LED lighting companies need to be cautious in adopting price reduction strategies

Today's LED lighting market competition can be described as extraordinary, especially the price of the fight, a drop and then drop, no low, only lower. Price is still a magic weapon for many companies to compete. In fact, most companies are forced to cut prices. Seeing that everyone is playing a price war, they have to follow the fun. The main source of price reduction is that the maturity of the consumer market is not high, and consumers focus on price rather than brand; Second, there is no real brand connotation. If the brand connotation is missing, it is difficult to have brand value, and the product will not be sold at a good price; Can only be associated with the flow, shopping on the price. In the price-oriented market consumption and competitive environment, price cuts are a common trick for most companies, and price cuts are used as a killer to fight competitors and occupy the market. I have to admit that price cuts can indeed increase product sales in the short term, but it brings only false temporary prosperity. Behind the prosperity of sales, more is the transfer of inventory. After the prosperity, there will be a series of sequelae, which will easily cause damage to the brand and the market. Especially those who cut prices at the expense of quality are equal to cutting the pulse and bloodletting, and set their own sets. The author believes that enterprises should be cautious in implementing price cuts. They should not slap their heads on a whim, and they should not blindly follow the trend in order to follow the so-called pace of market competition; It must be backed by strong brand power, product power, technical power and scale and cost control power to truly exert its effect. Otherwise, don't cut prices easily. Such as mulinsen, Foshan Lighting and other powerful brand enterprises, the reason why they dare to go crazy about the prices of certain categories of products is that they have strong backing such as product power, technical power, scale and cost control power and brand power. Their price cuts have little effect on the brand and product image, but they will give people the feeling of good quality and low price. Therefore, before the price war, enterprises must measure their own brand power, product power, technical power and scale cost control and other factors to see if they can stand this kind of compensation. Otherwise, enterprises should not easily use the price killer, so as not to fall into a vicious price war, and should make more efforts in brand connotation, product quality, technical support, scale and cost control, etc. Price cuts, especially vicious price wars, have harmed others, have also harmed themselves, and have harmed the industry! Please think twice before the price reduction, and use the price killer with caution.