[Year Meeting Roundtable Forum] Technology Drives Supply Chain Transformation New Opportunities

[Text|High-tech LED reporter Luo Shenghua] In 2014, it was called the "key year" for the development of LED lighting. On the one hand, the industry's development prospects are improving, and the policy effect is obvious; on the other hand, market competition is intensifying, and “price wars”, “channel wars” and “brand wars” are constantly being staged, which makes the company happy and happy.

In the high-speed development period of the industry, low-price competition has always been a hot topic in the industry. In the low-price competition environment, how do companies view it? How should companies deal with low-cost competition?

With these questions, in the round-table forum of "Chinese companies from market followers to technology leaders" held in the "Technology-Driven Supply Chain Transformation New Opportunities" sub-forum, named by Liyang Optoelectronics at the 2014 High-tech Conference, Liu Ronghui, director of Rare Earth Luminescence Division, Zhao Yutao, Chairman of Hyun Shuo Optoelectronics, Qian Xuexing, General Manager of Morning Technology, Mr. Qi Fan, General Manager of Hilde, Huang Huishi, Technical Director of Xinguanglian Semiconductor, Zhuo Weihuang, Technical Director of Huateng Semiconductor, Tengsheng The general manager of rubber control, Lu Guoming, and other leaders of various enterprises have had a heated discussion on the issue of “low price competition”. Yin Xiaopeng, director of Liyang Optoelectronics High Power Light Source Division, presided over the roundtable dialogue.

Yin Yangpeng, Director of Liyang Optoelectronics High Power Light Source Division

Moderator: What is the product pricing strategy implemented by the company?

Liu Ronghui: The price adjustment of LED phosphors is very large this year, and the price of domestic phosphor products has dropped rapidly. However, although the price drop is more difficult for the company to increase revenue, the overall situation tends to be a reasonable space. The development of the industry to the present, the enterprise fight is actually the technical strength, which is what we are doing.

Zhao Yutao: We insist on the highest quality of our products and improve the cost performance of our products through the improvement of quantity.

Qian Xuexing: From a technical perspective, LEDs have relatively low thresholds, which also leads to fierce competition among enterprises, and the reason why companies are constantly adjusting prices is precisely because of this. However, the prices of many products in the industry can no longer support the profits of enterprises, so to gain the recognition of customers, brand influence is very important.

Bean sail: In the phosphor industry, after hard work, many domestic companies can do as good as foreign companies, even better than them. In the future, companies that want to gain a competitive advantage can increase the added value of their products through customized products.

Huang Huishi: The city ​​has always been a business activity generally recognized by the industry, but I think this is very unreasonable. The current LED industry is in a state of serious production process. Compared with large manufacturers, the profits of small and medium-sized manufacturers are often not directly proportional to the investment. Based on its own positioning, it is a good choice to take a customized service.

Zhuo Weihuang: Customers will never be satisfied with the price. We insist on combining the quality and performance of our products to create greater value for our customers through technology, material ratio and micro-innovation in the production process.

Lu Guoming: Business operations must have reasonable profit margins, and unnecessary price competition is useless.

Moderator: In the face of low-cost competition from competitors, how should companies face it?

Liu Ronghui: This topic is very sensitive. In the past few years, the market price was very confusing, and we often encountered this situation. For the reason of price cuts, companies must grasp the overall.

Zhao Yutao: I personally think that in order to reduce prices, we must first analyze whether the behavior of price reduction is targeted. If it is aimed at our company, it will definitely fight against the end. If the price cut is based on the reduction of the industry's overall R&D costs, companies must also take advantage of the trend. However, each company has a bottom line for the price, so companies must be particularly cautious about price cuts.

Qian Xuexing: Each product has a cost cycle. In the process of product transformation, when the product is made to the extreme, there will be new markets in the future. Therefore, price reduction is an inevitable problem that every industry must face.

Bean sail: For us, we will not compete maliciously, but we will not be afraid of price competition. But I think that for the industry, no matter how to cut prices, it must be based on the performance of the products, only in this way can form a good cycle. In addition, companies must choose a good market and new sales channels, which will greatly benefit the healthy operation of the company.

Huang Huishi: As I said before, the LED industry is in a state of oversupply, so the price war will be even more fierce. In addition to unnecessary vicious competition, in the normal market competition, enterprises must seize the opportunity, which requires enterprises to have an accurate prediction of the general direction of the industry.

Zhuo Weihuang: Regardless of whether the company cuts prices or not, it must ensure the healthy operation of the quality system, which is what enterprises must adhere to. In response to the market demand for product quality, the domestic market is slowly moving towards order and health, and we have always placed quality and service first.

Lu Guoming: For price cuts, we must first understand whether this price cut is based on the needs of the opponent or based on the needs of customers. If based on customer requirements, companies need to constantly improve their own cost performance. If it is an opponent, the company must be cautious and analyze whether the price reduction behavior of the opponent is long-term or short-term. If it is long-term competition, it is necessary to understand what competition is behind it, whether it is a fever or an industry-based development. In this way, companies can develop the right strategy.

Round table dialogue

Moderator: Generally speaking, in the first to third years, each segment will change, so what changes do you think will be in your segment?

Liu Ronghui: Mainly still the application of full spectrum. At present, in the LED phosphor industry, there are still unreasonable requirements for quality and parameters, such as spectral saturation. The domestic phosphor layout is about ten years later than abroad, so letting the spectrum of white light approach natural light, we have to make efficient full spectrum.

Zhao Yutao: From the perspective of equipment companies, the future may change in two aspects. First, improve the automation capability of equipment and reduce labor costs. Second, equipment companies and packaging technology companies are united, and efforts are made to omit the intermediate links to reduce production costs.

Qian Xuexing: In the future, with the change of technology, the most expensive will be labor costs, and the price demand will also be constantly changing.

Bean sail: I think that our various materials need to solve the problem of light reliability in the next few years. At present, reliability is an important problem affecting the LED industry.

Huang Huishi: With the advancement of technology, miniaturization and flip-chip are a trend. As the light efficiency increases, the device will become smaller and smaller.

Zhuo Weihuang: Compared with the past, the production efficiency of the equipment is 20%-30%. In the future, there may be two changes in our industry. First, the size of the product is getting smaller and smaller, and the precision is getting higher. On the other hand, companies have higher requirements for data accuracy and can provide some judgment and direction to managers.

Lu Guoming: LED price/performance ratio is a double-edged sword. In the future, “big ones are big” is the trend, and the industry will become more concentrated. SMEs must have a way to live, and they may follow a customized path. Equipment companies must master this trend, knowing that technology and technology are still the main theme of the next two or three years.

E-Dog Fence

Radio Fence,E-Dog Fence,Wireless Invisible Fence,Above Ground Electric Dog Fence

Elite-tek Electronics Ltd , https://www.aetertek.ca

Posted on