Analysis of the Confusion of Domestic LED Enterprises' Export to Domestic Sales

Affected by the economic downturn in Europe and the United States, the export orders of domestic LED companies have shown a sharp decline. At this critical moment, domestic LED companies have turned their attention to the domestic market and sought a salvation road from “export to domestic sales”. According to relevant statistics, most of the 80%-90% of domestic LED companies' orders are derived from export, but the domestic market situation has not been opened, and the phenomenon of internal and external sales is extremely uneven. With the government's promotion of LED energy-saving products and policy preferences, the domestic LED lighting market is gradually showing a rising trend. The major LED companies have slowly shifted their focus to the domestic market. Whether it is an international big name, or a domestic big name, or a small and medium-sized enterprise that has previously threatened to export only, they all eagerly tried to swear that they would make a difference in the domestic market. However, in the face of the complicated and complicated domestic LED market, these enterprises are confused and wonder how they can effectively cut into the domestic market. Gu Wenjun, chairman of the LED Association of Changzhou City, told reporters why.

Lack of consumer desire for purchase At present, it is still much more difficult for LED companies to go domestic than to export. Part of the reason is that LED prices are much more expensive than ordinary energy-saving lamps, and they are still not widely accepted in some post-urban or rural areas. Along with the nation’s plan to phase out incandescent lamps, the huge market for LED futures will emerge in rural and backward areas. On the other hand, domestic people's understanding of LED energy-saving lamps is not comprehensive enough. Look at the LED lights only to see the power and price, do not understand the relevant parameters, causing their interest in LED products is not high. Therefore, it is necessary to strengthen people's understanding of the benefits of LED lamps. This requires the government to make more efforts. In addition, the excessive price competition among suppliers resulted in a decline in product quality and reduced consumer confidence in the purchase of LED lighting products.

As a result of criticism from international brands, the foreign LED market has a relatively complete market competition system. As long as your products have advantages in quality, there will be better sales. While the domestic market is relatively immature, the key to product competitiveness comes from the company's Low prices, public relations capabilities and personal connections.” Gu Wenjun pointed out that the “hidden rules” phenomenon in this industry has distorted the competitiveness of LED companies, resulting in a low degree of attention paid by manufacturers to product quality, further limiting the benign nature of the domestic LED industry. development of. In addition, compared with the outstanding marketing ability of the international big brands, the domestic LED companies have weaknesses in system marketing and lack of human resources, making the domestic LED companies' market competitiveness very weak.

The difficult problem of domestic price positioning is different from the high-quality and high-price sales model in foreign markets. The domestic LED market follows the path of “homogenization and price fight”. As domestic LED products are mixed, the price system has been messed up by inferior manufacturers, resulting in low overall market profit margins. Compared with the lucrative profits of the export market, the domestic market is the "price war" position, which has caused greater impact on the marketing ideas of LED companies that export to the domestic market. These enterprises are very uncomfortable. How can we accurately price our own products so as to avoid being trapped in the situation of “too high prices, no one wants to, too low prices?” This problem has deeply plagued many export-led LED companies.

Lack of product features Whether it is product quality or marketing capabilities, many domestic LED companies are currently unable to match international brands such as Philips and OSRAM. To compete with them in the domestic market, we must pay attention to competitive strategies. Gu Wenjun pointed out that in terms of domestic companies, creating LED products with individuality and characteristics is considered to be a very good breakthrough. "It's like people go to restaurants and like to order some special dishes." Gu Wenjun said. This requires the domestic LED companies to make more efforts in product characteristics, increase the innovative elements, and enhance the competitiveness of products.