Enterprises favor e-commerce platform or difficult to become the main body of LED lighting channels

[Source: LED Engineering's "LED lighting channel" 2013 the fourth period (total of 40) reporter / Xiongyu Heng]

Ma Yun said, "In the 21st century, there is either e-commerce or no business."

Compared with the traditional channels, the e-commerce channel has two major advantages: firstly, it is not restricted by geographical restrictions and has a wide audience; secondly, the intermediate circulation link is shortened, the initial construction cost is low, the profit margin is large, the return time is short, and it is easier to achieve flat management.

Emerging LED companies often have no achievements in traditional channels, and the low cost and wide coverage of e-commerce channels provide a good opportunity for them to quickly open channels and seize the market. Therefore, e-commerce channels are favored by emerging LED companies.

Traditional enterprises have mature channels, but in the face of e-commerce, they may not be able to remain calm. E-commerce as an important supplement to the channel, the potential can not be underestimated, such as NVC, Philips, Tsinghua Tongfang, etc., has begun to actively deploy e-commerce channels.

However, there are no ready-made examples for e-commerce channels. Everyone is crossing the river by feeling the stones, and hopes to bypass the traditional channels and directly transition to e-commerce channels. In the process of transition, due to the limitations of cognition, there may be a lot of misunderstandings. How to avoid stepping into misunderstandings and taking fewer detours has become a topic of concern to everyone.

Traditional terminal channels are blocked

"Currently, LED terminal promotion mainly has three modes: first, the dealer model has obvious gap with traditional enterprises; secondly, the direct store model requires large capital and manpower input, which is a great pressure for LED enterprises; Less, the effect is fast, quite popular with LED companies." Wu Yulin, president of Foshan Lighting Association, analyzed the reasons why e-commerce is favored.

It is true that LED lighting companies have gone through the traditional dealer model and direct store model, and the road seems to be a bit rough.

"Now the Huaqiang North LED trading center has reached 400 yuan/m2 per month, which is very stressful for enterprises." Pan Yanwei, manager of the marketing department of Tongpu Technology, said that enterprises open direct sales stores and only eat shops when renting Nearly half of the profit, and this does not include the cost of renovation in the previous period, as well as the labor costs brought about by the continued operation of the store.

What's important is that it is not very effective to set up ten stores in direct sales stores, and it needs to complete the regional coverage of large and medium-sized cities across the country.

In the dealer channel, LED variable prices and limited market demand, resulting in dealers are not cold on LED.

Even the old-fashioned traditional enterprises are also facing the problem of difficult channel upgrades. “Traditional lighting dealers have become accustomed to the traditional lighting marketing model. Most of them are not willing to be involved in LED lighting.” Luo Quanxing, executive vice president of Shanghai Luyuan Lighting, said that the dealers are self-sufficient and do not want to try to sell LED lighting. The problem that must be solved.

Zhang Ming, chairman of Xinli Light Source Co., Ltd. also said. "The real rise of home retailing still takes time. The market demand is limited. For the manufacturers, the channel is very burnt, and the effect is not guaranteed. In contrast, the e-commerce channel risk is much smaller."

In the context of the obstruction of traditional channels, the laying of e-commerce channels seems to be a helpless choice for LED lighting companies.

Knowing ourselves and knowing each other, there is no shortage of battles. However, due to cognitive limitations, many emerging LED companies still have misunderstandings about e-commerce channels and blindly enter the e-commerce channel. The so-called extreme anti-objective, price war and other vicious competitions have also been moved offline from the line.

The following points are the main reasons for attracting companies to enter the e-commerce platform, and they are also typical examples of cognitive misunderstandings.

E-commerce is burning money?

The initial construction cost is low, and the short profit cycle is the recognized advantage of the e-commerce channel.

The e-commerce model commonly used by many companies is usually a mature integrated e-commerce platform such as Tmall and JD. It is reported that Tmall's entry fee is 6,000 yuan / year, Jingdong's resident fee is 20,000 yuan / year, which is insignificant in the business operating costs.

However, after entering the e-commerce business, enterprises must work hard to promote brand promotion.

"E-commerce platform also needs brand support, and establishing online brands is the key to the success of e-commerce channels." Tang Liangfa, deputy general manager of Jinglaide Lighting, believes that for enterprises, the construction cost of the website only accounts for a very small part of the investment. The establishment of a brand requires companies to invest a lot of money and spend a lot of time on online promotion, so there are not many companies that can make a profit in the short term.

Since the price of the e-commerce platform is relatively transparent, there is no market for the products on the e-commerce platform. Moreover, Jingdong and other e-commerce platforms need to draw 8% of the transaction volume of goods. For enterprises, the profit-making space is greatly reduced.

In addition, when consumers purchase goods on the e-commerce platform, they need to search for the products they need through accurate search content or related recommendations. The higher the ranking, the higher the chance of being searched, and the promotion of online marketing. Big relationship.

Therefore, although the initial input cost of the e-commerce platform is low, the latent hidden cost is very high, and the profit cycle cannot be determined.

Non-market main force?

At present, the promotion of e-commerce platform is relatively strong. LED lighting is relatively hot. It belongs to Shanghai Hanyuan Lighting. It is reported that its LED lighting products and LED lights can reach tens of thousands of monthly sales.

“Hanyuan has brand stores in Tesco, Jingdong, Suning No. 1 and other e-commerce platforms. The main channels are limited to e-commerce channels. The cost of laying offline stores is too large, and construction is difficult.” Pan Yunce, head of Hanyuan Lighting Sales, said.

However, this kind of channel, which is supplemented by the main line, is not suitable for LED lighting promotion?

"Our LED lighting fixtures in the Jingdong Mall monthly sales of almost 20,000 or so, can be the sales champion in the peers, but 20,000 lamps and our offline volume is simply a slap in the face." The owner of an LED lighting company in Shenzhen believes that e-commerce can only be supplemented as a corporate channel, relying solely on e-commerce channels, and current conditions are not allowed.

What's important is that LEDs are scene lighting, and offline stores can give consumers an intuitive feel. At the same time trading the most critical distribution and after-sales service, the physical store can do it immediately, even package installation, and the e-commerce platform does not include installation, there is a waiting cycle. If you only pay attention to network promotion and lack the support of physical stores, enterprises need to bear a lot of risks.

Wu Zhengyi, a domestic lighting marketing expert, believes that the current LED lighting promotion is still based on engineering. Due to the emphasis on after-sales service, these customers will not purchase lamps through C2C or B2C platforms. The traditional channels will still be the leading LED lighting channels.

In fact, enterprises can regard e-commerce as the main channel of the channel, which can be regarded as an alternative choice for enterprises to seek differentiated roads. However, if e-commerce is regarded as the main channel, it will give up the main battlefield of LED lighting.

Non-channel mainstream?

"E-commerce is the mainstream of the channel" This may be the general idea of ​​many LED lighting companies trying to rely on e-commerce channels.

Although the online shopping group is expanding, the main target of online shopping is the end consumer. Currently, in the field of LED lighting, the proportion of terminal retailing is not much, and in the next five years, this ratio will not change much.

Due to the limitations of installation and after-sales service, e-commerce will not become the main battlefield of engineering channels for the time being, and the current end users of LED lighting are mostly commercial projects and government projects, so engineering and distribution channels are the king of LED lighting channels.

Tang Zhixin, president of Shenzhen Aerospace Fenghua Technology Co., Ltd. believes that “supporting LED lighting can only be a traditional channel, and it is necessary to innovate in traditional channels, that is, to open an experience store, in order to promote the terminal promotion of LED lighting”.

“The e-commerce channel is an important supplement to the enterprise channel and cannot be ignored, but the role of the physical store is more important.” Liu Wei, Tsinghua Tongfang Lighting Division, also believes that the traditional channel as a channel subject cannot be shaken.

He believes that the best way for traditional channels and e-commerce to cooperate is to adopt online sales and offline services, and regard traditional channels as the logistics and experience center for e-commerce, and e-commerce as a traditional channel for trading and promotion. By subdividing products to differentiate products, this is the general trend of LED e-commerce channel development, I believe that this way will be better.

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