Philips has turned over low-cost bombing. What are the interests of SMEs?

It is understood that Philips recently requested ODMs/OEMs (original designer manufacturer/original equipment manufacturer) in mainland China and Taiwan to reduce the LED bulb ex-factory price by US$0.8 in 2016. At present, the ex-factory price of cheap, simple-design LED bulbs introduced in the second half of 2015 has dropped to the lowest level of $1 to $1.2. It is not easy to reduce the price to $0.8 by simply reducing the cost of LED chips and packaging.

Since the beginning of this year, the global LED product price war has risen to another stage, and the lighting giants have shown the low price temptation. In particular, Philips Lighting, a step-by-step low-cost layout strategy, confuses fans, brand benefits are increasingly emerging, taking the lead in building a fortress in the low-cost market.

After a few years of price wars, the price of LED products in the 60W replacement category has dropped to about $10, and the price of LED light bulbs with the warmth of the dimming function released by Philips in March this year Also only $9.97. The brightness can be controlled by the dimmer switch, and the color temperature is also reduced from a pale yellow 2,700K to a red-orange hue, similar to the sunset light drop. The same price of OSRAM and Cree’s similar products can not provide this “light characteristics.”

In April, Philips released a big move to celebrate World Earth Day, launching the cheapest 60W LED light bulb set &mdash on the market; two $4.97 prices for up to three months. It is reported that Philips’ price cuts are mainly to clear the inventory, and then will restore the price of $ 5 each. The industry believes that Philips will fold out the old stocks in the same time. Although there will be short-term price interference, the recovery of one US$5 will have an indicator significance. Since the price has approached the energy-saving lamps, the service life is longer and will be able to Helps attract consumer purchases to turn to LED bulbs.

Following the low-cost war in the North American market, after the first shot was sharply cut off, Philips went to Asia to ignite. From August 12th, Philips launched a 75W color temperature control system in the whole station of Tellus House; Hengyu LED ceiling lamp 9999 yuan (original price 11900 yuan) discount program; August 20, pure light LED bulb 6.5W price Kill more than 30% off, from the original price of 249 yuan to 169 yuan.

On August 28th, in order to increase the market share of Philips LED desk lamps in the Taiwan market, Philips further launched the low-cost model. The retail price of different types of LED desk lamps was NT$2,499 (approximately US$76.90). ), NT$1,500, and NT$1,499 were reduced to NT$999, NT$899 and NT$799. Philips said it expects sales to reach 400,000 to 500,000, and market share will rise from the current 30% to 35% to 40%.

On the other hand, Philips Electronics (Thailand) also announced an integrated marketing campaign: customers will receive a 20% discount on every LED bulb purchased, and the event will continue throughout September. The campaign aims to encourage consumers to make changes through some integrated marketing communications activities. Inform consumers of the advantages of using LED lighting through television broadcasts, print ads, internet marketing and roadshows in 16 provinces across the country.

In addition to the basic lighting, Philips launched a new member of the Hue smart light bulb family on August 26 ——Hue Wireless Dimming<;light bulb + remote control set also went on the low-cost route, priced at 39.95 US dollars. The biggest benefit of this product is that it is cheap enough and can be used directly, instead of having to use a Hub like a regular Hue smart light bulb. The new bulb has a brightness of 800 lumens at 2700K of soft white light and has a lifetime of approximately 25,000 hours.

Since Philips is a major LED lighting manufacturer, its series of price-cutting promotions attracts attention from the global market. Philips’ comprehensive low-cost layout helps stimulate the penetration of LED lighting, but its fierce competition will also squeeze the survival space of second-tier manufacturers. Some SMEs say, “even the international giants like Philips are pushing down prices. What are the benefits for SMEs?

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