LED enterprises gradually into the Red Sea dilemma?

LED industry is like a giant magnet, in just a few years has attracted hundreds of billions of capital. So far, LED associated with the listed company has more than 30, such as the Zhejiang sun, Elec-Tech, Tsinghua Tongfang, NVC, FSL, nationstar, Lehman photoelectric, honglitronic, Chau Ming technology, Shanghai Benjamin and Sanan optoelectronics etc.. The booming development of the LED industry will undoubtedly bring a new vitality to the lighting market in the doldrums this year. However, the LED industry herd mentality has aroused widespread concern in the industry.

Group psychology It is due to insufficient understanding of information, it is hard for investors to make reasonable expectations of future market uncertainty, is to extract information by observing the behavior of those around, in which information is continuously passed, many people will be roughly the same information and strengthen each other, resulting in the herd behavior. "Herd mentality" is a nonlinear mechanism of collective irrational behavior caused by individual rational behavior. Everyone has the herd mentality, once the herd mentality instead of the strict logical thinking, it will lead to blind obedience, thus into a scam or failure. In fact, not only the individual, the enterprise as an organization, but also must guard against the "herd effect" on the survival and development of enterprises may have a negative impact.

In the lighting industry, herd mentality phenomenon abound. For example, a few years ago, OPPLE lighting industry leader in "the same song" in the CCTV shine, many lighting companies do not have to consider their own comprehensive strength and actual demand, will be competing in the face of CCTV, the results, in addition to take a "CCTV brand list" signs to flicker of dealers and consumers, the actual effect the ad itself is almost negligible; NVC through the title lighting design competition in the contact channel after the success of many two or three commercial lighting companies have followed suit; three-dimensional · create Aurora lighting industry star endorsement precedent, lighting industry star endorsement soon become......

Although herd mentality is conducive to small and medium enterprises to reduce the risk of decision-making, is conducive to the development of new industries and new products market,...... But it may bring a variety of hazards can not be ignored. From the perspective of the development of the industry, "herding" will lead to the relative excess industry capacity, industry profit margins shrink seriously, the ecological environment to destroy the entire industry; enterprises from the point of view of development, "conformity" will lead to the strategic direction of the business and marketing means lost, product homogeneity serious, enterprises have to end "the Red Sea" struggling in the market.

In a word, whether in the market positioning, competitive strategy, or in product innovation or brand building, only the enterprise in good market research and feasibility studies, to formulate development strategy in line with the objective reality. Otherwise, blindly imitate blindly follow, will inevitably fall into the misunderstanding of "herding", leading to "save" the original intention of the last return "trapped" consequences.