Lighting accessories industry development difficulties

According to statistics, in the next five years, the annual output value of China's lighting industry will maintain a growth rate of more than 20%. However, as a downstream lighting accessories company, it is currently facing an unprecedented development difficulties.

Lighting accessories companies encounter development bottlenecks

The increase in costs and the long period of time have brought invisible pressure on low-profit companies. In the past two years, the rapid rise in prices has led to an increase in the raw materials of accessories companies. The main pressure comes from labor costs. Due to the policy-based industrial transfer, the Pearl River Delta region has no obvious advantages in employment as compared to the mainland. Many migrant workers chose to return to work in their hometowns, resulting in frequent employment shortages in the Pearl River Delta region. As a result, companies only hired workers with high salaries. “The previous basic salary was 1500. Many people rushed to do it, but now they can’t get 2,000. people."

Inferior products disrupt the accessories market. Zhang Xiaodong, general manager of Hongxun Lamps, revealed that in the accessories industry, many manufacturers have neither obtained industrial and commercial licenses, nor even formal production channels, and avoided a lot of taxes and insurance costs. More importantly, they have reduced their open molds and designs. , procurement, and other conventional costs, they only need a screwdriver, you can produce assembly parts. It's hard to see what difference a buyer can make from the outside; as a result, other suppliers are in a quandary. Customers always say which one sells for how much, and keep pushing down. Originally, the profits were thin. In this way, the market could only be a melee and a mess.

The threshold is low, and the growth of accessories manufacturers is like a hybrid peanut tree. According to the person in charge of Mollick, there were not so many manufacturers of light source accessories in Guzhen two or three years ago. Business was good at that time. In the past two years, hundreds of people have been added at once. Chang'an Street, Caobu, and corners are accessories.

The popularity of price warfare is prevalent, even at a loss. As a dealer, the reporter went to the town's largest light fittings city and Ruifeng fittings city to explore the price, on the same LED 3W bulb, found that high is to 12 yuan, low to 1.8 yuan, and even some also advocate Including the light source only sells 2.6 yuan. Even the capital can't keep it. It is understood that most of those who do this are making money two or three years ago. They are now squeezing a group of newly-opened manufacturers at low prices. When others are dead, his price will rise again.

Aging marketing channels, waiting for passengers to become the past. Many accessory companies do not set up marketing teams to save costs. Basically, they all depend on retail sales. Such customers are relatively limited. If the store's geographic location is not ideal, it will be difficult to receive orders. The aforementioned Shenzhen Dawei Light Source Co., Ltd. Deng Jintao told reporters: “There are three stores in addition to this store. In terms of turnover, this is the worst. You can see that there are very few people in this market now. It's not easy to order."

The price war is still the main means of competition

According to a staff member of an accessory factory that provides "acrylic" plastic sheets specifically for lighting companies, the biggest means for the factory to fight against competitors in the industry is the "price war." At present, for most lighting accessories companies, the “price war” has become the main competitive means in the face of cost pressures caused by rising raw materials.

Industry insiders said that China's lighting lighting accessories production companies, mainly in Guangdong, Zhejiang, Shanghai, Jiangsu and other places, among them the most concentrated in ancient town of Guangdong. Lighting accessories companies from the product line of view, mainly hardware, glass, wood, cloth, crystal, etc. more than 10, but the professional production of lighting products for manufacturers of the company's few manufacturers, most of the other integrated services for other industries. On the one hand, the overall output value of the lighting industry is relatively small. On the other hand, the lighting industry has a low level of technology. Vicious competition has led companies to open up more fields.

A few cents of profit are rushing for business

The cost pressure caused by the rise of raw materials is considerable. For a few cents of profit, the accessories companies are rushing to sell. According to an accessory buyer, the puzzles faced by accessories companies are that, in addition to raw material prices, they also include low-price competition, rising labor costs, poor marketing, lack of brand awareness, and technology that cannot keep up with trends. Improving yourself is still the most critical.

Crawling for survival

When the reporter came to the Guzhen Market, he saw that the market was deserted. Most of the shops were extremely boring.

Deng Weitao, sales representative of Shenzhen Dawei Light Source Co., Ltd., told reporters: “There are few people in the market and there are fewer customers coming in to the store. Fortunately, we have other outlets to support it, otherwise we will not make enough store rentals.” Guzhen Town, Zhongshan City The person in charge of Molex Lighting accessories also said that the business in the past two months was the most bleak, with few new orders or new customers. Moreover, the performance of the entire first half of the year decreased by approximately 15% compared with last year.

Zhang Xiaodong, general manager of Zhongshan City Hongxun Lamps, complained to reporters. He said that he had been engaged in accessories for 5 years, but he never encountered the current difficulties. “More and more people are entering the accessories field, With the low threshold and low cost, they can make a big price war, and the era of profiteering also ends. On the other hand, these regular companies engage in R&D, design, and mold-making themselves. The labor costs continue to rise, and the price of products continues to decline. It can be done before. Profits to 25 points are now less than 15 points, basically to the point where there is no profit; coupled with the large increase in shop rents now, one month's expenditure must be 500,000, not including factory expenses. This will quickly make ends meet.”

The chaos in the accessory industry has risen and the homogenization of products has become more and more serious. The technology has not been updated for a long time, the price war has intensified, and the overcapacity phenomenon has become increasingly evident. Due to the unsmooth sales channels, a large number of products can not be quickly landed and the volume is backlogged. On the one hand, the company's inventory is increasing day by day, and the cost is soaring. On the other hand, users cannot immediately purchase products with high quality and low price; The threshold is getting lower and lower, and more and more companies are in business, but few are doing well. With the advent of the world economic crisis, many companies were forced to stop production or even shut down. Manufacturing companies are facing a new transformation to find a way out.

LED boom can warm the accessories market

At the beginning of the year, the LED industry appeared a rare warm-up phenomenon. “There are too many orders, and it is too busy to come. All the finished products in our factory have been 'robbed' and there are no models.” According to analysis, this phenomenon has emerged. The reasons for this include the growing maturity of LED technology, shrinking production costs, and the expansion of profit margins; the government's efforts to advocate energy conservation and environmental protection, and the use of green lighting fixtures; changes in consumer attitudes, LED is slightly expensive, but in the long run it is the most economical ...... However, after the LED warms up, does the closely related accessories market follow the rise?

Ruixin Lighting Distribution City specializes in LED accessories Xindasheng sales personnel said in an interview with reporters that the performance in the first half of this year is better than in previous years, which depends on the support of the old customers, at the same time, the sales of LED products increased, also Invisibly boosted our sales. There is also a fast update of our accessory styles that attracts many new customers.

However, does this mean that LED will bring spring to the accessories market?

Manufacturing change is the only way for accessory companies

After many days of visits and investigations, the reporter believes that accessory companies are undoubtedly experiencing difficulties. To get out of the predicament and find a way out, we should start from the following aspects.

Improve the core competitiveness of products and create competitive products. According to the person in charge of Xindasheng, they have been focusing on the production of LED lamp accessories and have had a certain influence in the industry. They have established many long-term relationships with customers. Under the introduction of these old customers, many new customers joined. "Because They know that to find professional LED accessories, find Xinda Sheng on the right.” And the professional production of acrylic town of Morikek lighting accessories responsible person also has the same argument. In some specific circumstances, do not luxuriate the variety of products and types, and it is best to have your own specialty products, that is, “signature dishes”. To do a good job of “signature dishes” will naturally attract many customers. .

Should pursue product differentiation, grasp the market pulse. Traditional hardware accessories companies are faced with the problems of transition. With the advent of the LED era, accessories companies need to follow the pace of the industry and make timely adjustments. Blindly sticking to the traditional path may eventually end up in the middle. Therefore, in the Ruifeng Lamp City, the reporter saw some merchants, some shops and customers.

Product technology to enhance, 3D printing technology or favored. The traditional mold-opening cost is high, and the resources are wasted. Sometimes the model that is opened will be different from the design drawings due to the machine. This leads to material waste, time lapse, and cost increase. However, the current 3D boom in various industries can be integrated into the accessories field and become the focus of attention. OSRAM Shenzhen R&D Center is currently the first to use 3D printers to melt into the lighting industry. Although the application of 3D printing in the manufacturing field is really only targeted at some small-scale manufacturing, 3D printing is most effective in industries where customization is very demanding. People can quickly design and produce one or several, fifty, or hundreds of parts without the need for tool modeling. In contrast, traditional craftsmanship is a large piece of material that takes a lot of material and wastes it. With 3D printing, material input and output can be well controlled.

Product marketing strategy, adhere to the "going out, introducing." Since it is difficult to maintain the investment by sitting on the ground, the company itself should make changes, abandon the traditional investment model, try to go out and win more customers. For example, increase corporate awareness, brand promotion, and industry media cooperation, increase channel promotion.

Talent team building and reserves, a sense of cultural impact of belonging. The transfer of industries has caused the loss of many migrant workers. It should be noted that to retain people, it is crucial to retain their hearts. Companies strive to create a healthy environment, create more opportunities for employees to develop, and strive to do their best. In addition, corporate culture should be precipitated, and employees should be infected with a strong cultural atmosphere to enhance their sense of belonging to the company.