Interpretation of the on-site photoelectric 掀 LED price war industry shuffle will accelerate

On June 10, Dongguan Qinshang Optoelectronics Co., Ltd. released the diligent lighting replacement and wealth creation plan and the 2014 full range of new products. According to the person in charge of Qinshang Optoelectronics, Qin will be put on the market with LED street lights at a price of more than 4 yuan per watt. The goal is to fight more than half of the LED competitors. This not only allows people to see the ambition of Qinshang Optoelectronics' future development, but also makes the industry have no doubt: as a listed company, at a price lower than the cost, a destructive market monopoly strategy is violated, and competitors in the industry are attacked. The so-called wealth creation plan of Qinshang Optoelectronics is really a spoiler plan! Diligent LED street lights to the market with more than 4 yuan / W will undoubtedly have a huge impact on the current LED street lamp market. At present, the price of street lamp products of mainstream LED enterprises in the industry is about 9 yuan / 12 yuan / W, the low-end cottage manufacturers LED street lamps are currently selling more than 7 yuan / W, even if diligently by means of scale advantages, raw material costs can be controlled To more than 6 yuan / W, plus labor, management and other costs, each W must lose at least 3 yuan, to put the market at this price, in the eyes of more people, this is undoubtedly the brain into the water or crazy. In the case of more than 4 yuan / watt below the cost price, how to spoil the specifics? It is reported that Qinshang Optoelectronics launched a plan to create wealth is premeditated. According to reports, Qinshang Optoelectronics currently has more than 1.7 billion yuan in cash, which is the largest among LED listed companies. It is not excluded that Qinshang Optoelectronics will take advantage of the loss in exchange for advertising to let the dealers seize the market. Some insiders have pointed out that it is a strategy and a means to hit the market at such a low price, and it needs strong capital to support it. Most companies can't afford to burn money. Under the violent attack of this strategy, there should be few companies in the industry that can withstand it. If they can't go crazy together, they have to quit. The market share after exiting is very high. I was quickly eaten by this crazy low-priced and high-quality product. This also achieves the purpose of diligence, low-cost combat competitors, seize market share, and ultimately achieve monopoly. The most taboo competition in any industry is the price war, which will not only lower the profit level of the entire industry, but also make some SMEs unable to withstand the competitive pressure, and the LED lighting industry is also the same. Qinshang Optoelectronics held its own strengths in capital, technology and brand, and made this sharp price cut, which undoubtedly gave the competitor a big blow. Diligently dumping products at a price lower than the cost price will undoubtedly set off a new wave of price cuts. Some industry experts who do not want to be named pointed out that the bad guys and price butchers who play this LED industry will disrupt the current LED market and accelerate the industry reshuffle. The remaining estimates will only be more comprehensive. The enterprise may eventually form a monopoly, which is unfavorable for the entire LED industry.

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