Analysis: How to grasp the profitability of LED companies

People always like to be picky, but in any case, LED lighting is always much better than incandescent lamps. Why can the government still require the elimination of incandescent lamps? With strong demand, it is not perfect. In the final analysis, LED lighting has not yet reached the ideal position of the people. Therefore, there is no shortage of products in the LED lighting market. What is lacking is the product that fits the demand.

At present, there are still many companies looking forward to the "disappearance" of incandescent lamps that can bring LED lighting opportunities to "take off." In fact, the LED lighting industry has never lacked similar opportunities. The ten cities in the earlier period were ten thousand, the later ten cities were ten thousand ten thousand and two periods, a series of government projects and the recent fiery government subsidy. Further, even if the incandescent lamp is eliminated, there are also fluorescent lamps that “ride” in the market.

However, the evacuation of incandescent lamps can indeed free up some market space. However, it is worth noting that it is clear that LED bulbs on the market are not very powerful. The places where incandescent lamps are used may not be suitable for LED bulbs, such as kitchens and places with more dust in the countryside.

As a sensible consumer, the people will never make trouble with their wallets because they have made it difficult for a particular industry. How to allow consumers to be cheated in the case of not being deceived, this is the current urgent need to consider the entire LED industry. After all, LED lighting has a lot of room for development. This space includes: market, research and development, price, and so on.

Recently, the prices quoted by the relevant agencies for the LED bulbs in the international market, without exception, basically fell. To this end, what else can we expect? The decline in the price of LED lighting is an inevitable trend. How to make profits is a problem that manufacturers should solve.

LED corporate profits can start from two aspects:

First, from the cost aspect. This puts forward new requirements for the entire industry. At the same time, it also requires the government to issue relevant industry standards and integrate the industrial structure. It also poses new challenges for research and development, making LED lighting cost-effective from top to bottom.

Second, from the price side. Profit and price are two-fold inverse functions. Market capacity and price are directly linked. In the event of price changes, the market capacity expands and reaches the critical point, with the greatest profit.

The price depends on competition, and the quality depends on R&D. The lifeline of the market is two kinds: price and quality. But what can't be confused is that it's cost-effective. People do not need to be cost-effective. What ordinary people need is cheap and high-quality products. Or think about it in this way, it will allow companies to clearly define the market position of their products.

The "carrot" that rabbits like again cannot be used as a fishing bait.

Industry standards for the industry have also been gradually introduced, and the encouragement given by the government is also in progress. In the new year, the author sincerely hopes that the LED lighting industry will have more powerful performance in R&D. Once the product meets the market requirements, market space and benefits will undoubtedly coincide with the same time.

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