Philips joins LED industry price war

Philips Lighting released a new product "Mingshang Family" in Hangzhou. At the meeting, Philips said: In the future, the prices of Philips lamps may be lower than those of Foshan Lighting and Mulinsen Lighting. When this topic came to an end, the lighting industry broke the pot and caused heated discussions: Some people said that it could be done and some people said it could not be done. Someone took BMW as an example. Someone took Procter & Gamble as an example...

Has Philips always been a “high price” to join the “industry price war”? How can Philips products be “affordable”? What are the advantages and disadvantages of Philips lighting to promote low-end products?...

Wang meters into a heated debate Philips take the low road risky <br> <br> Hangzhou Hongyan Electric President, in my opinion, in the current industry environment, a number of international brands such as Philips Lighting, also trapped in a vicious domestic market Competition, while constantly adjusting its own brand positioning, the overall sense to the industry is that product prices continue to decline, and constantly "Chinese-style."

In addition, considering that Philips Lighting has very good supplier resources in the Chinese market and its huge sales, it is entirely possible to achieve low prices. The question that arises is whether such Philips is the original Philips in the eyes of the general consumer users. Is it really true that rivers and lakes are rumored to be selling lighting business? The voices of various doubts have cropped up.

" Low-cost strategy" is counterproductive

Chen Yueming, general manager of strategic operations management of Shanghai Feile Audio Project, can judge from four directions: lighting industry development and lighting market direction: Version 1.0: Product + Sales; Version 2.0: Integration + Experience; Version 3.0: Capital + M&A; Version 4.0: Capital + Wisdom + Governance. In summary, from the 1.0-4.0 version is a large marketing process from the traditional manufacturing and marketing to smart lighting and capital operation of the Internet era, in the "Internet +", and "LED +" era, low prices, low cost is not A road to industry development and marketing!

Philips Lighting has lost its advantage in the current Chinese market. The so-called “capable of making lower costs” is a frustrating move. If this news is true, this is indeed a problem with the strategic ambiguity and positioning deviation of Philips Lighting in the Chinese market. .

As a vane of the lighting industry, Philips lighting's capabilities should not be reflected in the low-cost, low-cost market, but also in the product integration innovation and marketing model innovation efforts to lead the development of the lighting industry through nuclear power drive, Philips Lighting The management’s frustration is that it is far from the market and misjudgments of the market. The result of this is to lower the brand image of Philips Lighting, weakening its marketing capabilities and counterproductive!

"Low prices" or make Philips lose its competitiveness

CEO of Shanghai Topaz Lighting Co., Ltd. Yin Ye With the increasingly fierce competition in the domestic LED market, Philips’ original advantages in capital, technology, products, and production are gradually weakening, and Philips has its way to “price competition”. s reason. But I think that Philips' products are unlikely to be as cost-effective as Foshan Lighting and Mulinsen Lighting because Foshan Lighting and Mulinsen are all autonomous production, and they have minimized costs as much as possible through large-scale production. Philips does not have its own production, relying entirely on OEM, which is a short board.

From the perspective of market competition, international brands have the same cost performance as domestic brands. Philips' brand investment, marketing costs and production costs are all higher than domestic brands. What is the competitiveness of Philips?

This is a normal strategic adjustment of Philips

Guo Zhijun, director of Hangzhou Optoelectronics Customer Center, has a very strong competitive edge in the LED application market. The advantages of traditional lighting giants are not so obvious. If you don't put down your body, it is difficult to win the competition.

The fact that Philips has taken the "low-cost route" shows that it has already fully realized this point and made strategic adjustments. This is normal. It is not easy for Philips to claim that the lamp price can be lower than that of Mulinsen and Foshan Lighting, but since it is released, it must not be said casually.

Make a "low price " with "Philips features "

LED lighting people Tang Hao Ying I think, Philips Lighting Product Manager said in Hangzhou new product conference, "Philips may launch in the future than Foshan Lighting, Mulinsen lighting products more cost-effective products," This is not groundless. On how to occupy the Chinese market, Philips Lighting should have done enough homework. In 2014, the “Flying” series of all-glass tubes launched by Philips Lighting was just the first step in its overall strategy and was an initiative of “striking stone”. Since the first step of last year, Philips Lighting has analyzed data from a large number of market feedbacks, and made careful analysis and adjustments, thereby formulating the second step of its strategy – adopting “close combat” against the Chinese lighting market. Play, but the price of the product can not be too low.

In my opinion, Philips Lighting has already done a good job of seizing the resource allocation and strategic deployment of the Chinese market. It will not participate in the current "price war" in the industry, but will fight for the cost-effectiveness of products with "Philips characteristics."

Future of Philips lighting business may be more difficult

Dong Pei, Chairman of Shenzhen Feitai Technology, said that the issue of Philips' low-cost route is not complicated. First, the pattern of China's lighting industry has changed dramatically over the past 10 years, and Philips' position in the industry and brand Influences and other aspects have changed over ten years ago. Therefore, Philips' external claims that taking the "low-cost route" will not have much impact on the current LED market.

In my opinion, the low price is very easy to do with Philips, but if Philips relies on low prices for the market, then the company's future development prospects must not be optimistic. If Philips delivers its lighting products business to a professional OEM factory, its brand influence will ensure its market share.

In general, regardless of Philips' adjustments in product prices, its lighting business will be more difficult in the future.