How do LED enterprises find a balance point for development?
How do LED enterprises find a balance point for development?
With the prevalence of online shopping, the term e-commerce has gradually gained popularity and become an important change in the commercial field in recent years. It has not only achieved the legendary figure Ma Yun, but also promoted the development of a number of industries.
For the LED industry, which pays attention to channel winning and terminal is king, at a time when the demand for LED lighting is rapidly increasing, the profits of lighting enterprises are generally increasing, and channel competition is becoming white-hot, e-Commerce seems to have become a magic weapon for LED enterprises to expand their sales channels. Many enterprises have begun to explore how to make a transition from traditional channels to e-commerce.
However, there are no ready-made successful examples of e-commerce channels to learn from. Everyone is crossing the river by feeling the stones. How to balance the relationship between traditional channels and e-commerce channels has become a topic of concern.
Compared with traditional channels, e-commerce channels have two advantages: first, they are not restricted by regions and have a wide audience;
Secondly, the intermediate circulation link is shortened, the initial construction cost is low, the profit margin is large, the return time is short, and it is easier to realize flat management.
This is undoubtedly an opportunity for emerging LED enterprises that have made no achievements in traditional channels.
Because it is very difficult to enter traditional channels quickly and with large traditional lighting enterprises.
The characteristics of low cost and wide coverage of e-commerce provide them with a good opportunity to quickly open channels and seize the market.
Judging from the market acceptance of LED lamps, users also need to understand and accept LED lamps through experience.
Physical stores can not only bring consumers a sense of physical experience, feel their materials, light color, workmanship, and key distribution and after-sales service, but e-commerce is difficult to achieve.
Although the initial construction cost of e-commerce channels is low and the profit cycle is short, due to the relatively transparent price of e-commerce platforms, the profit-making space is greatly reduced, and a large amount of funds are needed for brand promotion, therefore, the hidden cost in the later period is very high and the profit cycle cannot be determined.
Comparison of advantages and disadvantages between traditional channels and e-commerce modes in 2013, the LED industry has quietly begun the battle around online and offline.
Looking at the situation of many enterprises participating in the promotion of double 11 in 2013, the promotion of lighting brands such as Opal lighting, Oddo and Zhou minghanyuan in Double 11 all exceeded the million yuan mark, opal lighting topped the list with sales of 60. 18 million yuan, of which sales in Taobao Mall were nearly 50 million yuan.
However, the sales of LED lighting giants such as sanxiong Aurora and qinshang optoelectronics are not worth mentioning.
Thus, the layout of e-commerce channels is not as simple as imagined.
Traditional channels have formed a relatively perfect supply chain, and factories and distributors have a tacit understanding of commodity pricing, sales area and profit ratio.
However, if the emerging e-commerce channels want to break this stable pattern, they will inevitably have some conflicts with the traditional channels.
Therefore, before making a choice, we must first clarify two things. One is to clarify what is the orientation of E-commerce?
The second is how much relevance of e-commerce and existing channels? What are its advantages and disadvantages? How to balance the relationship between new and old channels?
The operation of e-commerce channels is closely related to traditional channels.
Although there are certain conflicts between the two in terms of price and supply, as long as the control is in place, handled properly, and a good solution is found, it can complement each other and coordinate development.
After clarifying the above two core issues, it began to enter the implementation stage.
From the operational point of view, there are many problems involved in e-commerce channels, for example, how to publish them online? How to display products online? How to do it after sale? How to improve the later process?
In order to solve these problems, enterprises should stand on the perspective of a consumer to truly understand the needs of consumers.
At the actual operation level, there are many problems to be overcome, especially the division and balance with offline channels.
Xiaobian browses successful e-commerce channel cases in other industries and finds that in order to truly balance the relationship between traditional channels and e-commerce channels, we can start from the following three aspects: information transparency and after-sales service network publicity; The product selection is accurate and effectively separated from the offline; Establish communication mechanism and maintain online order.
The first is information transparency, which mainly includes two meanings. On the one hand, product information must be clear, and on the other hand, follow-up support should also be made public, such as the external national after-sales service network.
In the product display, the product features and functions are highlighted, and there are some comparisons with other brands of products. The problems that customers generally care about are sorted out and answered, and they are constantly improved.
Some products are selected and separated from offline channels, greatly reducing the conflict between products and prices.
In addition to product segmentation, it is very necessary to formulate an orderly order and rules and establish a smooth communication mechanism.
On some specific issues such as price, whether online or offline, we must achieve a unified caliber in order to achieve a balance between new and old channels and avoid some conflicts.
Summary: facing e-commerce, a new sales channel, emerging LED enterprises regard e-commerce as a new opportunity to conduct product sales and channel investment on major websites.
However, not all traditional enterprises are suitable for e-commerce platforms. In the process of moving to e-commerce platforms, they will face various challenges such as platform construction, talent reserve, information system, business model, etc, therefore, LED enterprises should combine their own product characteristics and company development status, and must not blindly cut into the e-commerce platform.
Only by balancing the relationship between traditional channels and e-commerce channels can we make a breakthrough in the field of emerging channels.