Dual-Brand Strategy may be the Key to Expand the Market Share of LED Lighting in the Era of Price Competition

LED lighting industry has been in a Golden Era in recent years as the global lighting companies have poured in the ranks of LED lighting to seek a good fortune. However, opportunities always coexist with challenges: The competition of LED lighting industry is increasingly fierce, and most companies are at a loss when it comes to price competition.

Some overseas clients hope to enter the high-end market to get better profits, but failed in the end due to the weakness of brand influence. One trader from South America is facing with the dilemma. At the 2017 Spring Canton Fair, this client had a chance to get in touch with WELLMAX. After learning the problem, WELLMAX’s sales made a preliminary plan for the client, which is joining the WELLMAX Global Distributor Program (GDP) and carrying out the dual-brand operational mode of "Private brand + WELLMAX".

Dual-brand operation is a plan that the client never thought of. After 2 days of consideration, he came to WELLMAX’s headquarter in Shanghai and discussed in details with WELLMAX’s sales leader. Then, the client decided to adopt this dual-brand plan. His private brand will continue to follow the economical line, while WELLMAX brand takes the middle-and-high-end line. Two brands operate together to meet different customers’ needs.

The private brand takes the economical line to consolidate the existing market share

This client’s business is currently prosperous in the market of South America. The market has a strict certification standard for imported products and has been dominated by international brands like Philips and Osram. In such circumstance, the client’s brand has no advantage in the competition.

Being WELLMAX’s authorized distributor, the client’s overall marketing strategy becomes very clear. He targeted his existing brand on the middle-and-low-end market to attract the price-sensitive customers. At the same time, he expanded the middle-and-low-end market share by means of forming a competitive separation contributed by differentiated products with other general brands.

WELLMAX brand takes the high-end line to compete with Philips and Osram

When it comes to how to enter the high-end market, the client was exited to say, “Because my own brand has always taken a low-end line before, it just cannot receive customer’s recognition no matter how hard I try. WELLMAX’s Ballet series and iDREAM series products are very popular in our market for their high quality and unique design. The company makes me make a hit among high-end customers. I really thank WELLMAX!"

WELLMAX always provides customers with differentiated and competitive products. With 31-years development, the company has built a mature quality management system, which ensures a high-level quality to meet the needs of high-end market. In addition, WELLMAX has established strategic partner with SAMSUNG, and awarded with “Annual Most Valuable Partner” by SAMSUNG in 2017 and 2018. The mutual cooperation of the two companies has strengthened the brand image of each other, making WELLMAX more powerful to compete with the client’s local top brands.


(Image: WELLMAX)

Two brands work together to gain greater market share

This client continuously expands its market share through the dual-brand strategy operation. In terms of market layout, it not only maintains the existing market share, but also actively extends to the middle -and-high-end market with higher profit levels. The company takes advantage of what they have been achieved by its private brand to build a foundation for expanding into the high-end market.


Choice is more important than efforts, and direction determines the destination. Risks and opportunities are common at all time. In fact, for many foreign companies, it is difficult to have the opportunity to obtain advantage of market competition when falling into price wars. Therefore, choosing a reputed brand to be its authorized distributor to gain customer recognition in high-end market, and satisfying demands of different markets with dual-brand plan might be an easy, simple and most profitable way. It can be the key to gain greater market share for many LED companies in the era of price competition.

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

TSLC Corporation, a subsidiary of SemiLEDs, launched sampling of its tri-color Mini LED series, targeted to provide LED display manufacturers with surface-mounting (SMT) compatible devices. The first product in the tri-color multi pixel series... READ MORE

The German chemistry giant BASF has revealed its development of dark automotive paint colors that are reflective to LiDAR for enhancing the detecting function of autonomous cars. LiDAR plays a critical role to the development of autonomous veh... READ MORE