With the technological advancement of CO2 and its popularization in daily life, more and more laser brands are competing in the market, and the performance of products is becoming more and more homogeneous. Cannibalized by competitors, price reductions have become the main method for companies to deal with such situations. 

However, this kind of meat cutting to satisfy hunger is not the solution to the problem. with the price competition among cutting equipment manufacturers, it will soon affect the upper reaches of the laser industry, and price change has become very frequent. For the current chaos in the laser cutting market, we have summarized the following factor.

First; laser-cutting technology has been matured

Laser equipment manufacturing companies continue to recruit technical talents and increase R&D capabilities. Many laser companies quickly set up R&D, manufacturing, and marketing platforms in domestic and overseas markets, to improve their global business layout, entered the most core areas of the industry and increased the influence of their brands worldwide comprehensively. For the small, high-power, and intelligent laser products, Chinese technology has been approaching some overseas developed technologies, in some areas, it is even ahead of foreign countries. Although the development of laser-cutting technology in Chinese enterprises is not very long, in just a few years, they have broken through many bottlenecks in laser-cutting technology and broken the monopoly situation of foreign countries. 

Second: Regional industrial competition

Regional industry competition concentrated laser industrial parks have been formed in various places, and local policies are inclined to implement various subsidy measures, such as land acquisition for expansion and factory construction, financial loans, tax relief, marketing subsidies, patent subsidies, etc. It makes companies that have received subsidies sound the call to reduce prices, which will inevitably lead to competition among the industrial groups.

Third: More companies are blindly participating

the competition in the industry is becoming increasingly fierce as the laser industry is developing rapidly. The brands are also quite a mixed bag, with nearly thousands of large and small brands. A family workshop can assemble a large-scale 10,000-watt laser cutting equipment and then apply for a trademark, become a so called "brand", with other countless assembly retail customers in the industrial distribution center. In order to sell quickly and reduce inventory pressure, price reduction is the most powerful means. And they are not able to display products at the exhibition, so they directly attract customers at the booths of other participating brands. With the same configuration and half the price, who would not be tempted? As a result, good and bad products,sell seconds at best quality prices, and it is not uncommon to see scenes of sales but no after-sales.

Fourth: Not developing products that fit the market

Some laser manufacturers saw that a certain machine was selling well in other, so they flocked to counterfeit it. In the end, it was found that it was not suitable for the market demand. In order to recover the loss, the only way to stop the loss was to cut the price crazily! If an enterprise brand wants to be competitive, it must be clear that laser cutting technical parameters, power, configuration, etc. are only part of the criteria for measuring products. But sales, and after-sales service are the full reflection of a brand value. The laser cutting machine that suits the user is the best cutting machine. Lots of unrealistic functions will only increase the operating cost and after-sales cost of the enterprise, and bring unpleasant experience to users, which is quite unwise.

Fifth: No long-term development plan for the product

The cutting machine that suits the user is the best cutting machine. But many companies add a lot of unrealistic functions to their products in order to increase the competitiveness of their products, but they don't know that it will only increase the cost of operation and after-sales costs of the company, and bring unpleasant experience to customers. It is quite waste. So before developing a product, you must have a clear positioning: Who am I? Who do I sell to? And what they really want from your laser product.

Sixth: Over-pursue sales and market, and manipulated by the capital. 

To be able to raise funds for listing, or for companies that have already been listed, to make the company's marketing data look good and provide confidence to shareholders and investors, the company's marketing data must be good-looking, they are forced to compete for the price. put the company situation into a miserable place, and also drag upstream and downstream companies into the war. 

Some thoughts:

How to break the game? 

This kind of chaos can be calmed down soon, as it is happening in all different industries. Competition is inevitable as long as market demand exists. 

We believe that through the adjustment of the following aspects, the laser industry will soon have a greater and more healthy development:

Local policy adjustment. local industry associations formulate standards; stabilize the upstream industry companies, clear the middle industry companies, and expand the downstream industry companies. I believe that with the changes in market demand, the industry will usher in a major reshuffle. Some opportunistic enterprises will soon be eliminated, and the only ones left are enterprises that follow market rules, and make products that serve users with heart and earnest attitude.