LED lighting industry channel model changes

The emergence of LED lighting not only brought about product changes, but also led to earth-shaking changes in the channel model, effectively impacting the traditional lighting has been used in the form of sales; LED is a new technology, with professional characteristics, the past channel model and Can not fully meet its development needs. All this forces companies to re-examine their existing channels in the LED era of problems and defects, explore new channel models, and open up new directions for development. In the lighting industry, some forward-looking LED companies have started earlier in this area and have also achieved remarkable results.

However, channel change is not an easy task. Although it is imminent, it is still difficult to implement in the process of implementation. The transition from traditional to new style will take a long time. During this period, the traditional model will be the main theme. However, when LED lighting develops to the advanced stage and the market continues to mature, channel changes will no longer be difficult.

The traditional distribution agency system is still the mainstream channel model

Through the above table, we can see that there are advantages and disadvantages to the six major traditional lighting channel models. Which channel is the main one depends on the specific conditions of the company. Zhang Wen, director of the regional director of Zhongshan Lead Crystal Lighting Lighting Co., Ltd., told reporters: “Companies should not blindly follow the trend, but should follow their own characteristics, take their own direction, and choose the right channel for their long-term development.”

Distribution agent is the most important channel model in the traditional lighting era. Most of them sell their products through distribution, agency, and other distribution channels, such as NVC, Ops and other traditional strong brands. So far, they are still relying on traditional distribution agency channels. Because the distribution agent model is more conducive to the layout of product outlets than other channel models.

He Rongbiao, president of Qiaosen Lighting, once said that the traditional distribution agency system is still the mainstream channel model.

Wu Jian, Marketing Director of Guangdong Haohao Lighting Appliance Co., Ltd., told reporters that the biggest channel of LED lighting is still the original retail, and the channels are basically the same as traditional channels. NVC, the domestic first store marketing model, combines LED sales channels with traditional lighting channels, and actively develops invisible channels while consolidating the global terminal retail system. This also shows that blindly relying on traditional channels is far from enough. The conflict between traditional lighting and LED lighting will impact the transformation of LED lighting channels.

“Traditional lighting used to be based on end products, namely, retail sales. In addition to large-scale projects, LED products are now mainly based on retail. In places where there are stores such as hardware stores and branch stores, only a few exhibition boards are required. , LED products can be displayed. Obviously, the current LED products due to short development time, development is not perfect, in the 'LED channel change' call, the perfect change still needs a long way to go. "Zhang Wen so Say.

Branch Office Mode is a Transitional Approach to Channel Change

When the LED lighting channel model is still in its infancy, companies are starting to build their own channels. They often use the advantages of traditional lighting channels to cultivate new types of distributors that are co-developed with the LED lighting era. Many companies adopt the branch company model. To defend their position in the market.

Take Qiaosen Lighting as an example. In 2011, Qiaosen Lighting began investing heavily in its branch office model. It has set up terminal flagship stores, warehouses, and modern offices. All branch companies are independently accounted for and operated independently. They are guided by Johnson. Directly facing the most advanced terminal network in the region.

It can thus be seen that the branch office model not only reduces the channel hierarchy, but also realizes the goal of making more profit for downstream distributors, allowing consumers to enjoy more price benefits.

At the same time, it is also conducive to the more efficient transmission of information between manufacturers and end consumer markets, and to increase manufacturers' control over the channels.

Professional service providers or new ways into the LED channel model

Through interviews and analysis, we can see that it is still at the initial stage of LED lighting development. In this stage, how to seek channel change is a problem that many LED companies need to think about, but the construction and expansion of LED enterprise channels should not be limited to traditional lighting channels, but can be actively explored and related according to their innovative and flexible design features. Product distributor cooperation methods and new business models.

Speaking of the development direction of the new channel model, Liu Wei of Tsinghua Tongfang Lighting Division believes that the best way of cooperation between traditional channels and e-commerce is to use online sales and offline services, and to use traditional channels as e-commerce logistics. And experience center, and e-commerce as a traditional channel of the transaction and promotion of the window, through the differentiation of the market to subdivide the product, this is the LED e-commerce channel development trend, I believe that this way will be more effective.

In this regard, Wu Jian also expressed the same view: "Online and offline channels combined is one of the directions for the future development of the lighting era channel model."

In order to meet the advanced stage LED products, the new channel model will have a more advanced development. According to Dou Linping, Secretary General of the China Illuminating Engineering Society, LED lighting is very professional and many users do not understand. Maybe future LED lighting needs to be done by a professional company. There will be a special lighting operation management company (professional service provider). For a dedicated lighting service provider, this may be one of the outlets for future lighting dealers, which requires dealers to prepare in advance.