Overcapacity in the lighting industry

The lighting industry has always been considered a high-profit industry, so more and more companies choose to cross-border development, and the lighting market is overcrowded. Moreover, due to the blind production of enterprises, the slowdown of industry development and the loss of rigid demand, the overcapacity phenomenon is highlighted. There are overcapacity problems in lighting companies. Now, the sales of lamps and lanterns are getting more and more intense, especially the group purchase promotion is even more popular. Whether it is a big or small festival or an anniversary celebration or even a day when the gossip can't be beaten, there will be group buying activities. Although these group buying activities have benefited consumers to a certain extent, they also showed the weakness of the current sales of lamps. The lighting industry has always attached importance to scale and sales, but neglected the core technology of products and the sales rate of lamps, which made most lighting companies have problems of high production capacity and large inventory. The new business model has become the mainstream of the lighting sales industry. At the beginning of the production of the lighting industry, the production capacity of the lighting companies is the key to their success. The higher the production capacity, the higher market share. After years of development, especially in the rise of e-commerce, the lighting market has changed consumers' long-term shopping habits. The new business model has become the mainstream of lighting sales, but the lighting is also due to the low threshold, so many SME owners are not aware of the changes in the industry, did not take the initiative to change the industry and business model. SMEs can't understand the final development direction of the industry, but large enterprises have been in the lighting industry for many years, and they have already felt a new round of lighting industry revolution. However, the ship is difficult to turn around. After the company is bigger, many models have been finalized. In order to maintain the stability and profitability of the enterprise, it is difficult for the business owner to show the courage of the strong man to take the initiative to seek reform, which eventually leads to a nausea cycle. The formation of the tail can not afford to fall. A slight overcapacity may increase the competitiveness of the company. However, if the gap between overcapacity is too large, it will drag down the enterprise step by step.

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