[Source: "High-tech LED-lighting market" October issue GLII]
At present, the sales channels of LED lighting fixtures can be roughly divided into two categories: First, the engineering channels are all promoted in the form of project engineering with the support of government policies, such as the “Ten Cities and Ten Thousand Cities†government demonstration project. The advantage is that the amount of funds is large and concentrated. The disadvantage is that the project is scattered and the period of capital withdrawal is too long, which is not conducive to the expansion of production by enterprises; the second is to use the sales channels of traditional lighting to quickly realize the construction of marketing network.
At present, in the face of market incentive competition and self-employment survival pressure, channel layout is the focus of LED companies.
According to the survey data of the High-tech LED Industry Research Institute (GLII), the annual output value of China's LED lighting application industry in 2011 is close to 78 billion yuan. The overall market demand for LED indoor and outdoor lighting is gradually increasing, but the retail market for end consumers is still Hard to weather.
Recently, GLII visited a number of domestic LED lighting manufacturers and terminal merchants to understand that the current LED lighting terminal market still has high prices, no one in the KA store, merchants are not aware of LED lamps, and ordinary consumers cannot be clear. Get awareness of LED fixtures and more.
Three major reasons for market penetration is only 7%
The GLII research report said that traditional lighting still occupies an absolute market share advantage, and the market penetration of LED lamps is still very low, accounting for only about 7%. The main reasons are as follows:
1. The price of LED lamps is too high. At present, the price of 5W LED bulbs sold in KA stores averages between 60-70 yuan, while the price of ordinary energy-saving lamps with the same light efficiency is between 7-15 yuan, and the price difference between the two is several times. At the same time, the packaging instructions for LED products are too simple and do not allow consumers to have a comprehensive understanding of the products.
2. Promotion lag. At present, there are thousands of downstream manufacturers specializing in the production of LED lighting fixtures in China, but there are not many merchants specializing in LED products in the terminal market. At this stage, in addition to government policy support, other forms of marketing are lacking. From the terminal merchants visited by GLII, most merchants have insufficient knowledge of LED lamps, which makes it impossible to correctly communicate LED lamps to terminal consumers. Advantages and differences from traditional lamps.
3. Retail distribution is not good. There are a large number of traditional lighting products sold in the popular KA stores, but the distribution of LED lamps is very limited. At present, domestic KA stores, only Carrefour, Wal-Mart, these large-scale stores have a small number of brand LED lamps for sale, and the number of branding brands is very small, only a few brands, such as Jucai, Kabostone, Firefly, BYD and so on.
At the same time, these brands do not have relevant pre-sales service personnel in the store. When the end consumers purchase lamps, LED lamps are also unattended.
Table 1: Sales of LED lamps in some supermarkets and stores in August and September 2012
At present, the sales channels of LED lighting fixtures can be roughly divided into two categories: First, the engineering channels are all promoted in the form of project engineering with the support of government policies, such as the “Ten Cities and Ten Thousand Cities†government demonstration project. The advantage is that the amount of funds is large and concentrated. The disadvantage is that the project is scattered and the period of capital withdrawal is too long, which is not conducive to the expansion of production by enterprises; the second is to use the sales channels of traditional lighting to quickly realize the construction of marketing network.
At present, in the face of market incentive competition and self-employment survival pressure, channel layout is the focus of LED companies.
According to the survey data of the High-tech LED Industry Research Institute (GLII), the annual output value of China's LED lighting application industry in 2011 is close to 78 billion yuan. The overall market demand for LED indoor and outdoor lighting is gradually increasing, but the retail market for end consumers is still Hard to weather.
Recently, GLII visited a number of domestic LED lighting manufacturers and terminal merchants to understand that the current LED lighting terminal market still has high prices, no one in the KA store, merchants are not aware of LED lamps, and ordinary consumers cannot be clear. Get awareness of LED fixtures and more.
Three major reasons for market penetration is only 7%
The GLII research report said that traditional lighting still occupies an absolute market share advantage, and the market penetration of LED lamps is still very low, accounting for only about 7%. The main reasons are as follows:
1. The price of LED lamps is too high. At present, the price of 5W LED bulbs sold in KA stores averages between 60-70 yuan, while the price of ordinary energy-saving lamps with the same light efficiency is between 7-15 yuan, and the price difference between the two is several times. At the same time, the packaging instructions for LED products are too simple and do not allow consumers to have a comprehensive understanding of the products.
2. Promotion lag. At present, there are thousands of downstream manufacturers specializing in the production of LED lighting fixtures in China, but there are not many merchants specializing in LED products in the terminal market. At this stage, in addition to government policy support, other forms of marketing are lacking. From the terminal merchants visited by GLII, most merchants have insufficient knowledge of LED lamps, which makes it impossible to correctly communicate LED lamps to terminal consumers. Advantages and differences from traditional lamps.
3. Retail distribution is not good. There are a large number of traditional lighting products sold in the popular KA stores, but the distribution of LED lamps is very limited. At present, domestic KA stores, only Carrefour, Wal-Mart, these large-scale stores have a small number of brand LED lamps for sale, and the number of branding brands is very small, only a few brands, such as Jucai, Kabostone, Firefly, BYD and so on.
At the same time, these brands do not have relevant pre-sales service personnel in the store. When the end consumers purchase lamps, LED lamps are also unattended.
Table 1: Sales of LED lamps in some supermarkets and stores in August and September 2012
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