LED lighting breakout is difficult to find the right position is critical

[Text / Gaogong LED Xiong Yuheng] According to data released by the US Department of Energy, since 2010, the price of LED bulbs has dropped from 70 US dollars to 8 US dollars in 2015, and the annual compound decline rate is over 35%, and will be 2020. The year reached about 5 dollars. However, even the price of 5 US dollars is already "high on the mainland" compared with mainland China. After all, it is not uncommon for domestic LED bulbs to be less than 2 yuan.

The drop in prices is a sharp drop in profits, which may lead to the collapse of over 4,000 lighting companies. In the past, we talked about the future development and development of LED lighting. Everyone tends to pay more attention to cost performance, profitability, care channels, and even the immature technology, but it rarely involves how LED lighting companies should position themselves in the future.

“Every company needs to differentiate its product positioning according to its own characteristics. Only by finding a correct positioning can we formulate a reasonable development plan and achieve a longer-term development.” Sanxiong Aurora Deputy General Manager Lin Yan mentioned. The positioning mentioned here includes product positioning, quality positioning, market positioning and brand positioning.

The first is product positioning. Low-end simple products, low quality and low price, there is no market in the future; conventional functional products, scale, cost, quality are the key, channels are guarantees; personalized products, special functions, specialized for individualized groups, technology and design capabilities are key Special product products require professional technology and intensive cultivation; high-end products, branding and specialization.

For domestic LED lighting companies, most of them belong to small and medium-sized enterprises, and the product positioning is mostly in the first two categories. Due to the limitations of technology, channels and scale, the future survivability is worrying. Zhou Xuejun, director of marketing for LUMILEDS Asia, said that in the future, the LED industry will present a pattern of “big companies seeking scale and small enterprises taking subdivision”. Segmentation is also applicable to LED lighting.

Followed by quality positioning. “Price is not the only criterion for measuring the quality of lighting products. It is the key to finding the balance between quality and price.” Lin Yan said that low-end inferior products cannot withstand long-term tests, and market space will become narrower and narrower; The high-priced market has limited capacity and small scale; the cost-effective products adapt to the needs of mass consumers and will inevitably become the focus of future competition.

Market positioning again. At present, the market positioning of various lighting brands is becoming increasingly clear. For example, Jiamei era lighting focuses on commercial lighting, Sidon Lighting focuses on hotel lighting, and Maple Yongming focuses on outdoor roads. A clear market positioning will enable the company's product development, brand communication, and professional services to be targeted, and it will be able to build a reputation in the industry faster.

Final brand positioning. In Lin Yan's view, every lighting company should have its own distinctive brand label. Enterprises that do ODM/OEM focus on cost control; companies that make comprehensive brands focus on scale, standardization, and one-stop service; enterprises that do engineering brands focus on professional products and services; In the shopping experience and thoughtful service; and the enterprise that is the e-commerce brand, it is cheaper and convenient.

In the future, LED lighting market share will be concentrated in the hands of several major lighting brands, which is undoubtedly, after all, they have strong capital and perfect channels. However, for small and medium-sized enterprises, in order not to be submerged in the market torrent, it is not known to find the right position to become a segment of the field. Perhaps, it’s more moisturizing than simply staring at the price now.

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