Although there are many positives this year, the economic downturn in Europe directly hits the export-oriented LED industry, coupled with an increasingly fierce price war, serious homogeneity, the lack of sales channels, high inventory pressure, and tight funding at the end of the year. Factors such as LED lighting companies are not optimistic. Next year or will be the key year for China's LED lighting industry, there will be a larger-scale reshuffle.
At the Foshan seminar on the 29th, the issue of sales channels attracted the attention of participants. According to reports, similar to ceramics, furniture and other home industries, more and more LED lighting companies have actively participated in the e-commerce flow in recent years. Many LED companies, which were mainly export-oriented, even used e-commerce as a knock-on technology. The "golden key" in the domestic market.
"At present, there are mainly three kinds of LED lighting promotion. One is the dealer model. Traditional lighting has been used for many years. Therefore, LED lighting companies lacking brand effect have no advantages. The second is the direct-operated store model. This type of model requires a large amount of capital and manpower investment, which is a lot of pressure for most LED companies that are in the early stages of development.The third type is the e-commerce model. This model is relatively new, and the initial investment costs are lower than the previous two types. Therefore, it is more popular with LED companies, said Wu Yulin, president of Foshan Lighting Association.
He explained that most of the e-commerce models currently used by LED lighting companies are integrated e-commerce platforms such as Tmall, and professional e-commerce platforms such as home appliances and LED lamps, and a small part of them are self-built shopping malls. “But with the e-commerce platform, the price must be very competitive. Therefore, positioning high-end brands or products must be very cautious, and it is recommended not to enter the e-commerce as it flows. On the other hand, because the domestic LED lighting standards are not perfect, they are not implemented. Force, therefore, in order to occupy the market, many companies do not hesitate to sacrifice the quality of the price war. This is a very dangerous signal, will make the entire LED lighting industry damaged."
For channel issues, the reporter randomly interviewed several representatives of the Foshan LED lighting companies. Relevant person in charge of the Foshan Lighting LED Division stated that the current sales of e-commerce channels account for about 5% of the total sales of LED lamps, and the price is on the public route. The relevant person in charge of Casio's introduction, the company is currently building Tmall Online Mall, will mainly sell downlights and spotlights with competitive prices. Another company official, Mr. Zhou, told reporters that they are not considering making e-commerce for the time being, and are still preparing to use traditional dealer channels. He believes that letting consumers visually see the lighting effects is more helpful for sales.
Zhang Hua, secretary-general of the Foshan Lighting Association, said that currently LED lighting companies in Foshan have not yet entered the e-commerce on a large scale, but the trend is very clear. “On the one hand, companies need to spread channels, but also need funds. On the other hand, consumers are more and more accustomed to understanding and even purchasing goods online. This consumption habit determines that the emerging LED lighting industry must use the e-commerce platform as soon as possible to occupy the market and The right to speak.
Although there are many positives this year, the economic downturn in Europe directly hits the export-oriented LED industry, coupled with an increasingly fierce price war, serious homogeneity, the lack of sales channels, high inventory pressure, and tight funding at the end of the year. Factors such as LED lighting companies are not optimistic. Next year or will be the key year for China's LED lighting industry, there will be a larger-scale reshuffle.