Channel blocked the end of the high-profit era of the lighting industry

Once the lamps were a highly profitable industry, if a lighting company had a profit margin of less than 10, it would be considered abnormal, especially in China. However, with the development of China's lighting industry, channel congestion, lighting profits began to decline. Faced with a micro-profit rate, it marks that the lighting industry is or has already bid farewell to the high-profit era. It is an indisputable fact that there is hardly any profit from the profit of lighting products that touches the ceiling and turns down. The lubricated slope phenomenon of the luminaire products is obvious. In the face of reporters' interviews, many people in the lighting industry (including business people and distributors) expressed this view in unison. As for when the luminaire profits began to show signs of landslides, there is no accurate point in time; the only certainty is that the luminaire profits have been in a downward channel for several years. The pressure has been clearly felt, especially in 2013, the profit margin of the company has been further compressed. The chairman of the Supervisory Committee of a certain lighting company and the director of the General Manager’s Office told the reporter. According to the opinions of many respondents, the lubricated slopes of the lamps and lanterns are mainly manifested in the market shrinking, which leads to the decrease in demand, the homogenization of products, the competition becoming hot, the manufacturing costs such as wages of workers are increasing sharply, and the price of products is difficult to rise. Under the combined effect of these factors, it is impossible for the lighting products to maintain the original high-profit model, which will inevitably lead to the current decline in profits. The more mature the market economy, the more participating manufacturers, the more intense the competition, the lower the profit rate and the more difficult it is to sell. A person in charge said this. The truth is actually very simple. A person in charge said this, the truth is actually very simple: profit = sales price - cost. The sales price of products is becoming more and more transparent, lower and lower, and the cost is increasing, so profits will inevitably decline. Analysis of the reasons. He pointed out that the cost of raw materials has increased rapidly in recent years, and many production companies have been hampered by upstream raw material enterprises. However, as the overall price of the raw material industry is rising, and the main raw material enterprises are basically monopolized, the selectivity is very small. Therefore, the lighting manufacturers can only accept the reality of rising raw materials prices. But compared with agents, companies, especially large ones, have become the biggest victims of this round of lubrication. At the same time as the cost increases, the sales price of the company (ie, the price of the wholesale agent) has not increased. He said that the current market competition is very fierce. Because of the high cost increase of large manufacturers, the wholesale price cannot be lowered. The increase of wholesale prices risks the loss of agents. Therefore, large manufacturers are now in a dilemma. No big fuss. Who is pushing the lighting company to such a situation today, is it due to the economic situation of the industry, or is it the enterprise itself? For this problem, more people tend to blame the inevitable development of the industry. Wang Yiming believes that the main reasons leading to the decline in the profit of today's lamps include the long-term high operating costs of raw materials, the rapid growth of labor costs, the disorderly competition in the lighting market, and the excessive homogenization competition. In addition, the global economy is weak and the national macro-control has Must be related. Any kind of industry development will experience a peak profit period. As an industry, lighting has entered this period and will enter a reasonable period of profit. This should be in line with industry trends and benefit the healthy development of the industry. A manager said this. Another person in charge said that there is no big surprise in Liluo Slope. It is not normal for the lighting industry to maintain a lucrative profit. Only the immature industry will maintain a long-term profit margin. But he also pointed out that the core of the problem lies not in the industry or the market environment, but in the enterprise: What is the key issue that causes the lubrication slope, is the market demand insufficient, or the competitiveness of the enterprise decline, or the business operation deviates from the market? Yang Haibo pointed out that as far as the current situation is concerned, China is in the period of urban construction and development, coupled with urbanization construction, there is no problem with market demand. Obviously, the problem is not in the market, in the enterprise. In the face of falling profits and lucrative slopes, enterprises should find reasons from themselves. If they don’t move, they will use the industry’s sluggishness and market competition to be too fierce. Since the decline in lighting profits has become an indisputable fact, how can we protect our profits in the period of profit margins for lighting companies? Where is the future way out?

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