How to bite off LED engineering channel ?

All along, the Channel for its large, high-profit business has become a battleground, current, led street light wholesale into "channels of distribution," the critical period, as a "fat", the project's own channels and other channels can not match the advantages, but its potential "high risk" is not a general business can afford, one of the Channel occupancy big money, long payment cycle; the other LED terminal retail share is low at this stage, most of the businesses are in engineering survival, the market is more competitive.

Faced with increasingly low profits of the Channel, many businesses have expressed their "powerless", still adhere to the "do not abandon, do not give up" principle, LED era, lighting channels show how? Look at how industry experts explain .

LED era factory direct involvement of the Channel

Guangdong Huari Lighting Co., Ltd., deputy general manager of the Channel trick Janus traditional lighting and LED lighting era era made a comparison: "In the era of traditional lighting, general lighting manufacturers together with the dealers completed, only a handful of such Olympics, World Expo, the Games because of a high tender requirements such as requiring direct cooperation with manufacturers in the LED era, due to the government's promotion efforts, more and more outdoor projects and municipal renovation projects by the manufacturers directly involved, reducing the dealer links, greatly increasing the profits of manufacturers, makes the Channel became the lighting industry a 'fat'. "

For manufacturers direct access to the Channel this, what Lun BYD Lighting Channel Director also agrees, in October 2013, BYD BYD Group Incorporated energy conservation Ltd. Guangdong Province, opened a new cooperation model of the Channel. In the original works, such as direct marketing agency model to project operation to bring more possibilities, more space.

Lun Ho explained: "the existing traditional channels of cooperation projects, relatively simple way, the agent works great financial pressure, project follow tedious now, BYD provide one-stop service for the Channel, in short, the capital of BYD, BYD out. technology, a product of BYD, BYD sold, the ultimate benefit sharing. so, the Channel and circulation reduces the risk of operating in the project, and ultimately bring more smoothly profit gains. "

How to project the performance of the channel at this stage?

The Channel LED era with the traditional channels, there are some differences that show how the LED channels now works under this mode of operation it? Profits and how?

He Lun bluntly, profit at this stage of the Channel has some relatively lower. The main factors leading to changes are: First, the fierce competition in the market; second, LED market matures, the price system is also becoming stable.

Dr. Janus also said the project is now in decline in profits:. "Before the project according to product pricing in 50 points or more, and now some of the projects are basically not very profitable, everyone grab one, which is the result of a big competition the projects are generally tender, the fight is the strength of the brand because owners may specify or set up some special (standard) threshold, which makes general engineering companies can not intervene; while for the average small projects, not too many special requirements, we can go for the relative pressure is also small. As engineering problems of payment, according to the contract more to go, order to pay part of the goods to pay part of the completed portion of pay, there are about 3-10 point is the shelf life of the gold sale, sale of basic payment is more difficult, the cost of this project is to be considered when the offer. "

Dr. Janus summary, engineering market with high return characteristics, but is often accompanied by high return high risk, all aspects of investment and risk facing pressure than the normal distribution and retail channels is much greater, regardless of China Day LED lighting or other companies, this channel is the LED lighting project risks and opportunities.

Brand multi-channel success

As a business, how to break through it?

He Lun BYD Lighting Channel Director elaborated strategies in the Channel BYD war taken. BYD lighting undertake major projects, greater demand for energy conservation at this stage, such as commercial lighting: energy saving mall, hotel, medical, office, etc; energy-saving municipal office, street, tunnel, etc. The proportion of turnover which accounts for up to 80%.

BYD lighting in response to the current market competition and high-risk situation, in addition to continue to develop the engineering market, BYD lighting depends on the group's brand appeal and strong financial support, settled in the entity store (paraelectric, Wal-Mart, etc.) in order to enter the terminal retail market, in addition, the operation of electronic business platform, such as Lynx, Jingdong, Amazon is also actively expanding in the channel region to meet offline publicity agents do so, they formed a complementary channel and engineering, to further strengthen the brand influence. In conclusion, BYD lighting has been a multi-channel direction, but according to a specific period, to make a specific focus adjustment.

Dr. Janus about the current market as led street light fixture Manufacturer is facing difficulties borrowing money, competitive pressure situation, some companies have begun to shift in the other direction. For example, the transformation of the electricity business, online shopping is increasingly favored by the general public, as a platform to market electricity provider infinite virtual transactions, as long as the logistics of local product availability problems can be solved, so that the customer's radiating more wide, not only to solve a variety of complicated issues offline transactions, while also expanding our relationship with the rest of the enterprise.

For different companies, different responses, some of the "multiple channels at the same time, power and build brand industry"; some of the "open channels, product solutions to help out." In general, in one sentence: to improve their strength, ill-prepared in the product, establish a corporate brand.