Reflection on the Breakthrough of the Difficulties of Home Furnishing Lighting

Preface: Is it raining over the building?

In 2009, it was a hot summer, followed by real estate and lighting. The author of the summit forum under the guidance of a media in Guzhen Town, Guangdong Province, had the privilege of participating, and all herders gathered together to make British capital appear. There is a great deal of the world, and within the package, looking down on everything. When the writer participated in the “Huashan Swordsmanship”, he threw out the following four-seat, “alarming” but perhaps outdated remarks:

How long can this success last?

Can you continue your brilliance without worry?

After 5-10 years, most of you will be eliminated or marginalized by the industry. Will you believe it? Maybe someone believes, maybe someone does not believe that there is a real sense of crisis in the people who believe, and they are willing to implement the response. What's the solution?...

Time flies and moves in time. Since the beginning of 2012, the author has said that the misfortune hit or gradually honored - a large number of lantern brand or indoor lighting brand or closed down, or rapidly decline, or dismal business, the ancient town's boss is insolvent or "running" incident has also been heard.

Is it the pain of development or is it that "the rain is all over the building?"

However, in a city of “windfall and turmoil”, there are always some companies that are immersed in the oasis under the spring water and are full of vitality and lush greenery. In the lighting industry, there are also a number of companies represented by OKES Lighting, Op Lighting, and Sidon, who are holding up against the wind and stagnant sales. If Ops and NVC are examples of first-class indoor lighting and their success cannot be replicated, OKES Lighting and Sidon, as successful breakthroughs in second-line indoor lighting, are actually more valuable and more typical - especially, OKES. Pan Zhenhua, chairman and general manager of the company, is far-sighted and has a unique eye for signing the “troika”. Starting from the three aspects of brand, terminal, and channel, we launched the 2012 Integrated Marketing Campaign in an all-round way.... Pan Zhenhua brings Zhang Wei, marketing director, and “troika” to each level of the market to personally participate in the annual marketing planning and distribution expansion and market of the regional market. Promotion, terminal demolition; 4+3 team management mode fully implemented, and the personnel weather is completely renewed; the distribution of towns and towns has blossomed everywhere, becoming another growth point for OKES...

The success of OKES once again proved forcefully that “as long as the mind is not going downhill, the approach is always more difficult than it is”. The lighting industry is still a "broad world, a great accomplishment."

Below, let us work through an in-depth analysis of the industry's "difficulties" in order to sort out the industry's opportunities and find a way to "break" -

Difficulties: Missing Marketing Strategy

The rise and fall of an industry or an industry, apart from its own laws, are all affected by the economic laws. It is no exaggeration to say that the low tide of the lighting industry has a direct correlation with the US subprime mortgage crisis, the European debt crisis, and the appreciation of the renminbi. Although the subprime mortgage crisis in the United States has improved slightly, economists have always maintained their reservations. Perhaps, it does not rule out the risk of a second bottom. The European debt crisis occurred before the eyes. With regard to the gradual integration of the world economy, the economic constraints of the United States and Europe will inevitably have a direct impact on our country’s export business, and of course affect the lighting industry’s exports. The impediment to the export of one of the troikas that drove the domestic economy will inevitably have a serious impact on the domestic economy. This is one of the major external factors in the lighting industry's current low tide.

On the other hand, as a result of the domestic super currency bill for many years and the 4 trillion investment in 2008, it has caused continuous domestic inflation. The overheating of domestic economic assets and the imbalance in the layout of the industrial structure have also caused industrial obstruction, hollowing out of the industry, and speculation. Therefore, the country's new round of macro-control is inevitable. For the overheated and bubble real estate industry, it is to adopt purchase restrictions to stabilize its current situation and avoid further formation of a real estate crisis.

The entire pan-home building materials industry, is subject to a new round of rapid development of real estate development cycle, is the inevitable law of industrial development, of course, is the unique law of the lighting industry.

Although the development of the entire lighting industry has entered a phased platform period, after all, for each individual - lighting companies, the situation is different. After all, there are still some companies who live in great numbers. Such as Op, such as OKES. It can be seen that the winners are self-made and the losers are defeated. The entire lighting industry, it is no exaggeration to say that marketing tools and fast-selling goods compared with the appliance industry, is still very backward.

As a breakdown, the key issue is the absence or ambiguity of marketing strategies.

Lighting companies in the ancient towns and even in China as a whole have formulated a clear business strategy. They can be said to have only a handful of them. Since the lighting industry has a relatively low start-up cost, it can be said that a little money can be freely entered. Failed, another brand continued to operate. Therefore, for the competitive landscape of large-scale small businesses, few employers have a high level of vision to seriously consider the so-called “strategy,” as if it were a very distant issue. In addition, the rapid development in more than a decade has allowed a group of people to become millionaires and multimillionaires. When do you have time to take care of the word "strategy"?

Once upon a time, the overall home lighting is a buoyant concept of "wind and water", similar concepts include "individual home lighting", "integrated home lighting", "one-stop home lighting", etc., but the author wants to express It is, to some extent, a staged concept and a "pseudo-concept." Even today, if manufacturers still have such positioning and appeals, it is no different from digging their own tombs.

Why do we say that “overall home lighting” is a transitional concept that cannot be used now? The main reason is that the products covered by the “general household lighting” in the narrow sense are not competitive. We know that pure lighting companies generally seldom appeal for “overall home lighting”, and the appeal for this concept is mostly for a group of companies that include ordinary ceiling lamps, ceiling lamps, tube spotlights, energy-saving lamps, brackets, and electricians. Once upon a time, as a holistic purchase appeal, in the initial stage of market competition, there is still a certain appeal to consumers, and it also has a certain appeal to channel providers. After all, one-stop shopping brings a lot of convenience to consumers. However, as of today, the custom home lighting companies' customized products—light source series, tube spotlights, electrician series, etc.—have been more cost-effective, better service, and stronger brand advantages by some professional companies. Beat the flowers. The top light series, but also by a number of decorative style lantern companies, gradually encroaching on vitiligo.

Therefore, in the traditional sense of "integral home lighting" companies, if you want to break out from the category, there are only two ways to go at this stage, one to go stereotyped product line, take the advantage of cost-effective, in the marketing to take the channel route of intensive distribution . The other is to create the advantages of dome lamps, make personalized decorative lights, take the differentiation route. Naturally, at this time, it is no longer "general home lighting." Breakthroughs in the OKES category are examples of successful second-generation home lighting.

Breaking chapter: Where are the marketing innovation opportunities?

The way to break through lies in the discovery of opportunities and on the basis of their own characteristics, to create their own competitiveness. The author is very determined that the lighting industry is still a small number of financial resources. The point of opportunity is mainly reflected in: First, the country temporarily limited real estate, but the majority of the third and fourth-tier markets have not been included in the scope of purchase restrictions. According to what the author has seen and heard this year, the effect of restricted purchases in the third and fourth-tier markets is not significant. Therefore, perhaps it is a great opportunity for a company that is interested in sinking channels.

Second, the country is making great efforts to carry out the strategic layout of the construction of small cities, and the phenomenon of population crowding northward, up, broad and deep, or combing is expected to ease in the future.

The big cities certainly have their advantages, but his abuses are endless. Therefore, nurturing small and medium-sized cities and rural urbanization are the strategic layout for the next N years. This has also brought endless opportunities for companies that have caused channels to sink. Once again, the construction of a new countryside is also a major strategic layout of the country. Demolition and reconstruction in rural areas have brought sufficient opportunities. In addition, the unprecedented technological opportunities brought about by the technological changes in the LED industry are also challenges. .

Finally, it is undeniable that the lighting and lighting industry is one of industries with a relatively low start-up cost. Therefore, smart operators can move in a timely manner. Even if the operation fails, there will be a comeback day. In the following, based on the above-mentioned opportunities, the author will introduce the breaking rules one by one.

Method one: layoffs and pay cuts are cold and hot summer days. People's instinct is to add clothing and cut clothing. The lighting industry has come in the winter, and layoffs and pay cuts are the first thoughts. There is nothing wrong with this idea. The so-called medical treatment can not cure the problem. For companies that are content with the status quo and do not want to advance, there is no choice but to lay off their employees and reduce their wages. However, there are always some aggressive companies that always want to do something. Therefore, bucking the trend has become a new thinking of such companies.

Method Two: Contrary to the contradictions of ideas and strategies is not to take the unusual road. In the words of Buffett's father, it is "I fear when others are greedy, and I am greedy when others fear." The downturn in the lighting industry is also the time when the cost-to-output ratio of corporate marketing costs is the highest. It is also the time when the channel expansion is the best, and it is also the time for hard work. Companies in the lighting industry that are in turmoil can consider breakthroughs in categories, breakthroughs in channels, breakthroughs in marketing, and breakthroughs in marketing.

Method 3: Breakthrough category breakout category, plainly, is to learn from the home appliance industry model, with a series of single product as a breakthrough, for each category to find the best channel circulation model with a category as one of the most directly affecting the industry Therefore, the domestic and foreign economies are blocked, resulting in the obstruction of real estate, which will inevitably affect the sustainable development of the lighting industry.

Of course, the lighting industry is hindered and its own laws are at work. The development of any industry cannot be sustained forever. After more than ten years of rapid development, the lighting industry should also enter an adjustment period and a stable period. At this time, a large number of small and medium-sized enterprises that are homogenized in product, mediocre in marketing, fuzzy in strategy, and hollow in capital will undergo severe tests. Eliminating, shuffling, and then breaking through, integrating flow-type products to take advantage of the cost-effective advantage of the lower end of the line. Or break through in areas where competitors are weak. Or completely avoid the competition of home stereotyped products, develop personalized product categories, take the differentiated route.

Method 4: Brands go up & down “Go up”, that is, the high-end brand is positioned in the high-end crowd. “Going down” means brand popularization, positioning in the mainstream consumer groups, positioning in the newly-increased township market and the popularity of the city. Why does the development of the brand target “high-end consumer groups” and “popular consumer groups?” authoritative research The data shows that at present in the Chinese market, the building materials sector is not affected by macroeconomic adjustments and downturns. The two major consumer groups that have shown positive growth are the high-end market, the popular market, and the rural market, which focuses on the township market. An unprecedented sales boom.

Method 5: Marketing Breakdown As far as the Chinese market is concerned, there are very few technologically original manufacturers that dominate the market and form the industry's first-line brands. The implication is that the competitive landscape of the industry in the future is still one of those companies that values ​​the market and attaches importance to marketing. Marketing will once again dominate the future of the lighting industry. Marketing breaks, can start from the following aspects:

The first is to start with channel changes and take the road of hybrid channel mode one by one. This is certainly true for the second-tier brands, because the front-line leading brands already have a sound and systematic channel model. Second-tier brands must achieve breakthrough marketing. Mixed channel mode is the way out. The hybrid channel model is not a single model, but a one-stop approach to selecting the best channel model for the region. Such as small-area agency model, product channel differentiation agent model, stock company model, branch company model, light source-intensive distribution model, traditional agent model, direct supply model, etc. The first-line brand in the lighting industry and the first-line brand in the traditional industry have not formed their own advantages through channels and brands.

The second is the issue of marketing model innovation. At present, the second-line brand in the lighting industry is struggling to break through. Regardless of the big environmental factors, in terms of marketing alone, the field of vision is relatively narrow. These companies' one-of-a-kind programs are all first-line brands in the industry. Notice that the time to learn first-line brands in the industry is now over. Missed the best time, the effect will certainly be greatly reduced, the cost has also increased significantly.

Then how to innovate marketing? Look beyond the lighting industry companies, such as home appliance industry, fast-selling goods industry, the Internet industry. Learn from these industries, digest and absorb new ideas and means, so as to own it. Marketing innovation is generally oriented at two levels. One is the innovation of the marketing model, such as the associate company model of the household appliance industry.

The first is the innovation of marketing methods, such as the store model and the outdoor promotion model. Now these modes are monotonous and old. However, other industries, such as the home appliance industry, must have some means to learn from.

The third is the implementation of marketing level to build. Everyone understands that as long as the infusion and intensive training are repeated.

However, according to the author's observation, many manufacturers do not lack strategies. What they lack is consistent execution. Many of the ideas look beautiful and sound tempting, but once they reach the market, they are always "hard". After all, the lack of execution is fundamental. Of course, the issue of execution power has many potential factors behind it, and it is not limited to the length of this article.

Fourth, build marketing capabilities. For the lighting industry's marketing promotion, it is almost impossible for the second-tier brands to adopt the popular brand promotion model at the beginning. Therefore, the first step is to be a small brand in the industry segmentation market. Although the promotion method can learn from the Internet industry and the home appliance industry, it is still more important to promote the terminal and increase the exposure of the brand with the number of terminals and the quality of the terminal.