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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?
Fast, sturdy, quasi-full LED applications are entering the period of spurt penetration. The huge market prospects have stimulated many domestic and foreign companies to seize the LED market, and the competition is already hot. Channels are kings, wise people first, channel construction is undoubtedly a weapon for LED lighting companies to compete for market opportunities. Who can master the channels, who can grasp the initiative of future competition.
The lighting industry has a variety of modern commercial channel models such as circulation, engineering, KA, e-commerce, invisibility, and direct marketing. In the field of circulation, there are not many enterprises with LED core resources including technologies and channels, and there are even fewer upstream and downstream industrial chain optimization capabilities. Under the premise of how to combine its own development stage and market situation, it has become the key to market success.
At present, China's lighting market has a capacity of 240 billion yuan, and LEDs have soared year by year. There is no monopoly brand that can reach the total market share of 5, especially in the field of commercial lighting and industrial lighting, but it is believed that it will appear soon in the circulation field. Therefore, some LED companies are trying to expand their channel influence, and it is inevitable that they will focus on marketing. And the way we propose the distribution channel is: to the vast majority and to the finest, very high-minded and moderate. Lin Jilin, general manager of Mulinsen Lighting Marketing, concluded.
In 2015, the integration situation will form a tug-of-war, forming a brand and a supply chain camp, and thus form a faction. In 2016, a large number of middle and lower reaches will be kicked out, and the market differentiation will become more and more obvious. Because in this channel field, the circulation brand belonging to the LED lighting era will emerge.
Therefore, regardless of the traditional light source or LED brand, the channel competition is extremely fierce in the three years from last year to next year. In the face of the already existing channels of shuffling, LED circulation-type strength enterprises have tried their best to implement the human-market marketing strategy of large-input and large-output, in order to quickly occupy the market in a short period of time.
For example, at the first National General Agents Meeting on February 22 this year, Mr. Sun Qinghuan, Chairman of Mulinsen, announced the goal for 2014: Mulinsen Lighting's sales in 2014 will exceed 1 billion yuan, becoming the industry's leading brand. In the next three years, Mulinsen will become a hundred Billion-level mass brand. On the same day, Mulinsen Lighting achieved a good result of an order amount of 1.4 billion yuan.
Two days later, Mulinsen Lighting immediately dispatched more than 300 marketers to the front line, and joined the same number of business elites provided by the agents to form a marketing team of nearly 700 people, and intensively cultivated the second, third and fourth line markets.
Yiguang Lighting and Dehao Runda, which also have the integration strength of the mid-to-lowstream industry chain, are not to be outdone. The former relies on the advertising bombing and landing conference last year. The latter leveraged the channels and brand influence of NVC lighting. A certain degree of popularity, but due to the short operating time of the application channel, its network quality and product cost performance have also been questioned by some insiders. This year, the channel layout of the two companies has been further strengthened.
It is understood that there are two channel targets for Yiguang Lighting this year: First, continue to improve the channel layout; Second, improve the quality of existing outlets, and plan to reach 25 operation centers, 1,500 dealers and 5,000 distribution outlets. These goals will be achieved through systematic, batch-by-batch tactics and centralized operations. In terms of network upgrades, this year, three hundred projects were proposed, namely, 100 dealers with annual sales of 1 million yuan, 500,000 yuan and 300,000 yuan.
Dehao Runda announced in March 16 that at the NVC Lighting 2014 LED New Product Launch Conference, Dehao Runda and NVC Lighting National 37 Operation Centers signed the “2014 Regional Operations Center Distribution Agreementâ€, intentional sales The amount reached 1 billion yuan. However, unlike other LED companies, data on the marketing strategy and number of outlets of its combined brand, Lester Dehao LED, has not been announced.
The new brand Cosbury has benefited from the support of Ruifeng Optoelectronics, and has made breakthroughs in the cost performance of the industry chain. Following the launch of the channel in the second half of 2013, it also launched an all-round advertising promotion brand promotion in 2014. According to its president Chen Yuefeng: At the site of the Hangzhou Confucius National Operators Conference in February this year, the Kesi Baili marketing team signed a sales order of 200 million yuan in 2014, and started to set up a major lighting store in each provincial capital. Outdoor Billboard.
At present, there are nearly 300 members of the Cox's China Red Blood Cell team, and an average of 10 people are stationed in each province to assist provincial operators in the development of prefecture-level, district-level and township-level channel outlets.
It can be seen that circulation-type LED companies are using large-scale paving stores through channel fission, and enterprises try to grasp the right to speak in the industry chain through the control of terminals.
However, it should not be overlooked that behind the high growth of the industry, there are hidden hidden dangers, and the pace of shuffling will continue to accelerate. 2014 is a period of reshuffle in the industry. The death rate of the entire LED lighting company will exceed 50, and the proportion of LED lighting companies will exceed traditional lighting for the first time.
Big investment = big output?
According to the above table, the initial marketing expenses of the distribution channel account 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 reporters.
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.
At present, there are three main problems in enterprises that attack LED distribution 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 to reporters the relationship between products and the market. 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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