When the company first stepped into e-commerce, the performance was pretty normal. After professional training and learning, the company marched into e-commerce field again. In 2015 the company reached a sales volume of over a 100 million and made great success.
It was pretty inspiring but only in half year in 2016 the inspiring story was turned into an accident. It has also exposed the helpless status behind every glory story of LED Lighting company. “Although developed fast, the company really didn’t earn much revenue, and it was always in the red.”
The bankruptcy of this led high bay lighting company is definitely no exception. Almost all companies in the LED Lights industry are undergoing helpless status behind seemingly beautiful sales performance. Behind fast expanding there is only worries and confusion.
The strategy of this LED lighting company is to win the market with low prices and then expand. However, with operation cost of e-commerce as high as 40%, the company has accumulated too much lose and risks. Finally thelamps suppliers sued it for too many payments delayed which lead to its bankruptcy.