LED store "suspended drama": LED lighting field encounters soil and water

[Source: "High-tech LED-lighting market" October issue Xiong Yuheng]

In 2012, 3/4 has been completed, and the end of the world in the Mayan prophecy has gradually drifted away. However, the LED industry in full swing has really made the end of many enterprises. The collapse of a number of enterprises, such as Yan Duoli, Vision Guang, and Andi Optoelectronics, has become a victim of the reshuffle of the LED industry.

In the past, LED companies only focused on the mid-upstream industry, focusing on how to do large-scale, but not only concerned about the terminal market. Because the lighting market cake is big enough, everyone is not selling at all. I believe that many domestic companies that entered the LED field are still immersed in the good memories of "changing a backpack with a lamp for a Hong Kong dollar."

Today, the market is changing quietly.

The efficiency of our upstream chips has increased, the price has dropped, and the government's favorable policies have been introduced. The LED lighting that has been favored by thousands of people has become more and more invented. Surprisingly, however, our performance is declining and profits are being squeezed. At the same time, a large backlog of product inventory, delays can not be realized, the company can not hold.

How to open up product sales channels and reduce inventory pressure? The construction of terminal channels has been put on the agenda. As one of the important modes of the terminal channel, the construction of LED brand stores is also one after another. As we all know, specialty stores play a vital role in shaping the brand image and increasing product sales. At the same time, the store also bears the responsibility of product after-sales service, and the rapid and perfect after-sales service will greatly enhance the corporate brand image and market satisfaction.

However, as most LED lighting companies are currently constrained by factors such as single product line, lack of brand, and shortage of funds, the construction of specialty stores has always been thunderous and rainy. At present, in the LED lighting terminal market, the professional business of LED products is very popular. The construction of a specialty store is like a tasteless taste, and it is a pity that the meat bones are abandoned, which makes the enterprise into a dilemma.

Old-fashioned traditional lighting companies such as Sunshine, NVC, Sanxiong Aurora, and Op, are brand-name influences from their thousands of specialty stores. However, in the field of traditional lighting, the store model that has been used by everyone is in full swing. In the field of LED lighting, it has encountered unacceptable conditions and is in a state of embarrassment.

Gaogong LED reporters learned through the lighting market in Beijing, Nanjing, Chengdu, Shenzhen and other places. At present, LED stores are relatively small in terms of brand and quantity, only a few such as Leike and Qiyi. .

Brand agency is very difficult

The brand agency model is one of the most common and practical ways for specialty stores. Enterprises set up provincial-level agents, such as the 36 operation centers set up by NVC in the country. Distributors at all levels directly find provincial agents to get goods, and then transfer hands to the owners or ordinary consumers. This way can reduce the cost pressure of enterprises in the construction of terminal channels, and agents and distributors can also make profits in low buy and high sell.

At present, LED lighting companies use more brand-agent models, but compared with traditional lighting, they show obvious acclimatization. The reason is that LED lighting started late, and there is no influential brand in China. Zhou Shuiming, general manager of Jiamei Lighting Marketing Center, believes: "The brand is the embodiment of the market competitiveness of the enterprise, but it is the most lacking thing in the LED industry. The premise of developing the brand agency model can only be to establish the brand first."

At the same time, in recent years, the price war of LED lighting products has been on the rise, and it has become the norm to sit down. Since the beginning of this year, Ms. Linsen, Changfang Lighting and other LED lighting companies with a certain scale have already lowered their prices to over 50% in the same period of last year through two large price adjustments. Some dealers said frankly: "Prices continue to decline rapidly, dealers simply do not dare to pick up the goods, and zero stocks are lagging behind the immediate needs of consumers."

In this regard, recently, Leike Lighting has introduced a policy of subsidy for price subsidies to stabilize the dealer's military. That is, the dealer from the date of picking up the goods to the date of product sales, the price difference between them is all undertaken by Lake Lighting.

Direct store model, corporate pressure

The direct store model can abandon the agent and dealer links, and the company is more proactive and flexible in terms of product price control, operation management, and circulation costs. “The mode of direct-operated stores can provide enterprises with more profitable space.” But Li Shijin, general manager of Chongqing City Outer City Lighting City stressed that although the follow-up can reduce the operating costs of enterprises, the huge investment in the early stage is for the current LEDs. For lighting companies, it is somewhat unaffordable.

Liu Shiquan, general manager of Jinglade Lighting, once calculated the account for the reporter: "If you count the rent of the shop, the cost of decoration, the cost of labor, etc., the cost of each directly operated store should be more than 200,000. If you open 10, it is 2 million. Yuan. 2 million yuan for most domestic LED SMEs, almost equivalent to the full year net profit."

The Pengshi Optoelectronics Wang Peng bluntly said that it was not the time for the company to open a direct sales store. “Compared with the small profits of opening a direct sales store, or even a loss, the company is more keen to invest the operating capital of the direct store in the project, so as to obtain greater profits.”

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