LED lighting alternatives to change the industry properties
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As LED prices decline, the penetration of LED lighting will rise rapidly. Because of the semi-conducting nature of LED lighting, that is, the characteristics of reduced costs and ever-decreasing prices, the attributes of the industry have changed from the original hardware-like properties to consumer electronics attributes.
Changes in industry attributes lead to increased market concentration in the lighting industry
Due to the diversification of channels and products in the lighting industry, the lighting market in China has been extremely fragmented, and the total market share of domestic first-line manufacturers is also around 10%. As the industry shifts to the nature of consumer electronics, companies with a certain scale of advantages in the future will occupy a greater market share, thus increasing market concentration.
In this round of industry changes, the key conditions that can grab more market share are size, channels and brands. 1) The company relied on foundry business, it took only one year to make the LED business profitable, and quickly increase the LED business scale; 2) The company achieved diversified channels, although outlets are not as good as Ops and NVC, but the sun's channels Not limited to a certain area, but a multi-field layout, which is in line with the diversification of lighting products; 3) The company also increased cooperation with e-commerce, making online and offline synergies.
Clear company development strategy
The company firmly seized the opportunity of LED lighting as an alternative and prepared to enhance its market share in three steps: 1) Rapidly achieving LED business profitability and achieving a certain scale with Philips OEM; 2) Great efforts to develop other foundry businesses and grow rapidly The scale of LED business makes the company's scale advantage further manifested, providing a strong safety mat for the next competition; 3) rapidly developing its own brand business, the third step will be the climax of this round of alternative cycles, the company's own brand Relying on the scale effect of OEM business, the business will grow rapidly and occupy market share. We expect the company's business will show an accelerated upward trend during this period. 
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