According to Changfang Lighting, in order to consolidate and expand its market share, the company adopted an active price reduction strategy, which led to a decline in product gross margin. At the same time, the company implements a multi-brand marketing strategy. As it is currently in the expansion period, the cost investment is higher than the same period of last year. Therefore, the sales expenses have increased significantly, and the company's net profit has decreased.
In the future, Changfang Lighting will face the following risks: 1. The industry standard system is not yet sound. The unsound quality of the industry standards has led to a wide variety of products from various manufacturers, product specifications are not standardized, and product quality evaluation lacks basis. The relatively disorderly competition in the market will not be conducive to the healthy development of the LED industry, thus indirectly bringing a certain degree to the management of the long-party lighting. Negative Effects.
2. The risk of product price decline. With the gradual popularization of LED application products, market demand is growing rapidly, while upstream epitaxial wafers and chip manufacturers continue to expand production capacity while technological advancement, and the decline in major raw material costs provides space for LED package and application product price reduction, future products. Prices will generally show a downward trend.
3. The risk of the implementation of the market development plan is blocked. Changfang Lighting plans to invest more resources in the construction of branches, the expansion of marketing channels, the promotion of brands, and the enrichment of marketing teams. If it fails to further consolidate and improve the existing marketing network as planned, and increase market development efforts, the company will face the risk of missing development opportunities due to the implementation of market development plans.
4. The risk of technical upgrading. The LED industry is a typical technology and knowledge-intensive industry. In recent years, the industry's technology level has been rapidly improved and technological innovation is active. If the company cannot keep up with the development trend of new technologies at home and abroad due to insufficient investment and other factors, and continue to realize the upgrading of technology and products, it will face the risk of weakening technology or replacing technology, thus making the performance and product competitiveness of Changfang Lighting Have a negative impact.
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