The LED lighting industry must be vigilant 'flock effect'

LED industry is like a huge magnet, in just a few short years between has attracted hundreds of billions of capital. So far, the LED related listed companies has been more than 30, such as zhejiang sunshine, bdo embellish, tsinghua tongfang, leishi lighting, foshan lighting, the star power, photovoltaic, hon lehman, chau Ming photoelectric science and technology, Shanghai yaming and three Ann, etc. Even after the 16th in the exhibition of guangzhou has become the LED of the world, more than 1400 large and small LED companies are on show. The vigorous development of LED industry there is no doubt that this year the weak lighting lighting market has brought a new vitality.

however, LED industry 'flock effect' has caused widespread concern in the industry. The so-called 'herding effect' is also called a herd mentality. It refers to due to know enough information, investors are difficult to to make reasonable expectations, the uncertainty of the market in the future is often by observing the behavior of the crowd around and extract information, in this kind of information continuously, many information will be roughly the same and reinforce each other, resulting in a herd behavior. 'Herding effect' is caused by personal rational behavior of a nonlinear mechanism of collective irrationality. Everyone has a herd mentality, once the conformity replaced the rigorous logic thinking, will lead to blind, by fraud or fail. In fact, is not only the individual, the enterprise as an organization, also must be alert to 'herding effect' on the negative impact of enterprise survival and development.

in the lighting lighting industry, 'herding effect' phenomenon everywhere. A few years ago, for example, industry leaders opple 'the same song' hand in hand after the CCTV to shine, don't think a lot of lighting lighting enterprise own comprehensive strength and the actual demand, competed to appear on CCTV, as a result, in addition to take a brand of 'CCTV brand list' for dealers and consumers, its actual effect is almost negligible advertising itself; Leishi lighting by named lighting design competition in stealth channel after the success, a lot of second - and third-tier commercial lighting enterprise also followed suit; Mitsuo & amp; 压力; But its potential dangers but should not be ignored. From the Angle of the development of the industry, 'herding effect' will lead to industry relative excess capacity, industry profit margins shrinking, which destroys the ecological environment of the whole industry; Again from the point of view of enterprise development, 'herding effect' will lead to enterprise strategic direction, serious homogeneity products and marketing means, eventually enterprises have to struggle in the 'red sea' market.

all in all, both on market orientation, competition strategy, or on the product innovation and brand building, enterprise only after full market research and feasibility, to develop in accordance with the objective reality of development strategy. Otherwise, blindly follow, follow blindly will inevitably fall into 'herd' myth, leading to 'save' the purpose of the last return 'trapped' consequences.