The unspeakable hiddenness of the domestic LED accessories market

[Source: Gaogong LED 's " LED Good Products" magazine March issue ]

At present, the profit of LED lighting products is seriously declining; the market orders are unstable, the labor costs are rising and the personnel are in short supply; the competition is fierce. In order to achieve customer satisfaction, all enterprises have to continuously improve in terms of price, delivery, service, etc.; Low use; these make LED lighting manufacturers feel pressure and challenge. And these pressures continue to spread to the middle and upper reaches of LED.

As the structural component of the upstream LED lighting accessories, the author has seen the growth and growth of many application companies since the 2008 and the present, and then fell down. For those “dormant” enterprises (without the original passion, not clear) I am worried about my own direction.

Where is the market cake?

Michael Porter, the "father of competitive strategy" in the United States, said that to "position", companies should first examine where their advantages are. It has a total cost lead, or a technical advantage; it is a differentiated positioning or a specialized positioning. When a company finds its unique qualities, its market position is formed.

If the market is located abroad, which countries should focus on? Take Austria's bright indoor lighting products as an example. Although the products have been sold to many international markets, there are almost no competitors in Singapore. If the company has few resources, it can carry out “intensive farming” on a country-by-country basis, so as not to waste resources and increase the burden on enterprises. If the market positioning is in the country, how to sell? Our people have long been familiar with LED products, and companies always say that because LED prices are too high, consumers do not buy. In fact, companies should reflect on whether they have carefully innovated and planned in marketing. Is it true that they dare to use their minds, pay, win, bear and be grateful in business cooperation?

In terms of product safety regulations, specifications and standards, the author believes that enterprises should do two products, the first one is high-end products. Only products that meet the global safety certification can compete and cooperate with international brands. Even if we hit the wall in patents, we can still rely on each other and achieve win-win development. For example, a certain enterprise in Shenzhen is positioned in the LED fluorescent tube professional and OEM. Its market strategy is to use the international brand of lamp beads, other materials and accessories for domestic procurement, and assemble the finished products and sell them abroad. They adopted the structural components of the fluorescent tube heat-conducting plastic developed by Xinlong Optoelectronics. Through the continuous improvement of the engineers and technicians of both parties, they successfully attracted more than 30 high-quality foreign customers, including a top international famous brand.

The second product is a product that meets the needs of developing countries. By analyzing some product safety standards, we believe that LED lamps do not need to have a life of 50,000 hours, which can reach 30,000 hours.

If the life is set at 30,000 hours and then the relevant materials are selected, and the batch, intensive, and standardized production is carried out, the cost will be greatly reduced. For example, the appearance of structural parts of the luminaire can be reduced by 10%-cost through bulk purchase. An LED tube, originally a RMB12 yuan set, can be RMB10/set if it is purchased through bulk and can guarantee the company's honest payment.

From the development process in recent years, it can be seen that the LED lighting appearance structural parts have been reduced from more than 200 styles to 30 regular sales products, and the products have changed from individualization and differentiation to intensive. LED packaged straw-type lamp beads to patch 3528, 2835, 5630 transition; optical design 120 ° illumination angle to the current 180 °, 260 °; aluminum-plastic tube shell to the full plastic tube shell; power ideas to convert high-voltage constant current , smart and other programs. Every change and innovation brings about an improvement in quality and quantity. Therefore, as long as the company is doing its work and operating with integrity, it will not be easily abandoned by the market.

Unfinished , please refer to the March issue of Gaogong LED 's " LED Good Products" magazine.

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