LED traditional channel "burn money"

Channels are an extension of corporate branding and sales, and are the focus of most companies. However, the survival rate of channel outlets is a difficult point for channel construction. At present, LED lighting traditional channel construction has become a money-saving game, the price war to make high-input channels even worse, whether manufacturers or businesses have a common question: in the end how long can sustain? The impact of e-commerce has also increased the survival of traditional channels. What are the future survival capital of enterprises and distributors?

In 2014, it was supposed to have been a hot year of LED lighting. However, in reality, no matter large companies or small distributors, they are lamenting that “business is hard to do and difficult to survive.” The reasons are either investment fever. The market is cold, the competition is fierce, or the real estate is in the doldrums, and the related industries are also chilled, or the impact of e-commerce. In short, everyone seems to have a hard time.

The above reasons seem to be the factors that affect the lighting industry's cold, but are not fundamental reasons? the answer is negative. Some people say that enterprises that enter the LED industry must face the fact that there is no channel. After many years of development, the traditional lighting brands have accumulated a lot in the channel. It can be said that they have established their own hills and territories. The emerging LED wants to rush into these territories, and it is necessary to go for a unique brand with its own characteristics. Roads, such as the countryside surrounding the city, for example, occupy the lighting market of second, third and even fourth-tier cities.

Taking Jiangxi as an example, in recent years, the lighting market in Jiangxi Province has risen rapidly, and its lighting market has expanded from the original single lighting shop to the lighting wholesale city, gradually moving towards modern large-scale lighting squares, and more and more professional lighting cities. Although current consumption concepts, levels, and habits have constrained the development of LED lighting in Jiangxi, the development momentum of LED lighting in the Jiangxi market is still relatively weak compared to large cities. However, the pace of advancement in Jiangxi is rapid and firm. Several large-scale professional lighting markets are planned for the city. Under the guidance of rush to build. Jiangxi distributors showed a rational “cold thinking” in the LED lighting boom. For the choice of LED lighting brands, dealers in Jiangxi did not show “following style” blindness, presenting more of a cool wait-and-see attitude and calming s Choice. In the case of a large-scale “cold wave” in the Chinese lighting market, the lighting market in Jiangxi has been presented with “warmth and warmth”. This is because Jiangxi distributors have examined the situation and found out that they are surrounded by rural areas surrounded by the characteristics of the Jiangxi region. City". Whether it is the growth of LED lighting companies or dealers, or the huge market stock, the lighting industry in Jiangxi is advancing with great strides and is full of stamina.

Jiangxi's road to “encircling the cities in the countryside” is actually in line with the law of market development. On the one hand, in the first-tier cities, lighting stores are not rare, and all store operators are targeting the big cakes in the first-tier cities. The existing lighting stores are centered on provincial capitals and have gradually become saturated. As a result, the expansion of retailers in lighting stores into second-tier and third-tier cities has become an option. The transfer of target customers is a bigger change.

On the other hand, in recent years, second- and third-tier cities quietly blew up “low-carbon winds”, energy-saving lamp lighting, electric vehicles, and solar energy showers. The enthusiasm of the second and third line citizens for the low-carbon revolution has been rising, which has occupied the second and third line for LED lighting. The market provided strong consumer support.

Third, the real estate industry related to the lighting industry has gradually shifted its focus to the second and third tier cities, making the real estate market in the second and third tier cities show a growth momentum, which indirectly led to the shift of the lighting market to the second and third tier markets.

Looking at the entire country's lighting circulation field, the sales channels for stores have not only shifted from provincial capital cities to prefecture-level cities, but also prefecture-level cities are infiltrating into county-level cities, showing a step-by-step sinking pattern. This seems to imply that the entire market pattern is occurring. huge change. Some companies that have focused on the first and second tier cities have also gradually accelerated the sinking of channels, and they are expanding in the second, third and third tier cities.

Then, what impact will the shift of lighting market focus on second and third-tier cities bring to these cities?

1. Competition in the secondary and tertiary markets has intensified. Lighting brands competing to enter the second and third tier cities, will bring major brands to compete for channel resources. The game between first-tier brands and second and third-tier brands will trigger new brand strategies, marketing strategies and channel models.

2. The new product strategy is ready to go. Because the second- and third-tier cities have relatively low spending power and emphasize “price first”, in order to meet the consumer demand of the second-tier and third-tier cities, many first- and second-line lighting brands will inevitably change product strategies according to the progress of policy implementation and develop suitable two Third-tier market sales of new low-end products.

3. There is a large-scale lighting store. Although a number of lighting cities have appeared in the second and third tier cities, but the lack of a large supermarket has been dominated by specialty stores or small stores. With the increase of lighting consumption potential in the second and third tier markets, the encircling occupation of second-tier cities and third-tier cities has become an inevitable trend.