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The only way out is to hold on to quality as LED companies go bankrupt
- Categories:Industry Information
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- Time of issue:2013-10-24 13:33
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(Summary description) Buffett said: "Only when the water goes out, you know who's swimming naked." According to statistics, more than 10% of the country's LED companies have closed down this year, of which more than 100 are packaging; more than 300 are lighting, most of which are small businesses. Only when the crisis comes, will the company's ability to withstand pressure and rationality be tested more and more. The market environment is sluggish, not only the upstream chip packaging is oversupplied, but also the downstream application industry is also oversupplied. In order to survive the last month of the year, some companies will not hesitate to lower prices and quality in order to survive the winter. Lowering prices in exchange for an increase in sales will damage the interests of the company, which in turn will dampen the enthusiasm for production. "Big companies are happy, and small companies are happy. Only the companies in the middle have the hardest time." Long Jiang, general manager of Zhongshan Xingkeda Lighting, told reporters. He explained that at this stage, large enterprises can rely on government engineering orders to support themselves, while small enterprises are mostly family-style workshops with low labor costs and easy survival. "Adhere to product and quality positioning, and survive this period of time before there is a way out." Longjiang said that blindly pursuing price will not only lower profits, but also produce substandard products. The damage to the brand in the later stage cannot be compensated for by money. The market environment is not good, but there are many outstanding performers. Xie Quanbo of Zhongshan Morimoto Optoelectronics Co., Ltd. said that since the beginning of this year, the company has been working overtime, and its performance has not declined and has grown significantly compared with last year. When asked why, he said that thanks to insisting on his brand and positioning for so many years, customers can be assured of cooperation with you. "The market is very chaotic now, so customers need products with guaranteed quality. Once you deceive customers, you will lose the opportunity for second cooperation." Xie Quanbo said. Coincidentally, Shenzhen Red Green Blue Electric Technology Co., Ltd. also successfully stepped out of this year's "cold winter" market with excellent products. Manufacturers use the simple and effective strategy of low prices to occupy the market, but limited to low-cost inferior chips, rough processes, and unstable power supplies, all of which lead to short product life. This practice, although a short-term channel has been established, is tantamount to killing chickens to retrieve eggs and drinking doves to quench thirst. Only by holding the quality is the real way out for LED enterprises to get out of the cold winter.
The only way out is to hold on to quality as LED companies go bankrupt
(Summary description)
Buffett said: "Only when the water goes out, you know who's swimming naked." According to statistics, more than 10% of the country's LED companies have closed down this year, of which more than 100 are packaging; more than 300 are lighting, most of which are small businesses. Only when the crisis comes, will the company's ability to withstand pressure and rationality be tested more and more.
The market environment is sluggish, not only the upstream chip packaging is oversupplied, but also the downstream application industry is also oversupplied. In order to survive the last month of the year, some companies will not hesitate to lower prices and quality in order to survive the winter. Lowering prices in exchange for an increase in sales will damage the interests of the company, which in turn will dampen the enthusiasm for production.
"Big companies are happy, and small companies are happy. Only the companies in the middle have the hardest time." Long Jiang, general manager of Zhongshan Xingkeda Lighting, told reporters. He explained that at this stage, large enterprises can rely on government engineering orders to support themselves, while small enterprises are mostly family-style workshops with low labor costs and easy survival.
"Adhere to product and quality positioning, and survive this period of time before there is a way out." Longjiang said that blindly pursuing price will not only lower profits, but also produce substandard products. The damage to the brand in the later stage cannot be compensated for by money.
The market environment is not good, but there are many outstanding performers. Xie Quanbo of Zhongshan Morimoto Optoelectronics Co., Ltd. said that since the beginning of this year, the company has been working overtime, and its performance has not declined and has grown significantly compared with last year. When asked why, he said that thanks to insisting on his brand and positioning for so many years, customers can be assured of cooperation with you.
"The market is very chaotic now, so customers need products with guaranteed quality. Once you deceive customers, you will lose the opportunity for second cooperation." Xie Quanbo said.
Coincidentally, Shenzhen Red Green Blue Electric Technology Co., Ltd. also successfully stepped out of this year's "cold winter" market with excellent products.
Manufacturers use the simple and effective strategy of low prices to occupy the market, but limited to low-cost inferior chips, rough processes, and unstable power supplies, all of which lead to short product life. This practice, although a short-term channel has been established, is tantamount to killing chickens to retrieve eggs and drinking doves to quench thirst. Only by holding the quality is the real way out for LED enterprises to get out of the cold winter.
- Categories:Industry Information
- Author:
- Origin:
- Time of issue:2013-10-24 13:33
- Views:
Buffett said: "Only when the water goes out, you know who's swimming naked." According to statistics, more than 10% of the country's LED companies have closed down this year, of which more than 100 are packaging; more than 300 are lighting, most of which are small businesses. Only when the crisis comes, will the company's ability to withstand pressure and rationality be tested more and more.
The market environment is sluggish, not only the upstream chip packaging is oversupplied, but also the downstream application industry is also oversupplied. In order to survive the last month of the year, some companies will not hesitate to lower prices and quality in order to survive the winter. Lowering prices in exchange for an increase in sales will damage the interests of the company, which in turn will dampen the enthusiasm for production.
"Big companies are happy, and small companies are happy. Only the companies in the middle have the hardest time." Long Jiang, general manager of Zhongshan Xingkeda Lighting, told reporters. He explained that at this stage, large enterprises can rely on government engineering orders to support themselves, while small enterprises are mostly family-style workshops with low labor costs and easy survival.
"Adhere to product and quality positioning, and survive this period of time before there is a way out." Longjiang said that blindly pursuing price will not only lower profits, but also produce substandard products. The damage to the brand in the later stage cannot be compensated for by money.
The market environment is not good, but there are many outstanding performers. Xie Quanbo of Zhongshan Morimoto Optoelectronics Co., Ltd. said that since the beginning of this year, the company has been working overtime, and its performance has not declined and has grown significantly compared with last year. When asked why, he said that thanks to insisting on his brand and positioning for so many years, customers can be assured of cooperation with you.
"The market is very chaotic now, so customers need products with guaranteed quality. Once you deceive customers, you will lose the opportunity for second cooperation." Xie Quanbo said.
Coincidentally, Shenzhen Red Green Blue Electric Technology Co., Ltd. also successfully stepped out of this year's "cold winter" market with excellent products.
Manufacturers use the simple and effective strategy of low prices to occupy the market, but limited to low-cost inferior chips, rough processes, and unstable power supplies, all of which lead to short product life. This practice, although a short-term channel has been established, is tantamount to killing chickens to retrieve eggs and drinking doves to quench thirst. Only by holding the quality is the real way out for LED enterprises to get out of the cold winter.
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