LED industry will enter the market segmentation stage

According to the “Semiconductor Lighting Energy-Saving Industry Plan” promulgated by the National Development and Reform Commission, by 2015, China will eliminate all incandescent lamps of more than 60W. At the same time, the average annual output value of LED lighting energy-saving industry will increase by about 30%, reaching 450 billion yuan in 2015. According to the plan, indoor commercial lighting products and systems will be the first category to be promoted.

Market segments

Recently, the Xibainian store at 354 Shenban Road in Hangzhou officially opened. According to Chen Baodong, general manager of Shenzhen Green Semiconductor Lighting Co., Ltd., “Hai 100 Years” will be the first brand of LED lighting in China to take the lead in the Zhejiang market in 2013. Another brand “Green Lighting” still specializes in office lighting.

Facing this huge market opportunity, Chen Baodong has his own understanding. “In 2013, the overall prosperity of the LED industry is expected to stabilize and pick up, and the spring of the industry will come again. The market structure in the future will undergo dramatic and profound changes. In the past, relying on extensive A good day for profitable investment management will never return, and the market will enter the 'intensive farming' stage in the future."

Another data show that in the commercial lighting market, clothing lighting accounted for 60% of the share, office lighting also has about 20% share.

"Who took up the two market opportunities in clothing lighting and office lighting, it also established his position in the LED lighting market." Chen Baodong did not hide his ambitions in the field of clothing lighting and office lighting. "Apparel lighting has a market capacity of 45 billion yuan. If our company can occupy one-tenth of these, we will be able to gain a share of 4.5 billion yuan. This will bring direct and substantial benefits to companies and dealers."

In Chen Baodong's view, intensive farming for a particular market segment is far easier and more professional than attempting to swallow all areas. “The lighting market in the hotel and food industry will not enter now. Now we only focus on the apparel and office areas. This is the company’s long-term development.” Chen Baodong told reporters.

Distribution channels <br> <br> from the dealer's point of view, seems otherwise to be considered different. In the process of LED products gradually replacing traditional lamps and lanterns, the general idea of ​​dealers is to meet customer needs.

“What kind of products do customers need? We give the price and specifications. We will pick the goods to help get the product.” This is the reporter's visit to the market. When asked what kind of LED products the store mainly manages, 95% of the dealers Will reply with this.

“First of all, it is impossible for LED manufacturers to produce lamps of various types and models, and secondly, a single dealer may not be able to reserve various types of products for customers to choose from. Therefore, when a certain kind of product requested by a customer does not exist in his own store, the dealer The transfer of goods between the two is the most direct and efficient way to meet the needs of customers and give their product line a rich impression." An LED listed company's dealers analyzed the reporter.

"As a distributor, the most important thing is performance. If customers want Philips, OSRAM products, although we are not a distributor of such big-name products, but the same can be transferred to the goods; if it is the primary consideration of the price factor of the customer, corresponding We can also adjust products that meet their psychological expectations, so that businesses can do so.” An eight-year-old dealer said frankly that the mixed business model seems to be helpless, but it is profitable. One of the effective ways.

What's more, dealers do not open physical stores, but run all kinds of engineering operations on the outside, get orders and then contact the manufacturers or directly to the market to buy lights. Although the cost of this method is low, it is difficult to make it bigger, and the terminal image of the physical store is the ultimate development path.

<br> <br> strategic layout of China's largest traditional lighting company NVC 2011 with an annual output value of 3.7 billion yuan, the industry believes that appeared more than five billion yuan in output value or even tens of billions LED lighting business is not a fairy tale. Therefore, the current LED companies are competing in a bid to “break the ground,” and in the absence of an absolute leader in the market, everyone seems to have the opportunity to come to the fore.

Companies need to do special efforts to establish a brand image, but most dealers are even more interested in pursuing economic efficiency. “The image display of the product is one aspect, but if the product is left unattended for several months and months in the store, there will be no sales. If the product is better, we will also consider whether there is a need to continue cooperation.” A dealer who opened a store in Zhejiang Jinhua Business said.

“Products have advantages in the same level of competition, and it is very important to be able to receive orders from customers. It is of course important that companies open stores to do an image display to enhance brand heights. This is based on long-term development, but the industry is changing. Unpredictable, who can laugh in the end is hard to say.” The dealer said. It is not difficult to see that the connection between the brand concept of many companies and terminal sales seems to be out of place.

“But it must be admitted that LED companies that focus on a certain area to develop products will always be able to drive its quality to become more and more mature. Once the established brand image captures the market deeply, the subsequent development is very impressive. It is not difficult to understand. Why more and more LED companies set up stores in the country, what is necessary is the layout of the first channel to seize the channel resources." Facing the company's strategic layout, Zhuji Daoguang Lighting Co., Ltd. Zhao Chen manager said.