LED lighting industry is facing channel competition

In 2014, the industry was regarded as the most critical year for the lighting industry to compete for channels. This is true for manufacturers and distributors. The current market is extremely confusing and it faces strong opportunities.

Currently, LED is developing from the initial public lighting to commercial lighting, industrial lighting and home lighting. The industry is generally optimistic about the future of LED lighting. The traditional lighting market is shrinking, and the LED lighting market capacity is continuously expanding. Each LED brand manufacturer has begun to participate in the battle for channels.

The dark pattern of changes in the new era

At the Beijing Lighting Fair in 2014, it was learned that in the era of semiconductor lighting, the current relationship between distributors and brand manufacturers has changed from the traditional lighting era.

In this regard, the industry is known as LED lighting marketing "ghosts," the general manager of billion light Wu Zhengyu that competition in the industry chain to join, making the LED industry's competitive format changes. The addition of the strategic elements of these industrial chains to the competitive landscape of the industry has produced a profound impact on the industry's competitive format.

LED industry from the perspective of traditional lighting products is more to do product competition, from product development to distributors to quickly and effectively distribute, complete a complete value conversion process from product to product.

"At present, the dealer is the eyes of all manufacturers in the eyes of the Tang Yao meat, all the gods and demons, no matter who wants to eat a dealer. At present, dealers in the selection of LED brand manufacturers there is a misunderstanding, in the era of LED lighting dealers should grasp Live opportunities to adjust their strategic positioning." Wu Zhengyu said.

In addition, in the semiconductor lighting era, the industry's technological progress is fast, companies and dealers are difficult to judge their own prejudgment, it is difficult to make the right layout of the industry.

At present, LED is a rare common industry in the world, so that the strengths of various disciplines, such as capital and technology, have joined in, gathering technological breakthroughs and gathering the possibility of multi-industry cross-border innovation and fusion mutations. The rapid development of the LED industry has resulted in changes in product prices that exceed people’s expectation, and the life cycle of price switching structures with traditional lighting is much faster. Now, many dealers’ operating mechanisms, habits and pace may be formed during the traditional lighting period. The structure can not be converted and adapted to LED lighting era. If the dealer's ideas and behaviors change with the times, it will lead to changes in business models.

Therefore, vertical industry chain competition is highlighting the characteristics of upstream and downstream enterprises. Changes in upstream technologies and industrial structure will affect the middle reaches. Changes in midstream companies will in turn affect the downstream, and everyone now believes that competition The focus is on the channel, on the product, and the focus of competition is actually on the packaging stage, because the stability of the package will have a huge impact on downstream manufacturing, which is not met before.

From the point of view of terminal application manufacturers, if companies cannot find a strategic partner in the supply chain for the middle and upper reaches and make a strategic match, it will be difficult for enterprises to win the battle. Moreover, after the stable configuration resources of the manufacturers, they may not be able to win this battle, because manufacturers cannot but finish the final “last mile”, and this industry chain competition will not have a good ending. Therefore, the solution to the "final one kilometer" problem is whether distributors and distributors can become the most powerful nodes in the industry chain to help the industry chain release its key competitiveness in competitive and competitive results.

Distribution portal takes priority

The channel distributors are at the end of the industry chain competition. The dealers themselves have a clear positioning, which is the problem that the dealers themselves and the brand manufacturers choose from each other. The distributors can choose high-quality brands. In the LED era, how many big brands can be really left, at most Ten families are not necessarily, and other brands will coexist. Lighting industry has more than 30,000 companies to do lighting, there will be a large number of manufacturers to do lighting, in which there will be many manufacturers of molecules, which may form a world of difference. The same is true for dealers. There may be many local dealers. It is not a molecule in the local area, how many molecules are there, and what role can you play in it? If you look for a brand and use its own resources to develop sales channels, you may become a dealer. If you look at a brand, it will only be a molecule.

In the era of semiconductor lighting, from the perspective of its industries and subdivisions in the international arena, it is impossible to have a decentralized strategic plan. The semiconductor lighting industry will move toward more and more sub-market prices, multilateral and diverse, and mainstream and mainstream channels. It will become more and more extensive. Then, there will be some room for personalized customization and creation of multilateral innovation. The mainstream channel providers must be extremely concise and conform to the laws of social development.

Now as a mutual choice between manufacturers and merchants, if distributors make local sales portals, the competition between big brands will become more intense and they will control high-quality channel resources. Like Ops will have to file under the national channel dealers are not allowed to sell NVC products, if the agent sales NVC products will ban the opp furniture agent qualifications. However, for local portal channels, distribution services, and retail channels, which are the largest portal-level channel providers, it is not the brand manufacturers who choose the distributors, but the distributors are choosing brand service providers. However, in order to survive better, channel distributors will also find ways to connect with other high-quality brand service providers.