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2017 LED lighting will usher in a new change and development

LED lighting industry has been accompanied by the development of "price war" bloody, large enterprises want to scale advantage into price advantage, continue to maintain the initiative in the market; small and medium enterprises want to low prices for "heavy artillery "Bombing" market. The results of the price war may be beneficial to the consumer, but the industry a large number of corporate profits decline, survival difficulties and even bankruptcy. Some economists believe that "the price war is a destructive competition, after the price war, exposure to them, including the provocator itself, all scarred, exhausted, no winner." However, many companies are bored, continuous provocation and a price war, and claimed that this is "business behavior", "market means", "to expand the market share of the most effective strategy" and so on. But the price war to reduce the profits of operators, is not conducive to technological innovation, distorting consumer psychology, is not conducive to the long-term development of enterprises is an indisputable fact.

        Of course, the price war is not a hundred harm without a benefit. Price war is a double-edged sword, the competition process inevitably "blood flow into the river", but in the LED lighting industry did not enter the period of healthy development, price competition is conducive to expanding LED lighting products market share, accelerate LED lighting instead of traditional lighting Of the cycle, to achieve the survival of the fittest of the industrial structure adjustment, from the price competition to the technical competition in the transition. Nevertheless, the price war is still not as a means of long-term market competition.

        In 2014, the traditional lighting to speed up the transformation of new enterprises began to force, LED lighting market is still a price war.

        M & A integration on the wind

        In the past few years, China's LED lighting industry has emerged in the case of corporate mergers and acquisitions. Whether in the form of corporate mergers, asset acquisitions, or equity acquisitions, the motivations of M & A are all in order to improve their competitive strength and gain a competitive advantage.

       Weston synergies that "M & A will bring the production and operation efficiency, the most obvious role for the performance of economies of scale to achieve." 2014, mergers and acquisitions will be with the price war to promote the reshuffle of the LED lighting industry to become a new melody. Industry mergers and acquisitions award to rewrite the current pattern of the industry, the future business of new growth point.

       LED lighting industry is in the shuffle period, business failures have occurred. To develop, we must first solve the problem of survival. Hope to obtain long-term development of LED lighting companies want to use mergers and acquisitions to make up for their integration in the LED lighting products, brands, technology and channels and other aspects of the lack of mergers and acquisitions is the fastest way to solve these shortcomings.

        However, mergers and acquisitions easy, difficult integration The management of the two companies, culture, values and other aspects of the inevitable differences. Although the benefits of mergers and acquisitions, but to light battle, to solve the volatility after the merger, must be gradual, otherwise it is difficult to achieve the desired results.

        A new pattern of birth

        Looking back on the development of LED lighting industry in recent years, there have been companies to join, but also continue to have business down. Some companies have to be vigorous, but also silent, and some enterprises "come without trace", the collapse of the industry has long been nothing new words. In a media exposure of the "top ten will now shut down the industry," a text, LED lighting industry was ranked in the book. Since 2011, the industry has experienced a number of large-scale closure of the incident, involving the three places, Haobo Optoelectronics, Everlight, Thunder Star photoelectric, Zhongshan City, just in mind lighting factory, Kellett photoelectric and other enterprises failed to survive the " ", The reasons for the collapse of more funds for the break, excessive use of financial leverage.

       With the LED lighting industry into the shuffle period, the traditional lighting giant to join the LED lighting battlefield, 2014 will be more collapse of the event, usher in the real "collapse of the tide." However, the collapse of the collapse of the LED lighting industry can not explain the good and bad. Into the LED lighting industry, the threshold is low, known to do a lot of LED lighting products business, "screwdriver" factory into a film, quite a mixed bag, the quality of personnel, technical level uneven, leading to competition in the industry chaos, LED lighting industry reshuffle is the market development The inevitable result. After the acquisition of mergers and acquisitions, after the closure of the baptism, the advantages of resources will focus on certain enterprises, the competitive landscape to the stronger stronger, weak weaker trend of development, LED lighting industry will be the initial pattern, laugh the last is the winner .

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