[Source: "High-tech LED-Lighting Market" October issue]
As traditional lighting companies began to enter the LED field in a big way, they competed with LED companies in the terminal channels. The current LED companies may already be at a distinct disadvantage.
At present, the price of LED products is still high. Traditional lighting companies sell LED products and traditional products. Consumers buy lamps, can't afford LED products, and can buy traditional products. During this period, there is a guide to consumers to transition from traditional products to traditional products. The process of LED products. Coupled with the general increase in domestic store rents in recent years, this has made LED companies feel pressure in the store operators.
Since most of the LED specialty stores on the market are mainly factory-operated, compared with local distributors, these stores have neither customer resources nor brand influence, and can only rely on the popularity of the store to drive sales.
Channel lacks brand influence
At present, LED sales channels in the lighting market are mainly divided into three types. The first one is LED specialty stores, including LED companies and distributors, and the company's direct sales stores. The second is the original channels of traditional lighting companies, most of which are still traditional. Lighting products are the mainstay, tying LED models; the third is lighting stores, represented by local leading dealers, and their stores have absorbed mainstream products of various high-quality brands, opening up LED monopoly areas.
"At this stage, LED companies have no brand influence at the terminal, which is very weak compared with traditional lighting companies. In addition, the price of LED products is high, and the terminal retail market is difficult to start in a short time. In addition, the overall lighting business is bleak this year, dealers are afraid to take risks. Accepting LED companies to open specialty stores.†Yin Hui, Hunan regional manager of Tianhao Optoelectronics, told reporters that dealers’ cautious attitude towards LEDs makes it more difficult for LED companies to deploy channels. Many LED companies directly choose to open brands in terminal building materials stores. Direct store or flagship store.
In addition to the difficult channel layout, the current terminal sales of LED lighting products still occupy a small share. This can also explain the situation of the LED products in the major lighting stores. Take Philips as an example. The Philips Shenzhen Fashion Museum has a store area of ​​110m2. Most of it is based on traditional lighting products. The LED product is only 15m2, so LED products still need to be slowly accepted by consumers in the short term. process.
At present, compared with LED companies opening their own stores, the process of traditional lighting companies may be more strategic, guiding consumers to transition from traditional lighting to LED, especially in the channel layout, traditional lighting companies still have more advantages. .
Take Philips as an example. It has been in the terminal market for many years and has a certain brand influence, which is not available to LED companies. At the same time, Philips can attract more dealers' investment in channel joining. Wang Junfeng, the manager of Philips Fashion Pavilion, told reporters: "The Philips fashion pavilion includes rent, decoration, warehouse, and advertising. The first phase of their investment is 600,000 yuan. Philips manufacturers only Subsidize 50,000 yuan in renovation costs, and must sign a year's sales, which is equal to our average monthly purchase of 100,000 yuan." The gap between traditional enterprises and LED companies lies in the brand influence of the terminal, LED companies at this stage still There is no brand attraction that allows dealers to take the initiative to save money.
Product price pressure is not reduced
Affected by the state's real estate regulation and control, since the last year, the traffic volume of the major building materials market in the country has been sharply reduced, which has brought a lot of impact to the LED direct-operated stores that have just entered the market.
Since July this year, the terminal market has continued to spread the news that the LED store has been withdrawn and the new LED experience store has emerged. In July, the lighting housekeeper LED experience flagship store was withdrawn from Shenzhen Yimeijia home building materials market; in August, Erlang Shen factory direct store was withdrawn from Shenzhen Huaqiang North LED Trading Center; in September, Bejing Lighting LED Experience Store in Shenzhen Another home lighting city opened; in October, several LED companies set up in Shenzhen South China City to open LED stores and so on.
"Lighting housekeeper LED experience store has been repaired from March this year to the opening of the industry and then withdraws at least 600,000 yuan, because Yimeijia wants to increase rent and no business, the dealer did not have confidence to withdraw." Shenzhen Yimeijia Li Xiao Lighting Sales Director Wang Xiao told reporters that the lighting butler LED experience store is a model for LED companies to cooperate with dealers to open experience stores. The drawback is that unless the LED company already has a certain brand awareness in the terminal, once the market is not good and the brand loses confidence, even if the LED company prevailed in the past, the dealer still said to leave.
The withdrawal of the Erlang God Direct Store was due to the increase in rents and the continuous decline in passenger traffic. "Erlang Shenhua Qiangbei store rents 12,000 yuan for 30m2, and the monthly rent for this year is 15,000 yuan, an increase of 25%." Erlang Shenmen store manager Yu Jianhua told reporters that this year, the store is basically losing money every month, plus North China strong Filled with a large number of low-end LED products, for our brand-focused enterprises, the price is too high, consumers go to the store to ask the price to go, the business is too difficult to do. The reporter learned that after Erlang God withdrew, the store has been rented by Yinyu Lighting.
In addition to the rising operating costs, LED direct stores currently do not have the conditions to compete with traditional lighting in terms of product prices. During the interview, I met a consumer who was watching the lamp at the Beijing LED Experience Store. But after she finished watching the price, Ms. Wang told reporters: "The LED lights are very beautiful and energy-saving, but the price is too high to afford. "If consumers can't afford it, opening an LED store is just a gimmick." In order for LED products to fall in price, it will take some time for the market to settle.
Guo Yunping, chief consultant of the Eagle Geese team, said that traditional lighting channel stores are a mixture of traditional products and LED products. Consumers can't afford LED products and can buy traditional products. During this period, there is a process to guide consumers to transition from traditional products to LED products. However, LED enterprise direct stores do not have such a function. At present, LED lighting is mainly based on engineering. The best way for enterprises to open specialty stores in the terminal is to let local regional leading distributors absorb your products and open up LED product sales areas. "Of course, this premise is that LED brand reputation and product quality must be done well.
As traditional lighting companies began to enter the LED field in a big way, they competed with LED companies in the terminal channels. The current LED companies may already be at a distinct disadvantage.
At present, the price of LED products is still high. Traditional lighting companies sell LED products and traditional products. Consumers buy lamps, can't afford LED products, and can buy traditional products. During this period, there is a guide to consumers to transition from traditional products to traditional products. The process of LED products. Coupled with the general increase in domestic store rents in recent years, this has made LED companies feel pressure in the store operators.
Since most of the LED specialty stores on the market are mainly factory-operated, compared with local distributors, these stores have neither customer resources nor brand influence, and can only rely on the popularity of the store to drive sales.
Channel lacks brand influence
At present, LED sales channels in the lighting market are mainly divided into three types. The first one is LED specialty stores, including LED companies and distributors, and the company's direct sales stores. The second is the original channels of traditional lighting companies, most of which are still traditional. Lighting products are the mainstay, tying LED models; the third is lighting stores, represented by local leading dealers, and their stores have absorbed mainstream products of various high-quality brands, opening up LED monopoly areas.
"At this stage, LED companies have no brand influence at the terminal, which is very weak compared with traditional lighting companies. In addition, the price of LED products is high, and the terminal retail market is difficult to start in a short time. In addition, the overall lighting business is bleak this year, dealers are afraid to take risks. Accepting LED companies to open specialty stores.†Yin Hui, Hunan regional manager of Tianhao Optoelectronics, told reporters that dealers’ cautious attitude towards LEDs makes it more difficult for LED companies to deploy channels. Many LED companies directly choose to open brands in terminal building materials stores. Direct store or flagship store.
In addition to the difficult channel layout, the current terminal sales of LED lighting products still occupy a small share. This can also explain the situation of the LED products in the major lighting stores. Take Philips as an example. The Philips Shenzhen Fashion Museum has a store area of ​​110m2. Most of it is based on traditional lighting products. The LED product is only 15m2, so LED products still need to be slowly accepted by consumers in the short term. process.
At present, compared with LED companies opening their own stores, the process of traditional lighting companies may be more strategic, guiding consumers to transition from traditional lighting to LED, especially in the channel layout, traditional lighting companies still have more advantages. .
Take Philips as an example. It has been in the terminal market for many years and has a certain brand influence, which is not available to LED companies. At the same time, Philips can attract more dealers' investment in channel joining. Wang Junfeng, the manager of Philips Fashion Pavilion, told reporters: "The Philips fashion pavilion includes rent, decoration, warehouse, and advertising. The first phase of their investment is 600,000 yuan. Philips manufacturers only Subsidize 50,000 yuan in renovation costs, and must sign a year's sales, which is equal to our average monthly purchase of 100,000 yuan." The gap between traditional enterprises and LED companies lies in the brand influence of the terminal, LED companies at this stage still There is no brand attraction that allows dealers to take the initiative to save money.
Product price pressure is not reduced
Affected by the state's real estate regulation and control, since the last year, the traffic volume of the major building materials market in the country has been sharply reduced, which has brought a lot of impact to the LED direct-operated stores that have just entered the market.
Since July this year, the terminal market has continued to spread the news that the LED store has been withdrawn and the new LED experience store has emerged. In July, the lighting housekeeper LED experience flagship store was withdrawn from Shenzhen Yimeijia home building materials market; in August, Erlang Shen factory direct store was withdrawn from Shenzhen Huaqiang North LED Trading Center; in September, Bejing Lighting LED Experience Store in Shenzhen Another home lighting city opened; in October, several LED companies set up in Shenzhen South China City to open LED stores and so on.
"Lighting housekeeper LED experience store has been repaired from March this year to the opening of the industry and then withdraws at least 600,000 yuan, because Yimeijia wants to increase rent and no business, the dealer did not have confidence to withdraw." Shenzhen Yimeijia Li Xiao Lighting Sales Director Wang Xiao told reporters that the lighting butler LED experience store is a model for LED companies to cooperate with dealers to open experience stores. The drawback is that unless the LED company already has a certain brand awareness in the terminal, once the market is not good and the brand loses confidence, even if the LED company prevailed in the past, the dealer still said to leave.
The withdrawal of the Erlang God Direct Store was due to the increase in rents and the continuous decline in passenger traffic. "Erlang Shenhua Qiangbei store rents 12,000 yuan for 30m2, and the monthly rent for this year is 15,000 yuan, an increase of 25%." Erlang Shenmen store manager Yu Jianhua told reporters that this year, the store is basically losing money every month, plus North China strong Filled with a large number of low-end LED products, for our brand-focused enterprises, the price is too high, consumers go to the store to ask the price to go, the business is too difficult to do. The reporter learned that after Erlang God withdrew, the store has been rented by Yinyu Lighting.
In addition to the rising operating costs, LED direct stores currently do not have the conditions to compete with traditional lighting in terms of product prices. During the interview, I met a consumer who was watching the lamp at the Beijing LED Experience Store. But after she finished watching the price, Ms. Wang told reporters: "The LED lights are very beautiful and energy-saving, but the price is too high to afford. "If consumers can't afford it, opening an LED store is just a gimmick." In order for LED products to fall in price, it will take some time for the market to settle.
Guo Yunping, chief consultant of the Eagle Geese team, said that traditional lighting channel stores are a mixture of traditional products and LED products. Consumers can't afford LED products and can buy traditional products. During this period, there is a process to guide consumers to transition from traditional products to LED products. However, LED enterprise direct stores do not have such a function. At present, LED lighting is mainly based on engineering. The best way for enterprises to open specialty stores in the terminal is to let local regional leading distributors absorb your products and open up LED product sales areas. "Of course, this premise is that LED brand reputation and product quality must be done well.
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