October 16, 2019

LED lighting industry channel model innovation is an urgent task


Nowadays, the LED projects in the industry can be seen as springing up (it is said that there are more than 7,000 companies with cases to check), one after another.
Some experts said that the next step, the large-scale collapse of LED will be on schedule.
This reminds me of a question, how is the marketing model innovation in the homogenized LED market at this stage? In retrospect, at this stage, the leader in the lighting industry, all of them are dare to be the first companies in the marketing model, such as Op, starting with kitchen and bathroom lights, in the intensive cultivation of channels, can be described as ingenious and leading. NVC Lighting is also far-sighted and far-sighted in channel model, capital and industrial chain integration. Therefore, the homogenization of LED companies, only in the marketing model, especially in the channel model of innovation, is one of the better ways out.
Some experts say that there are two types of enterprises in the future that are the king of market competition. One is a technology-driven enterprise driven by capital. They produce relatively stereotyped products. The technology and cost of the products are their core competitiveness, and the second category is the light environment application enterprises for LEDs. Their competitive advantage comes from a deep understanding of the light environment and a deep insight into human nature.
The author believes that this is generally true, but in terms of timeliness, many of the current LED companies have become a boat, and it is impossible to create a competitive advantage in terms of products and capital in the short term.
Therefore, it is foolish to think that in the innovation of the channel model, it is one of the ways out.
So how do you innovate the channel model?
The innovation of the channel model comes from two aspects. The first is the distribution of benefits in the agency model. To put it bluntly, it is a closer cooperation mode with the dealers; the second is the width, depth and saturation of the channels. Break through. To put it bluntly, it is the effective coverage of the channel to the end user.
Let me talk about the way of distributing benefits to agents. I have written an article before, called channel innovation - four special agents are the way out, interested readers are not looking for a look, Baidu keyword search can learn more, the author below the conclusion.
What is a four-special agent? The four majors mainly refer to special personnel, professionalism, concentration, and proprietary funds.
The special person is to ensure that the agent can concentrate on the brand of the agent, so that the brand operation of the agent can be successful in a short period of time. To put it bluntly, in the construction of the team, the agent implements the department system, different teams, and different operations. Brands, different brands, as a separate profit center. And if a dealer team operates multiple brands, it is easy to take care of this, often driven by interests, focusing on brands that have money to earn in the short term and have little resistance to market promotion.
Professional is to ensure that the dealer's trader (or himself) and the team can be qualified for the position. For the dealer's trader or myself, it is generally the industry's many years of experience.
Concentration is to protect the dealers to do their best. It is the most critical and indispensable element of the four special requirements. The author strongly recommends (or approves) that the senior managers of the company do the logistics business, in large part because they are more focused and focused, and they can do their best.
Special funds are relatively simple, in order to protect the independent business department (even if it is virtual) for the purpose of special funds.
So, how does the current lighting industry find the ideal four-special agent?
One of the answers given by the author is to attract professional professional managers with strong professional ability to cooperate. To put it bluntly, it is to establish a joint stock company with a senior professional manager trained by the company itself. Enterprises can take stocks into stocks, and professional managers are responsible for warehouse and personnel recruitment, accounting for small shares. The two parties share the risk sharing benefits. Of course, in the early stages of operation, in order to avoid risks, companies can have some control measures. For example, companies can promise to fully withdraw their shares within 3-4 years, allowing professional managers to fully share shares. Managers who have grown up in the company have a better understanding of the company, and both parties have a moral basis for trust, and their ability has also been investigated by the company. The most important thing is that professional managers are after all workers, the driving index is relatively low, mixed in the enterprise, 10 million a year, if you operate the operation center, you can earn 300,000-500,000 a year, you will definitely go all out. Plus the initial small investment in your own business. Therefore, if you concentrate on it, you don't have to doubt it.
Let me talk about the channel's effective coverage channel extension problem.
LED market development, most companies are looking at the traditional lighting market, in fact, outside the industry, we found that there are many markets with vast worlds, such as:
Hardware professional channels, you pay attention to no, there are data that Philips Lighting's distribution share in the hardware channel accounts for about 30; this is a huge, relatively competitive market; for example, KA channel, do you care?
For example, professional engineering dealers for wire and cable, are you concerned about it? Their engineering operation ability is much higher than that of the lighting industry dealers; for example, the township distribution market, are you concerned about it? With the urbanization of rural areas, it is said that the investment scale of 40 trillion yuan will be launched. How to connect with the township market in the channel mode, enterprises, you are ready.
Of course, the innovation and breakthrough of the channel model is far more than that. LED market breakout, channel breakout, channel breakout is the key. The foreseeable future is that the king of LED market competition will surely be the power of capital, products and technology, and the enterprise in the forefront of the industry in the innovation of channel model.

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