In the first half of 2014, LED replaced traditional lighting products to speed up again, corporate transformation warfare, card position warfare, and the market competition became more and more fierce along with price wars. Many practitioners are sighing that the changes are too fast and they all feel tremendous pressure.
Three major difficulties, restricting the development of enterprises LED lighting companies generally face three major difficulties in the development process:
First, the reduction of operating gross profit is to establish the scale advantage. Some enterprises adopt the cost leading strategy, take the initiative to lower the price to rob the market share, and hope to establish a competitive threshold, forcing other brands to follow up the price reduction into a special way to promote the shipment, especially in T8. Tubes, bulbs, T5 brackets and other light source circulation categories are particularly fierce. Compared with the traditional lighting stage, the average gross profit margin of the industry has dropped significantly;
Second, the channel marketing expenses have been greatly improved to quickly build a marketing network. Some enterprises have invested in marketing expenses regardless of cost. Many marketing personnel have invested in various exhibition cabinets, sending samples, advertising, and distributing goods. These are not in the traditional lighting era. imagination.
Third, the hidden costs have increased substantially. In order to cooperate with the product switching, the company has continuously improved and enriched the product line, and the research and development costs have become larger. To meet the sales, the factory has to stock up, which will soon cause sluggish inventory, which will affect the company's cash. Flow, resulting in reduced efficiency of capital use. The increase in these hidden costs has made it difficult for companies to achieve their own blood-forming development.
Returning to rationality and actively focusing on such a dilemma, if enterprises want to win in the competition, they must first have superior strategic planning capabilities and form a correct competitive thinking mode. Secondly, in product planning, channel construction, production management, etc. Be able to have strong operational capabilities and avoid uncertainty in the execution of the target. Therefore, enterprises will eventually return to a state of rationality.
For many companies that do not have channels, products, and brand foundations, it is a more rational choice for Mr. and then to develop.
First, abandoning strategic loss thinking in thinking, this kind of price does not hesitate to sell at the bottom price, and it is not advisable to invest a large amount of marketing cost thinking mode. Especially for some listed companies, when the stock market price pressure is high, it is difficult to better The mentality is to insist on strategic losses, and if you are not careful, you will get deeper and deeper in the swamp of loss. Second, it can be cut in from a field where competition is relatively small and its own capabilities are strong. Enterprises can adopt a focused strategy, including product focus, channel focus, regional focus, and a wide variety of lighting industries. You can use a single product to be king or to seize a segment. Ways to gain market advantage, this is product focus; lighting industry channels have diversified characteristics, engineering, retail, large circulation, are different channel types, in the initial stage of enterprise development, multi-channel development model is not desirable Not only is it difficult, but it also consumes too much of the company's limited resources. However, as long as the products are well-configured, the focus will be on a single channel, giving full play to the product value, making the channel more suitable for enterprise positioning and more competitive. This is the channel focus. Similarly, regional focus can also be selected, not necessarily nationwide, and the degree of development of each region and the degree of LED popularity are different. Selecting suitable products to cut into different regions, avoiding widespread marketing strategies, and reducing unnecessary The cost of investment, this is the regional focus.
This is the best era and the worst. The enterprises that can survive and develop in the end must be enterprises with ideas, products, technology, channels, brands, and funds. Only when enterprises have a comprehensive advantage can they win the recognition of the society, and they can stand out in the fierce market competition, and the establishment of comprehensive advantages is not a day's work, but the premise is: live first.
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