Ye Jinrong: The domestic market is seriously saturated LED business collapses

[Source: "High- tech LED- lighting market" November issue chapter finishing ]

LED lighting is recognized as the fourth generation of lighting products in the world, which replaces traditional lighting into a development trend. The emergence of a new technology will eventually eliminate old technology. This is the law of industrial development. For example, in the process of developing traditional mobile phones into smart phones, a number of traditional mobile phone manufacturing giants have been eliminated. Similarly, in the process of replacing traditional lighting products with LED lighting products, a large number of traditional lighting companies will also be eliminated.

At present, traditional lighting companies are very strong in the terminal market. For example, NVC, Op, Sanxiong, etc. have their own image stores in each building materials market in the country, which makes the LED companies that also want to distribute terminal channels feel great pressure. However, with the rapid development of LED technology and the continuous decline of product prices, the terminal channel construction of LED enterprises will accelerate. In the future, the competitive advantage of terminals and traditional lighting enterprises will become more and more obvious, and the terminal market share of traditional lighting enterprises will gradually decrease. The market share of LED companies is growing.

Last year, due to the financial crisis, foreign orders from domestic LED companies plummeted. Export resistance increased. However, the government's strong support for the LED industry has enabled many LED companies that have been exporting to see hope and have turned to the domestic market. However, the current domestic market has been severely saturated. According to high-yield research data, domestic LED companies have exceeded 10,000, including nearly 7,000 LED application companies. If traditional lighting companies transform LEDs and export to domestic sales, then LED companies The sheer volume is shocking. The domestic market share has not changed much, but with so many companies rushing in, it is bound to eliminate a large number of traditional lighting companies and LED lighting companies. Recently, LED business closures are not uncommon, and it is expected that the tide of closure will begin.

LEDs are personalized products, and products that are similar are not competitive. At present, the phenomenon of homogenization of LED products is very serious. Especially in Zhongshan enterprises, the plagiarism is too strong, which leads to the inability of other companies to develop products. This makes many domestic enterprises that focus on innovation very helpless. From another perspective, although plagiarism companies can now profit from other companies, such enterprises will never do much, and can only follow the pace of excellent enterprises. At the same time, Zhongshan enterprises have reduced the price of LED bulbs to a price similar to that of energy-saving lamps, which directly led to increased competition. Because the price of LED products is too low, the profits of SMEs will be hollowed out, and the high-priced products will not be sold. The result of this vicious competition is that the industry is constantly shuffling. The development of LED in the next three years is crucial. Most uncompetitive companies will be eliminated, and the well-known LED predators like NVC and Opp will be born.

The terminal LED image store will be a historical witness to the replacement of traditional lighting products with LED products. This year, more and more LED stores have emerged in the terminal market, and LED stores will be on the run. In fact, NVC and Opp have also relied on terminal image stores in the terminal, because terminal stores can enhance the corporate image and increase the brand awareness of the terminal. Therefore, more and more LED companies have joined the terminal channel layout.

Beijing Optoelectronics uses the direct sales and franchise stores to arrange terminal channels. The physical store operation adopts the online and offline combination mode, but the main force is still a physical store, and the online flagship store is more of a publicity role. In the future, Beijing Optoelectronics hopes that more dealers with common goals, common interests and common values ​​will join.

Source of this article: General Manager of Shenzhen Beijing Optoelectronics Technology Co., Ltd. Ye Jinrong


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