Who has been killed by the low price competition in the LED industry?

In recent years, the LED industry has repeatedly reported news of corporate "failed," "closed," "bankruptcy," "arrears," "falling performance," and "loss." As the industry continues to decline, many companies either have no business or they rely on low profit margins to survive.

The long-term "sub-healthy" operation model has become a fatal injury to the company. Some small and medium-sized enterprises have been dragged down to the inevitable outcome. However, in addition to the external environment, the inherent vicious competition is also a good prospect in the domestic industry. In order to maintain customers and ensure that there is business to do, some companies are not hesitating to sell their goods in a “maintenance” posture, which increases the risk of more LED companies going bankrupt. "There are people who do business with low prices!" Now, it seems that what is more terrible than the "closed tide" is "low price competition."

In the buying and selling market, to buy things, of course, to pick the cheaper to buy, but the key problem is that in the case of customers can not identify the quality of the product, the seller does not bottom line management, and ultimately disrupt the market, there has been starvation Colleagues, exhausted themselves, pitted the company's wrong phenomenon.

Hungry peers

You drop 20 yuan, I drop 50 yuan; you press for two weeks, I press for a month. With millions of dollars in payment, earning the money to sell cabbage, arranging selling white powder. As a result, some small and medium-sized LED companies could not withstand the low-cost competitive pressure and slowly disappeared from the market.

2. Exhausted yourself

The gross margin of the LED industry is controlled at around 20%, which is a normal range. Actually, some manufacturers have a 5% gross profit margin for business, and some are 2% or even lower. Received a single, of course, happy, business enthusiastically rushed around the clock day and night, the Ministry of Marketing busy every day bills, arrange delivery.

After this seemingly prosperous, is the business day really good? By the end of the year, after the settlement of accounts, the workers’ wages, rent, utility bills, marketing fees, logistics fees, health expenses, network fees, telephone bills, various types of fines, and wages will be eliminated. Two dates, it is better to work for others to earn more, why bother?

3. Hang down the downstream customers

The buyer thought it was a big deal, but he did not know that he should cry most. We often hear complaints from various customers. We all know that raw material costs have risen so severely that the cost of all parties remains high. What kind of high-quality products can be purchased at such low prices? It is their own personal interests that seek to harm cheaply.

4. To our lovely customers

The style of life lies in your taste.

The quality of the product lies in your choice!

Only choose right, time will prove your rational and far-sighted!

It's expensive, yes, because it's good, so expensive!

Products are expensive in quality, people are in taste!

The premise of service is profit.

Profit space can be squeezed,

But can't disappear,

Otherwise there is service that disappears along with the profits.

Please don’t overdo it.

Every company needs to survive

You took away the manufacturer's living space.

How to protect service and quality?

To do business is to do conscience.

We would rather explain the price for a while,

Do not apologize to your customers for life because of their quality!

The editorial postscript: "Grab someone else's orders and break their own path!" Companies that place orders at low prices only value the immediate interests, and seemingly compelling individual choices are harming the healthy development of the industry as a whole. Such business model will not last long, and in the process of industrial transformation and upgrading, companies will also lose their ability to upgrade from product development, process innovation, etc. Their development path will only go further and narrower, and in the end it will be a dead end. .

In fact, in the game of price war, enterprises can rely on their own advantages to gain more benefits. - rely on products to speak, win over the price war!