Terminal channel is the key to LED replacing traditional lighting

In the past two years, the price of LED lighting products has continued to decline at a rate of more than 30% per year. The price disadvantages that hinder the promotion of LED scales are gradually weakening. At present, in the terminal market, whether it is a distributor or a consumer, the acceptance of LED lighting has been significantly improved. This also indicates that LED lighting will be able to achieve explosive growth in the terminal market in the short term. As a result, the rush to build end-channels has become a top priority for the current lighting companies. At present, many new LED lighting companies have successfully used the product and price advantages to successfully enter the distribution system of traditional lighting companies.

The reporter visited the market and discovered that there are no shortages of LED brands such as Friends billion and Karl Lighting in traditional lighting stores such as NVC Lighting and Qiaosen Electric.

The face of the LED lighting companies, the traditional lighting companies want to sit idly by and continue to maintain calm is no longer possible, the channel between the two forces to snatch competition is surging, showing a "mountain rain Building situation.

In order to resist the invasion of LED lighting companies to their own dealer system and prevent their own channel resources from being handed down, old traditional lighting companies hope to use their strong control over dealers to clear competitors' products and brands out of their dealerships. System, thus consolidating the original advantages of the channel, and can inhibit the development of LED lighting companies in the terminal market.

Lighting accessories, agent brands are NVC, Yiguang, Huaqiang Benbang, Sanxiong Aurora, extremely Hao technology.

If Weibo content is true, it means that in the choice of agency brand, Drep can only make "difficult decisions" between NVC and other brands. If other brands are chosen, it means to give up NVC's product distribution rights.

Subsequently, the reporter called NVC dealers in Shanghai, Beijing, Wuhan, Shenzhen and other places, most dealers said they did not receive the relevant notice. However, according to dealers, when NRS signed an agency agreement with NVC, there were regulations prohibiting the sale of other brands of lighting products. Therefore, NVC is now able to consolidate its channel status. Even if such a policy is introduced, it is understandable.

"Tough decisions"

The so-called "city gate fire, and fish pond", if this news is true, then NVC dealers not only can not sell billion light LED products, and even other brands of LED products have to give up. The dilemma faced by dealers is that Tencent once said that it was a "difficult decision."

On the one hand, NVC's strong brand influence in traditional lighting has indeed made its dealers make money; on the other hand, LED lighting is the future development trend, and NVC has indeed slowed down in the field of LED lighting. The price of products is not expensive, and the categories are not complete. Consumer acceptance is not high. Abandoning other brands means abandoning LED lighting in the short term.

Therefore, when the reporter visited, there are dealers who are very disgusted with NVC's move. "If this news is true, then NVC is forcing its dealers to abandon the operation of LED lighting." A Shenzhen NVC dealer said. NVC's development of LED lighting has always been slow, and the product category is thin.

After last year's infighting, NVC did not have a mature channel for LED products. Moreover, NVC LED products are expensive and are not accepted by end consumers.

There are also dealers said, "Our purpose is to make money, if NVC LED lighting product categories enough, the price close to consumer demand, rather than always high above, I think we will not give up the NVC brand and find other brands. But the real problem is that NVC Lighting's LED lighting business is now in a stagnant state, and dealers are obviously not confident enough."

Nowadays, BDO Runda has been appointed as the chairman of NVC. Wang Donglei has officially become chairman of NVC Lighting. Actually, he has no one in the NVC to represent the interests of NVC. The dealer will inevitably lose confidence in NVC today. If NVC adopts such a high-pressure policy to force distributors to behave at this time, there will be no phenomenon of distributors in the future.

However, although NVC lighting dealers decided to be difficult, but according to reporters to understand, the case of traditional lighting channel cleaning is not uncommon in the industry, NVC this action is only a typical representative, but also indicates the lighting channel The future development trend. Mainstream dealers have a long-term vision and are less constrained by prices. They want to be branded. Despite the tough decisions, they have to face it.

Cleaning into a trend

In recent years, LED enterprises of Taiwanese companies, including Epistar, Sunny Optoelectronics, and Everlight Technology, have actively planned their own territory in mainland China through shareholding, mergers and acquisitions or direct establishment of factories, which has brought a lot of pressure to the survival of mainland enterprises.

In particular, Everlight Technology's recent move in the mainland is very high-profile, and its intention to seize the domestic market is obvious. It is indeed “the heart of Sima Zhao, known to all passers-by”.

NVC's culling of billions of light in the channel can be regarded as the first “underground snake” to “strong dragon”. According to Dr. Zhang Xiaofei, Senior Engineer LEDCEO, “The impact of this matter on Everlight is not limited to this. In the follow-up, not only NVC, but other original brand manufacturers will follow suit and clear Yiguang’s brands and products out of their channels. A total blockage of the billion light."

Of course, this bad situation is not just for Everlight. For other new LED lighting companies wishing to use the traditional lighting company's dealer system for market and brand expansion, it will sooner or later face the same problem.

"Before, there are LED lighting companies use other people's distribution channels, through the display board or showcase, with little cost in the terminal market has made not a small success, attracted new LED lighting companies have followed suit." Zou Hui, Marketing Manager of Zhongshan New Terri Market Management, said that this method of selling his products through other channels is cost-effective and effective. It is a good strategy in the early development of LED lighting, but the current clean-up of the lighting channels has already started. The risk has risen sharply.

"All in all, it is not unusual for NVC to launch such a large-scale cleaning, I believe this is a stage that every company that transitions from traditional lighting to LED will experience," said Li Quan, manager of the brand management center of the three male Aurora Aurora Market Department.

In the initial stage of transformation, traditional lighting did not prevent dealers from acting on other brands due to the fact that the LED product categories were not sufficiently rich to fully meet the needs of dealers and consumers. However, with the increasing richness of LED product categories, the cleaning of other brands is imperative.

Li Quan revealed to reporters that before the dealer of Sanxiong Aurora had acted as an agent for other brands of LED lighting products. Since the second half of last year, Sanxiong's LED lighting product categories have been very rich and can fully meet the needs of distributors and consumers. Therefore, Sanxiong also Actively guided its dealers to focus on selling Sanxiong's brand.

The so-called "big tree attracts the wind", in view of NVC's strong brand influence in the field of domestic lighting, involving a large number of dealers, this matter can cause an uproar in the industry.

However, channel cleaning is poised to take off. For new LED lighting companies, this is a dangerous signal. It is necessary to lay out their own terminal channels in advance and prepare for the cleaning of traditional lighting.

However, many industry players are also skeptical about traditional lighting companies’ strong control over distributors. Zhang Xiaofei mentioned that companies that are hesitant to LED lighting will only lead partners to look for new opportunities outside the system. Although those LED manufacturers lack of experience in the arena, but who underestimate the IQ of LED lighting manufacturers will pay a heavy price.

The next three years will be the key three years for the channel layout of domestic LED companies, and this year, it is only just beginning.