LED manufacturers "electric shock" busy channel competition diversified expansion

[High-tech LED reporter Zhao Hui] At the moment when the demand for LED lighting has increased rapidly and the profits of lighting companies have generally increased, the competition for channels has become increasingly hot. LED lighting companies that have been keen on opening specialty stores and building distribution channels have increasingly valued e-commerce channels.

On September 28th, hosted by the Hangzhou Municipal People's Government, the All-China Federation of Industry and Commerce, the China Council for the Promotion of International Trade and the Hangzhou Economic and Information Commission hosted a global Internet e-commerce with the theme of “Honesty, Innovation, Cooperation and Win-Win”. The conference was held in Hangzhou.

This year, Lin Yifeng, the chairman of Zhouming Technology (300232.SZ), who has made frequent moves in the construction of LED e-commerce channels, shared the theme of the transformation of the LED industry with e-commerce.

Lin Yufeng, Chairman of Chau Ming, shared the theme at the Global Internet E-Commerce Conference



“Zhouming Technology has invested in Hanyuan since August 2013 and has established the O2O model promotion and operation of the LED lighting industry since its establishment of the Zhouming Hanyuan brand. It is strongly supported by online and offline customers.” Lin Yufeng said that Hanyuan as LED The lighting e-commerce brand has always been leading the industry in new channels. As a large-scale LED lighting R&D manufacturing enterprise, Chau Ming can better help Hanyuan to stabilize its leading position in product innovation and cost control. The joint efforts of both parties have fully realized the resource superposition and advantages. Complementary.

The recognition and investment of LED companies including Chaon Ming Technology to the e-commerce channel is also increasing. Diligent photoelectric, Tongfang lighting, sunshine lighting, Sanxiong. Lighting brands such as Aurora have already opened online flagship stores in e-commerce platforms such as Tmall and Jingdong.

According to the statistics of the reporter, as of September 29, 2013, Taobao has a total of 226,500 LED related products, including 121,000 LED lighting products, accounting for more than 50%; Tmall platform has 49000 LED lighting and light source products, Jingdong The mall also has 18,000 LED products.

“The initial investment cost of e-commerce channel is lower than that of traditional channel mode. At this stage, it is more popular among LED companies.” Wu Yulin, president of Foshan Lighting Association, believes that the price of products must be very competitive through the e-commerce platform. In his view, another important reason for the e-commerce channel to be favored is that high-quality dealer resources have been divided by traditional lighting companies, and LED lighting companies can only find another way.

As a LED listed company with a dominant display business, Chaon Ming Technology has been actively transforming into lighting in recent years. While opening up traditional distribution channels, it has also increased its investment in e-commerce channels.

On September 11, Zhou Ming Technology announced that it will increase its capital into Shanghai Hanyuan, the first brand of LED e-commerce, with a shareholding ratio of 20.59%. At the same time, the two sides will work together to create the e-commerce brand “Zhouming Hanyuan”.

At present, LED lighting channels are generally divided into four types, one is engineering channels, mainly government and large-scale enterprise projects. The second is export channels, including OEM and ODM exports. The third category is the multi-level distribution agency model represented by dealers, agents, supermarkets, and building materials and home lighting professional markets. The fourth category is the direct sales model of lighting companies that build their own stores and experience stores. In addition, it also includes auxiliary modes such as e-commerce and engineer invisible channels.



The number of projects is limited, while the distribution agency channels are mostly concentrated in the hands of traditional lighting companies. At present, the competition for channels, especially high-quality distributor resources, has entered a stage of intense heating.

"Channel construction is an urgent task." This is the consensus of many LED lighting manufacturers and industry experts on the "2013 China Good Products Tour Exhibition and Merchants Conference" hosted by Gaogong LED. From Hangzhou, Changzhou, Nanjing to Linyi, the enthusiastic participation of many lighting companies and channel dealers also confirmed the fierce situation of channel construction competition.

"Now LED lighting channels are in short supply, and there are so many good dealer channels, all manufacturers want. I almost get a call from different LED manufacturers every day." A traditional lighting dealer told "High Worker LED" reporter.

Under such circumstances, e-commerce as an emerging channel, along with the fiery sales of LED e-commerce, has also attracted the participation of many lighting manufacturers.

“Tongfang has its own brand flagship store in Tmall, Jingdong Mall, Home and other e-commerce platforms. Currently, it sells 20,000 LED lighting products this month, accounting for about 15% of total sales.” Tongfang Lighting Liu Wei, general manager of the business department, said.

Compared with other channels, the current sales volume of e-commerce channels is still relatively small. Lin Weifeng said that e-commerce channel is a useful supplement to LED lighting channels. With the rapid development of LED lighting e-commerce, Chau Ming Hanyuan will be committed to become the first brand of domestic LED lighting e-commerce.

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