LED makes traditional lighting channels affected by e-commerce1

The year of 2014 was supposed to be the year of LED lighting outbreak, but in fact, both large enterprises and small dealers are lamenting the difficulty of business and survival. The reason is that either the investment is hot, the market is cold, the competition is fierce, or the real estate is sluggish, which leads to the same cold in related industries, or the impact of e-commerce. In short, everyone seems to have a hard time. LED has turned the construction of traditional lighting channels into a money-smashing game. The above reasons seem to be the factors that affect the lighting industry, but are they not the fundamental reasons? The answer is No. Some people say that enterprises that enter LED must face the fact that there is no channel. After years of development, traditional lighting brands have accumulated a lot in channels. It can be said that they have established their own hills and territories. Emerging LED want to rush into these territories. it is necessary to take a road with its own characteristics, such as the countryside surrounding the city, for example, to occupy the lighting market of second-and third-tier cities or even fourth-tier cities. When our Qiming action team conducted an industry survey in Jiangxi, it was found that in recent years, the lighting market in Jiangxi province has risen rapidly, and its lighting market has expanded from the initial single lighting store to the lighting Wholesale City. gradually moving towards modern large lighting squares, there are more and more professional lighting cities. Although the development of LED lighting in Jiangxi region is restricted by consumption concept, level and habits at present, the development momentum of LED in Jiangxi market is still very weak compared with that in big cities, however, Jiangxi has made rapid and firm progress. A number of large-scale professional lighting markets are under the guidance of municipal planning. The distributors in Jiangxi province have shown rational and cold thinking in the upsurge of LED lighting, while the distributors in Jiangxi province have not shown blind follow-up style in the choice of LED lighting brands. it is more of a calm wait-and-see and calm choice. In the case of a large-scale cold wave in China's lighting market, the reason why Jiangxi's lighting market is so warm is that Jiangxi dealers have considered the situation. I have explored a way to surround the city with the characteristics of Jiangxi. Whether it is the growth of LED lighting enterprises or distributors or the huge market stock, Jiangxi's lighting industry is advancing with great strides and stamina. This kind of rural road surrounding the city in Jiangxi is actually in line with the law of market development. On the one hand, in the first-tier cities, there are not a few lighting stores. All store operators are focusing on the big cake of first-tier cities. The existing lighting stores are centered on provincial capitals. it has gradually become saturated. As a result, the expansion of operators in lighting hypermarkets to second-and third-tier cities has become an option, and the transfer of target customers is a greater change. On the other hand, in recent years, the second-and third-tier cities have quietly blown up a low-carbon wind, with energy-saving lamp lighting, electric vehicles, and solar energy bathing. The second-and third-tier citizens are increasingly enthusiastic about the low-carbon revolution. this provides strong consumption support for LED lighting to occupy the second and third tier markets. Third, the real estate industry related to the lighting industry has gradually shifted its focus to second-and third-tier cities, making the real estate market in second-and third-tier cities show growth momentum. this also indirectly led to the transfer of the lighting market to the second and third tier markets. Looking at the National lighting circulation field, the sales channels of stores have not only shifted from provincial capitals to prefecture-level cities, but also prefecture-level cities are infiltrating into county-level cities in a step-by-step sinking mode, which seems to imply that, the entire market format is undergoing tremendous changes. Some companies that have been staring at first-and second-tier cities have gradually accelerated the pace of channel sinking, and opened up in second-and third-tier or third-and fourth-tier cities. So, what impact will the shift of the focus of the lighting market to second-and third-tier cities have on these cities? 1. Competition in the second and third tier markets has intensified. Lighting brands compete to enter second-and third-tier cities, which will bring major brands to compete for channel resources. The game between first-line brands and second-and third-line brands will trigger new brand strategies, marketing strategies and channel models. 2. New product strategy is coming out. Due to the relatively low consumption capacity of second-and third-tier cities and the emphasis on price first, in order to meet the consumption demand of second-and third-tier cities, many first-and second-tier lighting brands will inevitably follow the progress of policy implementation. change the product strategy and develop new low-end products suitable for second-and third-tier markets as soon as possible. 3. There is a large-scale lighting store. Although there are many lighting cities in the second and third tier cities, there are no hypermarkets in the climate, and they are mainly specialty stores or small stores. With the increase of lighting consumption potential in the second and third tier markets, the surrounding occupation of lighting hypermarkets to second and third tier cities has become an inevitable trend.