In the second half of the year, LED lighting companies represented by Philips, NVC and Everlight all agreed to adjust prices. According to a data in July, the 7w LED bulbs of the first-tier manufacturers in mainland China fell to Tsinghua Tongfang and NVC Lighting, down 37.3, 36 from June, and the price was 49.5 yuan, 87.3 yuan. Some enterprises have taken the lead in announcing the price adjustment of their lighting products across the board, with the highest drop rate even reaching 40, causing the price of LED lighting to fluctuate drastically, causing the industry to fall into low-price competition.
This price cuts have undoubtedly caused widespread concern in the industry. The price cuts of leading companies have played an important role in accelerating the popularity of LEDs, but it is undeniable that the living space of LED SMEs will be squeezed again.
The survival of SMEs depends on the price advantage, benefiting from the sales in the second and third tier markets. SMEs can only rely on price advantage to develop second and third tier markets to survive. If brand companies launch price wars and extend sales channels to second- and third-tier markets, the living environment of SMEs will be squeezed. Once the price of a well-known brand enterprise is lowered, the sales share of SMEs must be eaten away. In addition, several major companies as the benchmark of the industry, its price will also become the industry benchmark, they adjust the price, which means that many companies will follow up. Will small businesses that win by price gradually lose market? Has this price cuts affected the enterprises in the ancient town? Is this the life and death of small and medium enterprises? With questions, the reporter recently visited several companies and many consumers, trying to find the answer.
Enterprise said that the lighting of Luo Yingfeng: the price reduction of big-name enterprises has little effect on the enterprises in Guzhen.
The price cuts of these leading enterprises have little impact on the enterprises in Guzhen. The enterprises that win in the ancient towns have reserved a large price space. Even if large enterprises cut prices, they still have some room for expansion. There is still a certain profit, so the impact is not particularly large. For example, pilot lighting, our own channel advantages, strong productivity and shipments are not copied and compared by other manufacturers. Therefore, even if the price of NVC products declines, it will have little impact on our company. Because our channels are different, not competitors, not even a game.
Fengguang legend Yan Rong: The leading industry leader is leading the industry. This price reduction is of great significance.
The price reduction of the industry leader is a very good thing for the industry, which can guide the industry to develop in a healthy and orderly manner, and is more conducive to improving the price system. At present, the lighting industry is really a mess, manufacturers are playing a big price war, the quality is uneven, the price system is disordered, and there is no certain standard. Therefore, the price reduction of leading enterprises may of course have a certain impact on the enterprise. However, as long as the enterprise itself is positioned accurately and down-to-earth to do its own products, it can still be used in the market melee.
A small business owner: The price cuts of large enterprises indicate that the living space of small enterprises is squeezed, and the situation is not optimistic.
The reporter visited some small and medium-sized enterprises, and they generally have concerns about the sales market. A lighting owner in Guzhen told reporters: Most of the enterprises in Guzhen win at low prices. Compared with the products of big brands, our products have certain price advantages, but as long as the big companies cut prices, SMEs will have no such advantage. It is equal to being robbed of the original low-end market. He gave the reporter an analogy: for example, a 7w LED bulb, the big company sold about 130 yuan before, if the price fell by 30~40, the price is about 87.3. The average selling price of small enterprises may be between 30 and 40 yuan. Even if the price of small and medium-sized enterprises is reduced to 10 or 20 yuan, consumers will not necessarily accept it. A lamp of 87.3 yuan may have a profit for large enterprises, but a lamp of ten or twenty yuan for a small and medium-sized enterprise may lose money.
Consumer opinion reporters on the price of SMEs and brand companies, randomly surveyed 10 consumers, almost half of the respondents said they would use the price reduction products of well-known companies, because of the brand's influence. However, quite a few consumers believe that the price of a brand enterprise contains too many other ingredients. Wool is always on the sheep; relatively speaking, they value the price and benefit, which is the most important.
A surnamed Zhang said to reporters that although the prices of SMEs are very low, the quality of well-known companies is guaranteed and the after-sales service is good. If you buy, the first choice is definitely the brand.
A dealer from a county-level city in Hubei told reporters that he came to Guzhen to buy lamps this time, looking for some products that are relatively cheaper. The local residents have limited spending power, so for them, the brand The impact is relatively low, and affordable prices are crucial.
Mr. Lan, who was born and raised in the ancient town, said: Although the products of large enterprises are reduced in price, their prices are relatively high, and the average consumer is still unacceptable. There are many companies in Guzhen with good quality and affordable prices. , cost-effective, suitable for ordinary consumers. Therefore, small and medium-sized enterprises that have an advantage in price still have great advantages. As far as I am concerned, I will still select some products with high quality and low price. After all, it is not promoting rational consumption now.
The reporter observed the LED giant's big price adjustment, which is conducive to the lighting industry to accelerate the LED replacement tide, but it does not mean that this is the life and death of small and medium-sized enterprises, SMEs still have room for survival.
The price reduction of leading enterprises indicates that LED will completely replace traditional lighting. The price critical point is coming, and the LED replacement tide will be ushered in. The energy-saving and environmental protection wind will blow into thousands of households. It is true that the price cuts of large enterprises are conducive to accelerating the overall replacement rhythm of LEDs and better improving the price system. The survival of SMEs will indeed be greatly affected. But even so, small and medium-sized enterprises do not have to panic, this is not the life and death of LED SMEs, companies should not blindly join the price war, because price cuts are not the only means of corporate marketing. Consumers are diverse, their characteristics are different, their needs are different, and their sensitivity to price is completely different. Some consumers need convenience, some consumers need fashion, and some consumers need service. Small and medium-sized lighting companies should plan their direction, select target groups, design the value of the company, and go their own way.
In addition, as a small and medium-sized enterprise, in order to continue to develop in the fierce price competition, it is necessary to find the areas that large enterprises neglect and go out of their own characteristic roads. At present, China's LED lighting market has fallen into the stage of price vicious competition. Today, with the technology becoming more mature and the profits becoming increasingly dilute, there are still many business opportunities to be tapped in the market segment. Enterprises can establish brand image by increasing the added value of products. Stepping out of the differentiated path of own products, this will help enterprises to get rid of low-price competition and at the same time win more room for development. Enterprises should seize the strategic opportunities in a timely manner, fill in the shortcomings, build the core competitiveness of the enterprise, get rid of the overwhelming and hungry Red Sea, and target the wider and wider blue ocean. This is the way out, or even the only way out.
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