LED lighting companies provoke price war to build a brand difficult

Statistics show that at present, the number of LED lighting companies in China has exceeded 5 digits, and most of the company's top talents still follow the market strategy of the traditional lighting companies in the layout of the terminal channels. This strategy proved to be successful, and then due to the emergence of LED products, the traditional distributor channel became more crowded.

It is difficult to scramble for the distribution of distributors. At present, excellent distributors in various provinces in China are scarce resources and are still monopolized by traditional lighting companies. The second and third-tier lighting dealers are affected by the regulation of state real estate, and the days are even more difficult. As far as the Shenzhen market is concerned, since July of this year, some dealers in the building materials market have been withdrawing due to capital chain breaks. For example, art dealers withdrew from the 6th, another withdrew from the 3, and Huaqiangbei LED procurement center. The average monthly withdrawal of two and so on.

Obviously, when the lighting distributors in the country are facing the cold market, traditional lighting companies and LED lighting companies have to seize the end market, and the result must be the channel for most companies to die.

Since last year, LED export enterprises have turned to domestic sales due to sharp drop in orders. For LED lighting companies, entering the terminal channel market either finds franchisees or directly enters terminals to open branded outlets. However, it is very difficult to develop franchise dealers. Most lighting dealers choose LED lighting companies to be more cautious. The reason is that the terminal market is flooded with inferior LED products, and there is no real LED brand in the terminal market.

Provoke price war to build a brand is difficult At present, there are too many LED companies in the market, and some companies have provoked a price war. If they want to eliminate their opponents and land on the beach, the representative is Mulinsen. Mulinsen's 3W bulb lamp gives the dealer a price of 8 yuan, and the distributor sells the terminal at a price of about 14 yuan. The price of the Mulinsen 3W bulb lamp is already very close to the price of the 5W energy-saving lamp on the market. It poses a threat to 5W energy-saving lamps.

The looting of the terminal market around lighting dealers has become more intense. The rectangular lighting adopts the exhibition board mode to open the door of the dealer. As long as the dealer is willing to sell the rectangular lighting products, they send the exhibition boards, prepare the model, and do not need the distributors to press the stocks. The sales are completed and then delivered to the door.

Long-range lighting quickly deploys the national market in this way, which is also the current market strategy adopted by most LED companies. In the current situation of the entire terminal market environment is uncertain, dealers can not press inventory, and LED lighting companies to adopt this channel layout model, many lighting dealers are very happy to accept, but this model requires companies have a strong logistics and distribution capabilities .

Although most of the LED lighting companies have succeeded in the initial operation of the terminal market, such as rectangular lighting, Mulinsen occupies the terminal market share by low-cost bulb lamps, and then stepped into the public through LED bulbs to establish a brand in the minds of consumers. Vision, but this strategic model is entirely the old line of traditional lighting companies.

Previously, by defining ceiling lamps, NVC entered the public view by defining the lamp cups and transformers and by defining ballasts. There are fluorescent tubes, T8 lamps, in fact by the Foshan lighting, Philips and other lighting companies to redefine, Philips defines the high-end price line, Foshan lighting definition of the low-end price line and thus began to popularize T8 lamps and fluorescent tubes. From the perspective of the development of the traditional lighting industry, in the next 1-2 years, there will be LED lighting companies or traditional lighting companies to define a certain category of LED product categories, which began to popularize LED lighting.

There is no doubt that rectangular lighting and Mulinsen want to enter the public view through the establishment of a bulb lamp brand. However, this kind of minimization of their own profits, not hesitating to stock up on the way to develop dealer channels, whether it is suitable for the current business environment remains to be seen.

Conclusion:

LED lighting company marketing team is mostly transferred from traditional lighting companies, its thinking is bound by the past successful experience, has become the biggest obstacle to LED marketing. In the next two years, as Suning's integrated sales platform intends to aggressively enter the terminal, as well as the emergence of low-cost housing and housing, the terminal sales channels will be more diversified.