[Source: "High-tech LED-lighting market" July issue / Zhou Jianhua]
Compared with the mergers and acquisitions of foreign consortia and lighting giants, many of them are in the second and third tiers. Companies involved in or specializing in LED applications have begun to do “subtractionâ€, including slowing down the pace of establishing distribution channels with their own brands. The product line focuses on the promotion of several classic series, and retreats behind the scenes to be a supplier of “marriage clothing†for more mature application brands. Although the subtraction shows a lot of helplessness, more reflects that the original mind is overheated, and the application enterprises that attempt to seize the LED resources through “big and complete†began to return to rationality, and gradually found an accurate positioning in line with their own development stage.
Dealer's double fog
"There is a double fog now, so that the strength of the business does not dare to push which LED brand. First, do not know which brand can have a lasting core competitiveness to attack the market; Second, it is impossible to see how many LED lighting brands are produced by themselves. In the telephone interview, a Wang surname channel dealer who specializes in lighting chain stores in Sichuan told reporters that many big dealers are worried about the big push LED brand.
The reporter visited the large-scale LED enterprise direct sales store in the ancient town of Dengdu. It is found that almost every family has a big and full habit: in-store downlights, spotlights, bean gall lights, bulbs, T5/T8 lamps, floodlights. Wall washers, guardrail tubes, surface light sources, light strips, point light sources, street lights, tunnel lights and other products are readily available.
“Because LED is a fresh industry for most lighting companies involved in the transition, who knows what products can be sold, what products are good to sell, and which products to cut into the market? Only the first one is big and full. The person in charge of the LED company who just renovated the store in the Times Square of Dengdu told reporters.
However, it is this kind of “one net exhaustion†that has become the root cause of eliminating dealer trust, blurring its own positioning and core advantages.
"In addition to one or two series of self-assembly, other products are 'fried' from other manufacturers, who can easily produce so many different types of LED lamps?" A LED company familiar with the reporter is responsible for People confess. What he calls "speculation" is to directly buy other manufacturers' neutral (no LOGO) packaging and labeling products. This is also the open secret of many industrial cluster bases involved in the LED field in recent years.
According to the reporter's understanding, the second and third line application brands have been doing additions before, doing "all" LED products. This is not only reflected in the increase in product categories and styles, but also in the application of brand, extension of the industrial chain, self-built sales channels and platforms, independent research and development marketing system.
Taking the development of the Hubei market as an example, the list of fees required for the development of LED channels (non-specialized stores) for new brands:
Fragile channel dream
"The channel determines the end-user market throughput, who does not want to have their own channels? It is helpless to borrow someone else's road." In the interview, whether it is the transformation of LEDs for traditional lighting enterprises, or the head of a relatively large-scale enterprise starting from pure LED In this way, the establishment of domestic stable channels is always involved in their nerves.
However, there is a real picture of the current end market. According to the survey of the Higher Industrial Research Institute, more than 74% of designers do not know how to apply LED lamps to their design solutions. More than 68% of distributors do not dare to appoint high-end brands because they do not know how to choose LED lamps. .
The continued high channel development costs are also one of the main reasons for LED companies to retreat. In February of this year, Mulinsen Co., Ltd. began to lay out national channels. According to Lin Jiliang, deputy general manager of the Lighting and Display Division, channel construction is a “burning moneyâ€. "In the first quarter of this year, Mulinsen has invested more than 3 million yuan to deploy channel development strategy, and the total annual cost is estimated to exceed 20 million yuan. This does not include the marketing team of more than 50 people, the channel commissioner's commission and other expenses."
"Sometimes every month will lose 50 to 600,000 yuan, and this is only the cost of cultivating a province." Speaking of the investment in the development of outlets last year, Wang Junhua, deputy general manager of Juke Lighting, was somewhat scared. "After this channel sprint, it can be said that it is a process from fever to cooling. The biggest experience is to do what you can do, not to do what you want to do."
Compared with the mergers and acquisitions of foreign consortia and lighting giants, many of them are in the second and third tiers. Companies involved in or specializing in LED applications have begun to do “subtractionâ€, including slowing down the pace of establishing distribution channels with their own brands. The product line focuses on the promotion of several classic series, and retreats behind the scenes to be a supplier of “marriage clothing†for more mature application brands. Although the subtraction shows a lot of helplessness, more reflects that the original mind is overheated, and the application enterprises that attempt to seize the LED resources through “big and complete†began to return to rationality, and gradually found an accurate positioning in line with their own development stage.
Dealer's double fog
"There is a double fog now, so that the strength of the business does not dare to push which LED brand. First, do not know which brand can have a lasting core competitiveness to attack the market; Second, it is impossible to see how many LED lighting brands are produced by themselves. In the telephone interview, a Wang surname channel dealer who specializes in lighting chain stores in Sichuan told reporters that many big dealers are worried about the big push LED brand.
The reporter visited the large-scale LED enterprise direct sales store in the ancient town of Dengdu. It is found that almost every family has a big and full habit: in-store downlights, spotlights, bean gall lights, bulbs, T5/T8 lamps, floodlights. Wall washers, guardrail tubes, surface light sources, light strips, point light sources, street lights, tunnel lights and other products are readily available.
“Because LED is a fresh industry for most lighting companies involved in the transition, who knows what products can be sold, what products are good to sell, and which products to cut into the market? Only the first one is big and full. The person in charge of the LED company who just renovated the store in the Times Square of Dengdu told reporters.
However, it is this kind of “one net exhaustion†that has become the root cause of eliminating dealer trust, blurring its own positioning and core advantages.
"In addition to one or two series of self-assembly, other products are 'fried' from other manufacturers, who can easily produce so many different types of LED lamps?" A LED company familiar with the reporter is responsible for People confess. What he calls "speculation" is to directly buy other manufacturers' neutral (no LOGO) packaging and labeling products. This is also the open secret of many industrial cluster bases involved in the LED field in recent years.
According to the reporter's understanding, the second and third line application brands have been doing additions before, doing "all" LED products. This is not only reflected in the increase in product categories and styles, but also in the application of brand, extension of the industrial chain, self-built sales channels and platforms, independent research and development marketing system.
Taking the development of the Hubei market as an example, the list of fees required for the development of LED channels (non-specialized stores) for new brands:
Fragile channel dream
"The channel determines the end-user market throughput, who does not want to have their own channels? It is helpless to borrow someone else's road." In the interview, whether it is the transformation of LEDs for traditional lighting enterprises, or the head of a relatively large-scale enterprise starting from pure LED In this way, the establishment of domestic stable channels is always involved in their nerves.
However, there is a real picture of the current end market. According to the survey of the Higher Industrial Research Institute, more than 74% of designers do not know how to apply LED lamps to their design solutions. More than 68% of distributors do not dare to appoint high-end brands because they do not know how to choose LED lamps. .
The continued high channel development costs are also one of the main reasons for LED companies to retreat. In February of this year, Mulinsen Co., Ltd. began to lay out national channels. According to Lin Jiliang, deputy general manager of the Lighting and Display Division, channel construction is a “burning moneyâ€. "In the first quarter of this year, Mulinsen has invested more than 3 million yuan to deploy channel development strategy, and the total annual cost is estimated to exceed 20 million yuan. This does not include the marketing team of more than 50 people, the channel commissioner's commission and other expenses."
"Sometimes every month will lose 50 to 600,000 yuan, and this is only the cost of cultivating a province." Speaking of the investment in the development of outlets last year, Wang Junhua, deputy general manager of Juke Lighting, was somewhat scared. "After this channel sprint, it can be said that it is a process from fever to cooling. The biggest experience is to do what you can do, not to do what you want to do."
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