The performance of LED listed companies continues to soar. Is the industry off-season or peak season?

Recently, LED companies, especially listed companies, have turned the tide in the capital market and their performance has continued to soar. As the unified spokesperson for lighting companies and the lighting market, executives from major companies have also taken to the stage to express that the product market is popular, performance is bullish, and the industry development prospects are promising.

These seem to be understandable as a publicity and promotion strategy. It's just that it's really prosperous and fake. Who in the industry doesn't know?

Do not cover individual phenomena in single points

The peak season of the LED industry is manifested by enterprises in expanding production, increasing production, and increasing the depth and width of channel expansion. The most common ones are expanding product lines and accelerating the number of product launches. This situation requires the market to have sufficient consumption support, which means that the market's digestion capacity must be equal to or greater than the production capacity of the company's products. In this case, it is the real peak sales season. As far as the current market conditions are concerned, the term "peak season" is definitely out of the question.

If we must forcefully impose the word market, then the author can only say that it is the peak season of a certain brand rather than the peak season of the entire industry.

On the one hand, although dealers can operate multiple brands, due to the continued cooling of the real estate industry, the diversity of consumer purchasing channels, and the lag in marketing methods, operating methods, and service methods, the current actual sales of lighting physical stores are not ideal.

Furthermore, although dealers can operate with multiple brands, due to the impact of the current environment and the diversity of purchasing channel choices, as well as the lag in marketing, operating and service methods, the actual sales of lighting physical stores are far less than what is written on paper, so inventory and stocking have become the norm. In addition, price wars have become the only choice for dealers to deal with old and outdated goods.

On the other hand, although some companies have accelerated their channel expansion and improved their revenue, the vast majority of companies are still facing countless difficulties and problems in sales. As far as the current market conditions are concerned, it is definitely not a "peak season" or even a "not busy season". This requires both dealers and enterprises not to judge the "low and peak seasons" based on one point of coverage, but to see the current situation clearly when faced with judgment and choice.

The return of rationality requires active response

Currently, e-commerce is developing rapidly. Although traditional channels still dominate, they are unable to resist. Now is neither the era of traditional lighting nor the era of LED, but the era of alternation between the two. At a time when the order is still taking shape, mergers, exits and eliminations have become the norm in the lighting industry. Companies and dealers that can enter the "peak season" under this norm must have "three understandings": understand the market, understand dealers, and understand customers.

Lighting companies need to do a good job in actual sales work while doing a good job in "official arrogance", and must not put the cart before the horse. Therefore, instead of worrying about whether it is the peak season, it is better to focus on the key points and help dealers implement existing policies.

As for the statement that the peak season of the LED industry in 2015 has arrived in February, we can only say that it is the peak season of a certain brand rather than the spring of the entire industry, let alone the victory of the lighting market. We hope that lighting companies can pay more attention to the demands and changes in the lighting market, and do not use false propaganda to avoid the problems that sales and production need to face together!

The rational return of industrial thinking is the necessary psychological foundation for the healthy and stable development of the industry.