[Source: "High - tech LED - Research and Review " November issue GLII]
The channel is king. For any industry, this is the same reason, and the LED lighting industry is no exception.
Needless to say, LED lighting is definitely an alternative source of energy-saving lamps in the future. However, the traditional lighting companies in the transition period are still uncertain about the attitude of transforming LEDs. When the dealers searched for LED partners, they found that the LED lighting market products are mixed and the product quality is uneven.
Due to the lack of a generally recognized brand in the industry, it is difficult for most dealers to find good suppliers and it is difficult to find products with higher cost performance. Researchers from the High-tech LED Industry Research Institute (GLII) often heard complaints from customers when they visited the dealers recently: “There are too many domestic LED lighting companies. Everyone said that their products have the highest price/performance ratio and the highest market recognition. The same product. The quotation is too confusing, can vary by tens of times, and the warranty period is the same. How to choose the agent brand that suits you, everyone is often at a loss.
For LED lighting companies, the current market situation makes it equally confusing: "In tens of thousands of LED lighting companies, how to develop their own channels, build their own brands, and stand out from them."
In the past two years, many LED lighting companies have expressed their desire to establish their own channels. However, most companies are only holding a wait-and-see attitude because they do not know whether the market timing is mature or not.
During the period, there were also a few powerful companies trying. For example, Qinshang Optoelectronics started the “100 City Thousand Stores†program in September 2011 and set up a number of specialty stores across the country, but the actual results were minimal. As of the end of the third quarter of 2012, Qinshang Optoelectronics achieved revenue of 593 million yuan in the current period, a year-on-year increase of only 9%.
In addition, there is still a gap between LED lighting companies and the real needs of the market. “What kind of products are the products that are cost-effective and highly acceptable in the market?†Most companies can't find one or several products as a market breakthrough, so they don't dare to open up channels.
Emerging LED lighting companies to develop channels
For LED lighting companies, if it is said that the improvement of product performance in the past few years is the focus of work, it is wise to experience the internal strength of enterprises and not to establish immature channels. However, it is not yet ready to start preparing for the channel layout. After two years, the company will be struggling.
GLII believes that the LED lighting industry has undergone many years of technology precipitation and the government's vigorous promotion in recent years, the market acceptance has been greatly improved. Many end-users choose LED lighting products according to their own wishes, rather than relying on enterprises and distributors to promote, which is particularly evident in the field of commercial lighting.
GLII expects that LED general lighting will usher in a rapid development period in 2013. The prime time for channel and brand building will only be 1-2 years in the future. Channel construction and brand building are urgently needed.
Since the beginning of this year, some enterprises have already taken action in channel construction. In the second half of the year, they have been moving frequently.
On October 12, Delixi established the first LED lighting flagship store in Yueqing, Zhejiang; Shenzhen Green Semiconductor established the first LED store in Beijing; Guoxing Optoelectronic LED General Lighting Product Promotion Conference was held in Changzhou, the first provincial operation The center was formally established.
On November 20th, the National Star Optoelectronic LED General Lighting Product Promotion Conference was held in Zhejiang, and the second provincial operation center came into being. On the 22nd, Zhongming Semiconductor's national provincial agency strategy signing conference was successfully held in Shenzhen. A total of 20 agents were invited to attend and signed to formally become the domestic provincial agent of Zhongming Semiconductor.
Since April of this year, TCL Lighting has held a number of LED lighting investment conferences in Beijing, Guangxi, Hunan, Jiangsu, Sichuan, Shaanxi, Shandong, Jiangxi, Heilongjiang, Anhui, etc., and merchants from all over the world participated in the event, and more than 170 merchants signed up. The contracted amount exceeded 33 million yuan. For LED lighting companies, the establishment of channels is now forced by the situation, is a strategic need, and is the best time.
The smooth establishment of LED lighting enterprise channels naturally requires the cooperation of dealers. At present, domestic dealers with certain strength are basically the "old ministers" of traditional lighting companies. In the face of the replacement of new lighting sources, it is also the best time for companies to dig into traditional distribution channels.
First, traditional lighting dealers have lower loyalty. Traditional lighting giants such as NVC, Opus and Foshan Lighting are uncertain about the attitude of transforming LEDs, and thunder and rain are small. This kind of game may make dealers worry about their future. A NVC lighting dealer once told the Gaogong LED reporter that if NVC does not step up its business focus to the LED business, it will consider acting as an agent for other brands of LED lighting products. For traditional lighting companies, the LED lighting business at this stage can only be regarded as “chicken ribsâ€. The LED lighting market is in chaos, the price war is getting worse, and corporate profits are falling rapidly. In contrast to traditional lighting, the days of several companies have been fascinating. Revenue has increased year by year, and the gross profit margin of products has remained at a relatively high level.
Second, traditional lighting companies face their own bottlenecks. LED lighting is a semiconductor product that is very different from traditional lighting. Not only must we consider the problem of light matching, but also the challenges of technologies such as heat dissipation, light decay, and dimming. LED lighting companies have had many years of technology precipitation, compared with traditional lighting, there are technical advantages.
At the same time, LED lighting companies with certain capital and technical strength are hoping to build their own brands and are not willing to become foundries.
The current economic environment is not good, especially the European debt crisis has a large negative impact on the global economy. The Chinese real estate market was once in a downturn and had an indirect impact on the lighting industry. Among them, Foshan Lighting's revenue in the first three quarters of 2012 was 1.59 billion, down 7.8% year-on-year. In the first three quarters of last year, revenue increased by 30% year-on-year; NVC's lighting revenue declined more significantly. In the next 1-2 years, even if traditional lighting companies want to transform LEDs, the speed will be affected.
The channel is king. For any industry, this is the same reason, and the LED lighting industry is no exception.
Needless to say, LED lighting is definitely an alternative source of energy-saving lamps in the future. However, the traditional lighting companies in the transition period are still uncertain about the attitude of transforming LEDs. When the dealers searched for LED partners, they found that the LED lighting market products are mixed and the product quality is uneven.
Due to the lack of a generally recognized brand in the industry, it is difficult for most dealers to find good suppliers and it is difficult to find products with higher cost performance. Researchers from the High-tech LED Industry Research Institute (GLII) often heard complaints from customers when they visited the dealers recently: “There are too many domestic LED lighting companies. Everyone said that their products have the highest price/performance ratio and the highest market recognition. The same product. The quotation is too confusing, can vary by tens of times, and the warranty period is the same. How to choose the agent brand that suits you, everyone is often at a loss.
For LED lighting companies, the current market situation makes it equally confusing: "In tens of thousands of LED lighting companies, how to develop their own channels, build their own brands, and stand out from them."
In the past two years, many LED lighting companies have expressed their desire to establish their own channels. However, most companies are only holding a wait-and-see attitude because they do not know whether the market timing is mature or not.
During the period, there were also a few powerful companies trying. For example, Qinshang Optoelectronics started the “100 City Thousand Stores†program in September 2011 and set up a number of specialty stores across the country, but the actual results were minimal. As of the end of the third quarter of 2012, Qinshang Optoelectronics achieved revenue of 593 million yuan in the current period, a year-on-year increase of only 9%.
In addition, there is still a gap between LED lighting companies and the real needs of the market. “What kind of products are the products that are cost-effective and highly acceptable in the market?†Most companies can't find one or several products as a market breakthrough, so they don't dare to open up channels.
Emerging LED lighting companies to develop channels
For LED lighting companies, if it is said that the improvement of product performance in the past few years is the focus of work, it is wise to experience the internal strength of enterprises and not to establish immature channels. However, it is not yet ready to start preparing for the channel layout. After two years, the company will be struggling.
GLII believes that the LED lighting industry has undergone many years of technology precipitation and the government's vigorous promotion in recent years, the market acceptance has been greatly improved. Many end-users choose LED lighting products according to their own wishes, rather than relying on enterprises and distributors to promote, which is particularly evident in the field of commercial lighting.
GLII expects that LED general lighting will usher in a rapid development period in 2013. The prime time for channel and brand building will only be 1-2 years in the future. Channel construction and brand building are urgently needed.
Since the beginning of this year, some enterprises have already taken action in channel construction. In the second half of the year, they have been moving frequently.
On October 12, Delixi established the first LED lighting flagship store in Yueqing, Zhejiang; Shenzhen Green Semiconductor established the first LED store in Beijing; Guoxing Optoelectronic LED General Lighting Product Promotion Conference was held in Changzhou, the first provincial operation The center was formally established.
On November 20th, the National Star Optoelectronic LED General Lighting Product Promotion Conference was held in Zhejiang, and the second provincial operation center came into being. On the 22nd, Zhongming Semiconductor's national provincial agency strategy signing conference was successfully held in Shenzhen. A total of 20 agents were invited to attend and signed to formally become the domestic provincial agent of Zhongming Semiconductor.
Since April of this year, TCL Lighting has held a number of LED lighting investment conferences in Beijing, Guangxi, Hunan, Jiangsu, Sichuan, Shaanxi, Shandong, Jiangxi, Heilongjiang, Anhui, etc., and merchants from all over the world participated in the event, and more than 170 merchants signed up. The contracted amount exceeded 33 million yuan. For LED lighting companies, the establishment of channels is now forced by the situation, is a strategic need, and is the best time.
The smooth establishment of LED lighting enterprise channels naturally requires the cooperation of dealers. At present, domestic dealers with certain strength are basically the "old ministers" of traditional lighting companies. In the face of the replacement of new lighting sources, it is also the best time for companies to dig into traditional distribution channels.
First, traditional lighting dealers have lower loyalty. Traditional lighting giants such as NVC, Opus and Foshan Lighting are uncertain about the attitude of transforming LEDs, and thunder and rain are small. This kind of game may make dealers worry about their future. A NVC lighting dealer once told the Gaogong LED reporter that if NVC does not step up its business focus to the LED business, it will consider acting as an agent for other brands of LED lighting products. For traditional lighting companies, the LED lighting business at this stage can only be regarded as “chicken ribsâ€. The LED lighting market is in chaos, the price war is getting worse, and corporate profits are falling rapidly. In contrast to traditional lighting, the days of several companies have been fascinating. Revenue has increased year by year, and the gross profit margin of products has remained at a relatively high level.
Second, traditional lighting companies face their own bottlenecks. LED lighting is a semiconductor product that is very different from traditional lighting. Not only must we consider the problem of light matching, but also the challenges of technologies such as heat dissipation, light decay, and dimming. LED lighting companies have had many years of technology precipitation, compared with traditional lighting, there are technical advantages.
At the same time, LED lighting companies with certain capital and technical strength are hoping to build their own brands and are not willing to become foundries.
The current economic environment is not good, especially the European debt crisis has a large negative impact on the global economy. The Chinese real estate market was once in a downturn and had an indirect impact on the lighting industry. Among them, Foshan Lighting's revenue in the first three quarters of 2012 was 1.59 billion, down 7.8% year-on-year. In the first three quarters of last year, revenue increased by 30% year-on-year; NVC's lighting revenue declined more significantly. In the next 1-2 years, even if traditional lighting companies want to transform LEDs, the speed will be affected.
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