Differentiated survival is a top priority for LED companies

The LED lighting market in the first half of the year is booming, and many companies' production lines are operating at full capacity. According to the mid-year report released by LED-listed companies, companies not only recovered from last year's losses, but also achieved good market performance. This point has also been confirmed by major agencies. For example, the group has recently not only increased its advertising efforts in the LED industry, but has also published LED special topics on the Group’s cloud service website. The LED industry is really starting to heat up.

However, the market explosion in 2013 was very different from the market's fiery situation in 2011. When the industrial development gradually entered a rational track, it also reached the “liquidation” period for previous fanatic investment. While many companies enjoy the dividends brought about by the market recovery, some large LED companies have come to a situation of closed down, and even Taiwanese companies have gradually become involved in this "flooding wave."

Therefore, the market in 2013 is exactly a market battle between "LED companies", "you die" and "bloody". For small and medium-sized enterprises with shortage of funds, lack of core technologies, no brand influence, and product competitiveness, how can they survive and develop in the current "shuffle" of the market?

Industry perspective - doing a good job is fundamental

The characteristics of the lighting industry will make the lamps and lanterns be applied to all walks of life. Different application fields have different requirements for lamps. Even if the same field, different lighting needs, the type and parameters of lamps required are not the same. Therefore, if a company To cover all types of lamps, it is bound to distract the company's focus, it is difficult to do a fine product, it is difficult to form their own unique competitiveness in a certain area.

The director of the Advisory Committee of the China Illuminating Engineering Association, Yu Shukui, proposed that companies do not necessarily do anything when making products. They must have their own cards and competitive products. One or two lamps do very well and specialize to attract everyone's attention. It will also bring other products. A company's strength is limited, it is impossible to do all the lamps, but the product positioning must be clear.

Secretary-General Guan Baiyu of the China Semiconductor Lighting/LED Industry and Application Alliance pointed out that in terms of the company’s development choices, “individual championships” will be performed in certain aspects according to the characteristics of the company, instead of making the stalls as wide as the “all-round champion”. In terms of being big, being excellent, and being strong, I still hope to put the best in the front.

When Wu Yulin, president of the Foshan Lighting Association, talked about the future development of SMEs in his blog, he pointed out that only a single targeted product and series can occupy a unique area of ​​the company in a chaotic market. Only by doing fine and strong products can we resist the blows of other competitors, occupy a place in our own product areas and markets, and we can also develop and grow.

It is also easy to form economies of scale, reduce production costs, and increase product cost performance. Make products more market competitive.

LED companies - four daughters and daughters

The trend of M&A integration has begun to appear since last year, and the merger of several large companies has accelerated the merger and integration trend of the industry. Eliminating and merging outdated production capacity, eliminating the market environment, and forming leading companies with domestic and international competitiveness are the inevitable trends of future industrial development. In the “Red Sea” market where thousands of companies compete, it is all about testing the true strength of a company. The way of thinking of Chinese companies is accustomed to "better to make chicken heads, not to make phoenix tails", and it is often not too cold for the way of union. However, in the LED emerging market, for many small and medium-sized enterprises that are only "zero based", sometimes crossing the river by feeling the stones is not as good as borrowing the shoulders of the "giant" and they will take a few detours on the road to development.

Wu Yulin once suggested that small and medium-sized enterprises can provide supporting services for big companies and big brands and provide OEM and ODM services through the "parasitic" approach. SMEs can strengthen their supporting capabilities, fight for orders from large companies, rely on “big trees” to develop, seek protection for umbrellas, and stabilize sales performance to ensure survival in the melee. Of course, the leveraging of LED companies does not mean that only large brands and big companies should be closer. In fact, companies that have their own unique advantages in products, channels or technologies, and innovation capabilities, and can complement each other or achieve strong alliances are also good partners. If both sides can reach a basic consensus, such cooperation is also worth promoting.

Some people in the industry believe that the follow-up market will be more subdivided. Only light sources will be used as light sources. Power supplies will only be used as power sources, and spare parts will only be used as parts and components. Only in this way can the cost be guaranteed on the premise of ensuring quality. lowest. Of course, there are also people who propose to make full use of the two major natural advantages of LED energy saving and dimming, tap the new blue ocean of LED lighting applications, and pay attention to more subdivided markets, such as LED plant lighting, intelligent control, etc., towards more humanization. , personalized, artistic and intelligent direction of development.

Distribution channels - when changes take place

Regardless of how the LED market changes, there is a group of companies that we cannot ignore. That is distributors. Whether it is the traditional Grand United National Assembly, Avnet, or Fulbright, Mouser, etc. that have begun to attract attention in the past two years. In the recent period of time, we were surprised to find that many traditional distributors began to make new changes, trying to open up a new blue ocean market.

In May of this year, the University of Great Railways Group officially launched the "Universal Cloud Service", which is an online component sales platform positioned in the e-commerce sector. Not long afterwards, UDA Cloud Service officially launched the LED. The industry topics cover the LED component product prices, technologies, programs, and many other aspects. It intends to open up a channel leading to the "LED Blue Ocean" through the form of e-commerce.

For such an e-distributor in the Asian region, such a high-profile “touch network” does not seem consistent with its consistent low-key and pragmatic style. However, for electronic distributors, in such a fierce market competition environment, if you still hold the original set, it is easy to be thrown away on the beach by the tide of the times. From this point of view, neither the United University nor several other distributors are willing to see this.

On the other hand, a company that sticks to stereotypes cannot cope with this rapidly changing LED market. Behind the silent changes of agents, it may brewing a new round of climax in the LED industry.