LED lighting manufacturers survive pressure, resource integration is the way out

This is just a microcosm of the industry. Since 2016, the lighting market as a whole has been in recession, and the brand sales of major home building materials stores, ceramic building materials markets and lamp markets have shown a downward trend. In the face of the sluggish lighting market environment, coupled with rising raw materials, transportation costs and labor costs, the production and circulation costs of lighting products have also risen. Recently, A lighting City in Wuhan caused merchants to pull banners to boycott because of the rent increase. In the face of the bleak business of the physical store, the lighting City continues to rise in rent regardless of the market, and the merchants can't survive. This is just a microcosm of the industry. Since 2016, the lighting market as a whole has been in recession, and the brand sales of major home building materials stores, ceramic building materials markets and lamp markets have shown a downward trend. In the face of the sluggish lighting market environment, coupled with the rising cost of raw materials, transportation and labor costs, the production and circulation costs of lighting products have also risen, many lighting manufacturers are facing severe pressure of survival and development. LED products have serious homogenization and lack of innovation. With the rapid development of LED industry, LED products have serious homogenization, and the price war has intensified. The products gradually tend to be standardized. At the same time, the market is concentrated to large factories, companies that lack competitiveness will gradually be eliminated. Some people in the industry pointed out that if LED lighting enterprises have innovation, they will not go to the road of homogenization. At present, the whole lighting industry is in a transitional period and is also in a development period. The market demand for the whole LED is still very strong. Different enterprises should have their own innovations and find products suitable for the market demand. There are many reasons for the chaos in the LED industry. First of all, the current government supervision is concentrated in large enterprises, but it is often some relatively small enterprises that disrupt the market, in this way, it is difficult for market supervision to achieve the desired results; Secondly, from the perspective of the market, the consumer's consumption concept is not very rational, and more often stays in the simple price. If you really want to do a good job in the quality of a product, you need to spend a certain price, then when consumers blindly pursue low prices, as a manufacturer, they will inevitably save costs in the production process, and the results can be imagined. LED e-commerce is in its infancy. Due to the rise of internet consumption and the intensification of e-commerce competition, many e-commerce platforms in the industry have sprung up, while integrating industry resources, it also brings new business opportunities to many enterprises. In addition to the traditional e-commerce platforms such as Tmall and Jingdong, there are many exclusive platforms for the lighting industry. At present, most LED lighting enterprises have established flagship stores on mature e-commerce platforms, which is more of an image display and cannot be a way to achieve sales. Because e-commerce pays very high costs, including publicity costs, activity costs, and operation teams. In fact, it is normal for enterprises to be out of proportion in the initial input and output of e-commerce. Now not only lighting enterprises, many dealers are also doing e-commerce. In the future, online wholesale channels and traditional wholesale channels will gradually merge together, and the integration speed will be accelerated. Enterprises should use the benchmark of flagship stores to quickly promote their brands, and then go to the new exclusive platform to develop online distributors. If these resources are integrated to realize an organic combination of online and offline, this may be the development trend of lighting e-commerce in the future. Under the current internet trend, e-commerce has penetrated into all walks of life. Industry manufacturers have different attitudes towards e-commerce, from initial rejection to forced acceptance to enthusiastic embrace. For example, on the 11th of 2015, Op lighting took 1. The myth of a sales volume of 21. 8 billion yuan once again made e-commerce the focus of public opinion in the industry. Just as everyone stepped into e-commerce one after another, the huge competitive pressure made many enterprises exhausted physically and mentally. No matter which channel mode is adopted, it mainly depends on what products the company sells, and it must be promoted according to local consumption habits. At present, due to insufficient market supervision, mixed enterprises, overcapacity and e-commerce impact, the LED lighting industry has seen such phenomena as merchants pulling banners to resist the lighting City. The business of the merchant is not good, and it directly maps the problems that arise in the industry. However, judging from the overall trend of the industry, the impact of the chaos in the industry will become smaller and smaller in the future, because as the market matures, the pursuit of product quality will become higher and higher, moreover, the requirements for the overall strength of the enterprise will also increase accordingly, so this is an inevitable development process.