LED seeks the benefit and confusion of channel transformation e-commerce

[Source: Gaogong LED's "LED Lighting Channel", 2013, Issue 6 (Total Issue 42) Reporter / Li Jingyu] Recently, the most popular love movie in China is "Beijing meets Seattle", two men and women with different personality The bridge of love sparks has always been a topic of enthusiasm. In the current lighting retail industry, there is also a story of tradition and e-commerce "winding", and it is hotly debated by the industry.

The focus is on lighting companies to test water and electricity, as well as the coordination of online and offline sales models and the integration of resources. The traditional lamp enterprises experienced the process of being invisible to the e-commerce, unable to stop, and unable to escape. During this period, the technological advantages of the e-commerce channel and the change of the consumption concept made them see the profit point.

E-commerce dividend

Since the beginning of this year, due to the impact of macroeconomic regulation and control, the property market transactions have been relatively sluggish, and the home lighting market associated with it has also suffered a lot.

When the reporter visited the major lighting stores in Shenzhen for many days, they found that they were all in a cold scene. Most dealers have a helpless attitude, and believe that only the recovery of the property market can boost the retail sales of lamps.

As an LED lighting company, in the case of the traditional distribution channel is trapped, the pursuit of channel transformation is the way out. Different from the bleak scene of traditional retail, the lighting e-commerce has shown a rapid development trend, and many LED companies have found a direction of transformation.

According to the McKinsey report, domestic online sales accounted for nearly 6% of total retail sales of consumer goods in 2012. Jiang Qiping, secretary general of the Information Technology Research Center of the Chinese Academy of Social Sciences, believes that once online shopping accounts for 5% of total retail sales, it will cross the critical point, showing an explosive trend and beginning to have a global impact.

The reporter learned from Tmall Mall that the number of stores selling lamps and lanterns reached 1,393, and the related lamps and lanterns were as high as 137,102, mainly focusing on home lighting such as chandeliers, ceiling lamps and table lamps. Together with Jingdong Mall and other lighting e-commerce platforms, the number of lighting shops engaged in online sales is even more gratifying.

Sun Jianning, CEO of Shangyu Lighting, believes that e-commerce platforms such as Tmall and Jingdong have a complete supply chain service system, which can optimize product supply and save intermediate link costs. At the same time, online shopping platform can achieve low-cost and full-angle product display. It is more conducive to the promotion and popularization of energy-saving products in the consumer group.

Taking Minguang Lighting as an example, this Zhongshan LED company entered the Tmall Mall at the beginning of this year, mainly engaged in LED lamp and downlights. In the two-month adaptation period, they now have a monthly sales of 300,000.

Its general manager Guo Huaguo told reporters that the market capacity of lighting e-commerce is slowly being tapped. As long as the company has excellent quality products and reasonable price positioning, it is not difficult to achieve good results.

In the context of the rise of e-commerce, the success of Minguang Lighting is not rare. In fact, more and more LED companies have joined the e-commerce giants, such as Op, Philips, NVC and other large enterprises are also constantly exploring the e-commerce market, relying on the accurate grasp of the new e-commerce model and achieved good results.

"There are LED companies focusing on the construction of e-commerce platforms. As far as I know, LED e-commerce brands like Hanyuan and Jiayu already have certain status." Chen Zhongyi, director of Guangyou Lighting Marketing, told reporters.

According to the reporter, online shopping can save 60% of transportation costs and 30% of transportation time compared with traditional channels, and channel costs can be reduced by 47%.

Transformation difficulty

However, the attitude of LED companies to e-commerce is only regarded as a means of sales, or a supplement to traditional channels, rather than a core strategy; the transformation of e-commerce from traditional channels is more risk-oriented. Control rather than take the initiative.

For Nari Lighting, the number of its stores has reached 3,231, and the sales network covers 2,249 cities. It has basically covered provincial and prefecture-level cities, and the county-level city coverage has increased to 65%.

The huge traditional distribution channels constitute the main thread of NVC sales, and the current e-commerce model has not been able to provide a complete transformation plan for LED companies. If the enterprise is eager to transform into e-commerce, it will definitely hurt the bones.

"LED products are decoration materials, more people tend to go to the physical store, see the effect, look at the quality. The second is also the problem of industry transportation, the lamp is actually a vulnerable item, generally unless the big customer has a car, ordinary Express logistics, our samples occasionally have different levels of scratching, but customers generally think that when you come out, there is a problem." A LED company executive talked about the LED encountered in the e-commerce channel Some troubles.

Compared with the traditional channels with very high maturity, e-commerce is a brand-new technology and channel model, and even a completely unknown field for some LED companies.

E-commerce has changed traditional retail from channels, supply and demand, and technology, and relied on low-cost strategies to impact traditional retail, which has made it difficult to avoid channel conflicts, especially price conflicts. In addition, if LED companies are too focused on the line, it will touch the fundamental interests of offline channels.

"At present, the success stories of e-commerce channels and distribution channels have not been done yet," said Chen Zhongyi. "Although LED lighting already has the first brand on the Internet, e-commerce is imperative, but it cannot be compared with offline channels. Conflict, this is a headache for traditional lighting companies when operating e-commerce."

On the issue of online and offline integration, many LED companies are exploring new solutions. Some industry experts said that if online and offline can strengthen linkage, manufacturers through the e-commerce platform for the offline channel dealers to send some online customer sources, this can create a win-win situation for manufacturers.

Future business

Judging from the progress of the LED channel model, I am afraid that no one will oppose the trend of e-commerce, but it is still too early to talk about the fact that e-commerce completely replaces traditional channels, mainly from technical obstacles and business thinking.

"E-commerce is a platform for enterprises to promote themselves, and e-commerce depends on what platform you can do. I personally think that domestic e-commerce can only be used as a supplement for the time being." Lan Wenliang, the person in charge of Shenzhen Xianglong Optoelectronics, said. Whether LED companies need to launch e-commerce channels is mainly based on the positioning of enterprises.

According to a dealer, “LED lamps are different from ordinary fast-moving goods. They have their own special sales system. The traditional channel chain is complex and the interests are strong and stable.”

Due to the competitive relationship, traditional dealers have resisted the e-commerce, and they are afraid that the growth of e-commerce channels will eventually endanger their lives.

LED companies can't use traditional channel experience to simply copy it when doing e-commerce. E-commerce has different advantages from traditional retail in price positioning, logistics, after-sales protection system, etc. If there is no online store and offline The interests of channel providers will face great market risks and imbalances in channel structure.

"Now is the information age, the business must be combined with the physical store business model. The future trend of lighting e-commerce has a great impact on the traditional channels, the price of the online will be preferential, but some after-sales service is difficult to guarantee, pros and cons Coexistence.” Ms. Yao, who is the agent of Panasonic Lighting, told reporters that the future LED sales format will be built around the integration of online business districts and offline business districts.

Many dealers interviewed by the reporter said: "The future will be a trend of online and offline integration, rather than a simple alternative relationship. The online advantage is that shopping is convenient, the offline advantage is in the shopping experience, e-commerce can The advantages of the two are combined with each other. With the continuous change of consumption patterns, the retail format of LED lamps in the future will likely form a multi-channel structure of multi-dimensional structure such as 'offline stores + online stores + logistics distribution networks'."

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