Thinking after Double Eleven Carnival: Current Status of LED Lighting E-commerce
2015 Tmall Double Eleven came to a perfect conclusion. As of 24:00 on November 11, 2015, the total sales transaction value of Tmall Double Eleven Global Carnival was 91.217 billion yuan, of which the wireless transaction volume was 62.6 billion yuan. It accounts for 68.67%. According to the 2015 Double Eleven sales data analysis, the top five regions for online shopping consumption are Guangdong, Zhejiang, Jiangsu, Shanghai, and Beijing.
Outbreak of strong domestic demand
This year's Double Eleven set a new record of multiple transactions at the beginning of the first day of the year. In just 12 minutes and 28 seconds, the transaction volume exceeded 10 billion yuan. In 7 hours, 45 minutes and 42 seconds, the transaction volume exceeded 41.7 billion yuan, exceeding the total amount of online transactions in the 2014 Thanksgiving shopping season in the United States. At 11:50, Tmall's transaction volume exceeded 57.1 billion, breaking the record for the entire day of Double Eleven in 2014. The total sales transaction value of Tmall Double Eleven Global Carnival was 91.217 billion yuan, of which the wireless transaction value was 62.6 billion yuan, and the wireless terminal accounted for 68.67%.
Jack Ma, chairman of Alibaba's board of directors, said that Double Eleven is not only a feast for e-commerce, but also a carnival for entities in the real economy. Double Eleven cannot represent the entire Chinese economy, but only shows one point of China's strong domestic demand. Ali hopes to hold Double Eleven for 100 years, which will last longer than Ali. We will do 100 years on Double Eleven, and we still have 93 years to do. This is just the beginning.
Online brands are declining, and traditional brands are rising
Returning to the industry, data from the Data Cube shows that in the ranking of major household building materials brands, they are Joumu, Op, Op, Wrigley, NVC, TOTO, Kohler, Panasonic, Philips, Moen , Odor, Kabe, Cai Dao, Bell, Dongpeng, Faenza, etc. Among them, there are five lighting brands: Op, NVC, Panasonic, Philips, and Ao Duo. It is not difficult to see that lighting has a place on Tmall Taobao.
In the lighting category, the top ten are Op, NVC, Philips, Odor, Panasonic, Moonshadow Kaidon, Shiyuan, Ocellos, POK Pinyi, and designer lamps. There are 4 traditional brands and 6 online brands.
In terms of light sources, the top ten sales on Double Eleven were Op, Philips, NVC, Sanxiong Aurora, Midea, Adelaide, Canmeijia, Foshan Lighting, LED, and Delixi. Among them, there are 7 traditional brands and 3 online brands.
In terms of sales, whether it is lamps or light sources, traditional brands dominate the top five, especially the light source category. It is not difficult to see that relying on strong offline resources and brand appeal, traditional brands can be said to have become more and more courageous in the field of e-commerce. Take OP Lighting as an example. Since its participation in Double Eleven in 2011, its sales have increased from 3 million, to 16 million in 2012, 60 million in 2013, 94 million in 2014, and 120 million in 2015. Climbing.
The cost is heavy, and the pure e-commerce brand is no longer successful
It is not difficult to see that online brands are no longer in the sales ranking. Looking back on the past, online brands once became the target of Tmall’s vigorous efforts. The low cost of acquisition cost and the support of preferential policies have allowed many online brands to rise and grow, such as Odor, Hanyuan, Othello, etc., even more so. Once occupied the top of the sales list. However, with the expansion of Tmall Taobao, the entry of traditional brands, and the addition of new brands, the operating costs of online brands continue to accumulate, and their operating costs even exceed offline operating costs.
Taking Tmall as an example, the cost of e-commerce sales of lighting products has reached as high as 35%, including: logistics 2%, packaging 2%, after-sales 1%, promotion 10%, staff salary and management expenses 10 %, Tmall commission 5.5%, tax 5%; and the sales cost of lighting products e-commerce is as high as 40%, of which: logistics 7%, packaging 2%, after-sales 1%, promotion 10%, staff salary and management costs 10 %, the Tmall commission is 5.5%, and the tax is 5%; if it is on the JD platform, the SOP commission is 8%, and the lighting and lighting sales costs are 37.5% and 42.5% respectively. The final profit point is about 5%-10%. It is not difficult to see that the survival of online brands is worrying.
Throughout the lighting industry“Double Eleven”, including Philips, Osram, NVC, Oppo and other major brands have participated in the competition, and at the same time, Zhouming Hanyuan, Ao Duo, POK Pin No. 1 Taobao brands Also participated in the war strongly, it can be said that the commercial war is filled with smoke. There are three types of companies participating in the lighting industry. One is pure e-commerce brands without factories; the other is brands that place equal emphasis on traditional channels and e-commerce; and the other is brands that own factories and only do e-commerce. From the rankings, it can be found that with the increase in operating costs, it has become increasingly difficult for online brands to rely solely on online marketing due to lack of channel resources and supply chain support.
Industry brands set off a “electric shock” wave
At present, brand companies in the industry have successively established e-commerce channels. As small as two or three people "millet and rifle" together, as large as the establishment of a business unit "tank and air force" collaborative operations, e-commerce has become An essential channel. In terms of traditional brands, Op Lighting held high home lighting products on Tmall, winning the "three consecutive championships"; in addition to entering Tmall, NVC also took advantage of O2O to integrate channel resources; in addition, Sanxiong Aurora, Sunlight, Hongyan Electric, Chint and others have opened their own flagship stores on Tmall and JD.com. In terms of new brands, Unilumin Technology has invested in Hanyuan since August 2013 and established a subsidiary to fully promote the O2O model in the LED lighting industry. In addition, brands such as Kingsun Optoelectronics and Tongfang Lighting Other e-commerce platforms have opened online flagship stores and achieved good results.
According to industry insiders, from the start of the grocery market, Taobao sellers have roughly gone through four stages of fission: The first stage is to foster large sellers in the market and let a group of sellers with sales advantages quickly Growing up; in the second stage, brand awareness began to emerge, and the Tao brand became a benchmark; in the third stage, the brand strategy was deepened, Tmall became independent, and traditional brands began to conquer the city. Starting in 2012, Taobao sellers began to enter the fourth stage. At this time, the O2O concept is hot, and Tmall’s policy is to support offline traditional brands. Traditional brands such as Philips, Op, Panasonic, and NVC are emerging strongly in the field of e-commerce. The way of competition has been upgraded from the original research algorithm and technical factors of user behavior to the competition between brands. In this context, some of the original Amoy brands' market share was severely squeezed, and the industry spread to competition between brands.
Online “dancing sword”, meaning offline
As e-commerce has become the general trend, major manufacturers have slowly moved from repelling to accepting e-commerce. At the same time, online and offline have gradually merged. In addition to the entry of major brand manufacturers, offline distributors have also participated.
NVC Lighting E-commerce Department Pan Zhihui said that in this battle, NVC distributors have played an important role, they have brought more than 60% of the turnover. On Taobao, NVC has more than 60 franchised stores, and among them, more than 5 have a turnover of over one million. On the contrary, NVC flagship online store only accounts for about 30% of total sales. Such "brand grouping" will eliminate the phenomenon of "grabbing cakes online and offline", and protect the interests of distributors to the greatest extent.
In addition, Ding Long, CEO of Op Lighting China, has publicly stated on the topic of e-commerce that Op is the most profitable offline channel. In 2014, Op’s total revenue was 4 billion yuan, and e-commerce only accounted for a large Small part. E-commerce is actually advertising. One function of the O2O model is to convert online and offline price conflicts into interest binding, which requires the joint investment of manufacturers to achieve a win-win situation.
After the Double Eleven Data Carnival, you should calm down and think about the company's own positioning. Some online brands are doing well, and traditional brands are also doing poorly. Slow walking is not necessarily a bad thing. More important companies can settle themselves in an impetuous atmosphere, keep innovating, and do things that are more valuable to society.
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