GLII comment: "Price war" has been playing for several years, and the price decline of products will slow down in the future. It is not a wise move to change prices to the market, and it is not a long-term policy. Brands and channel competitions have already begun, but most LED lighting companies have become aware of the facts. When they really realize the serious problems and have to act, they have missed the best opportunity to compete for channels and shape brands.
On the one hand, the LED market as a whole is constantly improving, and on the other hand, this kind of improvement may not cause the company's performance to skyrocket. Analysts pointed out that in order to grab market share, various companies have already been gearing up. In addition to the previous price wars, competition for brands and channels will begin. In 2014, the competition in the entire LED industry will become more intense.
"The acceptance of the market is increasing. In order to seize the market, the competition is getting worse. Some manufacturers may be eliminated." Wu Yulin, president of Foshan Lighting Association, told the reporter of "Daily Economic News".
Price war is more intense
"The LED lighting industry is one of the hottest industries at present. It seems to be lively, but it is very worrying. The disorderly competition, price war, and non-uniform standards restrict the healthy development of the industry. The integration and upgrading of the industry is imminent." Deng Zichang, chairman of Changfang Lighting, said.
In order to quickly occupy the market, the LED industry first staged a price war. Although this has allowed many companies to increase their income, they have not exchanged corresponding profits.
Taking the 2013 third quarter report as an example, among the upstream chip companies, Dehao Runda's operating income in the first three quarters was 2.27 billion yuan, an increase of 16.69%, and net profit fell by 56.45%. Huacan Optoelectronics' operating income fell 20.59%, and its net profit fell 75.77%.
In the midstream packaging field, Hongli Optoelectronics' revenue increased by 24.39% year-on-year, while net profit fell by 19.30%. Guoxing Optoelectronics is slightly better. The revenue in the first three quarters increased by 20.3%, and the net profit increased by 17.26%. However, the profit growth rate still has no rapid growth in revenue.
In the downstream application enterprises, Qinshang Optoelectronics' revenue increased by 35.31% and net profit fell by 4.73%. Lehman Optoelectronics' revenue decreased by 2.77% year-on-year, and net profit fell sharply by 39.12%.
Not only that, the "Daily Economic News" reporter looked through a large number of LED listed companies' financial reports and found that "increasing income without increasing profits" has become a common phenomenon in the industry.
An industry insider in Guangdong said that in 2014, the price war will continue, but if the price is too low, it is not good for the industry.
Mei Zhimin, director of the marketing department of Chau Ming, also believes that in 2014, the “tonnage†decided to “positionâ€. "You must have a market share."
Brand warfare
In addition, some LED companies also hope to quickly establish their brand influence in the chaotic industry competition to capture market share.
Dr. Zhang Xiaofei, director of the High-Tech LED Industry Research Institute (GLII), said in an interview with the Daily Economic News that in addition to price factors, companies with brands and channels may have more opportunities.
On January 7, 2014, Changfang Lighting released its own brand upgrade strategy, hoping to achieve the effect that “users think of LED lighting and think of the long sideâ€. Deng Zichang said that in 2014, Changfang Lighting will pre-invest 100 million yuan for brand promotion, further enhance brand awareness and reputation, and help dealers nationwide to sell products faster and win customers.
The reporter also noted that as early as 2012, Dehao Runda issued a notice saying that it signed a "Procurement and Cooperation Framework Agreement" with Hangmei Advertising Group Co., Ltd., and in the next three years, Hangmei Advertising Group will purchase from Dehao Runda. 2.1 billion yuan indoor LED display products, during the same period, Dehao Runda put 20 million yuan of media advertising to it every year.
In order to gain a higher reputation, Dehao Runda entered the NVC lighting, and also launched the "Rish Dehao" co-brand, the main LED products.
However, in Wu Yulin's view, the current strong brands in lighting are still some giants such as Philips and Osram, or domestic veteran companies such as Foshan Lighting and NVC Lighting. Emerging LED companies still need to work hard to build their own brands.
Channel disputes
Competition for channels is another way of competing between enterprises. The way in which LED products reach consumers is also crucial to the sales of the company.
Old-fashioned lighting companies are known for their offline dealer channels. For example, NVC Lighting has 36 operation centers across the country.
More enterprises' channel construction is stepping up. For example, Foshan Lighting, which has been covered by a wide range of channels, has held more than 40 new products from April to September 2013, Hohhot in Inner Mongolia, and Yulin in Guangxi in the south. Promote the store to join the association.
In September 2013, Snowlight (002076, SZ) held regional investment conferences and LED new product launches in Lanzhou, Wenzhou and Taiyuan.
Mei Zhimin said that companies that enter LED must face the fact that there is no channel. In other words, its channel is a weak channel and the brand is a weak brand. The traditional lighting brand has accumulated a lot in the channel 10 years and 20 years ago. "That is, it already has a mountain. If we don't see the situation clearly and don't find a strategy, we will chase their hills. It will be very hard. It is basically over the mountains, and even many traps are waiting for us. jump."
But online channels often conflict with offline channels. On December 18, 2013, Hongli Optoelectronics said on the Interactive Website of the Shenzhen Stock Exchange that due to some conflicts between some LED lighting products online and offline sales, the company suspended its operation in the Teddy Lighting Store in Tmall.
Pan Rongrong, vice president of Wanrun Technology, believes that the market is becoming more and more clear in 2014, and the demand is becoming more and more clear. The specifications of products are becoming more and more perfect, and shuffling is more reflected in the comprehensive strength. An industry cannot carry so many enterprises and may eliminate a batch, so shuffling will be inevitable.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
On the one hand, the LED market as a whole is constantly improving, and on the other hand, this kind of improvement may not cause the company's performance to skyrocket. Analysts pointed out that in order to grab market share, various companies have already been gearing up. In addition to the previous price wars, competition for brands and channels will begin. In 2014, the competition in the entire LED industry will become more intense.
"The acceptance of the market is increasing. In order to seize the market, the competition is getting worse. Some manufacturers may be eliminated." Wu Yulin, president of Foshan Lighting Association, told the reporter of "Daily Economic News".
Price war is more intense
"The LED lighting industry is one of the hottest industries at present. It seems to be lively, but it is very worrying. The disorderly competition, price war, and non-uniform standards restrict the healthy development of the industry. The integration and upgrading of the industry is imminent." Deng Zichang, chairman of Changfang Lighting, said.
In order to quickly occupy the market, the LED industry first staged a price war. Although this has allowed many companies to increase their income, they have not exchanged corresponding profits.
Taking the 2013 third quarter report as an example, among the upstream chip companies, Dehao Runda's operating income in the first three quarters was 2.27 billion yuan, an increase of 16.69%, and net profit fell by 56.45%. Huacan Optoelectronics' operating income fell 20.59%, and its net profit fell 75.77%.
In the midstream packaging field, Hongli Optoelectronics' revenue increased by 24.39% year-on-year, while net profit fell by 19.30%. Guoxing Optoelectronics is slightly better. The revenue in the first three quarters increased by 20.3%, and the net profit increased by 17.26%. However, the profit growth rate still has no rapid growth in revenue.
In the downstream application enterprises, Qinshang Optoelectronics' revenue increased by 35.31% and net profit fell by 4.73%. Lehman Optoelectronics' revenue decreased by 2.77% year-on-year, and net profit fell sharply by 39.12%.
Not only that, the "Daily Economic News" reporter looked through a large number of LED listed companies' financial reports and found that "increasing income without increasing profits" has become a common phenomenon in the industry.
An industry insider in Guangdong said that in 2014, the price war will continue, but if the price is too low, it is not good for the industry.
Mei Zhimin, director of the marketing department of Chau Ming, also believes that in 2014, the “tonnage†decided to “positionâ€. "You must have a market share."
Brand warfare
In addition, some LED companies also hope to quickly establish their brand influence in the chaotic industry competition to capture market share.
Dr. Zhang Xiaofei, director of the High-Tech LED Industry Research Institute (GLII), said in an interview with the Daily Economic News that in addition to price factors, companies with brands and channels may have more opportunities.
On January 7, 2014, Changfang Lighting released its own brand upgrade strategy, hoping to achieve the effect that “users think of LED lighting and think of the long sideâ€. Deng Zichang said that in 2014, Changfang Lighting will pre-invest 100 million yuan for brand promotion, further enhance brand awareness and reputation, and help dealers nationwide to sell products faster and win customers.
The reporter also noted that as early as 2012, Dehao Runda issued a notice saying that it signed a "Procurement and Cooperation Framework Agreement" with Hangmei Advertising Group Co., Ltd., and in the next three years, Hangmei Advertising Group will purchase from Dehao Runda. 2.1 billion yuan indoor LED display products, during the same period, Dehao Runda put 20 million yuan of media advertising to it every year.
In order to gain a higher reputation, Dehao Runda entered the NVC lighting, and also launched the "Rish Dehao" co-brand, the main LED products.
However, in Wu Yulin's view, the current strong brands in lighting are still some giants such as Philips and Osram, or domestic veteran companies such as Foshan Lighting and NVC Lighting. Emerging LED companies still need to work hard to build their own brands.
Channel disputes
Competition for channels is another way of competing between enterprises. The way in which LED products reach consumers is also crucial to the sales of the company.
Old-fashioned lighting companies are known for their offline dealer channels. For example, NVC Lighting has 36 operation centers across the country.
More enterprises' channel construction is stepping up. For example, Foshan Lighting, which has been covered by a wide range of channels, has held more than 40 new products from April to September 2013, Hohhot in Inner Mongolia, and Yulin in Guangxi in the south. Promote the store to join the association.
In September 2013, Snowlight (002076, SZ) held regional investment conferences and LED new product launches in Lanzhou, Wenzhou and Taiyuan.
Mei Zhimin said that companies that enter LED must face the fact that there is no channel. In other words, its channel is a weak channel and the brand is a weak brand. The traditional lighting brand has accumulated a lot in the channel 10 years and 20 years ago. "That is, it already has a mountain. If we don't see the situation clearly and don't find a strategy, we will chase their hills. It will be very hard. It is basically over the mountains, and even many traps are waiting for us. jump."
But online channels often conflict with offline channels. On December 18, 2013, Hongli Optoelectronics said on the Interactive Website of the Shenzhen Stock Exchange that due to some conflicts between some LED lighting products online and offline sales, the company suspended its operation in the Teddy Lighting Store in Tmall.
Pan Rongrong, vice president of Wanrun Technology, believes that the market is becoming more and more clear in 2014, and the demand is becoming more and more clear. The specifications of products are becoming more and more perfect, and shuffling is more reflected in the comprehensive strength. An industry cannot carry so many enterprises and may eliminate a batch, so shuffling will be inevitable.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
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