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Opportunities are reserved for those who are prepared.
On the one hand, the overall LED market is constantly improving, and on the other hand, this kind of improvement may not make the performance of the company skyrocket.
Analysts pointed out that in order to grab market share, various companies have already been gearing up. In addition to the previous price war, the competition for brands and channels will also begin.
In 2014, the competition in the whole LED industry will be more intense.
The competition in the entire LED industry will be more intense.
The market acceptance is increasing, and everyone is getting more and more competitive in order to seize the market. Some manufacturers may be eliminated. Wu Yulin, president of the Foshan Lighting Association, told reporters.
The price war is more intense. LED lighting industry is one of the hot industries at present. It seems to be lively, but in fact it is full of hidden worries. Factors such as disorderly competition, price war and inconsistent standards restrict the healthy development of the industry, the integration and upgrading of the industry is imminent. Deng Zichang, chairman of Changfang lighting, said.
In order to quickly occupy the market, the LED industry first staged a price war.
Although this has caused many companies to increase their income, they have not exchanged corresponding profits.
Taking the third quarter of 2013 as an example, among the upstream chip companies, Dehao Runda's operating income in the first three quarters was 22. 7 billion yuan, an increase of 16. 69, net profit fell 56. 45. Huacan Optoelectronics's operating income fell by 20. 59, net profit fell 75. 77.
In the midstream packaging field, Hongli Optoelectronics's revenue increased by 24. 39, net profit fell by 19. 30.
Guoxing Optoelectronics is slightly better, and revenue in the first three quarters increased by 20. 3, net profit increased by 17.
26, but the profit growth rate is still not as fast as the revenue growth rate.
In Downstream application enterprises, qinshang Optoelectronics revenue increased by 35. 5%. 31, net profit fell 4. 73. Lehman's revenue fell by 2. 77, net profit fell sharply 39. 12.
Not only that, the reporter read a large number of LED listed companies' financial reports and found that increasing income and not increasing profits has become a common phenomenon in the industry.
Quan Jian, president of Guangdong Lighting Appliances Association, said that in 2014, the price war will continue, but if the price is too low, it is not good for the industry.
Mei Zhimin, director of Zhou Ming technology market, also believes that 2014 is still determined by tonnage. You must have market share.
The brand war is on the horizon. In addition, some LED enterprises also hope to quickly establish their own brand influence in the chaotic industry competition to gain market share.
In an interview with reporters, GLII Dean Zhang Xiaofei thought that in addition to the price factor, companies with brands and channels may have more opportunities.
In January 7, 2014, Changfang lighting released its own brand upgrade strategy, hoping to achieve the effect that users think of Changfang when they mention LED lighting.
Deng Zichang said that in 2014, Changfang lighting will pre-invest 0. 1 billion yuan for brand promotion to further improve brand awareness and reputation, and help dealers across the country to sell products faster and win customers.
The reporter also noticed that as early as 2012, Dehao Runda announced that it had signed the 'procurement and cooperation framework agreement' with Hangmei advertising Group Co. , Ltd. In the next three years, hangmei advertising Group will purchase from Dehao Runda.
0. 1 billion yuan of indoor LED display products, in the same period, Dehao Runda put 20 million yuan of media advertising to it every year.
In order to gain higher popularity, after Dehao Runda entered the NVC Lighting, it also launched the NVC co-brand, which specializes in LED products.
However, in Wu Yulin's view, the current strong brands in lighting are still some foreign giants such as Philips and Osram, or domestic veteran companies such as Foshan Lighting and NVC Lighting.
Emerging LED companies need to work hard to build their own brands.
The resurgence of channel disputes to compete for channels is another way of competition among enterprises.
The channel through which LED products reach consumers is also crucial to the sales of enterprises.
Established lighting companies are known for offline dealer channels.
For example, NVC Lighting has 36 operation centers across the country.
The channel construction of more enterprises is stepping up. For example, Foshan Lighting, which already has a wide range of channels, has reached Hohhot, Inner Mongolia in the north and Yulin, Guangxi in the South from April to September 2013, more than 40 new product promotion stores were held.
However, in August 2013 alone, Shelley held regional investment promotion conferences and LED New product launches in Lanzhou, Wenzhou and Taiyuan.
Mei Zhimin said that enterprises that enter LED must face the fact that there is no channel.
In other words, its channel is a weak channel, and the brand is a weak brand.
However, the traditional lighting brands have accumulated a lot in channels 10 or 20 years ago.
In other words, it already has a mountain. If we don't see the situation clearly and find a strategy, we will go after them, and it will be very hard. Basically, it will be over the mountains, even many traps are waiting for us to jump.
However, online channels often conflict with offline channels.
On December 18, 2013, Hongli Optoelectronics said on the interactive platform of Shenzhen Stock Exchange that due to some conflicts between online and offline sales of some LED lighting products, the company suspended its operation in Ledia lighting store in Tmall mall.
