LED lighting e-commerce makes physical store profits fall sharply

If you don't have your own network brand, what you miss is not an opportunity, but an era. As Lin Mingfeng, chairman of Zhou Ming, said, the pace of lighting companies developing e-commerce has never stopped, even more determined and faster. More and more enterprises such as sunshine, NVC, Opal, Philips and Zhou Ming began to make great efforts to distribute e-commerce. Foshan Lighting even revealed that it would give certain policy support to e-commerce dealers to ensure their development. On the one hand, it is the positive layout of the enterprise. On the other hand, the profits of traditional lighting dealers are constantly being eroded by e-commerce. Affected by e-commerce, customers have been diverted a lot. A dealer told reporters that the development of e-commerce has become a reference for consumers to compare products. It is understood that the price transparency is high, the price does not have to shuttle back and forth in various lighting stores, convenient logistics, cash on delivery, 7 days return and other offline stores do not have the advantages of e-commerce in the past two years is almost barbaric growth. Through e-commerce platforms such as Taobao, Tmall and Jingdong, the reporter has a large number of best-selling products with extremely high cost performance, ranging from several yuan to thousands of yuan, however, the probability of household products in the price range of tens of dollars to hundreds of dollars becoming hot sales is relatively high. In-store price comparison or online purchase of some products, and then to the physical store to buy some products, so that the physical store is responsible for the installation, giving part of the installation costs, resulting in a decline in overall profits. This situation has been encountered by more and more dealers. At present, the consumer groups of low-end products are diluted by e-commerce, which makes the dealers not very upset. It is understood that the online price is now cheaper than the physical store, the original profit is low, the cost of stores, personnel, etc. is high, and the price pressure is greater than the online price. A dealer bluntly. With the 80 s and 90 s gradually becoming the main force of home consumption groups, such people are accustomed to using the network and relying on the network. In the future, with the change of consumers' habits, the impact on physical stores will continue, the profit margin of merchants will decrease sharply, and the sales volume of products will continue to decrease. According to the reporter's understanding, not only traditional channels are affected by e-commerce channels, but also engineering channels are affected by e-commerce channels. The profit of the project mainly comes from the opaque price. The development of e-commerce has greatly reduced the current project profit. A business representative told reporters. It can be said that e-commerce is not only for users, but also for the future. The impact of e-commerce on physical stores cannot be avoided. How to find a way out for traditional lighting dealers is king. In order to reduce the impact brought by e-commerce, a representative of a physical store dealer told reporters that they usually guide customers by looking for products with high cost performance and guaranteed quality, and by means of promotion and profit, increase passenger traffic. Some experts in the industry suggest that physical store dealers can seek a way out in positioning and channel providers, such as changing the direction of positioning and characteristics, or increasing the transfer of investment in third-and fourth-tier cities. Of course, there are also a lot of lamp dealers who are also choosing to face e-commerce in the front, trying to combine e-commerce with online stores, and taking physical stores as supporting facilities for online retail in reality, providing follow-up services such as pick-up, payment, return and exchange, this is undoubtedly a road to explore. In response to this situation, some experts suggest that the current domestic e-commerce is driven by scale rather than non-profit, and the entity dealers must have long-term low-profit or even loss plans. At the same time, with the increase of traffic cost, physical merchants also need a large amount of financial support to build the advantages of online platforms. While opening up e-commerce channels, manufacturers should avoid conflicts with traditional distributors in terms of products and prices, and broaden sales channels for distributors.