enterprises with living space. Pang guiwei, chairman of Tongpu Technology, believes that the influx of enterprises into high-margin market segments is the result of free choice and free competition. it is a way and means for capital to seek high returns from efficient places under the market economy environment. Enterprises swarming in will promote the growth and maturity of the market segments, but it will also reduce the gross profit margin of the industry and promote more intense competition. From the perspective of Industrial Economics, the final result of competition is to maintain the average profit of the industry at a low level, which is a dynamic category and inevitable. In fact, many LED enterprises driven by technological innovation know well that it is better to pursue changes than to blindly follow the trend. According to the characteristics of the enterprises themselves, they should specialize in and strengthen in the subdivision fields. Who should aim at the subdivision market first? who is more likely to succeed. Under this background, high value-added market segments such as intelligent lighting, plant lighting and medical lighting have become the new profit growth pole of lighting enterprises in the future, giving numerous market opportunities to small and medium-sized enterprises. Medical lighting has high threshold, small scale and large actual market value. As a special lighting method, medical lighting has certain special requirements. Compared with traditional medical lighting, LED lights have the characteristics of orientation and low spectral damage, which has become the upper hand in the field of medical lighting. Because medical lighting has high access threshold, small market scale, but high market price, its actual market value is large. In addition, because LED medical lighting is a special lighting product with high technology, high risk and high entry threshold, it can avoid the vicious competition faced by conventional lighting products. With the society's emphasis on medical health, medical rehabilitation, environmental protection and energy conservation, the field of medical lighting can be said to be one of the best entry points for semiconductor lighting. it is a field that can display its special skills and is easy to be accepted and promoted by the market. It is also a specialized market segment of semiconductor lighting that is easy to blow, create professional brands and go global. Intelligent lighting, a real revolution in the industry, according to the statistics of CMS China, intelligent lighting will open up the long-term growth space of the industry, on the basis of not considering high value-added products, only 20142015 years, the intelligent lighting industry provides an additional market space of at least 60 billion yuan. By 2020, the smart lighting market is expected to reach 10. 3 billion US dollars, with a compound annual growth rate of 27 between 2015 and 2020. Since 2015, intelligent lighting has embarked on a new stage of development under the dual drive of smart city and smart home. The intelligent lighting products launched by enterprises are no longer limited to dimming and toning. began to add some simple entertainment functions, more prominent is the lighting enterprises in the gradual acceptance of cross-border integration, such as the beginning of a group of LED lighting enterprises and millet layout smart home ecosystem, through cross-border interactive cooperation, realize the combination of lighting and light source, as well as the combination of hardware and mobile network, and realize truly humanized intelligent lighting. Although intelligent lighting has broad development prospects and has achieved certain results, there is no uniform standard for various intelligent lighting systems from communication protocols and control platforms, which makes it difficult to integrate products. Li Shu, general manager of Zhaoxin LED, believes that when the LED market is more standardized and standardization can be implemented, intelligent lighting can be said to be a huge cake. however, there is no unified standard for various intelligent lighting systems from communication protocols and control platforms, resulting in scattered products that are difficult to integrate. How to cut into intelligent lighting still requires enterprises to devote themselves to research. It is understood that at present, there are different types of communication protocols such as KNX, BACnet, DALI, ZigBee, LonWorks, etc. How to establish a common standard in the future is a big challenge for intelligent lighting. the entire industry chain still needs to work together. As for the product side, the development of LED technology has become mature. In the future, the comparison between various manufacturers is not only technological breakthroughs, but more importantly, it can accurately meet the needs of consumers and usage scenarios. only in this way can intelligent lighting products be truly brought into terminal applications.