How to choose the LED brand from the uneven market

[Source: Gaogong LED's "LED Lighting Channel", 2013, Issue 4 (Total 40th)] In the past two years, most dealers were annoyed by the frequent "harassment" of the major LED manufacturers' salesmen, but at the same time I also suffer from "a lot of confusion" and I don't know how to choose good products and good brands.

Harmony of the relationship between manufacturers Lu Xuwen, general manager of Foshan Haoye Lighting Co., Ltd.

From a business perspective, manufacturers provide brands, products, marketing ideas and services; and dealers focus on capital, channel operations, network control and their own sales force.

Obviously, the two sides occupy different positions in the product sales chain. However, in order to make the products have strong competitiveness and market share in the market, each link needs to cooperate with each other in the sales chain.

Manufacturers and distributors have their own irreplaceable advantages. The factory is more professional in marketing ideas and techniques; dealers have a better understanding of local consumption habits, and local network resources are not available to the factory.

The relationship between the dealer and the manufacturer is like a husband and wife relationship. Only the husband and wife know each other and help each other. Under such a harmonious relationship, the superior resources of both parties can be better integrated, and the brands and products that are bred will have greater sales in the regional market.

If enterprises want to get the "channel" weapon to gain unrelenting energy, they must put the interests of dealers first, leave sales space to dealers, and do market protection to avoid dealers’ goods. It caused a price war and disrupted the market order.

At present, many LED products and technologies are not particularly mature. If the company does not have perfect after-sales service as a support, even if the channel construction will quickly fall apart. Because of the imperfection of after-sales service, manufacturers and businesses have frictions, and the examples that are not happy are not uncommon in the industry.

In order to consolidate the downstream channels, enterprises should provide quality service measures to dealer customers, such as extending the account period, returning goods, store decoration, advertising and so on.

Cultivate your own brand in time. Zhang Yitong, General Manager of Yitong Lighting

For LED product distributors, a brand with good quality, good reputation and high profit is equivalent to catching a good brand. Judging from the consumption power of domestic consumers, the agent domestic brands are more suitable for the current market than the foreign brands.

Yitong has a well-known foreign brand and also has domestic brands. According to market feedback, domestic brands are in the leading position in both medium and low grades and well-known high-end sales. Domestic brands are more cost-effective and their quality is not worse than foreign brands, so the sales volume is larger, basically reaching 80% of the total sales.

Successful dealers must have a unique vision. Faced with high rents in the store and a sluggish consumer market, some experienced dealers joined the local acquaintances in Shenzhen to save the store rent.

Dealers should try to choose a good location, the decoration style should give consumers a feeling of atmosphere, hearty, and the products to be displayed should be dazzling and eye-catching, which is more attractive to customers of home lighting and commercial lighting.

Conditional dealers can consider engaging in LED lighting wholesale business, such as mainly targeting home lighting and engineering lighting in Shenzhen and surrounding areas. The profits of home lighting and engineering lighting products are considerable, the volume of business is large, and customers are more likely to develop.

Also, do regional big distributors. Yitong has more than 30 domestic brands. It has been a brand for others for 10 years. However, after years of distribution experience, it has now begun to cultivate its own brand. At present, the company cooperates with Zhongshan manufacturers to create the “Yitong Lighting” brand. Now the brand has grown into a mid-range product in the LED lighting industry, further confirming that the original business strategy is correct.

Worried about the destruction of LED reputation, Gao Yongquan, general manager of Minghao Lighting

When most dealers on the market choose to represent LED lighting products, the price is the primary determinant. Take the 3W downlight as an example, the manufacturer's shipping price is only 6.5 yuan each, so low price can maximize the profit of the business, in the business, why not?

As a result, in the LED lighting market, quality and price have become a contradiction. The quality is excellent, the price is high, and it is difficult for ordinary consumers to touch. The profit of the business is also difficult to guarantee. However, low-priced products must come from low-cost costs. The low-cost costs must come from poor quality raw materials. How can product quality be guaranteed?

LED itself is a high-tech electronic product, and many parts cannot be verified by the naked eye. How to do? It is estimated that many people can only say that they make products with conscience and sell products with conscience.

Why are there so many dealers who would rather give up their profits at their disposal and are not willing to represent LED lighting products? Because there are concerns, not worrying about the lack of sales in the market, but worrying that the poor quality of the products will lead to the damage of the reputation of the business, affecting the sustainable survival and development of the business.

Minghao Lighting has a small LED display case, but it only focuses on publicity and display, let consumers know the existence of LED lighting products. When consumers encounter light source selection problems, they still recommend traditional light sources first. After all, the technology is relatively more mature, and the sales are stable and steady, and rarely involve quality problems after sale. Of course, if there are high quality and beautiful LED lighting products, we will still applaud.

Diligent training and external hard work, Chen Huabing, general manager of Wuhan Pinshang Lighting Distribution Store

Acting LED lighting products, there is no certain customer relationship resources is unimaginable. At present, the government has a lot of subsidies for LED. If you have government relations or have sufficient customer resources of enterprise groups, then LED products are feasible. But we must continue to promote new products, because the price is now more and more transparent.

Without these external skills, it is difficult to solve the most basic survival problems by doing LED lighting products alone. It is necessary to combine traditional lighting to achieve sustainable development.

If retail-oriented, LED is still basically losing money, and now LED lighting is mainly based on engineering. In addition, to do the LED single agent, the key is to be able to find customers and get orders. As for the domestic LED energy-saving lamp manufacturers, there are quite a lot of strength, and don't worry too much about the source of supply.

Then the above mentioned is in the field of external work, why should we say that it is hard to repair the internal strength, because this has the most direct relationship with whether the store can grow and develop.

A good retail store must have a good brand to attract early consumers. A good brand can not only drive sales of other products, but also increase popularity. If you want to worry more, you can also choose to be a manufacturer's specialty store.

From the perspective of supply, small stores are suitable for purchase in the nearby wholesale market. Other products are mainly used to transfer goods or distribute other products. Although the profit is thinner, there will not be too many product backlogs due to eyesight and experience problems. Unless special circumstances, it is generally not advisable to go to places that are too far away. For example, if Wuhan runs to the ancient town, it needs to fully consider the transportation cost.

No standard unspeakable brand Xinxin Lighting Sales Manager Chen Songrong

Nowadays, many traditional lighting stores have actively or passively sold LED lighting products. Due to lack of understanding of the market and brands, they often involve high-end and low-end brands, which also leads to unclear positioning. Similar to consumers, they only know that LEDs save power, but the characteristics of light efficiency, indexing, energy saving, and life are not known.

The reason for this phenomenon is related to the lack of authoritative standards in the entire industry. Quality is the basis of survival, and the purpose of standard setting is to ensure product quality and performance from the source. The reason why traditional lighting dealers are more resistant to LEDs is largely due to the lack of pre-development standards in the industry, and many people have been inferior LEDs.

Therefore, not only companies are calling for the introduction of national standards, but dealers also need corresponding standards for reference. Without the introduction of authoritative standards, it is difficult for LED lighting to form a regulated market order.

Domestic LEDs have no brand, but traditional lighting is branded. However, traditional lighting companies have been transformed into LEDs, with OEMs and OEMs, including NVC and Philips, and Philips' OEM rate has been as high as 90%. Consumers trust the brand, but the brand products are mostly from OEM, how to guarantee the quality? This is true for traditional companies, not to mention emerging LED companies.

This year's situation is more optimistic, the property market turnover is growing steadily, and the demand for the lighting market is increasing. Dealers are looking for a good quality, cost-effective, good after-sales LED brand agent, but this brand also lacks standard reference.

Engineering channels have high requirements for brands and quality, but end consumers only pay attention to prices.

The biggest confusion of dealers is that they can't afford to sell at high prices, and they can't sell brands at low prices. This also provides a survival soil for inferior or even assembled LED products. The industry reshuffle will end, LED home lighting is just around the corner, and our demand for standards is becoming more urgent.

Choosing a mature brand, eliminating the worry of after-sales

LED lighting can not be scaled up, and the price is not unrelated, especially in the terminal market, the price often determines the purchase of consumers. In order to cater to the low-cost demand of consumers, many dealers choose Zhongshan, Jiangmen and other places with low-priced, poor quality LED lighting brands to act as agents, stirring up the entire terminal market.

This kind of marketing method of abandoning mainstream brands and relying on low-costs to profit is not a long-term performance. At present, consumers are paying attention to the price, while the awareness of after-sales service needs are constantly improving. The dealers also need to provide perfect after-sales while selling the lights. The main body after sale is naturally the manufacturer of lamps. Only mature brands have a good after-sales.

Many dealers who take the low-end route will make a lot of money in the early stage of the lamp trading, but the after-sales service of the manufacturer is difficult to guarantee, and the responsibility for after-sales is often borne by the dealer. In fact, the quality of this low-end product can be imagined, and frequent replacement and maintenance in the later period will cost the dealer a lot of manpower and funds, dilute the overall profit, and even lose money.

Therefore, it is very important to hope that long-term development of dealers and mature brands to represent.

Due to the slow growth of demand in the home lighting market, the LED terminal market is still not mature enough. Many professional LED lighting manufacturers have focused their development on engineering channels, and less attention is paid to terminals. Therefore, in the after-sales aspect, traditional lighting is provided. Companies that transform LEDs may have more advantages.

Traditional lighting companies such as NVC, Opp, Panasonic, etc., have laid intensive after-sales service outlets throughout the country to provide comprehensive after-sales service and reduce the burden on dealers.

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