In the 'internet' era, the difficulties and changes of lighting dealers

Under the tide of the times, the lighting industry has gradually entered a period of deep adjustment, and the LED lighting market has become mature. However, market competition is still everywhere and even has a growing trend. For example, this year is more than half, many dealers admit that the LED lighting market in the first half of the year is not as good as expected, and under the influence of various factors, they lament the sad days. In China, distributors are a very special group with commercial value that cannot be replaced in the short term. In the era when the lighting industry was still dominated by channels, the days of dealers used to be very moist; In today's Internet era, dealers are often faced with difficult choices to stay or leave. Such a great change has caused dealers to lose their positions in a fog. Some people have to withdraw from the competition stage of the industry, and some people are struggling to survive even if they stay, only a small number of people have grasped the pulse of the times and found a new way out. Distributors encounter difficulties and challenges. Distributors used to be an indispensable bridge between manufacturers and retail terminals, especially in the face of China, which is a huge and diversified market. Not only are there many market levels, there are great differences between different regions and between urban and rural areas. Manufacturers have formed a competition-cooperation relationship in which they are interdependent and their interests are not completely consistent. However, the current dilemma faced by dealers can be said to be the inevitable result of economic and technological development: it is affected by the downward economic environment. As China's economy enters a new normal, all walks of life are showing a weak growth trend. The demand growth of LED lighting market is slowing down, gross profit margin is declining, sales volume is declining, etc, the era of sales and profits has come to an end. The second is the Internet era. The information revolution is rapidly spreading from the C end to the B end, and the traditional channel path is being reconstructed. The strike of B- end e-commerce is a thorough revolution to the traditional channels of the lighting industry. It adheres to the concept of de-intermediation and has an impact on traditional distributors. At the beginning of the year, Alibaba held a B2B Eco-Summit in Yunqi town, Hangzhou, and launched a high-profile Baicheng Wandian plan and a 1688 service provider project to redistribute the B2B market; Then Jingdong Group also held an annual meeting, saying that Jingdong would launch a new channel division in 2016, laying out three large networks to focus on building fresh food business and international business. The B- Terminal E-Commerce represented by Ali and Jingdong is devastating to traditional distributors. Their model is characterized by bypassing all intermediate links from manufacturers to terminals and directly controlling terminals, take the dealer and replace it. The third is the increase in operating costs. In recent years, domestic prices have gradually increased. Not only does the rent rise every year, but the labor costs are also getting higher and higher. The management costs are also gradually increasing with the expansion of the scale of the enterprise. Coupled with the decline in sales, manufacturers have begun to pressurize, and the more demanding the dealers are. As a result, the dealers between the manufacturers and the terminals are getting worse and worse under the influence of various reasons. The transformation of distributors is a general trend. With the rapid development of the Internet and the gradual transparency of information, all commercial elements will be reconstructed, including the transformation of channels to the internet. The Transformation of distributors is urgent. Through the transformation of the Internet, distributors can still find their own irreplaceable value even in the Internet era.