LED reflection of "closed tide" in Wenzhou factory

In Shenzhen, there is such a peculiar phenomenon that whether it is on the bus, in the subway, or on the side of the road, it is always natural to talk about LED related aspects. A while ago, the author secretly sneaked over this phenomenon, but this period of time as a person who loves this cause deeply, the writer can't blindly happy too early.

Wenzhou is famous because it is a model of China’s private economy. Once upon a time, Wenzhou people’s smart business minds were invincible in every place in the world, setting off a “wave” that could not be missed even if Hainan was built into an international tourist island. It is their masterpiece. However, recently, there has been a “closed tide” in the factory in Wenzhou. This time, the smart Wenzhou people no longer have the ability to save themselves by their own wisdom and wisdom. In fact, the "closed tide" of the factory is only a small reaction to the problems in Wenzhou.

From the "closed tide" of factories in Wenzhou, it can be seen that most Chinese companies have strong dependence, including raw material supply and business sales. In the LED industry, this phenomenon is particularly prominent. Except for a few large companies that are doing packaging, they are also doing accidents with lighting fixtures. The rest is a monolithic model. Of course, this is a very good phenomenon, indicating that companies are doing more specific. However, LED's unique flexibility is not enough.

In recent years, the slogans advocating low-carbon life have been heard all over the world. Regardless of whether the LED industry is suspected of capital speculation, low-carbon life is really necessary. Otherwise, people will only have daily nerves to observe the daily price of oil as if they were watching stocks. However, the explosive development must be bound to suffer endlessly. Does the company have the ability to avoid risks?

The author wrote an article a few days ago, "The LED market has the prospect is not equal to the LED business has a future." LED is indeed a good industry, but not everyone is suitable for fishing in this "circle." Simply summarize the phenomenon of the LED industry: LED lighting fixtures are still very difficult to do at home, LED display technology is only half a barrel of water, LED packaging is only a few large companies in the world. The market is good, but there are many crises. Where did the crisis come from? That is because there are too many people blindly working, leading to oversupply in the market. The oversupply does not mean that LED's market space is not big enough, but LED's own conditions determine the limitations of consumer choice. Today, LED companies have begun to increase explosively in China. In the face of small markets, competition is still fierce. LED companies can reduce risk through the following aspects:

First, technical efforts to increase. The low-carbon products market has an inestimable market in China and even in the world, but given the low-carbon production performance in the market, technology is a key issue. The LED industry still has several problems: heat dissipation, light perception, dead lights, illumination, and so on. Judging from the current situation, many companies do not seem to have to work hard in this respect. Unresolved technology, endless repairs will cost the company's financial resources. The long-term development of enterprises will be greatly limited.

Second, apply for patents to reduce homogenization competition. Homogeneity is the most difficult problem in every industry. Unfair homogenization competition has caused many large companies to face various challenges in their development, and even led to the decline of many companies. If a large company is toppled, it will cause the back of a large industrial chain to be affected, and even the whole industry will be greatly affected. It is recommended that enterprises protect their professionalism to safeguard their own development and survival.

Third, the price fits the market. LED products are not recognized by the market due to their high prices. The savvy people will settle accounts. There is room for profit. It is the last word, but earning money is the truth. There have been a certain brand of LED ceiling lamp prices up to more than 1,300 yuan. The fool understands how much profit this lamp has. However, as a daily lighting appliance, consumers do not pay for it. The profit margin is no big deal and there is no deal. Making money is just empty talk. It is recommended that manufacturers stick to the market and be practical, so as to avoid too much inventory, affecting the company's cash flow. In fact, despite the maturity of the Ministry of Technology, once the price breaks the ice barrier, the market will expand several times geometrically.

Fourth, the diversification of the sales market. At present, the LED industry's sales model is nothing more than such: foreign trade exports, domestic engineering, OEM processing, channel distribution, online sales and bulk orders. It is recommended that companies diversify their sales efforts so as to avoid problems in one sales cycle and bring great passive pressure to the company. At the same time, it should also pay attention to the control of sales costs and try to realize the profit of sales.

Fifth, reduce production costs. In the face of the intense competition in price, the mainstay of corporate survival is control of production costs. There are many factors to reduce production costs, such as strong and stable suppliers, increase production management to increase yield, effectively expand the scale of energy production, or achieve joint reorganization of enterprises to maximize the use of resources.

Sixth, increase the return of funds. This is a problem that directly affects the survival of the company. If the company has a large stock, it is necessary to “cut the meat” to clear the inventory in time. The LED industry is a new industry and its replacement is fast. A lot of inventory and other prices are unwise. It is recommended that enterprises do a good job in production and sales planning and integrate production with sales. At the same time increase financial management efforts, timely tracking of payment.

Seventh, do a good job in corporate positioning and planning. This is also an important factor. Of course, the plan will never be able to catch up with the changes. This puts higher demands on the company. Companies are required to grasp market dynamics from time to time, adjust company strategies, and effectively achieve profits through planning. At the same time, the cultivation and reserve of talents are the core of the company's development. Many companies are stalled because of the high turnover of personnel and even decline.

I do not know when people began to become so stressful. If the progress of human civilization can only be reflected in the pressure of life, then it is estimated that many people are willing to return to their lives. However, the pressure is for oneself, and a good company can pass the test of time and become an old man. The times are changing, and innovation remains unchanged is the eternal theme of this world. Hope that the LED industry can progress and develop in innovation.