LED lighting companies' distribution channels compete for gradual heating

If you win a thousand miles, you still need to plan for it. In 2014, it is undoubtedly the key year for many LED lighting brands to set the pattern. 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 of human tactics, advertising bombing, similar product system stereotypes, 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 initial marketing cost of the distribution channel accounts 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, realize the blossoming 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.
Nowadays, 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, told the Gaogong LED reporter.
The construction of LED lighting channel system is not a day's work. The unique characteristics of the circulation application itself and its market environment face many new challenges compared to the development of traditional lighting channels. Tan Jian, general manager of Laiwei Optoelectronics, said that if the channel brand melee is still in the stalemate stage, the market demand and the stage of the demand market start, the product quality is not easy to identify, and the proportion of producers and channel suppliers caused by lack of confidence of channel operators is imbalanced. These complex market environments are bound to a certain extent that LED lighting companies cannot make quick success in the construction of distribution channels.

The reporter learned that at present, there are three main problems in enterprises that attack LED circulation channels with large investment mode: 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. No way, the key resources of the distribution channel are these. The situation of changing the soup without changing the medicine often occurs, which makes the end market dealers tired and cope, and also makes the enterprise investment and new product promotion effect greatly reduced. A director who is working on a market for light source products for a certain LED company said helplessly.
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 look beautiful in a short period of time, 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 by scale can the cost be reduced; only the scale can be sold. The industry is so summarized.
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 believe that products, logistics, capital, brand, information, and resources are indispensable. It is also a combination of point, line, surface, and body of the marketing model to form a competitive competition. Integrated service platform. Otherwise, it is only a matter of spending money and only gaining bitter results. Lin Jiliang calmly analyzed that a good brand strategy can not only expand the channel, but also optimize and upgrade the channel, inject the corporate culture into the channel, facilitate the rapid start of 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 issues 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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