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Price fierce industry sales are facing difficulties
"The same product, which was able to sell for more than 200 yuan two years ago, can only be sold at a price of more than 50 yuan. It is almost sold at a loss, only to maintain good old customers." Mr. Xia helplessly introduced .
Mr. Xia has been doing sales in a lighting company in Shiyan and has been working for three years. This company mainly produces various LED lighting products, including landscape lighting, street lighting and home lighting. With several years of sales experience, Mr. Xia saw the future development of the LED lighting market. "In a few years, energy-saving and environmentally-friendly LED lighting products will cover all corners of society and become important products that affect people's daily lives. Traditional lighting such as incandescent lamps will eventually withdraw from the historical stage."
Although the outlook is optimistic, Mr. Xia is now facing a sales dilemma. "The current sales pressure is getting bigger and bigger. This year's sales performance is not as good as last year's results. The main reason is that the industry competition is too fierce. Everyone is fighting the price war, and the price of the products is constantly depressing. The company suddenly has a lot more, and sales are naturally difficult." .
Mr. Xia went to Zhuhai on a business trip last week to communicate face-to-face with old customers and maintain good relationships. In the eyes of Mr. Xia, the prices sold by some of the peers almost made people fall below the glasses. The same type of products only sold for more than 10 yuan. “I really don’t know how the quality of the products produced by the company guarantees qualityâ€.
The company where Mr. Xia is located is a large-scale enterprise in the LED industry in Shenzhen. It has its own patented products. The biggest advantage of the company is the quality of its products, which also makes it difficult for the price of the products to drop significantly. Does not have a price advantage.
Compared with LED companies, the survival environment of small companies is also not good. Li Xiangfei operates a small workshop in the Xixiang Industrial Zone, which mainly produces LED backlights. Li Xiangfei and his wife are responsible for the external sales of goods, and one is responsible for network contact customers. Their company's products are not technically high, and more than a dozen employees have been hired to do some simple processing. Last year, the market was relatively good, with nearly a million sales per month, almost half of the profits, which made Li Xiangfei feel the excitement of the dry enterprise. However, since the beginning of the year, product sales have experienced a sharp decline like Waterloo, and many customers have reduced their purchases. In order to attract customers, every piece of backlit screen, as long as there is a dime profit, Li Xiangfei will sell. “There is a backlog of products, which will take up a lot of money and is not good for subsequent development.â€
Nowadays, the couple, the business of running outside is more powerful, and they visit the old customers every week. “Every time I go to visit, I will bring some valuable gifts. Even so, it is sometimes difficult to get a single. The main reason is that the competition is too fierce, the price is repeated again and again, and the third one is depressed. Below the cost price, there is no The way is done."
Disordered competition has seriously affected the market order of the industry. The first half of the research report released by Shenzhen LED Association pointed out that the downstream application field of LED industry belongs to the small investment scale and low barriers to entry, and constantly attracts all kinds of funds to enter. In addition, LED belongs to emerging industries, and technology and products are updated quickly. The technical specifications and quality standard system of related products are still not perfect, which led to a large number of workshop-style cottage factories. These companies have insufficient technical reserves, poor production equipment and poor product quality. The only competitive weapon is the extremely low price. The price of many cottage enterprises is lower than that of regular manufacturers, which seriously impacts the products of normal enterprises. At the same time, the overall reputation of the LED industry is damaged due to the low performance of the products, which makes consumers' trust in LED products weak. 
On August 2, from the opening of the Universiade, Shenzhen announced that the city's 46 urban lighting upgrade projects have been completed and lighted, especially the Shenzhen Bay Sports Center, which is the city's largest lighting project. By then, the public will enjoy one. A rich "visual feast". It is reported that in the urban lighting environment improvement project in Shenzhen, more than 90% of the lamps use energy-saving and environmentally-friendly LED light sources. Taking advantage of the opportunity of the Universiade, the environmental protection concept of LED lighting is deeply rooted in the hearts of the people. However, for LED manufacturers, the whole industry is encountering “the darkness before dawnâ€, the competition of enterprises is intensifying, the price war continues, and the whole industry is facing a reshuffle. Baoan is a major town in the LED industry, and the reporter investigated its development status.