[Source: "High-tech LED-Lighting Market" October issue Zhou Jianhua]
At present, the LED industry has three major channel models, namely, brand agent mode, enterprise direct mode, and terminal chain mode. In fact, the LED store model still has a lot of intersection with traditional lighting, but as its performance in the terminal market is becoming more and more "skilled", there are also many differences. Different types of products are operated, and the monopoly models adopted by enterprises are different at different stages of development.
Brand agency is still mainstream
"Now I want to cooperate with a LED company with long-term brand awareness as the general agent." Jiang Nanchang Fu Shi Lighting Co., Ltd. said to Gaogong LED. According to its introduction, the penetration rate of LEDs in several professional lighting stores in Nanchang is relatively high. “But the current market is dominated by individual customers. Engineering and distribution customers pay more attention to quality and after-sales service. The trend of LED lighting to do specialization has already appeared.â€
The so-called brand agency means that the company's products pass through the multi-level agent system and eventually reach the final consumers. The ownership of the goods still belongs to the enterprise. In the agency business, the agents represent the enterprise to develop distribution, solicit orders, sign contracts, complete after-sales, and earn profit margins from low-buy and high-selling.
Before the emergence of the brand exclusive agent model, the LED industry has been in a state of bulk cargo management, which is quite similar to the development of traditional lighting. “Because LED is a light source, it gradually integrates into the lighting field of commercial lighting and home lighting. Therefore, compared with the traditional lighting system, whether or not it has a complete LED lighting product line is a major challenge for the specialty store, and it is inevitable in the early stage of market development. The focus is on individual customers.†Ye Zhengping, general manager of Pinshang Lighting Marketing, told the reporters.
On the one hand, terminal wholesalers will purchase goods from a few companies as much as possible to reduce the cost of purchase. On the other hand, as market competition intensifies, companies have begun to screen some high-quality businesses and try to stabilize the relationship through a series of preferential policies to promote the frequency and quantity of replenishment.
“Because the retail market of low-end and mid-end products has improved, multi-category products, conditional owing, and after-sales return rate, etc. As a result, the relationship between quality wholesalers and enterprises is relatively stable, and cooperation has a certain continuity and mutual Cooperation between the two." Ye Zhengping added.
Then, with the further development of the LED industry, on the one hand, the product types and styles of the manufacturers are gradually enriched, and almost one company can meet the needs of wholesalers; on the other hand, agents also begin to require regional protection. As a result, the branding model of the LED industry came into being between 2009 and 2010.
The brand agency model has a unified image and a certain brand appeal, and the merchants do not bother to find the source of supply. Enterprises provide certain training and business operation support for merchants, but manufacturers also have a set of strict system requirements for businesses, such as image display, distribution, settlement and so on. Domestic second-tier brands such as Leike Lighting and Minguang Lighting are also typical representatives.
Around 2011, the mid-upstream companies Guoxing Optoelectronics, Mulinsen, etc., as well as the listed companies Dehao Runda, Hongli Optoelectronics, etc. have been extended to the LED application field, the channel is also based on the total brand brand store model.
“The total generation store has a good brand image display, product categories and styles are relatively large, and the price is relatively stable, which is conducive to the manufacturer's brand building and timely access to the terminal's sales information.†Guo Huaguo, managing director of Minguang Lighting, said.
These unique advantages allow LED companies to choose the terminal store model. However, at present, due to many LED companies' lack of understanding of the real agent monopoly mode, thin product lines, lack of professional marketing and service teams, LED company's agency store model still has weak profitability and hangs. Selling dog meat and other phenomena, the independent brand's agency store model appears to be tepid in the LED industry, and the brand agents in the form of showcases, display boards, and exclusive areas are still in full swing.
Terminal chain is gradually becoming a climate
"Unlike traditional agents, the LED terminal chain brand model appears earlier and more fierce than imagined," said a LED company executive. This year, Shandong Linyi Tianma Lighting re-installed a large exhibition hall of 3,000 square meters, officially launched the channel chain brand strategy. At present, more than ten LED brand companies have signed strategic cooperation with others, such as Chongqing Lampat, Achao Lighting, Zhemeng Chain Chain dealers such as Hongli Lighting, Zhejiang Huace, and even Shilihe Lighting, Sichuan Jinligang and other large chain stores have also begun to introduce LED brand stores.
In the country, according to the preliminary statistics of the High-tech LED Industry Research Institute (GLII), there are nearly 10 LED lighting distribution brands that have been named as chain or have appeared in the chain. Their success or failure will not be evaluated for the time being, but how much control does the terminal chain have on the terminal?
“Each terminal chain model is a provincial or even cross-provincial 'distribution big', and there are thousands of distribution outlets under the perennial cooperative transaction, so the deterrence of its regional market to form an absolute dominant or even monopoly position should not be underestimated. Liu Tongguang, Chairman of Tianma Lighting, is full of confidence in the regional terminal chain.
At present, the LED industry has three major channel models, namely, brand agent mode, enterprise direct mode, and terminal chain mode. In fact, the LED store model still has a lot of intersection with traditional lighting, but as its performance in the terminal market is becoming more and more "skilled", there are also many differences. Different types of products are operated, and the monopoly models adopted by enterprises are different at different stages of development.
Brand agency is still mainstream
"Now I want to cooperate with a LED company with long-term brand awareness as the general agent." Jiang Nanchang Fu Shi Lighting Co., Ltd. said to Gaogong LED. According to its introduction, the penetration rate of LEDs in several professional lighting stores in Nanchang is relatively high. “But the current market is dominated by individual customers. Engineering and distribution customers pay more attention to quality and after-sales service. The trend of LED lighting to do specialization has already appeared.â€
The so-called brand agency means that the company's products pass through the multi-level agent system and eventually reach the final consumers. The ownership of the goods still belongs to the enterprise. In the agency business, the agents represent the enterprise to develop distribution, solicit orders, sign contracts, complete after-sales, and earn profit margins from low-buy and high-selling.
Before the emergence of the brand exclusive agent model, the LED industry has been in a state of bulk cargo management, which is quite similar to the development of traditional lighting. “Because LED is a light source, it gradually integrates into the lighting field of commercial lighting and home lighting. Therefore, compared with the traditional lighting system, whether or not it has a complete LED lighting product line is a major challenge for the specialty store, and it is inevitable in the early stage of market development. The focus is on individual customers.†Ye Zhengping, general manager of Pinshang Lighting Marketing, told the reporters.
On the one hand, terminal wholesalers will purchase goods from a few companies as much as possible to reduce the cost of purchase. On the other hand, as market competition intensifies, companies have begun to screen some high-quality businesses and try to stabilize the relationship through a series of preferential policies to promote the frequency and quantity of replenishment.
“Because the retail market of low-end and mid-end products has improved, multi-category products, conditional owing, and after-sales return rate, etc. As a result, the relationship between quality wholesalers and enterprises is relatively stable, and cooperation has a certain continuity and mutual Cooperation between the two." Ye Zhengping added.
Then, with the further development of the LED industry, on the one hand, the product types and styles of the manufacturers are gradually enriched, and almost one company can meet the needs of wholesalers; on the other hand, agents also begin to require regional protection. As a result, the branding model of the LED industry came into being between 2009 and 2010.
The brand agency model has a unified image and a certain brand appeal, and the merchants do not bother to find the source of supply. Enterprises provide certain training and business operation support for merchants, but manufacturers also have a set of strict system requirements for businesses, such as image display, distribution, settlement and so on. Domestic second-tier brands such as Leike Lighting and Minguang Lighting are also typical representatives.
Around 2011, the mid-upstream companies Guoxing Optoelectronics, Mulinsen, etc., as well as the listed companies Dehao Runda, Hongli Optoelectronics, etc. have been extended to the LED application field, the channel is also based on the total brand brand store model.
“The total generation store has a good brand image display, product categories and styles are relatively large, and the price is relatively stable, which is conducive to the manufacturer's brand building and timely access to the terminal's sales information.†Guo Huaguo, managing director of Minguang Lighting, said.
These unique advantages allow LED companies to choose the terminal store model. However, at present, due to many LED companies' lack of understanding of the real agent monopoly mode, thin product lines, lack of professional marketing and service teams, LED company's agency store model still has weak profitability and hangs. Selling dog meat and other phenomena, the independent brand's agency store model appears to be tepid in the LED industry, and the brand agents in the form of showcases, display boards, and exclusive areas are still in full swing.
Terminal chain is gradually becoming a climate
"Unlike traditional agents, the LED terminal chain brand model appears earlier and more fierce than imagined," said a LED company executive. This year, Shandong Linyi Tianma Lighting re-installed a large exhibition hall of 3,000 square meters, officially launched the channel chain brand strategy. At present, more than ten LED brand companies have signed strategic cooperation with others, such as Chongqing Lampat, Achao Lighting, Zhemeng Chain Chain dealers such as Hongli Lighting, Zhejiang Huace, and even Shilihe Lighting, Sichuan Jinligang and other large chain stores have also begun to introduce LED brand stores.
In the country, according to the preliminary statistics of the High-tech LED Industry Research Institute (GLII), there are nearly 10 LED lighting distribution brands that have been named as chain or have appeared in the chain. Their success or failure will not be evaluated for the time being, but how much control does the terminal chain have on the terminal?
“Each terminal chain model is a provincial or even cross-provincial 'distribution big', and there are thousands of distribution outlets under the perennial cooperative transaction, so the deterrence of its regional market to form an absolute dominant or even monopoly position should not be underestimated. Liu Tongguang, Chairman of Tianma Lighting, is full of confidence in the regional terminal chain.
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