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"In the past, when selling traditional lamps, we went to the factory for a batch of goods, which was tens of thousands of dollars. Now, after switching to LEDs, the same quantity of goods will cost more than 100,000 pieces, and the inventory cost is too high. We can't afford it a bit." Mr. Huang, who sells lighting sales in Shenzhen, told reporters.
According to the reporter's investigation, the market price of a commonly used LED 3W bulb is about 30 yuan, and the corresponding ordinary 7W energy-saving lamp is less than 10 yuan. The high price of LED products directly pushes up the inventory cost of dealers, which occupies a large amount of liquidity, which makes dealers' funds tight and difficult to operate channels.
Price trouble
The inventory pressure of dealers has always been there, but in the traditional lighting era, the procurement cost of lamps is relatively low, and the whole market environment is relatively good. Therefore, product turnover is also fast, funds are easier to return, and dealer pressure is released. .
LED products are difficult to unblock dealers' inventory pressure due to high procurement costs, poor market conditions and high selling prices. In view of the uncertain sales prospects of LED products, it is difficult for dealers to grasp the inventory water level, and naturally reduce the stocking.
As a wave of lighting industry, LED products seem to be a little incompatible under the current distribution system, and the inventory difficulties suddenly stand out.
As we all know, the traditional traditional distribution channel is to use the intermediate partners such as distribution, agency or franchisee to face the end customer to sell products. The distribution mode is extended by the first level and one level. The channel chain is long and it is easy to cause inventory backlog. LEDs will inevitably fall into the "trap" of high inventory when they use this traditional distribution channel.
In addition, with the intensification of competition, the domestic LED price war is playing well. According to the statistics of the High-tech LED Industry Research Institute, in the downstream application industry, the average price of indoor lighting products such as LED fluorescent tubes, LED bulbs, LED panel lights and LED downlights in China dropped by 23% in 2012. In accordance with the ever-decreasing price trend of LEDs, the risk of depreciation of stocks has also left many dealers with a lingering fear.
However, for the inventory dilemma of LED, some people in the industry have proposed to use the "zero inventory" method to solve - the LED enterprise immediately produces the order when it receives the order, and the dealer then picks up the goods according to the order. The idea is certainly good, but considering the cost constraints of production and logistics, the operability of the zero inventory model is still not strong, and the company cannot guarantee the timeliness of supply.
"slogan" transformation
In the face of the traditional distribution channels of “not suitable for tasteâ€, many LED manufacturers are rushing to make channel transformation and improvement.
Bao Xin, manager of Foshan Ouhe Lighting Market, told reporters: "The current LED companies still focus on engineering and relax the construction of channels. At present, the process of self-built channels is relatively long and costly. The relatively high level of wear and tear with the dealers has also caused many companies to struggle, forcing some companies to directly cooperate directly with large decorative engineering companies and large users."
On the issue of channel transformation, many LED companies are still stuck in the slogan stage of “thunder thunder and small rainâ€, which has not been implemented. However, with the increasing penetration of LEDs in lighting applications, for the future lighting market, “channel is king†is still the truth that enterprises must face. LED manufacturers must increase channel layout to seize market opportunities.
When it comes to LED channel transformation, one of them is the controversial LED store model. Ao Kelai Lighting Marketing Director Qing Zhe said: "LED lighting products are no more than traditional lighting products, and have certain requirements for display. The characteristics and advantages of LED lighting products also make the channel mode of their choice narrower than traditional lighting. In terms of LED industry development, specialty stores have become the most viable terminal channel model."
Liu Wei, general manager of Tongfang Lighting Division, appeared to be slightly cautious on this issue. He said: "For LED stores, whether it is a LED franchise store or a store model, it is still difficult at present. Mainly from the cost of opening the store itself, if you only use the sales of LED products to support the cost of the franchise store, the difficulty is still very large."
According to a survey by reporters, there are currently thousands of manufacturers of LED lighting fixtures, but in terms of the terminal market, there are only a few merchants specializing in LED products, and LED monopoly stores have not yet formed an integration effect in the market. . The most fundamental problem is that LED stores or agents are expensive to invest, have large investments, low output efficiency, and lack the soil for survival and profitability.
Tradition
Objectively speaking, the inventory dilemma presented by LED is largely due to its own high cost and chaotic price system, and it cannot be blamed for the negative impact of traditional channels on LEDs.
Conversely, some large distributors have strong resource integration capabilities, including integration of invisible channel resources and integration of sales channels. LED companies need to rely on these resources of dealers to open up a wider market.
In the future, as the price and quality standards of LED lamps tend to be stable and the styles are more diversified, the acceptance level of LEDs by end users will also increase accordingly.
In addition, traditional dealers have a greater choice when facing more LED lighting brands. The objective conditions and market factors of the agent LED lamps are more mature, so the LED lighting brand will have greater demand for traditional dealers. 
Insufficient sales of LED traps
[Source: Gaogong LED's "LED Lighting Channel", 2013, Issue 4 (Total Issue 40) Reporter / Li Jingyu] "The LED channel construction method is similar to the traditional lighting channel model. The only difference is that LED dealers do not. Dare to prepare too much inventory." When asked about the difference between LED and traditional lighting in channel construction, the lighting wholesaler Zhang Yitong's answer caught the attention of reporters. As the saying goes: There is food at home, and I don’t panic in my heart. In order to ensure the timely and bulk supply of inventory, how can it become a "heart disease" of LED dealers?