Excessive overcapacity in lighting companies

The lighting industry has always been regarded as a highly profitable industry. Therefore, more and more companies have chosen to cross-border development. At one time, the lighting market is full of people. Due to the blind production of enterprises, the slowdown of industry development and the loss of rigid demand, the phenomenon of overcapacity has become prominent.

Lighting companies have problems with excess capacity

Now, the promotion of lamps and lanterns has become increasingly fierce. In particular, group purchase promotion is even more arduous. There will be group buying activities in large or small festivals or anniversary celebrations, or even in the days when the eight-month-old will not be able to win. Although these group purchase activities benefit consumers to a certain extent, they also show the weak sales status of lamps and lanterns from the side. The lighting industry has always attached importance to the scale and sales, while ignoring the core technology of the products and the selling rate of the lamps, the majority of lighting companies have the problems of overcapacity and large inventory.

Excessive overcapacity in lighting companies

New business model has become the mainstream of lighting sales

At the beginning of the lighting industry, it was influenced by the shopping malls. How much production capacity a lighting company can have is the key to its success. Higher production capacity means that you have a higher market share. After years of development, the lighting market, especially the rise of e-commerce, has changed the long-term shopping habits of consumers. The new business model has become the mainstream of lighting sales, but because of the low threshold of lighting fixtures, many SME owners do not realize the changes in the industry and do not take the initiative to change the mode of industry and business.

Small and medium-sized enterprises cannot understand the final development direction of the industry, but large-scale enterprises have been relocating in the lighting industry for many years and have long felt sensitive to feel a new round of lighting industry revolution. However, after the company became bigger, many models have been established. In order to maintain the stability and profitability of the company, it is very difficult for business owners to show their courage to take the initiative to seek reforms, and eventually cause a nausea cycle. Form a tail can not afford to lose momentum.

Minor overcapacity may increase the competitiveness of enterprises. However, if the excess capacity gap is too large, companies will be dragged down step by step.