Products are homogenous, technologically homogenous, prices are homogenous, and channels are homogenous... The shadow of the homogenization of the lighting industry is shrouded. A large number of homogenized products flood the market, businesses lack their own characteristics, the problem of low level of specialization is the true portrayal of the current domestic LED lighting industry, and homogeneity is the constant pain in the LED industry.
"2013-2018 China LED industry market forward-looking and investment strategic planning analysis report" shows that at present there are more than 1,200 LED packaging companies in China, but the number of new LED product applications launched by enterprises is less than 550; LED street lighting companies exceed 300 Home, the product is basically at the stage of plagiarism.
The bad results of the homogenous competition approach are: First, product homogeneity, competition has become a mutual depletion battle, to see who can laugh at the end; Second, the price is no bottom line, the quality is also no bottom line, harming the interests of consumers. The third is the lack of benchmarking brand, the scale of the company is difficult to grow, the industry lacks credibility.
Why did the market structure evolve into this? Industry insiders: At present, the scale of LED industry companies is small, and there is a lack of uniform technical standards and effective industry supervision. LED high-tech research and development requires a lot of funds and scientific research personnel, and it takes a certain amount of time, it can not produce benefits immediately. Moreover, LED industry products are rapidly updated, and products that have been researched may face significant cost risks if they do not have long-lasting vitality. This has led many companies to be unable or unwilling to invest in research and development on a large scale.
At present, many LED companies' R & D is only a low-level improvement of the product, and then give a variety of concepts, rely on marketing and price war to seize the market, this approach is effective, but it is easy to be imitated, resulting in the lack of product vitality. Research and development manufacturers have invested a lot of manpower and material resources in the research and development of new lights, which has resulted in high product costs. After imitators have rapidly imitated them, they have fought a price war and the result has made R&D companies miserable.
The author believes that issues such as weak awareness of innovation, lack of innovative capacity, insufficient investment in innovation, and inadequate protection of intellectual property rights are common problems for SMEs in China. LED industry as an emerging industry, market standards, technological innovation and product strategy have to be mature and complete, rely solely on the enterprise consciously does not meet the actual needs of the government to support and tilt in the industrial policy.
Ideas determine the way out and the layout determines the outcome. Looking forward to the emergence of several benchmark companies in the LED market, ignoring short-term market failures, focusing on product research, striving to improve technology, promote industrial upgrading, and promote the healthy development of the industry.
Yuliang Optoelectronics will propose an outdoor LED lighting source every quarter to meet the needs of small and medium-sized enterprises in the market. We will endeavor to research the core of product technology, provide quality services for the majority of outdoor lighting SMEs, differentiate the LED light source, and promote healthy LED outdoor industry.
