Current competition and challenges faced by LED explosion-proof lights:

1. The output of LED explosion-proof lights is increasing. The growth rate of the total value of LED lighting products can reach more than 50%. The growth of LED has directly led to the decline of the total value of traditional lighting products.

2. The price of LED explosion-proof lighting products continues to decline, and profits are further compressed. In 2013, the ex-factory price of LED bulbs was more than 20 yuan, but now many are between 4 and 5 yuan, which has led to a rapid decline in corporate profits. LED dividend growth has not brought profit growth to the company, and many companies even in 2014 The year is more difficult than 2013, which has left a lot of hidden dangers to the healthy development of the company itself. The main reason for this phenomenon is that there are too many companies, and manufacturers are proud to lower their prices to grab the market.

3. The advantages of traditional LED explosion-proof lamp companies are still obvious. In 2012, traditional lighting companies began to enter the LED lighting field extensively. Traditional companies have overall advantages in comprehensive aspects, including understanding of products, understanding of channels, etc. Although LED It is the name of the light source, but there is no essential difference between LED lighting and traditional lighting products at the replacement stage. No matter the application, appearance, sales method, and traditional channels still play an important role.

Faced with various tests and competitions, how can LED explosion-proof lamp manufacturers achieve better development in the era of low profit?

There are two most effective methods so far:
1. Mergers and reorganizations have become a bright spot, especially in listed companies. In order to expand downstream, mid- and upstream companies have adopted the method of directly acquiring downstream companies. This situation will continue in the future. At the same time, experts pointed out that there are four major problems in the current development of the lighting industry:
(1) The product homogeneity is serious;
(2) The competition is disorderly, and there is a big price war;
(3) Product quality is uneven;

(4) There has been a significant increase in runaway and closed companies, and industrial risks have increased.

2. Shift the main battlefield in the future from cities to rural areas.

my country is a big agricultural country. Incandescent lamps are commonly used in rural households. The market for 1 billion incandescent lamps is here. With the rapid development of the rural economy and the continuous improvement of people's living standards, the quality requirements of agricultural names for life lighting are also constantly improving, especially after the implementation of the national policy to promote energy-saving lighting, which has further stimulated the huge rural market demand. Here, the "rural market" is no longer a hell of meaning, but represents a consumption power and level.
Although the development of the rural market is very strong, the consumption capacity is relatively insufficient. If the price of LED is too high, it is difficult to promote energy saving in time. Therefore, how to maintain an advantage in price is the key for LED companies to participate in the rural market competition.
In 2012, the LED explosion-proof lamp industry was struggling and wandering. The biggest bottleneck is undoubtedly the channel. The high-quality resources of the first- and second-tier markets are firmly controlled by the first-line brands. The investment in the third and fourth-tier markets is too large, and many companies do not have the investment conditions. The main consumer market for LED lighting is the third and fourth tier markets. If LED lighting brands want to increase their sales share, only those who have channel resources can "set up the stage and sing for you". To achieve "good quality and low price", on the one hand, it is to reduce manufacturing costs, on the other hand, it is to optimize channels to reduce operating costs. Only by controlling costs well can we make greater concessions.