How do dealers put pulse LED "bear market"

[Source: Gaogong LED's "LED Lighting Channel", 2013, Issue 4 (Total 40th) Reporter / Concise and Full] In the first three months of this year, the sales volume of the lighting market has dropped by 25%-50%. Many dealers are operating at a loss. Many dealers are willing to exit the lighting market.

In interviews with major LED stores in Shenzhen, the reporter heard many merchants report that this year's LED lighting market is not obvious, and it is in a state of desertedness. In the face of the depressed lighting market, many dealers said they were very depressed and very puzzled. "Why is the product profit already so low, or is it impossible to recruit customers? What is the reason for the market downturn?" A dealer asked reporters.

Dealer lacks training and low combat effectiveness

The reporter saw some stores in Shenzhen, some LED dealerships, store decoration is not standardized, there is no unified, non-standard image and operation mechanism, many products are placed in the same position, giving people a more chaotic, low-end impression .

In many stores, the reporter also saw that the clerk was eating, playing cards, and chatting at the store. These salesmen felt very amateur.

As an emerging industry, many manufacturers and bosses have flocked in the past few years. Therefore, LED technology and product characteristics are in a state of ignorance, let alone systematic training for merchants and shopping guides.

When the reporter asked a number of LED dealers, whether the company or the store had trained the sales staff, they said: "Generally, when you recruit, you will choose to sell before, but because of the general treatment, therefore Most of the recruits are newcomers, and some specific technical indicators of LED lights are difficult to train them. They can only briefly describe the characteristics of some products. When there are customers who want to know, we need our experienced dealers. Explain it."

In addition, the technical indicators of LED lighting fixtures are relatively high, and various standards are varied. It is not easy for the purchaser to clearly remember the functions, features and usage methods of the products, and then introduce them to consumers clearly. The reporter asked some of the shopping guides at the scene and did not introduce the knowledge they wanted. I don’t even know what my products are, but how can I make them pay for them? How can sales increase?

Online shopping grabbed the market cake

In recent years, the cost of labor and raw materials has been rising. In the LED manufacturing sector, the space for manufacturers to reduce costs has been small. At the same time, the industry is constantly pouring into new manufacturers. The LED market is oversupply, and the profits of end-market products are compressed. very low.

What makes dealers more worried is that the LED lighting market has begun to appear in the network marketing model, and the pursuit of price is “no minimum, only lower”. This undoubtedly dilutes the market share of dealers and stores.

"In the past few years, when network marketing was not popular, the profit of our store was OK. But with the rise of network marketing in the past few years, some dealers' LED lighting products have higher purchase prices than Taobao and other online stores. How do dealers compete with online stores?” said Wang Xianchao, the agent of NVC Lighting.

In fact, manufacturers avoid direct contact with dealers or agents through online marketing, which is directly contacted by manufacturers and consumers. This helps to reduce costs and is a blow to dealers and agents. However, this is also a double-edged sword. After all, dealers or agents have mastered many "core" competitiveness - engineering customers.

However, manufacturers often need dealers and agents to share the various risks in business operations, and to dampen the enthusiasm of dealers and agents. For enterprises, they are “moving their own feet”. For most LED manufacturers, the experience of terminal sales is not as rich as that of dealers. Therefore, many manufacturers still dare not completely abandon the dealers this part, they will find dealers to represent their own products, in order to reduce risks, which is one of the reasons for the e-commerce channel "half red".

The property market is linked to the city of lights

In the survey, the reporter found that due to the rising prices of raw materials, most LED lighting manufacturers have raised their prices by 15%-30%. While product prices are rising, store rents are also rising. In addition, the passenger traffic of the major building materials markets in Shenzhen has decreased to some extent compared with previous years, and it is likely that this state will continue to be maintained for some time.

In recent years, the real estate market is not good, and the house cannot be sold. The LED lighting industry is naturally also implicated. The reporter learned in another home lighting city that the sales volume of the lighting market in the first three months of this year fell by 25%-50%. The market is not selling well, many dealers are operating at a loss, and some dealers even have the intention to exit the lighting market.

"We also want to do a good job in the agency business. After all, no one wants to do business in the loss of money, but the market is so depressed, and we have no way to change this situation." Another resident dealer Zhong said frankly.

Agent brand does not force

"There are several dealers on the second floor who have withdrawn or changed their brands. Originally, the business was not good, and they lost money every month. Now the store is planning to increase rents, and our days are getting worse." To the reporter, the owner of a lighting museum began to spit.

He said that because the long-term agent brand is hard to be favored by consumers in the market, the business has been faint, and the manufacturers' support for their dealerships is not obvious, so consider changing the brand of the agent this year. What is the effect?

The person in charge of Yihao Lighting said, “The market has been very weak since last year. Dealers who have not made any money will naturally consider changing brands. In our store, we see that about 10% of dealers change, withdraw or consider changing. LED brand."

When the reporter asked, how to ensure that they can do it by changing other brands, when there are some corresponding new sales strategies to boost the market, most dealers said they did not consider it.

In short, in the market environment of product price increase, store price increase, and fierce competition, dealers want to change, in addition to improving their image and strengthening training, there are still more problems to be solved.

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