Home >

In the brutal competition, how can LED companies break through?

The current situation of LED is like the Internet in the late 1990s. It was once a turbulent time, but what followed was a flood of disasters. But the current situation of LED is more optimistic, because market demand will quickly absorb excess production capacity.
The dark horse that ends traditional lighting companies may not be a company in the circle, just like Apple ended the mobile phone industry and digital ended the camera industry. In the LED replacement stage, people outside the circle do things inside the circle. They often have financial and technical advantages. In the original circle, marketing and sales promotion are also top experts. What needs to be familiar with is nothing more than the market of the lighting industry.
 
Faced with the complicated and mixed LED market, how can companies break through? We can do some simple analysis from a capital perspective and an operational perspective:
1. Among LED companies in the future, two types of companies will be the kings of competition. One is technology-driven companies led by capital. They produce mostly finalized products or even semi-finished products. Cost + technology will be the expected competitive advantage. Another type of enterprise is the downstream LED "creative application" enterprise. Their competitive advantage is "market differentiation", a deep understanding of light and environment, and a profound insight into human nature. On this basis, manufacturing customized light environment solutions will be their unrivaled competitive advantage. The former is a large enterprise, and the latter may even be a "small and micro enterprise."
 
 2. Faced with the "small and fragmented" industry structure, the government has begun to realize that it must support powerful enterprises to become bigger and stronger. More and more LED companies are going public or financing through other channels, which will become another important force in industry integration. In the next few years, it is expected that some industry leaders will be born that can compete with international giants. The combination of capital and industry is the magic weapon for LED companies to win in the market.
 
 3. After LED companies go public or raise funds through other means, it is not only conducive to establishing a good brand image in the chaotic market, but also using capital means to acquire and merge, strengthen themselves, and purify the market.
 
 4. It is a shortcut to attract capital through capital advantages, mergers and acquisitions of companies, or advantageous companies. However, it is not easy to find companies with good capital selection; the companies being acquired are not only required to "look beautiful" (there are many companies with such fake packaging to attract capital), but also companies that are the same on the outside. This kind of enterprise not only has product and technology advantages, but more importantly, it has channel advantages based on marketing. Outsiders who have not been involved in the lighting industry often fail to see the company's pretentiousness.
 
 5. The marriage of capital and technology is conducive to technology-driven enterprises to quickly convert technology into products and bring them to the market, forming a competitive advantage. The current LED market does not lack competitive products, but it lacks innovative marketing models, including cooperation models between enterprises and professional managers, channel cooperation models, profit models, promotion models, channel operation models, etc. Most companies fall into homogeneous competition at the marketing level. The marriage of capital and technology has laid a good material foundation for the back-end of marketing, making it faster, stronger and more stable at the marketing level. Because marketing competition that is divorced from the product and technical levels tends to move faster and has higher risks.
Scan the qr codeclose
the qr code