Using the recent online hot word No X No X to describe the current LED industry is the most appropriate. With the maturity of technology, complete products, price competition and enhanced service awareness, LED companies have made the living environment of LED enterprises more and more difficult. LED lighting companies can only win the trust and market of customers by continuously innovating technology, products and services to meet the needs of customers. In the process, some enterprises have developed, and some enterprises have been eliminated. However, 2016 is destined to become a market pattern for LED companies to “live and die, survive the fittest”. ?
Analysis of problems in the LED industry market
1. The products are uneven. The market lacks industry standards.
In order to compete for the market, some companies use low-end products to fight price wars. Its characteristics are that the price is cheap and the quality is not guaranteed.
2. Low profit, difficult financing
Excessive production capacity has also triggered a vicious price war between enterprises, which has caused the prices of downstream enterprises in the LED industry to continue to fall, and profit margins have been compressed. At present, the gross profit margin of the LED strip industry is only around 20%, while the net profit is less than 5%. It is also an indisputable fact that financing for SMEs is difficult. The increase in external costs has led to an increase in demand for funds. In the case of unfunded funds, SMEs have limited access to credit resources and low satisfaction in financing needs. Coupled with the thinner foundation of SMEs, the difficulty of loans has also increased. Even if the loan is paid, the loan interest rate rises and the guarantee fee is too high, which makes the SME unable to bear.
3, overcapacity, survival of the fittest
With the development of the LED industry, many other industries have also begun to enter the LED industry, which has caused severe overcapacity and further worsened the market competition environment. Excessive investment has made the LED lamp industry oversupply, and many companies are in the middle and lower reaches of the lower technical barriers. In the future, LED companies will face a cruel survival of the fittest. Only a small number of enterprises with real R&D and production strength will gradually grow, and more enterprises will face the fate of being eliminated. Only when a company pays attention to talent accumulation, creates a good R&D environment, and constantly improves its products, can it be defeated by other competitors and continuously develop, consolidate and strengthen in its own product fields and markets.
LED lights with product transition subdivision, in order to seize the market opportunity, so that enterprises survive in the brutal market competition, LED lamp belt enterprises are constantly increasing research and development, manpower, market input and let the cost of enterprises continue to rise, such as thin ice, struggling . LED strips currently have two major types of distinctions in the market; generally divided into soft strips and hard strips:
LED light strip, no market without innovation
The soft light strip is to solder the LED patch on the flexible circuit board, and the back surface is installed in the form of adhesive, and according to the application and environmental illumination requirements, the surface treatment can be divided into glue waterproofing treatment. And not waterproof; the highest waterproof level can also be added with a transparent sleeve on the glue treatment to improve the waterproof level;
According to the requirements of the application environment illuminance, the strip LEDs used in the soft strips on the market are mainly 3528 and 5050. The special brightness level requirements are also higher. The current high brightness LED types are 2835, 3014 and 5730; Increase the brightness level of the area by the number of lights used;
The hard light strip is based on the soft light strip to better solve the heat dissipation problem, and the patch LED is soldered on the aluminum substrate, so that the LED can obtain good heat dissipation treatment under long working conditions; The actual installation and heat dissipation requirements include the installation of aluminum slots. One is to facilitate the installation and increase the heat dissipation area. The aluminum slots are generally installed in the required places through screw holes or snaps, such as in high humidity and high dust environments. Can be used for potting and dust-proof treatment; and waterproof treatment; the same LEDs used according to the requirements of the application environment illumination are similar to soft light strips.
1.LED soft light strip: like patch round two coils, double-sided light, RGB colorful, one light jump five lights jump, this part of the market is only a small number of manufacturers in production, production technology and quality requirements are very high, for many companies It is challenging to say that small businesses generally do not do well without technology.
2. LED lights with conventional products: indoor single and double color has been done in China for nearly 20 years, manufacturers of modules are not very willing to do, indoor surface mount unit board wholesale, has begun a fierce price war. There are too many medium-sized enterprises that produce such products wholesale, saying that this product is simple to produce, large in quantity, and large in market. However, such products are subject to manufacturers of light-emitting tubes and chips. The upstream companies have decided how much the wholesale market can go and how far.
LED light strip, no market without innovation
LED companies do not have to be all-in-one when they make products. They must form their own unique styles and characteristics of products. Through one or two fist products, they can drive other products to sell. LED lights from the previous straw hat light belt, to the current LED three-chip light strip products, single loop to the current one parallel design. Personalized products meet customer needs. And Zhiwei has seized the market demand for creative products and has already taken the lead in the industry.
LED companies not only have to meet the needs of customers, but also to make innovations in the service, instead of adopting the previous service model of waiting for the rabbit, waiting for the customer to feedback the problem to the LED company to deal with the customer's problems and objections. It is also necessary to let the company's services go out, take the initiative to attack, and regularly conduct pre-sale, sale, and after-sales return visits to customers. At the same time, during the process of using the product, the customer should return to the company regularly to collect the customer's experience, summarize the customer feedback, and promptly solve the problem and problem with the corresponding strategy.
LED lights with enterprises only have innovation in products and services to have a market, only innovation can develop, and even innovation can survive. It is No creative No Market
