Annual output value of lighting industry in China will increase by 20% in 5 years

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%, and this growth will inevitably bring considerable profits to the lighting accessories industry. However, it is understood that although the upstream market is promising, as a downstream lighting accessories company, it is currently facing an unprecedented development dilemma.

The increase in costs and the long period of time will bring 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 labor shortages in the Pearl River Delta region. As a result, companies only hired workers with high salaries. “The previous basic wage was 1,500. Many people rushed to do it, but now they are unable to recruit 2,000 workers. people."

Low-quality products disturb the accessories market. 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 mold opening, design, procurement, etc. At a conventional cost, they only need a screwdriver to 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 is selling only how much, and keep pushing down prices. 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. Two or three years ago, there were not so many manufacturers of light source accessories. Business was good at that time. In the past two years, hundreds of them have been added at once, and corner accessories are made. It is understood that price wars are prevalent and even at a loss. As a dealer, to explore the town's largest accessories city price, on the same LED3W bulb, found that high is 12 yuan, low to 1.8 yuan, and even some advocates including light sources, only sell 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 outlets are not ideal, it is difficult to receive orders. A lighting company leader said: "In addition to this store there are three stores, in terms of turnover, this is the worst, you can see that this market is very few people now, to receive orders is not easy."

The price war is still the main means of competition

The biggest means of the factory against the industry competitors 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, including the most concentrated in Guangdong town. 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. The 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.