LED Marrket Demands Leads To Overcapcity

Data: 2014-01-02
LED current consumer awareness is low , it is difficult to accept a lot higher than the price of traditional lighting products , and LED lighting manufacturers in order to seize the market, a price war occurs naturally trend.According to the report , this year , LED backlighting and lighting market demand , LED chip , package, and application vendors orders full . At the same time , LED industry overcapacity problem persists , the end product of intense price competition .Prices can make LED lighting products, prices dropped significantly, and it means the high price of LED lighting products begin to reverse the disadvantage . Compared to other lighting products, LED lighting is also one of the biggest disadvantage is the high popularity of a bottleneck in the price . Although accompanied by increased levels of production and technological advances , LED lighting products, prices will be reduced to an acceptable level, but no doubt, the price war to come early so this level , and promote the development of LED lighting and LED lighting market popularity .But the problem is obvious. LED lighting manufacturers price war , compressed firm's profit , a large part of manufacturers in order to maintain profits , the use of low-cost raw materials, manufactured products , also led to the decline in the quality of products , causing the user to the LED more mistrust, leading to a vicious loop occurs , is not conducive to the development of the industry .Ways to deal with price wars in fact there are many , LED enterprises should combine their own actual situation to formulate development strategies , low-cost strategy for enterprise technology , capital and scale comprehensive strength have put forward higher requirements, but may blindly follow the trend make yourself suffer, so that the price war is not the only way the LED business .Exchange market through low-cost , should be the means of market competition , rather than the ultimate goal. LED companies not only through improved production technology, improve production efficiency to reduce costs for profit , but should increase the technical content , improve product value, the product of the competition from the price of the transfer open on the battlefield in order to obtain a more comprehensive and long-term development in the intense competition in a favorable position ; company's core strategy must be returned to build brand value up, firmly grasp the quality of the bottom line, the competition in the long term , seeking to enhance the management and quality of the road , so that products in the domestic and international markets occupy a place .

 

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