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How do LED companies grasp profit points?

How do LED companies grasp profit points?


     Ten City Wanzhan, the second phase of Shicheng Wanzhan in the later stage, a series of government projects and recent hot government subsidies. Furthermore, even if the incandescent lamp is eliminated, there are still fluorescent lamps in the market "rampant".


    However, the withdrawal of incandescent lamps from the market can indeed free up a certain amount of market space. But it is worth noting that: it is obvious that the current LED bulbs on the market are very weak. The current applications of incandescent lamps may not be suitable for LED bulbs, such as kitchens and dusty places in the countryside.


    As wise consumers, ordinary people will never make it difficult for a certain industry to make life difficult with their wallets. How to make consumers willingly take out their wallets without being deceived is what the entire LED industry needs to consider urgently. After all, there is a lot of room for the development of LED lighting. This space includes: market, R&D, price and so on.


    A few days ago, the price quotations of LED bulbs in the international market released by relevant agencies, without exception, are basically in a downward trend. To this end, what can we expect? The price drop of LED lighting is an inevitable trend, and how to make a profit is a problem that manufacturers should think of to solve.


The profitability of LED companies can start from two aspects:


    1. From the cost aspect. This puts forward new requirements for the entire industry, and at the same time requires the government to issue relevant industry standards and integrate the industrial structure; it also poses new challenges to R&D, making LED lighting cost-effective from top to bottom.


    2. In terms of price. Profit and price are a quadratic reciprocal function relationship. Market capacity and price are directly linked. Under price changes, the market capacity expands, and when the critical point is reached, profits are greatest.


    Price depends on competition, and quality depends on research and development. There are two lifebloods of the market: price and quality. But it can not be confused with the generalization as cost performance. The common people do not need cost performance, they need cheap and high-quality products. Or think about it this way, it will make the company's market positioning of the product much clearer.


    The "carrot" that rabbits love can't be used as a "bait" for fishing.


    The industry standards that should be issued by the industry have also begun to be introduced one after another, and the encouragement given by the government is also in progress. In the new year, I sincerely hope that the LED lighting industry will have a more powerful performance in research and development. Once the product meets the market requirements, the market space and interests will undoubtedly coincide at the same time.