2014年4月1日星期二

The five factors of restricting small LED lighting brand development

Semiconductor lighting after decades of development history, has been turned upside down occurred from 2003 to the development of industrial scale 9 billion yuan in 2013 a conservative estimate of 257.6 billion yuan. With the rapid development of LED industry, coupled with the lighting industry, low entry barriers, more and more entrepreneurs to plunge into the ranks, followed by more and more led street light supplier brands, a variety of small brand sprung onto the scene in batches.

For those just entering the market, small lamps brands, neither too much money to start lighting market to influence the market can not help lighting brand strength, coupled affected by a number of objective factors, the survival of many small brands already caught quagmire-like predicament.

The new regulations put pressure on smaller brands suffered worse

In recent years, LED lighting industry, the rapid development of its range of applications is also growing. But in 2013, the EU issued a new regulation on functional LED lighting and related equipment, safety, energy efficiency of all proposed higher requirements, which means the LED industry, especially the export of LED enterprises in Europe, will face for more new test.

Indeed, the implementation of new regulations brought a lot of pressure on the LED industry, it can be said is another hammer. In order for the production of LED lighting products to meet the new standards introduced, LED companies have in the selection of materials and parts, and more focus on quality, so the cost will be greatly increased. This brand of LED for large enterprises, but also to bear, but for a small brand lighting companies, no doubt worse.

Especially for those just entering the market, small lamps brands, in this state, becomes increasingly heavy pressure to survive.

Mixed small multi-brand quality has been questioned

2013, not only to strengthen the detection of the international lighting products, domestic testing standards and testing efforts are greatly enhanced. Many big brand products have been detected substandard products, not to mention a small brand, LED lamps are detected the presence of quality and safety problems are common.

Proportion Meanwhile, when consumers use LED lighting products, small brand product quality problems is much higher than the big brand products. On sale problems, many small businesses have no way to brand protection. The cause of the loss of consumer confidence in LED product, many dealers are reluctant to go to operate this product. More and more consumers and distributors prefer to choose a quality, after-sale protection of big brands, which also caused a small brand in the market liquidity situation more difficult.

Naturally, not all small brand products are quality problems, many small brands, many of them are still really want the product, the bigger companies do. But as the saying goes, "one mouse droppings ruin gruel", after the formation of a certain size, it will appear in a small brand products Zhongkoushuojin quality problems, parrot phenomenon, which leads to a small LED lamps for the entire consumer brands mistrust intensified.

Pressing harder and harder to survive space compression smaller brands

With the tide of global LED light source to replace pour, LED lighting market, "bright" up. It is in good policy and good market prospects, driven in recent years, many domestic enterprises have set foot in the traditional lighting LED lighting. These enterprises have a solid foundation, the strength of the LED to make a transition, its brand influence smaller brands have obvious advantages. Coupled with its existing customer base, small brand in a competitive advantage is gone.

In previous years, the small brand products in price compared to the big brands have a lot of advantages, but more mature after the LED industry norms, LED increasingly high cost of doing business, which greatly reduced profit margins, then the price war is tantamount to self-defeating. Plus the cost of the big brand products gradually rise in the price of a small brand has gradually become negligible.

The distribution of the current market is a big market brands occupy the front line, and the tentacles extend to the second and third tier markets, while small brands can only survive in the cracks, forced to market positioning in the second and third tier markets, the living space has been greatly compressed.

Survival of the fittest faster down quickly from small brands

LED industry market show a continued trend of expansion, while the smaller LED upstream and downstream enterprises to invest more, which makes the investment in LED lighting business, "such as river carp." To have a lighting capital town, for example, tens of thousands of its corporate home, and small and medium enterprises which accounted for more than 90%, especially small businesses, accounting for part of the vast, there are many workshops even exist. In town, you may also see today, there is a small business established to do LED, tomorrow may also have business failures. This phenomenon is not unusual in the town.

Reasons for this phenomenon is that the LED industry threshold is low, entry is easy, as long as the products have a certain understanding, a certain capital, it can live on their own. However, this business will be to a certain stage in the operation of the bottleneck, will face many challenges, such as funding can not keep up, product positioning inaccuracies and other issues. Many smaller brands is because they can not spend these difficulties, was forced to close down.

Policy control smaller brands more vulnerable to shocks

In recent years, due to the implementation of the national tightening of monetary policy, coupled with the increased tax burden caused by high inflation, many LED SMEs appear half stoppage, lockout state. The impact of monetary policy tightening regulation, SMEs are particularly affected. In addition to financing difficulties, high taxes, increased production costs and other reasons, the main reason lies in:

First, the existence of unfair treatment in the actual development. Some departments and agencies concerned not enough for SMEs, SME policies do not lead to implement. For example, four trillion yuan "start domestic demand," the funds, state-owned enterprises into the pockets of the basic banks are often reluctant to SME loans.

Second, the current tax system is not on the efforts to support SMEs, particularly VAT and business tax coexist, leading to serious double taxation services, tax system is not conducive to SME development and growth. According to CCTV "economic half-hour" reported the existence of the logistics industry, the phenomenon of double taxation, 600,000 warehouses month tax 85,000 yuan, nearly 50 percent the proportion of double taxation.

Third, at the low end of the industry chain, low value-added products. A considerable number of SMEs struggle with their own "survival" and can not develop long-term planning, investment funds and efforts on innovation, not by enhancing the brand and improve competitiveness.

LED SMEs is difficult to enjoy the financial subsidy policy, led street light supplier in response to the difficulties become more difficult to deal with, which is now one of the important reasons leading to the survival of the plight faced by small brands.

Small brand small boat U-turn

Strain into big advantages of flexible

While smaller brands is facing a lot of difficulties, but because of the small size, strong economic adaptability, high sensitivity reaction, compared to the big brands, the benefits are small boat U-turn, very flexible, able to go to market development under different circumstances adjust their strategy. After the crisis hit, small brands more timely adjustments as the external environment.

But for some small business owners in terms of difficulty is relatively large, due to the self-management experience outside the limited field of vision, they adjust the strategy, management also has some deviations. Thus a small brand in the product positioning, quality requirements , style selection, customer service and more needs to be done to adjust.

The rise of industry alliances

Development of small brands BaoTuan

In recent years, a variety of lighting industry alliance have set up, its role is similar, is to hold together for warmth, integrate resources and their development. In an increasingly competitive today, the plight of small brands have begun to seek a breakthrough solution , to form a coalition after all a good way to deal with the current predicament.

There are many Union was established in 2013, for example, Wai Chi Union Development of its initial development step is divided into six steps:. The first step is to create alliances to achieve customer resource sharing, joint promotion of the brand Establish a resource. sharing platform; second step is unified network branding; the third step, the establishment of Wai Chi Lighting Plaza; fourth step, Wai Chi Lighting Plaza development as national chain stores, can be a way of self, you can also join acquisition; fifth step , the Alliance headquarters and franchise stores cross-shareholdings, to achieve a community of interests;. sixth step, the successful listing Wai Chi Union Founded alliance not only strengthens the ties and resource sharing among members, more can make these small brands bigger and stronger .

Wai Chi Tsai, general manager of Alliance members Zhenhui Fire fame had its inception in the league, said: "I think some of our current members are humble people who are not proud of, it is more love of learning, there are many similarities, such as values, for example, companies are not doing great, so more will work together so that is conducive to the integration of resources, sharing of resources and we alone in any one of the members have to beat big business, big business would be 'bully', so we to do this platform to platform to create a collective brand, while stronger members of the brand, and ultimately achieve common growth. "

More info you can visit:http://www.lead-lighting.com/products/sid107-1.htm

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