Prices are becoming increasingly transparent. How will LED companies compete in 2015?

The price war in the LED industry spread from 2013 to 2014. The LED era of high profits and high returns seems to be gone forever. Back then, reports pointed out that the LED industry was a hugely profitable industry. As LEDs shed a veil of mystery in front of the world, and with the rise of e-commerce, the prices of LED products have become more and more transparent. At first glance, the cold market is a blow to dealers. However, the old business model is out of date and the new rules of the game have not yet been released. Perhaps now is the time for dealers to transform and improve.

Chaos stems from lack of core competitiveness

Many manufacturers believe that the root cause of market chaos is that the country and industry have not issued clear standards. But before that, they ignored the most important point, which is the core competitiveness of the product. This is what the LED industry lacks. Due to the low threshold of LED, many low-end manufacturers only perform simple assembly when producing LED products, without truly owning their own core technology. Therefore, when dealers choose manufacturers, they often choose products with high cost performance, even though these products still have many problems. As a result, some dealers pointed out: "Small factories have their disadvantages, and big factories have their problems." This has led to a direct lack of trust between buyers and sellers, confusion in upstream products, and embarrassment in downstream sales.

For dealers, 2015 can be described as a countdown that determines life and death. In the sluggish general environment, dealers, rather than striving for small profits, might as well slowly build their own brands and reputations. When others are following the same old path, it’s not a bad thing to find another way.

Positioning is more important than sales

Positioning a good role is very important for dealers. Successful operations need to be done from the beginning to the end. Not only should you choose your customers, but you should also let your customers choose you. The so-called marketing strategy is exactly what allows consumers to consciously purchase the merchant's products. To achieve this effect, it is difficult to achieve without an excellent brand. A dealer said: "When customers buy our products and know that the quality of this brand passes the test, the market effect will begin."

Under the premise that quality and service must be guaranteed, dealers provide exquisite services and time accumulation, so that they can remain calm and stand out even in a stormy market environment. In addition, when choosing a brand, dealers should choose to cooperate with powerful companies and examine the future development of the manufacturer, including the philosophy of the company leader and the future direction of the product.

Different products cater to different levels of demand. Dealers should be clear about their positioning. They should not be limited to selling products, but should shift from selling products to selling technology, quality and services. In this way, only by having both supply of goods and customers, can we lead the way in the LED market. As a manufacturer, you should provide price protection for dealers' goods and speed up delivery. Only by adhering to product innovation and marketing innovation and constantly improving brand connotation can the brand maintain strong vitality and never become outdated.