[Text / Zhou Jianhua] Desperate thousands of miles, but also need to strategize. In 2014, it is undoubtedly the key year for many LED lighting brands to “fix the patternâ€. Throughout, circulation and engineering channels are still the focus of major brands, and the former is particularly eye-catching.
Mu Linsen Lighting, Foshan Lighting, Cosbury, Shifu Lighting, NVC-Dhao, and Yiguang Lighting are among them. Its similar marketing model - human tactics, advertising bombing, similar product systems - stereotyped products, positioning and circulation, is also the easiest to let the industry compare. In 2014, the competition for distribution channels has become fierce, but the problem is also quite prominent. What is the way out?
The “starting†marketing expenses of the distribution channel account for at least 15%-20% of the total revenue, and this does not include the year-end commission of the marketing management and front-line salesmen. It is necessary to continue to invest in order to produce output, and the depth of its output is not as well as the ready-made case reference. The difficulty of opening up distribution channels for LED emerging products can be imagined.
At present, most LED distribution companies use traditional sales models to distribute, represent, join and other partners to achieve sales models for end customers. The advantage is that it can quickly lay out and realize the “flowering everywhere†of the product marketing network and quickly occupy the consumer field. The shortcoming is that the dealer's profitability and loyalty can't be controlled. If there is not enough tempting investment promotion policy, or if the profit is not realized in the short-term after joining, it is common for dealers to evacuate or counterattack. Because of this, it is costly. However, this model is also more suitable for the domestic region and the complex market level of demand, and is also the focus of LED lighting companies' current active exploration and layout.
"Now the application terminal and the traditional lighting era are very different. Too much reliance on a traditional channel, or excessive investment in the short term, it is easy to fall into it and lose its advantage in the near future." Hong Yannan, Chairman of Guangmingyuan Lighting Said to the high-tech LED reporter.
"The construction of LED lighting channel system is not a day's work. The unique characteristics of the circulating application products and their market environment, and the development of traditional lighting channels face many new challenges." Tan Jian, general manager of Laiwei Optoelectronics, analyzed For example, the channel brand melee is still in the stalemate stage, the demand market is initiated in the field and stage, the product quality is not easy to identify, and the proportion of producers and channel providers caused by lack of confidence of channel operators is imbalanced. “These complex market environments are bound to a certain degree. LED lighting companies can't make quick profits in the construction of distribution channels."
Gao Gong LED reporter interviewed that the current major enterprises with large investment mode to attack LED circulation channels have three main problems: serious follow-up, superstitious speed and excessive investment. The follow-up includes products with high homogeneity, replication operation mode, similar channel strategy, and similar brand positioning. "There is no way, the key resources of the distribution channel are these, and the situation of changing the soup without changing the medicine often occurs, which makes the terminal market dealers tired and cope with it, and also makes the enterprise investment promotion and new product promotion effect greatly reduced." One is working for a certain The director of the LED enterprise market for light source products has no choice but to say.
The superstitious speed is also a common problem for enterprises in the current golden channel. As we all know, the construction of channels has never been overnight. Rapid flowering, full-scale deployment, may appear "beautiful" in a short period of time, and it is also likely to cause insufficient maintenance of outlets, tight corporate capital chain, low profitability of single stores, serious loss of business, and other sequelae.
There is also a disproportionate input and output. The circulation channel relies on the volume, and the volume means that it is necessary to open up enough outlets nationwide and continue to support high production capacity in order to form a scale effect. "In the field of circulation, large-scale production and large-scale circulation will become the norm. Only the scale, the cost can be reduced; only the scale, sales can be done." Industry insiders summed up.
The cost of the previous market development has increased greatly, including product development, business teams, marketing activities, exhibition advertising, commission rebates, and monthly sales. However, once the terminal sales performance has not been able to rise, it will face a situation of being unable to make ends meet.
“Whether it is doing circulation or engineering channels, I think that products, logistics, capital, brands, information, and resources are indispensable. There is also a combination of points, lines, faces, and bodies that are combined with the marketing model to form a difference. Competitive 'integrated service platform'. Otherwise, it will only pay for the painful investment. Lin Jiliang calmly analyzed that a good brand strategy can not only expand the channel, but also optimize the channel and inject the corporate culture into the channel. It is convenient to quickly start the market and stabilize the company's control over the channel.
In addition, many people in the industry believe that enterprises should develop a suitable market layout in different development stages, and the brand reputation strategy and cost-effective products are the red line throughout.
“All market problems can be returned to the product line.†Lu Weidong, general manager of Yuanhui Optoelectronics China, explained the relationship between products and the market to Gaogong LED reporters. In his eyes, the product system as the fist of the enterprise to hit the market determines the success or failure of the development of the enterprise channel.
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Mu Linsen Lighting, Foshan Lighting, Cosbury, Shifu Lighting, NVC-Dhao, and Yiguang Lighting are among them. Its similar marketing model - human tactics, advertising bombing, similar product systems - stereotyped products, positioning and circulation, is also the easiest to let the industry compare. In 2014, the competition for distribution channels has become fierce, but the problem is also quite prominent. What is the way out?
The “starting†marketing expenses of the distribution channel account for at least 15%-20% of the total revenue, and this does not include the year-end commission of the marketing management and front-line salesmen. It is necessary to continue to invest in order to produce output, and the depth of its output is not as well as the ready-made case reference. The difficulty of opening up distribution channels for LED emerging products can be imagined.
At present, most LED distribution companies use traditional sales models to distribute, represent, join and other partners to achieve sales models for end customers. The advantage is that it can quickly lay out and realize the “flowering everywhere†of the product marketing network and quickly occupy the consumer field. The shortcoming is that the dealer's profitability and loyalty can't be controlled. If there is not enough tempting investment promotion policy, or if the profit is not realized in the short-term after joining, it is common for dealers to evacuate or counterattack. Because of this, it is costly. However, this model is also more suitable for the domestic region and the complex market level of demand, and is also the focus of LED lighting companies' current active exploration and layout.
"Now the application terminal and the traditional lighting era are very different. Too much reliance on a traditional channel, or excessive investment in the short term, it is easy to fall into it and lose its advantage in the near future." Hong Yannan, Chairman of Guangmingyuan Lighting Said to the high-tech LED reporter.
"The construction of LED lighting channel system is not a day's work. The unique characteristics of the circulating application products and their market environment, and the development of traditional lighting channels face many new challenges." Tan Jian, general manager of Laiwei Optoelectronics, analyzed For example, the channel brand melee is still in the stalemate stage, the demand market is initiated in the field and stage, the product quality is not easy to identify, and the proportion of producers and channel providers caused by lack of confidence of channel operators is imbalanced. “These complex market environments are bound to a certain degree. LED lighting companies can't make quick profits in the construction of distribution channels."
Gao Gong LED reporter interviewed that the current major enterprises with large investment mode to attack LED circulation channels have three main problems: serious follow-up, superstitious speed and excessive investment. The follow-up includes products with high homogeneity, replication operation mode, similar channel strategy, and similar brand positioning. "There is no way, the key resources of the distribution channel are these, and the situation of changing the soup without changing the medicine often occurs, which makes the terminal market dealers tired and cope with it, and also makes the enterprise investment promotion and new product promotion effect greatly reduced." One is working for a certain The director of the LED enterprise market for light source products has no choice but to say.
The superstitious speed is also a common problem for enterprises in the current golden channel. As we all know, the construction of channels has never been overnight. Rapid flowering, full-scale deployment, may appear "beautiful" in a short period of time, and it is also likely to cause insufficient maintenance of outlets, tight corporate capital chain, low profitability of single stores, serious loss of business, and other sequelae.
There is also a disproportionate input and output. The circulation channel relies on the volume, and the volume means that it is necessary to open up enough outlets nationwide and continue to support high production capacity in order to form a scale effect. "In the field of circulation, large-scale production and large-scale circulation will become the norm. Only the scale, the cost can be reduced; only the scale, sales can be done." Industry insiders summed up.
The cost of the previous market development has increased greatly, including product development, business teams, marketing activities, exhibition advertising, commission rebates, and monthly sales. However, once the terminal sales performance has not been able to rise, it will face a situation of being unable to make ends meet.
“Whether it is doing circulation or engineering channels, I think that products, logistics, capital, brands, information, and resources are indispensable. There is also a combination of points, lines, faces, and bodies that are combined with the marketing model to form a difference. Competitive 'integrated service platform'. Otherwise, it will only pay for the painful investment. Lin Jiliang calmly analyzed that a good brand strategy can not only expand the channel, but also optimize the channel and inject the corporate culture into the channel. It is convenient to quickly start the market and stabilize the company's control over the channel.
In addition, many people in the industry believe that enterprises should develop a suitable market layout in different development stages, and the brand reputation strategy and cost-effective products are the red line throughout.
“All market problems can be returned to the product line.†Lu Weidong, general manager of Yuanhui Optoelectronics China, explained the relationship between products and the market to Gaogong LED reporters. In his eyes, the product system as the fist of the enterprise to hit the market determines the success or failure of the development of the enterprise channel.
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