Facing three major challenges, how should LED lighting companies respond?
In March of this year, many lighting companies reported that the results of the dealer meeting were not good. The low season that only came in June of the previous year has already felt the chill in April this year. Inferring from this, there may be six months of cold business in 2018. At present, lighting companies face three major challenges:
First of all, channel differentiation.
In the past, dealer channels accounted for 80%, Guzhen retail accounted for 10%, and designer engineering channels accounted for 10%. Most companies rely on the ancient town lighting industry cluster effect and survive and develop through dealer procurement.
Nowadays, the channels are severely divided: Guzhen retail accounts for 15%, the Internet accounts for 10%, the hardcover channel accounts for 10%, the designer engineering channel accounts for 15%, and the dealer channel has dropped to 50%. This means that the number of dealers Without a reduction, the market share has been eroded by 30%.
It is estimated that in 2020, Guzhen retail will account for 20%, hardcovered houses will account for 30% (the national policy is 40%), designer engineering channels will account for 20%, Internet channels will account for 10%, and dealer channels will be compressed to 20%, a cliff-like decline in market share will cause a large number of dealers to close down, and the national lighting market may face severe challenges.
Secondly, "factory purchases" intercept consumers.
NVC Lighting, Op Lighting and other brands “factory purchases” are launched in major cities across the country, attracting thousands of local families to purchase, and the exhibition hall is crowded with people, but the local lighting market is very busy, and the traffic of lighting specialty stores has dropped sharply.
Again, there is no bottom line for the price of "three nos" for corporate garbage lamps.
Guzhen Railway Station and various lamp distribution cities are full of inferior lighting products, and the price is so low that you doubt your life. Take crystal lamps as an example. Before 2012, a set of 8 chandelier cost 3,600 yuan. In 2013, the "price war" hit 1,700 yuan. In 2017, labor and raw materials increased by 50% compared with 2013, but the price was reduced to 1,000. Yuan. The unlicensed and unlicensed factories even achieved 200 yuan per cup.
Companies that have a bottom line and abide by the rules are struggling to survive. Even if they speak dryly, it is difficult to persuade dealers to purchase high-quality products. Finally, they have to drive the customers to the garbage lamp factory to order, cash transactions, and queue up. goods. Naked "bad money drives out good money"!
Faced with the “three challenges”, how should we deal with it?
We must first discover and stick to our core competitiveness. R&D design, manufacturing, sales promotion, service brand …… must be clear and focus on the company's strongest competitive advantage to break the situation!
Secondly, it is necessary to strengthen brand building and create an omni-channel sales model. At present, the lighting industry generally adopts sales channels based on distributors. The loyalty of distributors and product promotion rate determine the product sales and market share of lighting companies.
In terms of distributor channels, either the company must be an omni-channel company, or it must select high-quality distributors to cultivate and upgrade, and make it a regional omni-channel specialty store.
The channel of hardcover houses has risen rapidly, but the settlement method is basically every six months or once a year, which discourages companies. The financial pressure can be relieved by integrating financial platforms or co-branded enterprises and jointly resist risks.
It is necessary to maintain a keen perception and ability to predict the economic situation and industry situation. The biggest cost of an enterprise is the decision-making cost of the boss, and the boss's judgment on the future trend determines the direction and ultimate fate of the enterprise!
We must be good at integrating the resources of the industrial chain for development. The industry reshuffle has reached a key node. The lighting industry urgently needs to integrate and open up all links in the industry chain, optimize the integration of small and scattered lighting markets and distributors, and jointly build an industrial platform similar to Jiaranzhijia and Red Star Macalline. Materials, buy products, sell designs, sell scenes, sell brands. (Source: Guzhen Lighting News)
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