In 2017, the LED lighting industry will present four major characteristics

For the lighting industry, 2016 can be said to be a year of ups and downs, with mixed results. Small and medium-sized enterprises are struggling; on the other hand, powerful brands are expanding and expanding their territories. It is expected that in 2017, the entire industry will truly enter a stage of reshuffle, and will present the following four characteristics:

1. The price hike will continue.

Today, 30 years later, China's economy has entered a "new normal". The pursuit of development speed and scale in the past has gradually given way to the pursuit of development quality and a rational economic structure. The elimination of outdated production capacity and the emphasis on environmental protection will inevitably lead to rising prices of key raw materials. At the same time, after the iron-fisted pollution control, the government may think about exploring institutional long-term pollution control methods. Therefore, we must not take the fluke mentality of "a gust of wind pollution control campaign" and minimize the use of unenvironmental materials and processes in product development. Otherwise, there may be a higher price to pay.

2. Cash flow is a more test of enterprises.

The price increase at the end of last year started with small lighting wholesale companies first, and then the companies that took the brand road. Why? Because these small lighting wholesale companies have no research and development capabilities, and there is no room for brand premiums, the profits are already thin, and the raw materials can't stand it as soon as they rise. In 2017, accessories processing enterprises, especially surface treatment enterprises with higher environmental protection requirements, will pay more attention to cash transactions. Think about it, those hardware factories, electroplating factories, spraying factories, etc., who have the heart to sell white powder, make money from selling cabbage, and have two or three months of billing cycles, what would he do? Plus the bank's credit crunch , the settlement methods of cash transaction and spot settlement will become more and more.

3. Where are the industry opportunities? In the final analysis, it is the product itself.

In 2017, more opportunities in the lighting industry may be given to companies with product research and development capabilities and innovative spirit. For the lighting industry, the catchphrase is to use the power of the wilderness and the spirit of craftsmen to make products with real quality, innovation and cultural charm. When the product is ready, the price and profit will naturally go up.

4. In 2017, the platform has a long way to go!

In the past two years, dozens of platforms, large and small, have emerged in the industry. With the continuous awakening of manufacturers' Internet awareness and the pressure of rising raw material prices, the supply chain system, which is already relatively fragile for integrated platforms, will be hit harder.

In 2017, more companies will realize the importance of having channels, withdraw from the supply of integrated platforms, establish a price system and channel system that they can control, and embark on the road of brand monopoly; Whoever listens will have a future, and no one is willing to hand over the dealer resources they have accumulated so much. The instability of raw material prices will further erode the originally meager profit margins of integrated platforms. In 2017, the platform has a long way to go!