LED enterprises should establish a shared value chain1

For manufacturers, a good cooperative relationship between manufacturers and distributors may not be successful, but the lack of good cooperation between manufacturers and distributors will certainly fail. In a sense, the process of selling by manufacturers is the process of dealing with cooperative relations with distributors. The relationship is handled well, and it is a glory; On the contrary, it will be damaged. For many LED manufacturers, a relatively vacant phenomenon in channel development is whether the channel is dominated by manufacturers or distributors. The former has increased investment, and manufacturers cannot afford high operating costs; The latter is to hand over the network to dealers, but it seems to lose control of the channel while reducing investment. The basic law to solve this problem is to establish a strategic cooperation model based on the shared value chain. There is no big difference between LED industry and traditional industry in market operation. Under the background of winning channels and fierce market competition, creating a new strategic cooperation model for manufacturers has become an important topic in the current LED industry. A general LED Enterprise Channel value chain includes: Channel planning channel expansion logistics distribution terminal coverage channel maintenance terminal management promotion. As a manufacturer, you can't go to the extreme of only providing products, policies, and only doing the pressure and Dunning. Similarly, it is impossible to go to the other extreme where the distributor's functions are limited to distribution and fund settlement, and the rest of the functions are taken over by the manufacturer. The core of the cooperation of manufacturers' shared value chain is not to separate the factories and distributors in the Channel value chain, but to combine them in the whole channel value chain so that both manufacturers can participate in the value chain. and determine their respective functions in each link of the value chain. The common sharing of functions in all links, participation and benefit sharing are one of the basic prerequisites for manufacturers to realize strategic cooperation. How to realize the maximization of manufacturers' respective utility, the maximization of channel marginal effect and the maximization of both sides' interests lies in the design and implementation of manufacturers' sharing model in each link of the channel value chain. however, this model must have multi-level solutions such as products, brands, organizations and even capital.