It’s difficult for traditional enterprises to turn around with LEDs.

[Source: "High-tech LED - Lighting Market" June issue / reporter Zhou Jianhua] "There are two general directions for the transformation of traditional lighting enterprises: the product aspect is extended to LED light source, and the channel aspect emphasizes e-commerce." Marketing Director Zhang Wei concluded.

According to the statistics of the High-tech LED Industry Research Institute (GLII), from 2009 to 2011, there were about 2,000 new LED application companies in China. Among the newly added enterprises, 40% are from traditional lighting manufacturers, 30% are from new companies or original employees, 20% are from LED midstream packaging manufacturers, and 10% are from upstream materials supply or Is a optimistic LED prospects manufacturers.

“Traditional lighting products have been shuffled for so many years, and have formed oligopolies such as NVC, homes such as Opus, and the homogenization of product lines of second and third-line brands is serious, profits are transparent, channels are overdrawn, and they have not been transformed. The state of death." District Decheng, Secretary General of Zhongshan Lighting Association, told reporters.

Six bottlenecks to be broken before the transition

1 property shrinks, consumption is weak

2 product homogeneity price war

3 channel overdraft, difficult to sink

4 cost rises, low value

5 cost transparency, thin capital chain

6 Structures are single, single store is slow-moving

At the time of transformation, it is difficult to balance the interests.

1 Two big pushers Market demand and policy Ganlin

2 Repositioning strong companies will also be confused

3 traditional channels are chips or burdens

After the transition, the industry is costly

1 The homogeneous competition army is still huge

2 Industry extension is costly

Market segmentation is a good medicine

For more information, please refer to the "High-tech LED - Lighting Market" June issue

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