Traditional dealer channels crowded LED lighting into the era of channel diversification
[Source: "Engineering LED- lighting market," the November issue of Reporter / Zhang Geng]
Most of the LED lighting enterprise marketing teams have been transferred from traditional lighting companies. Their thinking has been constrained by past successful experiences and has become the biggest obstacle to LED marketing. In the next two years, with Suning's integrated sales platform to enter the terminal, and the emergence of low-rent housing and housing market, the terminal sales channel will be more diversified.
As we all know, traditional lighting companies rely on distributor channels to make their own homes. The facts also prove that traditional dealer channels are successful. Even traditional strong brands such as NVC, Opus and Sanxiong are still relying on traditional dealer channels. However, with the advent of LED lighting products, it has caused a great impact on traditional lighting companies, and their traditional dealer channels have become more crowded.
According to the data of high-yield production and research, the number of domestic LED lighting enterprises has exceeded 10,000, and there are nearly 7,000 LED application enterprises. Most of the high-level talents of LED lighting enterprises are transferred from traditional lighting enterprises. Because of the shackles of thinking mode, most market strategies adopt layout. The terminal channel market is dominated by affiliated dealers.
Fighting for dealer layout is difficult
At present, the excellent distributors in various provinces in China are scarce resources, and they are still monopolized by traditional lighting enterprises. The second and third-line lighting dealers are affected by the national real estate regulation and control, and the days are even more difficult. As far as the Shenzhen market is concerned, since July this year, some distributors in the building materials market have been unable to withdraw due to the break of the capital chain, such as the withdrawal of 6 artists, the withdrawal of 3 homes, and the Huaqiang North LED procurement center. On average, 2 companies are withdrawn each month.
Obviously, when the national lighting dealers face the cold current of the market, traditional lighting companies and LED lighting companies have seized the terminal market, and the result must be the terminal channel for most enterprises.
Since last year, LED export companies have turned to domestic sales due to the sharp decline in orders. For LED lighting companies, enter the terminal channel market or find a dealer to join, or directly enter the terminal to open a brand-operated store. However, it is very difficult to develop franchisees. Most lighting dealers choose LED lighting companies to be cautious. The reason is that the terminal market is full of LED inferior products, and there is no enterprise that can really establish LED brands in the terminal market.
It is difficult to provoke a price war to build a brand
At present, there are too many LED companies in the market. Some enterprises have provoked price wars. They want to eliminate their opponents and land on the beach. The representative one is Mulinsen.
Luo Gang, general manager of Shenzhen Xinhe Lighting, told reporters that “the price of Mlinsen’s 3W bulb to the dealer is 8 yuan, and the price of the dealer’s terminal sales is about 14 yuan. The price of the Mulin 3W bulb is very close. The price of 5W energy-saving lamps on the market. It poses a threat to 5W energy-saving lamps."
The looting of the terminal market around the dealers of lighting has become more and more intense. The rectangular lighting uses the display board to open the dealer door. As long as the dealer is willing to sell the long-distance lighting products, the board will be sent to the exhibition board, and the dealer will not be required to press the stock. The sales will be delivered to the door.
In this way, rectangular lighting quickly lays out the national market, and it is also the market strategy adopted by most LED companies. In the current uncertain environment of the entire terminal market, dealers do not dare to suppress inventory, and LED lighting companies adopt this channel layout mode, many lighting dealers are very willing to accept, but this model requires enterprises to have strong logistics and distribution capabilities. .
Although the early stage operation of most LED lighting enterprises in the terminal market is successful, such as the rectangular lighting, Mulinsen relies on low-cost bulbs to occupy the terminal market share, and then establishes the brand in the hearts of consumers through LED bulbs, thus entering the public. Vision, but this strategic model is completely the old route of traditional lighting companies.
In the past, by defining the ceiling lamp, NVC defined the lamp cup and the transformer, and the three males entered the public's field of vision by defining the ballast. There are also fluorescent tubes and T8 tubes, which are actually redefined by lighting companies such as Foshan Lighting and Philips. Philips defines high-end price lines, and Foshan Lighting defines low-end price lines to popularize T8 tubes and fluorescent tubes. From the development law of the traditional lighting industry, in the next 1-2 years, there will be LED lighting companies or traditional lighting companies to define LED products in a certain field, and thus begin to popularize LED lighting.
There is no doubt that Changfang Lighting and Mulinsen want to enter the public's field of vision by establishing a brand of bulbs. However, it is still unclear whether this is the most suitable way to open up dealer channels, and whether it is suitable for the current business environment.
Most of the LED lighting enterprise marketing teams have been transferred from traditional lighting companies. Their thinking has been constrained by past successful experiences and has become the biggest obstacle to LED marketing. In the next two years, with Suning's integrated sales platform to enter the terminal, and the emergence of low-rent housing and housing market, the terminal sales channel will be more diversified.
As we all know, traditional lighting companies rely on distributor channels to make their own homes. The facts also prove that traditional dealer channels are successful. Even traditional strong brands such as NVC, Opus and Sanxiong are still relying on traditional dealer channels. However, with the advent of LED lighting products, it has caused a great impact on traditional lighting companies, and their traditional dealer channels have become more crowded.
According to the data of high-yield production and research, the number of domestic LED lighting enterprises has exceeded 10,000, and there are nearly 7,000 LED application enterprises. Most of the high-level talents of LED lighting enterprises are transferred from traditional lighting enterprises. Because of the shackles of thinking mode, most market strategies adopt layout. The terminal channel market is dominated by affiliated dealers.
Fighting for dealer layout is difficult
At present, the excellent distributors in various provinces in China are scarce resources, and they are still monopolized by traditional lighting enterprises. The second and third-line lighting dealers are affected by the national real estate regulation and control, and the days are even more difficult. As far as the Shenzhen market is concerned, since July this year, some distributors in the building materials market have been unable to withdraw due to the break of the capital chain, such as the withdrawal of 6 artists, the withdrawal of 3 homes, and the Huaqiang North LED procurement center. On average, 2 companies are withdrawn each month.
Obviously, when the national lighting dealers face the cold current of the market, traditional lighting companies and LED lighting companies have seized the terminal market, and the result must be the terminal channel for most enterprises.
Since last year, LED export companies have turned to domestic sales due to the sharp decline in orders. For LED lighting companies, enter the terminal channel market or find a dealer to join, or directly enter the terminal to open a brand-operated store. However, it is very difficult to develop franchisees. Most lighting dealers choose LED lighting companies to be cautious. The reason is that the terminal market is full of LED inferior products, and there is no enterprise that can really establish LED brands in the terminal market.
It is difficult to provoke a price war to build a brand
At present, there are too many LED companies in the market. Some enterprises have provoked price wars. They want to eliminate their opponents and land on the beach. The representative one is Mulinsen.
Luo Gang, general manager of Shenzhen Xinhe Lighting, told reporters that “the price of Mlinsen’s 3W bulb to the dealer is 8 yuan, and the price of the dealer’s terminal sales is about 14 yuan. The price of the Mulin 3W bulb is very close. The price of 5W energy-saving lamps on the market. It poses a threat to 5W energy-saving lamps."
The looting of the terminal market around the dealers of lighting has become more and more intense. The rectangular lighting uses the display board to open the dealer door. As long as the dealer is willing to sell the long-distance lighting products, the board will be sent to the exhibition board, and the dealer will not be required to press the stock. The sales will be delivered to the door.
In this way, rectangular lighting quickly lays out the national market, and it is also the market strategy adopted by most LED companies. In the current uncertain environment of the entire terminal market, dealers do not dare to suppress inventory, and LED lighting companies adopt this channel layout mode, many lighting dealers are very willing to accept, but this model requires enterprises to have strong logistics and distribution capabilities. .
Although the early stage operation of most LED lighting enterprises in the terminal market is successful, such as the rectangular lighting, Mulinsen relies on low-cost bulbs to occupy the terminal market share, and then establishes the brand in the hearts of consumers through LED bulbs, thus entering the public. Vision, but this strategic model is completely the old route of traditional lighting companies.
In the past, by defining the ceiling lamp, NVC defined the lamp cup and the transformer, and the three males entered the public's field of vision by defining the ballast. There are also fluorescent tubes and T8 tubes, which are actually redefined by lighting companies such as Foshan Lighting and Philips. Philips defines high-end price lines, and Foshan Lighting defines low-end price lines to popularize T8 tubes and fluorescent tubes. From the development law of the traditional lighting industry, in the next 1-2 years, there will be LED lighting companies or traditional lighting companies to define LED products in a certain field, and thus begin to popularize LED lighting.
There is no doubt that Changfang Lighting and Mulinsen want to enter the public's field of vision by establishing a brand of bulbs. However, it is still unclear whether this is the most suitable way to open up dealer channels, and whether it is suitable for the current business environment.
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