The living method of small and medium-sized lighting companies in the LED era?

[Source: "High-tech LED-lighting market" August issue of Qiu Jianwei]

As a strategic emerging industry, the LED lighting industry in the past few years, although it seems that "the money is unlimited," after experiencing the fierce expansion of production capacity, there is a relative excess capacity, LED lighting companies have seen a large price and profit margin year after year. The risk of slipping.

Today, the price of LED lighting terminal products has gradually approached traditional energy-saving lamps, and the large-scale replacement of traditional light sources by LED light sources has become possible. The “elimination of the incandescent roadmap” has also enabled China to eliminate high-energy lighting products from the national regulatory level into the implementation phase.

The LED lighting industry is about to be detonated by the rapidly growing demand, and a new round of market opportunities for LED lighting is gestating. The advent of the LED market era is overwhelming. How do small and medium-sized lighting companies face the start of the starting line?

Market competition characteristics in the era of LED lighting

1. The more advantageous enterprises have turned to seeking industry consolidation opportunities and actively using substitution effects and government investment support.
2. The new model of marketing in the LED lighting industry is emerging, the speed of brand integration is accelerating, and strong competitors are involved in the engineering, road and outdoor lighting markets.
3. The competition for outstanding talents in the industry has intensified, affecting the stability of the talent team.
4. The competition for superior downstream customers and engineering relationship resources has intensified.
5. The competition and configuration changes of the three resources of capital, technology and channel are more complicated.

Value review of small and medium-sized lighting companies entering the LED era

The LED residential lighting industry suddenly expanded in a year or two. For traditional channels and small and medium-sized enterprises, the sudden new products, despite their temptation, are difficult to grasp their market rules and operational strategies. Due to the lack of LED industry brands, it also leads to the downstream channels and consumer markets that look like LED lighting.

Faced with the broad prospects of LED lighting and huge market opportunities, the entire industry does not have its own core technical standards and cannot match resources, so that the innovation ability of industry development lag, strategic vision and business realm is not sufficient, specialization degree Not a high dilemma. The traditional small and medium-sized lighting enterprises have exposed the situation that the brand is weak, the channel is single, the product imitation is equal, the talent is seriously lacking, and there is no comprehensive competitive strength.

To this end, the current small and medium-sized lighting enterprises in the LED era, will face four life and death to survive:
1. In the past, there was no brand, too much, too much dependence on traditional product management methods. It is getting harder and harder to make a long-term fortune.
2. Operating costs are getting higher and higher, profits are getting thinner, and how to improve or explore new business capabilities and management talents.
3, customers are more and more aware of lighting products, market demand is more and more subdivided, channel competition is heating up.
4, LED does not do uncomfortable, do short-term and no money to earn, the traditional lamps are subject to interference, stop to die, do not live well. It’s good to stick to traditional lighting – it’s hard to escape; it’s done indiscriminately.

SMEs need to take the LED rolling forward train, urgently need to reshape the value, build their own core capabilities, and go through these four hurdles.

Living method - more exciting tomorrow

There are ways to get a way out. A well-established company has a common business model: direction, plan, method, training, strong execution, and summary.

(1) Sound management elements: one goal - growth value sales; two competitiveness - storefront and market; three management factors - cost, capital, manpower; four operational capabilities - target capability, planning ability, execution Force, assessment; five sales tools - customer analysis, price structure, best sellers, sample explanations, case accumulation; six profit structure - market scope, key network, profit structure, product mix, brand segmentation, customer sentiment management.

(II) Improve the market operation and realize the four major management projects:
1. Channels are open to the project (channel is king), and sales channels are segmented. Focus on channel incentives and control, implement channel promotion activities in stages, and pay attention to controlling channel inventory.
2. Star terminal engineering (batch + engineering). Strengthen product sales and promotion of large and medium-sized projects.
3. Full staff training project (internal + external). Set up a sales team of "engineers" to expand the sales channels of series products.
4. Brand communication promotion project. Integrated communication, conference marketing, experiential marketing campaign marketing, exhibition marketing, cross-border alliance.

Category competition has become a key competitive point in determining the life and death of a company. In mid-August last year, we planned the industrial chain and market linkage model for LED lighting companies, and adopted the brand + category as the communication promotion strategy, and achieved staged performance. General Secretary Hu Jintao personally inspected it accompanied by Secretary Wang Yang. The company also made important instructions. This is also one of our successful cases in the planning and positioning of lighting SMEs, seeking entry points and assaults from the product category strategy, and meeting the competition characteristics of the new LED market. It is one of the important survival strategies for small and medium-sized lighting enterprises to compete in the current competitive landscape.

The development of LED lighting should be said to have just entered the "fair drama", the story of brand development began to be staged, and the ability to adhere to the success of small and medium-sized lighting companies will likely be to the "two-eighth principle" (20% of products and customers determine 80% of market profits) ) Development, this is not a simple capital competition, but a combination of industrial technology and commercial strategy to survive and develop the jungle. Who can achieve success? A few years later, there was a “government commentary” in the industry.

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