Discussion on the channel strategy of the war lighting market - Gaogong 2012 traditional lighting transformation LED lighting strategy seminar Jiangmen Station successfully held

[Text / high-tech LED reporter Zhou Jianhua]

“In the process of transforming LEDs in traditional lighting, how to achieve precise positioning and fine combing of channels is the key and the most difficult.” This is the second stop of the 2012 Traditional Lighting Transformation LED Lighting Strategy Seminar on the afternoon of November 13th. At the meeting, Jiangmen Station was one of the hottest topics for the 100 guests.

Jiangmen seminar site

Multi-channel pattern has been formed

"Retail terminals, commercial engineering, etc., began to sell and install LED general lighting products; Wal-Mart, Suning, Hongqi, Tianhong, Carrefour and other products began to sell LED lighting; LED lighting manufacturers began to promote in the terminal media such as television." In the speech, Dean Zhang Xiaofei used the "three starts" to outline the rapid penetration of LED general lighting in various channels.

According to reports, the current LED channel pattern is undergoing profound changes. The four major group armies, state-owned enterprises, LED lighting, traditional lighting, and foreign companies have seized channel resources through different advantages, and analyzed their respective areas of odds based on market performance.

“So, in the process of transformation, traditional enterprises must control the channel to focus on diversity. It is more important to focus on the quality of the channels and outlets.” One of the speakers, Hong Yannan, chairman of Guangmingyuan Lighting, said.

Since the beginning of this year, LED companies have optimized and upgraded their channels. Supermarkets such as Donglin Electronics, Guanya Lighting, Guangmingyuan Lighting and Shanghai Luyuan have been engaged in competitions, sales, networking, hardware stores and design agencies. However, many companies have reported that the terminal network standardization construction goal has been gradually implemented, but the improvement of single store profitability is not satisfactory.

One of the speakers, Luo Quanxing, executive vice president of Shanghai Luyuan Group, proposed that traditional transformation LEDs cannot achieve innovation by bypassing the original channels, and the development of multiple channels requires strategies. “On the one hand, classify existing channel resources, adopt different policies for dealers with different strengths, increase support for key customers and guide business, and help them establish database and terminal feedback information systems; on the other hand, Targeted penetration of the channels that are in line with the positioning of enterprises and products, forming a three-dimensional channel model with circulation, direct operation and engineering as the mainstay, supplemented by network, experience hall and brand integrated store."

"Channel hidden rules" caused by terminal awareness

"The channel is king, the terminal wins." However, at the seminar, the guests still felt that the terminal distribution awareness lacked the understanding and support of LED in the channel, which has become the key to hinder the opening of LED “into the sea”.

“Enterprises and distributors still use traditional lighting promotion methods. There is no good investment method and traditional promotion methods. It is difficult to convince consumers.” Luo Quanxing, vice president of analysis, said that the traditional lighting penetration method is concentrated on price competition, with LED For example, circulating products, the overall price is too high, not suitable for the sinking of wholesale channels, and at the same time, consumers or distributors are discouraged from LED lamps; price instability also restricts expansion, and the goods are not lost in a few days, and there is a lack of security.

Chairman Hong Yannan’s image is more summed up: LED channel is a giant game, the consumption of the poor. “Because traditional lighting products may sell a classic product for 10 years, the current LED replacement cycle in terms of cost, style, and technology is only 6 months or even shorter.”

"This directly led to the 'channel hidden rules' - the emergence of inventory, price subsidies, blind research and development, etc.." He Liang Yin Yu, China's director Xu Liangyu said.   

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