In the LED indoor and small power lighting market entered a stalemate state, Snow Wright hopes to make up for the lack of engineering lighting channels of the company's LED lighting business in recent years. Especially in recent years, under the situation that the price war of distribution channel lighting products is constantly escalating, how to seek to improve the profitability of the business has become a breakthrough.
At present, Shell's core products are indoor energy-saving lighting products, automotive lighting products and air purification and water treatment products, with its own brand and OEM sales as the main sales model. In fact, Shellett’s acquisition was inseparable from the company’s overall market planning.
In the past two years, Shell Wright has continuously expanded its product layout in the channel, and held investment conferences in Fujian, Shandong, Sichuan, Guangdong, Beijing, Hebei, Yunnan and other provinces and cities. I hope to recruit dealers with the slogan "Health LED Lighting".
In terms of product planning, in order to meet the needs of the retail market, Shelly also promotes a variety of low-priced products. Take the large-sized panel lights released by the company as an example. The average price of the products is less than 100 yuan, and the low price is “small†to seize the market segment.
Li Chenghao, Marketing Director of Zhongshan Mann Lighting, told the reporter of "High-tech LED": "The price difference is obvious for different sales positioning. Under this overall price reduction trend, although Shell's 'low price' strategy caters to the needs of the market. The final result also depends on the acceptance of the market and the overall planning of the company."
It is the main impression that Shelle has given in recent years to hit the front end with low-end products and accelerate the pace of LED transformation. An analyst who is concerned about Shellett pointed out that Shellett's adoption of the channel expansion model of the China Merchants Association to increase brand building results will gradually become prominent, and the pace of the company's transition to LED lighting will determine the rate of return of benefits.
However, although the process of investing in LEDs has accelerated, the overall channel construction has not achieved the expected results.
The reporter investigated more than ten dealers in various provinces and cities to understand that in terms of brand influence and channel construction, Shellett progressed slowly.
“Snow Wright can't compete with traditional lighting companies such as Opt and NVC in terms of brand influence. The investment situation can't be compared with Mulinsen and Yiguang LED.†Mr. Long, an integrated agent in Hubei, told reporters.
In fact, under the pressure of low threshold for low- and medium-power indoor products, there are quite a few companies that have returned to Yu. Although Shell Wright, which was mainly based on OEM sales, has the advantage of products, the lack of channels and brand precipitation is the main reason for restricting its market share. Fushun Optoelectronics, which has a certain amount of engineering resources in hand, is also forced by the situation.
It is understood that Shell and Fushun Optoelectronics have certain complementarity in product structure, customer structure, domestic and overseas markets. The use of Fushun Optoelectronics intrinsic municipal engineering, banking and telecommunications and other engineering channel resources is the main purpose of the acquisition of Shell.
According to the data, Fushun Optoelectronics is mainly engaged in the R&D, production, sales and service of LED display and lighting application products and solutions. The main products can be divided into three categories of LED lighting products, LED display systems and counter service products, mainly for medium and high-end industry users such as municipal engineering, financial telecommunications, road tunnels, advertising media, sports venues.
“As the first batch of semiconductor companies, Fushun Optoelectronics has a long history of operation and accumulated rich industry experience in the outdoor display industry. It also has a certain influence in Zhangzhou.†Deputy Director of the Semiconductor Lighting Committee of China Lighting Association The director of Xiamen LED Promotion Center told the reporter of "High-tech LED".
The announcement shows that with the help of Fushun Optoelectronics' customer resources, product sales channels and construction project construction experience, Shelly can effectively develop indoor LED lighting and environmental purification markets for municipal engineering, banking telecommunications, stadiums and other users.
The influence of Fushun Optoelectronics in the Yinzhou area is understandable. The relevant person in charge of Fushun Optoelectronics said to Gaogong LED that in recent years, the company has been increasing its business expansion in the country, and the radiation range is gradually strengthening.
In addition, in terms of product composition, banking services and outdoor display screens are the main business of Fushun Optoelectronics. In the field of lighting, due to the lack of corresponding precipitation at the beginning of the launch, the market itself is highly competitive, and Fushun’s brand in the circulation lighting channel has little influence. The support for Shellett's current product itself is not strong. However, the market influence of engineering channels, especially municipal, banking and other related channels, can make up for the shortcomings of Shellett's original business in the short term.
For the subsequent acquisition effect, the industry believes that the specific effect of Shell's acquisition behavior on brand influence and channel improvement remains to be tested.
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