Peer LED lighting industry price war in recent years , the phenomenon of closures and mergers and acquisitions analysis, the LED lighting industry reshuffle is inevitable result of market development point of view . After merger integration , after the baptism of closures , lighting industry some companies will focus on the advantages of resources , competition to the strong stronger and the weak weaker trend of development , the pattern of LED lighting industry will initially became visible , only the last laugh is the winner.

Price war waged

"Price war " has become China's current market economy in a striking phenomenon , regardless of any industry enterprises, will take some price strategy to form a larger scale, while the "price war" between manufacturers often lead to a vicious competition. From our current LED lighting industry market structure analysis, product competition has the largest circulation category showed significant oligopoly characteristics . Specifically in larger scale enterprises naturally , with economies of scale characteristics , and each enterprise products have a certain degree of homogeneity characteristics with each other to some extent the alternative .

LED lighting research report

China LED lighting industry market depth research and development trend forecast report 2014-2018

2014-2018 LED lighting industry competitive analysis and investment strategy research and consulting reports

2014-2018 China LED lighting industry market competition and investment risk analysis report

February 2014

China LED lighting industry market supply and demand analysis and investment potential of the consultation report 2014-2018

123

2014 LED lighting will usher in a new change in the situation and development

Development of LED lighting industry has been accompanied by the "price war" bloody, large companies want to scale advantages will translate into a price advantage by continuing to maintain the initiative in the market ; SME wants to lower prices for the " heavy artillery "" bombing "market. Price war results may be beneficial to consumers , but to make the industry a large number of corporate profits decline, survival difficult or even bankruptcy. Some economists believe that the "price war is a destructive competition , after the price war , outside of which , including provoke themselves , all bruised , exhausted, there are no winners ." However, many companies are bored , stir continuously one after another price war , and claimed it was " corporate behavior ", " market-based instruments ", " expand the market share of the most effective strategies " and so on . But the price war so that the operators profit decline , is not conducive to technological innovation , distort consumer psychology , is not conducive to long-term development of enterprises , it is an indisputable fact.

Of course , the price war is not one hundred harm . A price war is a double edged sword , the competitive process is inevitable , " rivers of blood ", but in the LED lighting industry did not develop into a benign period of price competition is conducive to expanding the market share of LED lighting products to accelerate the LED lighting to replace traditional lighting period , survival of the fittest industrial restructuring , technological competition from price competition to achieve the transition . Nevertheless , the price war is still not as a long-term market competition means .

2014 , to accelerate the transformation of traditional lighting , new enterprises began to force , LED lighting market is still in a price battle.

The wind and the merger integration

In the past few years , China's LED lighting industry has seen a case of mergers and acquisitions . Whether it is the merger, asset acquisition or tender offer in the form of motivation is the root of all mergers and acquisitions in order to improve their competitive strength , gain a competitive advantage.

Weston synergies that " the acquisition will bring the production and operation efficiency, the most obvious effect of performance achieved economies of scale ." 2014 , with the merger will accelerate the promotion of a price war , shuffling , a new melody LED lighting industry . Industry mergers and acquisitions winning rewrite the current industry structure has become a new growth point in the future business .

LED lighting industry is in a period of shuffling , corporate failures have occurred . To develop , we must first solve the problem of existence . I hope to get a long-term development of LED lighting companies want to use the merger integration approach to make up for their deficiencies in terms of LED lighting products, brands , technology, and other channels , and mergers and acquisitions are just the fastest way to solve these problems .

However, mergers and acquisitions and easy integration difficult. Inevitable differences in terms of both the company's management , culture and values ​​. Despite the obvious benefits of mergers and acquisitions , but to move forward with ease , resolve after the merger prone to instability , must be gradual, otherwise difficult to achieve the desired results .

The birth of a new pattern of closures

Looking back on the course of development of LED lighting industry in recent years , companies continue to have joined , but also continue to have business down . Some companies more vigorous pour too silent , and the enterprise " come and go without a trace ," the collapse of this industry is not a new word in . In a media exposed the "Ten closures will now trades " in an article , LED lighting industry has been ranked in the book . Since 2011 , the industry has experienced numerous major failures involving the three places , Ho Bo Photoelectric , Everlight , Leixing Guang electricity, Lighting Factory Zhongshan Hung Kee , Kellett optoelectronics companies could not survive , " the pre-dawn darkness " The reason more for the money fracture collapse , excessive use of financial leverage .

With the LED lighting industry into reshuffle , added to the traditional lighting LED lighting giant battlefield , in 2014 there will be more failures , to usher in a true "closures ." However, does not explain the closures into LED lighting industry is good or bad . LED lighting industry into the low threshold , known to do a lot of LED lighting products , " screwdriver " plants into pieces, mixed, quality of personnel, skill levels, leading to confusion competition in the industry , LED lighting industry is the development of the market reshuffle the inevitable result. After the merger integration , closures baptism , some companies will focus on the advantages of resources , competition to the strong stronger and the weak weaker trend of development , the pattern of LED lighting industry will initially became visible , the last laugh is the winner .