LED lighting companies borrowed e-commerce platform industry recommendations to avoid drifting

Although there are many positives this year, the economic downturn in Europe has directly hit the export-oriented LED industry. In addition, the price war is becoming more and more fierce, the homogenization is serious, the sales channels have not been rolled out, the inventory pressure is high, and the funds at the end of the year are tight. And other factors, the situation of LED lighting companies is not optimistic. Next year will be a key year for China's LED lighting industry, and there will be a larger reshuffle.

LED e-commerce: knocking on the "golden key" of the domestic market?

At the Foshan seminar on the 29th, the sales channel issue was highly concerned by the participants. According to reports, similar to ceramics, furniture and other home industries, in recent years, more and more LED lighting companies are actively involved in the e-commerce stream, many of the original export-oriented LED companies, but also e-commerce as their knock The "golden key" of the domestic market.

"At present, there are three main types of LED lighting promotion. One is the dealer model. This mode has been used for many years. Therefore, LED lighting companies lacking brand effect have no advantage. The second is the direct store model. The mode requires a large amount of capital and manpower investment. For most LED companies that are in the early stages of development, there is a lot of pressure. The third is the e-commerce model. This model is relatively new, and the initial investment costs are lower than the previous two. Therefore, it is more popular with LED companies," said Wu Yulin, president of Foshan Lighting Association.

He said that at present, most of the e-commerce models commonly used by LED lighting companies are integrated e-commerce platforms such as Tmall, as well as professional e-commerce platforms for home and LED lamps, and a small part is self-built. “However, by e-commerce platform, the price must be very competitive. Therefore, positioning high-end brands or products must be very cautious. It is recommended not to enter the e-commerce with the flow. On the other hand, because the domestic LED lighting standards are not perfect, it is not implemented. Therefore, in order to occupy the market, many companies do not hesitate to sacrifice quality to fight price wars. This is a very dangerous signal that will damage the entire LED lighting industry."

In response to channel issues, the reporter interviewed several representatives of Foshan LED lighting companies. The relevant person in charge of the Foshan Lighting LED Division said that the current sales of e-commerce channels account for about 5% of the total sales of LED lamps, and the price is the public route. The relevant person in charge of Kaixiou said that the company is currently building a Tmall online store, which will mainly sell price-competitive downlights and spotlights. Mr. Zhou, the head of another company, told reporters that they are not considering e-commerce for the time being, and are still preparing to use traditional dealer channels. He believes that allowing consumers to visually see the lighting effect is more helpful for sales.

Zhang Hua, secretary-general of the Foshan Lighting Association, said that the current LED lighting companies in Foshan have not entered the e-commerce on a large scale, but the trend is very obvious. "On the one hand, enterprises need to open up channels and need more funds. On the other hand, consumers are more and more used to knowing and even purchasing goods online. This consumption habit determines that the emerging LED lighting industry must use the e-commerce platform as soon as possible to occupy the market and The right to speak.

There is danger in the flow of the tide, and it is necessary to be cautious.

For manufacturers, the introduction of e-commerce will turn the emergence of zero-level channels into reality. Products will directly face consumers through the Internet, reduce the middle-level and second-level wholesalers in the middle, and manufacturers will directly control the terminals. For consumers, the lighting city is too large, too tired to stroll, and the online shopping lights can travel all over the world with just a mouse click. The convenience of online purchase of lights, price transparency and other advantages are quietly changing the shopping habits of consumers. At present, some home building materials brands have also launched online shopping platforms, consumers can log in to these network platforms with a click of the mouse, you can complete a series of operations such as placing orders and paying deposits.

However, due to reasons such as integrity, logistics and after-sales service, at present, the most popular online lighting applications are those that are not very valuable and easy to transport, such as switch sockets, desk lamps, wall lamps, energy-saving lamps, ceiling lamps, etc. For crystal lamps, European lamps and other products, because these LED lighting products are relatively high in price, and it is more troublesome to transport, and the installation of lamps and other services is difficult to guide remotely. Therefore, consumers currently purchase these LEDs directly through the network. There are fewer lighting products. However, with the continuous improvement of China's credit system and the continuous improvement of logistics and transportation services, online shopping LED lighting products will become a trend in the future.

Industry development and increased competition complement each other. At present, the intensification of competition in the LED lighting industry has prompted the development of marketing channels in a diversified direction, which will certainly affect the future pattern of the LED lighting industry.

First, the process of channel flattening is accelerating. The flattening of channels is conducive to maximizing the profits of manufacturers and strengthening the control of the terminal market. In the future, the direct-sale area, single-store franchise, and direct-operating terminal chain models will gradually be adopted by the powerful LED lighting brand manufacturers.

Second, channel diversification will promote more diversification of competition. The level of competition and means are higher, and this will certainly promote the polarization of the market pattern - the stronger the stronger, the weaker the weak.

Most lighting companies are traditional lighting, there are still many misunderstandings about e-commerce, and by e-commerce platform, the price must be very competitive. Therefore, positioning high-end brands or products must be very cautious, it is recommended not to enter the e-commerce with the flow. On the other hand, because the domestic LED lighting standards are not perfect, and they are not enforceable, in order to occupy the market, many companies do not hesitate to sacrifice quality to fight price wars. This is a very dangerous signal, which will damage the entire LED lighting industry. LED lighting companies need to find a position and be cautious.


(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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