Behind the "fog" of low prices, Qinshang lays out the three-step LED strategy

Qinshang Optoelectronics, which has been suspended since June 10, has become the hottest and most talked-about company in the lighting industry recently. It has made a high-profile announcement that it will implement a low-price dumping strategy. There are reports that its street lamp products are even sold at a price of "more than 4 yuan/W", which has become a hot topic in public opinion. Faced with various doubts, Qinshang Optoelectronics remained silent. After Qinshang announced that it would hold an extraordinary general meeting of shareholders on July 14, the reporter was able to interview Tang Qin, deputy general manager of Qinshang Optoelectronics, and Chen Guodong, channel director of the marketing department. From their mouths, they finally found out the truth about the "low-price strategy" and its quiet layout, aiming to become the overlord of the LED industry through a series of moves. Rumors of "dumping prices" triggered heated discussions During the Guangzhou International Lighting Exhibition a month ago, the "King of Street Lamps" Qinshang Optoelectronics held a "Qinshang' Lighting Replacement "Wealth Creation Plan and New Product Launch", Li Xuliang, then chairman of Qinshang Optoelectronics, launched Qinshang's "Lighting Replacement" wealth creation plan and new outdoor and commercial lighting products in 2014 with a high profile. He announced that he would implement an ultra-low-price strategy and join hands with engineering dealers to seize the trillion-yuan replacement lighting market. What caused an uproar in the industry was the low price of its new products. A commentator with the real-name identity of "Comment Yang Tao" on Weibo broke the news and claimed that he learned from Qinshang insiders that Qinshang's newly launched LED street lights will be dumped on the market at prices of more than 4 yuan/W, LED T8 lamps around 14 yuan, and indoor lighting products at 1 yuan/W. As soon as this news came out, the industry was in an uproar. In the past month, Qinshang Optoelectronics has not responded positively to various questions from the industry. Many media have called Duan Zhu, secretary of the board of directors of Qinshang Optoelectronics, for interviews on related matters, but they were all declined, fueling speculation from all walks of life. The price is relatively close to the rumored "dumping price" Regarding the industry and media's doubts about Qinshang Optoelectronics, Tang Qin did not choose to evade or dodge when being interviewed by reporters. "In fact, it is understandable that the industry has had various doubts about Qinshang recently. Such low prices are indeed a market strategy discussed and approved by our company's senior management. The customers are the rice owners. We make good use of every copper plate, save advertising and other expenses, and give back to consumers and dealers without even making a profit. The main purpose is to set an example, guide the market order, promote the popularization of LED products, and benefit more ordinary consumers. It may also objectively accelerate the reshuffle of the industry, promote the survival of the fittest, and enhance the overall competitiveness of national LED companies,” Tang Qin explained. "Some insiders broke the news that your company's LED street lights will be dumped on the market at more than 4 yuan/W, LED T8 lamp tubes around 14 yuan, and indoor LED lighting products at 1 yuan/W. Some people also claim that street lights are around 5 yuan/W. Are these prices true?" The reporter asked Chen Guodong about the price issue that he was most concerned about, and Chen Guodong gave an answer. "I can't give you an accurate answer about the price rumored by the outside world, because most of the new products we launched this time are for the series of products commonly used in the current largest replacement market. This involves the commercial secrets of bidding for engineering projects between our manufacturing companies and engineering dealers and other partners. We need to do a good job in protecting this aspect. As for whether the price is really as low as the price rumored by the outside world, I can only say that the price is indeed very low, relatively close." Integrating resources Fight a prepared battle The product price is already relatively close to the price rumored by the outside world, so can the product achieve "low price and high quality"? "Qinshang Optoelectronics has a large-scale production system and adopts advanced production technology. Whether it is incoming material inspection or process control of the production process, it has a strict quality control system, and the one-time pass rate of finished products reaches 100%. In this way, the company can achieve the lowest cost and the highest quality from raw material procurement to production delivery." Chen Guodong said. "Actually, we are well prepared to launch this low-price strategy. First of all, we have sufficient financial reserves in our accounts to support us in fighting this battle; secondly, our products are "low-price and high-quality" so that we can also There is no need to worry about our quality problems; thirdly, our strong terminal network coverage and operation management service platform give us confidence in the delivery logistics and logistics services after the implementation of the low-price strategy." Tang Qin pointed out the confidence and guarantee that the company dares to launch this "low-price strategy" in the industry. "As a responsible national LED lighting company, Qinshang Optoelectronics hopes to give preferential treatment to consumers first. Even if it is not profitable, it will also accelerate the promotion and popularization of high-quality LED lighting products. The company values ​​the future long-term profits and the development of the industry, and the new "EMC "+BT" business model uses high-quality, low-price products as the basis for EMC cooperation, uses the advantages of the BT model to ensure project revenue, and is perfectly integrated with lighting replacement. This is a change in Qinshang's profit model, which solves the risk points of product quality and payment collection in the replacement market, innovates the traditional profit model in the LED industry, and ensures that Qinshang Optoelectronics can obtain better final returns." Tang Qin said. Position layout Combination boxing will show its power Everyone in the LED industry knows that Qinshang Optoelectronics is famous for its excellent performance in the field of outdoor and indoor engineering, such as the LED lighting energy-saving renovation project of the Great Hall of the People and surrounding facilities, and the LED lighting of Shenzhen Expressway. Street lamp and tunnel lighting projects, Shanghai-Nanjing Expressway LED lighting project, Guangbai Group's 160 million commercial lighting energy-saving renovation project, Korean Yilian Group's LED energy-saving renovation project, Shenzhen landmark Kingkey 100 lighting and indoor lighting project, Mexico City Lighting CITY renovation, etc., have all been widely praised by people from all walks of life. Industry insiders who are familiar with Qinshang Optoelectronics’ operating methods pointed out that in fact, at a time when the industry is questioning Qinshang Optoelectronics’ recent actions, this giant company in the LED industry is quietly making plans. "Qinshang Optoelectronics should not be underestimated at any time. Competition in the LED industry is fierce now, and Qinshang Optoelectronics is making a larger layout." "In addition to the domestic market, we are also actively deploying in the international market. For example, in the United States, there is a replacement market size of 200 million LED street lights, LED ceiling lights, and LED parking lot lights. The traditional lighting markets in Europe, South America, Asia and other regions over the past 30 to 50 years are being revolutionized. Our goal is to obtain the world's largest replacement market share." Tang Qin said. The release of the "Lighting Replacement" wealth creation plan is an important layout for it to seize the trillion-yuan replacement lighting market after comprehensively analyzing the market competition environment. Most of the current lighting replacements are in the engineering field, and this field is also where Qinshang Optoelectronics has its advantages. Giving full play to its advantages and seizing the lighting replacement market is Qinshang Optoelectronics' first move to focus on future market competition. As a leading LED company that is the "King of Street Lights", if Qinshang Optoelectronics wants to enhance its overall competitiveness, it must integrate the industry chain vertically or horizontally, so as to seize a favorable position in future competition. There have been rumors in the industry that Qinshang Optoelectronics will integrate with powerful companies in the industry. In addition, Qinshang Optoelectronics announced on the evening of June 9 that it is planning a non-public issuance of shares to the company's actual controller Li Xuliang. This also confirms that Qinshang Optoelectronics does have layout considerations in this regard. It can be seen that Qingshang Optoelectronics has already planned and is optimistic about the market. It is full of confidence in seizing the market and believes that it can defeat its opponents. This may be the second step in Qinshang Optoelectronics’ future layout. On June 10, when Qinshang Optoelectronics released the "Lighting Replacement" wealth creation plan, the then chairman Li Xuliang once claimed that "Qinshang Optoelectronics will pay more attention to the construction of smart cities in the future and be committed to the development of smart lighting." In the media exchange session after the meeting, Li Xuliang also further explained the strategy of developing smart lighting and integrating with smart cities. The company is also currently cooperating exclusively with the Institute of Semiconductors of the Chinese Academy of Sciences on scientific research and development of LIFI optical communications, becoming the first listed LED company in the industry to be involved in LIFI optical communications. This may be the third step in the future competition of Qinshang Optoelectronics. Some insiders pointed out, "In fact, Qingshang Guangdian is a physically strong and experienced boxer. His three-step layout can form a good "combination punch", including powerful straight punches, hard-to-defend swing punches, and close-fitting uppercuts. When combined with it, the power cannot be underestimated." After the truth about Qinshang Optoelectronics’ “low-price fog” surfaced, what everyone discovered was that Qinshang Optoelectronics had rethought, adjusted its strategy, and kept a low profile in the face of increasingly fierce industry competition. Whether its strategy can be successful remains to be verified by the market. More intense market competition has begun. Perhaps the "price war" started by Qinshang Optoelectronics will become a major watershed in the LED industry. Qinshang Optoelectronics, the forerunner who dares to innovate, may become Midea, Galanz, and Lenovo in the LED industry. However, a large number of LED lighting companies with insufficient innovation capabilities and low competitiveness will be beaten to death by Qinshang Optoelectronics and eliminated from the industry.