[Source: "Engineering LED- lighting market," the November issue of reporter / Zhang Geng]
There is a strange phenomenon in the current LED industry. Enterprises that do LED accessories can live, and companies that do LED consulting can live, but the enterprises that actually do LED products are sad. Especially for LED technology companies, although there are good products, but lack of good sales channels, it is difficult to directly compare the initial investment and return.
Most of the big LED companies that make real money rely on the government to support them. It is difficult for small and medium-sized enterprises to make money in China. The general operating rules of domestic LED companies: First, what is the business philosophy of the company? Second, what is the company positioning? Third, what value can the company bring to the customer? 4. What is the difference compared with competitors? Companies that can answer these questions can have a place in China, but in terms of current market conditions, most LED companies have difficulty answering these questions.
In this regard, Shi Yan, general manager of Shenzhen Youyicheng Lighting Co., Ltd. said, “Because of the uneven quality of LED products and the serious homogenization, LED lighting companies must find a new business model that is different from traditional lighting sales, focusing on Market segmentation, providing LED lighting solutions."
Youyicheng Lighting was rated as “China's Top Ten LED Potential Enterprises in 2012†by the media, but like most medium-sized enterprises in China, it also faces the dilemma of having good products without good sales channels. However, Youyicheng is using itself. The way to break through these difficulties.
Recently, the reporter of "Lighting Market" magazine visited Youyicheng Lighting. The general manager of the company, Shi Yan, elaborated on the strategy and operation concept of the Yiyicheng distribution channel, and hoped to share it with the industry colleagues.
"Lighting Market": Before talking about channel layout, please tell us about the domestic LED market in the next three years. And how will LED products evolve in the next three years?
Shi Yan : The next three years will be a difficult period for LED companies, and a large number of enterprises may be eliminated by the market. For example, when the LED market was only 1 billion yuan, there were only 100 LED companies in the market, and each of them could get a very good profit. After 2-3 years, the LED market expanded to 5 billion yuan, but LED companies have expanded to 3,000. Most LED companies are not making money. Only companies with good products, stable quality and strong technological innovation can make money. In 2-3 years, the market size will reach 10 billion yuan, but LED companies have expanded to 10,000. When the company expands beyond the market capacity, the end result is overcapacity. Everyone can't make money, just like the domestic LED market.
Although the government supports LEDs very much, and the scale of municipal engineering is large in the future, it is not easy for domestic small and medium-sized enterprises to get involved in this market segment. At present, most LED companies are still worried about survival. At present, the domestic LED market is rapidly deteriorating, and even companies with good technology can't make money. It can be foreseen that in the case of shrinking market share, a large number of uncompetitive enterprises will be eliminated. When the LED market is truly mature, only a small part of the domestic 10,000 LED companies can survive. This is the LED in the next few years. The process that will happen in the lighting market.
In addition to the “elimination†as the theme, the segmentation trend of LED lighting products will become more and more obvious in the next three years. The market segment of lighting products is very wide. In the field of commercial lighting alone, it can extend more than 20 market segments, such as urban lighting, corridors and streets. In the future, there will be several excellent lighting companies in each segment to be recognized by consumers, so as to achieve the popularization of LED lighting products, which is the development trend of the industry.
"Lighting Market": Youyicheng started to distribute terminal lighting dealer channels in June this year. According to the current information feedback of most LED enterprises, the layout of terminal distributors is not very profitable, and even the terminal lighting dealers are not good, you are What do you think of the terminal dealer channel?
Shi Yan : In June of this year, Youyicheng began to test the water distributor channel, but from the current point of view, LED companies in the terminal market in terms of product sales or consumer acceptance, can not compare with traditional lighting brands. However, this does not mean that we do not have to lay out the terminal market.
According to our analysis, there are two types of terminal lighting dealers: one is a business-style, and the customer is sent to the door. This mode of operation has been greatly affected in the current market environment; the other is engineering operation, there is Our own team specializes in running out of business. The business philosophy and business ideas of such dealers are very active, and we are also the target of our hope to cooperate.
At present, the sales of LED lighting fixtures in the terminal, especially in the home market, cannot be improved, mainly because consumers have misunderstandings about LED lighting products. Because, in the early stage of the LED products are not really mature, the assembly of inferior LED products impacted the market, confusing the market, leaving consumers with the impression that "LED products are inferior products." However, at this stage, LED products are more mature. Although the price is higher than traditional lighting products, relying on the promotion ability of dealers can play a positive role.
"Lighting Market": The role of lighting designers in the future is becoming more and more important for LED companies. At present, more and more LED companies are beginning to contact designers. What do you think of domestic designers? And how do you plan to work with a designer?
Shi Yan : I think it is necessary to strengthen cooperation with the design company. Since last year, many designers have responded to the significant reduction in domestic engineering, which has had a great impact on many small and medium-sized design companies. At present, the design company also pays more attention to the segmentation field, such as focusing more on shopping mall design or urban lighting, etc., and is bigger and stronger in the professional field, so our LED companies must also clearly segment the market.
At present, there are many LED lighting companies that are in contact with designers. They often hear some LED companies complaining. When they cooperate with design companies, the other parties are more powerful. In order to promote cooperation, LED companies tend to lower their postures, but the effect is counterproductive.
In fact, in addition to focusing on products, designers pay more attention to whether they can produce synergistic effects when they are embedded in their design works. Can they better reflect the value of the works and maximize the satisfaction of the two? client needs. This requires companies to focus on market segments and have a deeper understanding of market segments in order to make products that better meet customer needs and market needs.
Therefore, it is not enough to have a good product with the designer. The key is to extract the core value of the product and use the better value-added services to increase the added value of the product. This is a systematic work, but LED lighting companies can only do this in order to highlight the value of products and enterprises, in order to better cooperate with design companies and create win-win results.
"Lighting Market": Youyicheng won the "Top Ten LED Potential Enterprises in China in 2012" with its finned LED products. Would you please introduce the lower fin LED products? And the advantages of this product?
Shiyan : Fin-type LED products are light in weight and at the same time, the heat dissipation effect is good by increasing the contact area between the product surface and the air.
It can be said that the fin-type LED can increase the heat-dissipating area and reduce the weight. Some products also increase the heat resistance by increasing the heat pipe, and quickly reach the heat balance, and the other materials are used less. This technology truly achieves the best energy saving from cost and process. Almost few LED companies in China use this technology because of the high technical threshold and relatively large demand for talents and funds. from.
Youyi has invested a total of RMB 2 million in R&D expenses for fin-type LED product technology, and finally formed it. At present, Youyicheng has applied for a number of patents such as appearance, performance and invention.
"Lighting Market": In the next three years, market competition will become more intense. What strategy does Youyicheng adopt to intensively market? What do you think of the penetration of traditional lighting companies in the terminal?
Shi Yan : The main advantage of traditional enterprises is that they have a strong brand influence in the terminal, and can quickly occupy the market through existing channels. For example, NVC, Opt and other strengths in traditional lighting channels are very strong.
However, in LED products, LED companies have better competitive advantages than traditional lighting companies. In the terminal market, LED products are mainly high-priced products that ordinary consumers cannot afford.
As long as the price of LED products drops sharply, of course, the price of LED products will fall much faster than expected in the next year. In particular, the price difference between LED bulbs and energy-saving lamps may be small, and the sales volume of LED products will be Explosive growth.
In view of the current terminal market situation, Youyicheng has also repositioned its products and business models, and has maximized its advantages in segmentation, differentiated product positioning, and differentiated service models to achieve more granularity.
In the future, LED lighting products will be more and more segmented, and the types of LED products will be more and more. The era of diversified LED sales channels has arrived. In addition to the traditional sales channels, supermarkets, building materials stores, online shopping malls and other LED commercial stores are more and more, the competition will be more intense, and the future consumer groups will be more dispersed, the truly surviving companies must find their own demands and can Unleash your strengths through a good business model.
There is a strange phenomenon in the current LED industry. Enterprises that do LED accessories can live, and companies that do LED consulting can live, but the enterprises that actually do LED products are sad. Especially for LED technology companies, although there are good products, but lack of good sales channels, it is difficult to directly compare the initial investment and return.
Most of the big LED companies that make real money rely on the government to support them. It is difficult for small and medium-sized enterprises to make money in China. The general operating rules of domestic LED companies: First, what is the business philosophy of the company? Second, what is the company positioning? Third, what value can the company bring to the customer? 4. What is the difference compared with competitors? Companies that can answer these questions can have a place in China, but in terms of current market conditions, most LED companies have difficulty answering these questions.
In this regard, Shi Yan, general manager of Shenzhen Youyicheng Lighting Co., Ltd. said, “Because of the uneven quality of LED products and the serious homogenization, LED lighting companies must find a new business model that is different from traditional lighting sales, focusing on Market segmentation, providing LED lighting solutions."
Youyicheng Lighting was rated as “China's Top Ten LED Potential Enterprises in 2012†by the media, but like most medium-sized enterprises in China, it also faces the dilemma of having good products without good sales channels. However, Youyicheng is using itself. The way to break through these difficulties.
Recently, the reporter of "Lighting Market" magazine visited Youyicheng Lighting. The general manager of the company, Shi Yan, elaborated on the strategy and operation concept of the Yiyicheng distribution channel, and hoped to share it with the industry colleagues.
"Lighting Market": Before talking about channel layout, please tell us about the domestic LED market in the next three years. And how will LED products evolve in the next three years?
Shi Yan : The next three years will be a difficult period for LED companies, and a large number of enterprises may be eliminated by the market. For example, when the LED market was only 1 billion yuan, there were only 100 LED companies in the market, and each of them could get a very good profit. After 2-3 years, the LED market expanded to 5 billion yuan, but LED companies have expanded to 3,000. Most LED companies are not making money. Only companies with good products, stable quality and strong technological innovation can make money. In 2-3 years, the market size will reach 10 billion yuan, but LED companies have expanded to 10,000. When the company expands beyond the market capacity, the end result is overcapacity. Everyone can't make money, just like the domestic LED market.
Although the government supports LEDs very much, and the scale of municipal engineering is large in the future, it is not easy for domestic small and medium-sized enterprises to get involved in this market segment. At present, most LED companies are still worried about survival. At present, the domestic LED market is rapidly deteriorating, and even companies with good technology can't make money. It can be foreseen that in the case of shrinking market share, a large number of uncompetitive enterprises will be eliminated. When the LED market is truly mature, only a small part of the domestic 10,000 LED companies can survive. This is the LED in the next few years. The process that will happen in the lighting market.
In addition to the “elimination†as the theme, the segmentation trend of LED lighting products will become more and more obvious in the next three years. The market segment of lighting products is very wide. In the field of commercial lighting alone, it can extend more than 20 market segments, such as urban lighting, corridors and streets. In the future, there will be several excellent lighting companies in each segment to be recognized by consumers, so as to achieve the popularization of LED lighting products, which is the development trend of the industry.
"Lighting Market": Youyicheng started to distribute terminal lighting dealer channels in June this year. According to the current information feedback of most LED enterprises, the layout of terminal distributors is not very profitable, and even the terminal lighting dealers are not good, you are What do you think of the terminal dealer channel?
Shi Yan : In June of this year, Youyicheng began to test the water distributor channel, but from the current point of view, LED companies in the terminal market in terms of product sales or consumer acceptance, can not compare with traditional lighting brands. However, this does not mean that we do not have to lay out the terminal market.
According to our analysis, there are two types of terminal lighting dealers: one is a business-style, and the customer is sent to the door. This mode of operation has been greatly affected in the current market environment; the other is engineering operation, there is Our own team specializes in running out of business. The business philosophy and business ideas of such dealers are very active, and we are also the target of our hope to cooperate.
At present, the sales of LED lighting fixtures in the terminal, especially in the home market, cannot be improved, mainly because consumers have misunderstandings about LED lighting products. Because, in the early stage of the LED products are not really mature, the assembly of inferior LED products impacted the market, confusing the market, leaving consumers with the impression that "LED products are inferior products." However, at this stage, LED products are more mature. Although the price is higher than traditional lighting products, relying on the promotion ability of dealers can play a positive role.
"Lighting Market": The role of lighting designers in the future is becoming more and more important for LED companies. At present, more and more LED companies are beginning to contact designers. What do you think of domestic designers? And how do you plan to work with a designer?
Shi Yan : I think it is necessary to strengthen cooperation with the design company. Since last year, many designers have responded to the significant reduction in domestic engineering, which has had a great impact on many small and medium-sized design companies. At present, the design company also pays more attention to the segmentation field, such as focusing more on shopping mall design or urban lighting, etc., and is bigger and stronger in the professional field, so our LED companies must also clearly segment the market.
At present, there are many LED lighting companies that are in contact with designers. They often hear some LED companies complaining. When they cooperate with design companies, the other parties are more powerful. In order to promote cooperation, LED companies tend to lower their postures, but the effect is counterproductive.
In fact, in addition to focusing on products, designers pay more attention to whether they can produce synergistic effects when they are embedded in their design works. Can they better reflect the value of the works and maximize the satisfaction of the two? client needs. This requires companies to focus on market segments and have a deeper understanding of market segments in order to make products that better meet customer needs and market needs.
Therefore, it is not enough to have a good product with the designer. The key is to extract the core value of the product and use the better value-added services to increase the added value of the product. This is a systematic work, but LED lighting companies can only do this in order to highlight the value of products and enterprises, in order to better cooperate with design companies and create win-win results.
"Lighting Market": Youyicheng won the "Top Ten LED Potential Enterprises in China in 2012" with its finned LED products. Would you please introduce the lower fin LED products? And the advantages of this product?
Shiyan : Fin-type LED products are light in weight and at the same time, the heat dissipation effect is good by increasing the contact area between the product surface and the air.
It can be said that the fin-type LED can increase the heat-dissipating area and reduce the weight. Some products also increase the heat resistance by increasing the heat pipe, and quickly reach the heat balance, and the other materials are used less. This technology truly achieves the best energy saving from cost and process. Almost few LED companies in China use this technology because of the high technical threshold and relatively large demand for talents and funds. from.
Youyi has invested a total of RMB 2 million in R&D expenses for fin-type LED product technology, and finally formed it. At present, Youyicheng has applied for a number of patents such as appearance, performance and invention.
"Lighting Market": In the next three years, market competition will become more intense. What strategy does Youyicheng adopt to intensively market? What do you think of the penetration of traditional lighting companies in the terminal?
Shi Yan : The main advantage of traditional enterprises is that they have a strong brand influence in the terminal, and can quickly occupy the market through existing channels. For example, NVC, Opt and other strengths in traditional lighting channels are very strong.
However, in LED products, LED companies have better competitive advantages than traditional lighting companies. In the terminal market, LED products are mainly high-priced products that ordinary consumers cannot afford.
As long as the price of LED products drops sharply, of course, the price of LED products will fall much faster than expected in the next year. In particular, the price difference between LED bulbs and energy-saving lamps may be small, and the sales volume of LED products will be Explosive growth.
In view of the current terminal market situation, Youyicheng has also repositioned its products and business models, and has maximized its advantages in segmentation, differentiated product positioning, and differentiated service models to achieve more granularity.
In the future, LED lighting products will be more and more segmented, and the types of LED products will be more and more. The era of diversified LED sales channels has arrived. In addition to the traditional sales channels, supermarkets, building materials stores, online shopping malls and other LED commercial stores are more and more, the competition will be more intense, and the future consumer groups will be more dispersed, the truly surviving companies must find their own demands and can Unleash your strengths through a good business model.
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