Analyze the dilemma of channel construction for LED companies

At present, with the advancement of technology, LED lighting products are gradually entering the mainstream lighting field, and the market demand has also entered a critical period of ready to go. At the same time, huge market prospects have also stimulated many domestic and foreign enterprises to seize the lighting market, and the competition has become increasingly fierce. "The channel is king, and the brave person is first," LED lighting docking customers rely on channels, channel dealers' acceptance and promotion of LED lighting products is the prerequisite for industry growth, channel construction is also an important catalyst for product promotion.

Luo Baihui, an expert in integrated marketing of well-known brands, believes that the channels of LED lighting companies can be divided into: engineering (invisible) channels and circulation (distribution) channels. The customers of engineering channels are mostly governments, and companies often play the role of “integrated service providers”. Need to coordinate many relationships and follow up. The disadvantages of this model are the decentralization of the project and the long return period of funds. Distribution channels need to use distribution partners, agents, franchisees, and other partners to achieve the sales model facing the end customers. The advantage of this model is that it can quickly layout, realize the “flower blossom” of the product marketing network, quickly occupy the consumption field, and at the same time save the company’s Marketing costs. The disadvantage is that it is impossible to control the profitability and loyalty of the dealers. If there is no attractive investment policy, or if the profits are not realized in the short term after joining, it is common for dealers to withdraw or fight back.

Whether it is self-built channels or assisting dealers in developing projects and circulation markets, channel construction is the focus and focus of every enterprise. Many companies are paying attention to and attaching importance to the construction of investment promotion channels. Through our research, the more concentrated problems encountered by enterprises in channel construction are as follows:

1, lack of experience: LED lighting is an emerging industry, its strong industrial characteristics, can learn from the experience of less, there is no feasible channel investment regulations can be followed.

2, low awareness: Many consumers do not really understand the LED lamps, LED industry in general is not high awareness, which directly led to a lack of confidence in many dealers; stores are not fully recognized and accepted LED products, Now open LED stores, exhibition hall display function is greater than the channel construction function.

3, the type of products is too little: at this stage, LED lighting product types are relatively small, not enough to prop up the store, consumers do not have too many choices when buying, this is also a lot of LED brands have not bought the main reason for delays.

4, the product prices are generally high: This is the LED channel investment bottlenecks, subject to high prices, resulting in many consumers of LED lamps "from a distance", so companies want to lower the threshold, to fit the price consumers can accept.

5. The service system has not been formed: Once the channels are formed, it means that all links of LED from production to sales should be smooth, but there are few professionals in the LED industry, no matter whether they are professional sales personnel or maintenance personnel. In the absence of talent, many dealers have taken into account various uncertainties in regional operations, but have not yet started to develop investment promotion.

6. The quality of products varies: As the market downturn has led to increasingly fierce competition, some irregular behaviors have also begun to rise. Some irresponsible companies have “slipped” consumers with inferior products and used the characteristics that consumers do not possess professional knowledge. Low-quality LED products flooded the market, causing users' bad influence and negative word-of-mouth publicity.

In addition to the above reasons, the impact of the social environment on LED companies is obvious to all. The regulation of real estate has a great impact on related industries, including the lighting lighting market, which has led to a reduction in the profitability of the operators. Since last year, the lighting market has been deserted and directly impacted the LED lighting market.

The entire LED lighting industry is indeed in a state of investment fever and cold market. For example, director of Lighting Marketing of Laitia also mentioned: “Channel construction requires a good operating model and financial support, and companies will also consider their own capital occupation, as appropriate. Have a cool attitude towards channel building."

So, in this difficult process, how should LED companies improve their channel construction?

The ancestors took a step-by-step approach to the market and Tang’s experience went through all kinds of hardships. Even facing these difficulties, LED lighting companies could not slow down the pace of construction channels. From the perspective of future trends, the LED civil lighting market is still the largest cake, and companies must In advance of the layout, you cannot miss the opportunity.

In response to issues concerning business investment and channel construction, marketing expert Luo Baihui has given solutions:

1, market segments, increase product added value, the current stage of LED lighting, not only in the general lighting market, there are entertainment lighting, agricultural lighting, sports lighting, commercial lighting, medical lighting, etc., companies can not pursue 'big and full' But to do deep and fine in the areas of good and familiar, 'long-sleeved good dance' can lead to guest cheering. In addition to expanding its business in the market segments, it strives to increase the added value of its products, meet the needs of its customers, and create brands so as to enhance its reputation and industry competitiveness.

2. From selling products to selling ideas, in 2012 Beijing lighting exhibitors, we saw that domestic companies are still displaying products and selling products in order to sell products, but international companies sell 'idea' and are an experience and enjoyment. For example, the Philips Pavilion at this year's show shows an intelligent, artistic total solution. GE's special exhibition hall did not exhibit products, but showed and shared many exciting lighting engineering cases. To put it plainly, domestic companies are selling 'Chinese cabbage'. On the contrary, international companies can design a more aesthetically pleasing and ideological atmosphere, and can provide a complete set of solutions. The price of a single product is not high, but the overall solution can fully enhance the value of the product.

3, multi-channel sales network expansion, although the current LED companies to engineering-based channels, but the future must go through the distribution channels of stores, just as colleagues saw in Japan before the inspection, LED products in supermarkets, stores everywhere. Store channel construction companies should pay special attention, not only can be stationed in home building materials stores, but also stationed in home appliances, commercial channels, expand market share, accelerate product promotion, popularization and promotion. In the traditional lighting field, the most successful channel construction is NVC Lighting and Op Lighting. They are also making LED lighting in transition. The number of NVC outlets has reached 18,000, and Op Lighting has 10,000 direct sales stores or franchise stores. China's outstanding lighting companies use the turnover to explain what is the reason that 'channels are king'.

4, to open up e-commerce channels, e-commerce LED lighting products is a new channel model, but also according to national semiconductor lighting research and development and industrial alliance research data show that products sold through e-commerce show a gradual upward trend, the company completely Can use this platform to open up new sales channels and occupy more market share;

5. Disputes over invisible channels. With the growth and quality of lighting designers, the health and integration of the light environment is valued by many owners and architects. It can be seen from this lighting show that designers are a bridge. Give the building life and soul, the enterprise must pay more attention to this part of the group, through this 'bridge' to influence and persuade customers to achieve the brand's gradual expansion. The designer's team can also expand into home improvement design, decoration companies and other fields.

The Gold Cup Silver Cup is not as good as the consumers' reputation. The Gold Silver Award is not as good as that of the consumers. Luo Baihui believes that the product quality of the company, the value of the product, and the overall solution of art and intelligence are the key factors that ultimately affect product marketing. Doing a good job in channel construction on the basis of continuous attention and meeting the needs of customers and providing corresponding solutions are the fulcrum for winning consumers' favor.