The "flock effect" of the lighting industry is rampant and self-help

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The LED industry is like a huge magnet that has attracted hundreds of billions of capital in just a few years. So far, more than 30 listed companies related to LED, such as Zhejiang Sunshine, Dehao Runda, Tsinghua Tongfang, NVC Lighting, Foshan Lighting, Guoxing Optoelectronics, Lehman Optoelectronics, Hongli Optoelectronics, Chau Ming Technology Shanghai Yaming and Sanan Optoelectronics. Even the just-concluded 16th Guangzhou Guangya Exhibition has become the world of LEDs. More than 1,400 LED companies, large and small, have appeared on the stage. The booming LED industry has undoubtedly brought a fresh vitality to the depressed lighting market this year. However, the herd effect of the LED industry has caused widespread concern among the industry. The so-called herding effect is also called herd mentality. It means that because the information is not fully understood, it is difficult for investors to make reasonable expectations about the future uncertainty of the market. It is often to extract information by observing the behavior of the surrounding people. In the continuous transmission of such information, many people The information will be roughly the same and reinforce each other, resulting in herd behavior. The herding effect is a nonlinear mechanism of collective irrational behavior caused by personal rational behavior. Everyone has a herd mentality. Once the herd mentality replaces the rigorous logical thinking, it leads to blind obedience and thus falls into a scam or fails. In fact, not only individuals, but as an organization, enterprises must also be wary of the negative impact that the herd effect may have on the survival and development of enterprises.
In the lighting industry, the phenomenon of herding is abound. For example, in the past few years, the industry leader Ou Pu Lighting held the same song in CCTV. After many lighting and lighting companies did not consider their comprehensive strength and actual needs, they rushed to show their faces on CCTV. The brand's brand name on CCTV goes to the dealers and consumers, and the actual effect of the advertisement itself is almost negligible; after the success of NVC Lighting in the invisible channel, many second- and third-line commercial lighting companies also Follow-up; Sanxiong Aurora pioneered the lighting industry's celebrity endorsement, the celebrity endorsement of the lighting and lighting industry quickly became popular. Although the herd effect is beneficial to SMEs to reduce decision-making risks, it is conducive to the market cultivation of emerging industries and new products, but it may bring The various hazards that come are not to be ignored. From the perspective of industry development, the herd effect will lead to a relative surplus of industry capacity, and the industry's profit margin will be seriously shrunk, thus destroying the ecological environment of the entire industry; from the perspective of enterprise development, the herd effect will lead to corporate strategy. The direction is lost, the products and marketing methods are seriously homogenized, and ultimately the company has to struggle in the Red Sea market.
All in all, whether in market positioning, competitive strategy, product innovation or branding, companies can only develop a development strategy that is in line with the objective reality of the enterprise after doing a good market research and feasibility study. Otherwise, blindly emulating, blindly blindly will inevitably fall into the misunderstanding of the herd effect, leading to the original intention of self-rescue and finally the consequences of the difficulties.

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