Analysis of China's lighting market

At present, the negative impression made by mainstream products in the lighting market to consumers is bizarre and unpredictable. It is not easy to find a lamp that you are satisfied with. It is even harder to avoid the price trap.

In fact, there is no shortage of good products in the lighting market. However, due to serious homogeneity of products, large quality differences, large price, and poor display effect, after visiting the lighting market, most consumers have a kind of dizziness after being stimulated by light. Feelings and confusion of impressions.

Industry insiders do not deny that in their opinion, the chaos of lamps should be sorted out.

A lamp with multiple store selling prices cluttered across the lamp market in Beijing. There is a phenomenon that is very common. It is the same lamp. It is sold in different lighting markets or multiple lighting stores in the same lighting market. This “you have me” The situation in which I have you, causes the consumer to scratch his head: I do not know where to buy the best, the price is not the same, the quality is not clear. In this regard, the head of a lighting company in Shilihe Building Materials Street has an attitude toward such phenomena: there is no good way, and the industry is in chaos.

Ms. Fang is more angry with consumers. She used to be indiscriminate with the return of a lamp. She said that she only bought expensive products, and she thought of another cheap store to buy, in the same lamp city. There was no coordination in this matter, and it made me very depressed: “The market does not manage merchants, what to buy, what to buy, how to sell, how to sell, how to sell what we buy, and what we buy is not practical, we must break our legs!”

"Export to domestic sales" has become an excuse for the unknown origin of lamps and lanterns. For Chinese consumers, it is sad that not many manufacturers have thought about what lamps Chinese households should use. Take many people like European and American classical style chandeliers for example, enter this style of store, consumers often hear the word "export to domestic sales", businesses use it to attract customers, advertise themselves as an exporter, and ultimately hint that his home The lamp "Western style". However, there are people who are obstinate, and when they buy a home, they find that the scale is too large to touch the head. At the same time, there are some lamps and lanterns brand lied that their products come from Europe and the United States, but in fact its origin is in the country.

Regarding the status of the lighting market and the origin of the products, Su Hongmei, the general manager of Suiwu Lighting City, which is about to open in September, said that many consumers do not know that 80% of the world's lamps are produced in China, and China is an absolute company. Lighting production countries. However, the booming manufacturing side has not concealed the chaos of the retail side. This is because too many manufacturers have been focusing their attention on foreign markets a few years ago. They have no time to care about the country, and they have no reason to control the behavior of dealers. This is why international lamps have no brand names. Lighting market is chaotic and disorderly.

Regarding this, Liu Jie, general manager of Angel Lighting, who has years of experience in export manufacturing and has moved to the domestic market for many years, said that many factories that only export do not have the energy to study the consumer demand and living space of the Chinese people. Therefore, the so-called export to domestic sales Lamps are not suitable for Chinese families, and there is a certain degree of deviation in terms of the degree of matching of styles. Consumers should pay attention to not savoring export-oriented brands. When considering the quality of their products, don't forget to understand its own design and R&D capabilities and choose the ones that suit you.

You copy me imitation consumers confused to dealers "profit in the chaos"

The relevant person in charge of the Italian brand FLOS once stated that FLOS is the leading brand of lighting design, and counterfeiting of its products in the Chinese market has reached the level of “flooding” and the headquarters has a “counterfeiting” motion. However, a few years later, the brand chose to tolerate because they found that even architects, lighting designers and other so-called industry insiders were consuming these counterfeit goods, which made them feel desperate.

A lot of people who live in Beiyuan have found out that they have chosen lamps for their own homes. The original lighting market facing ordinary consumers was so confusing. She said that there are counterfeit goods everywhere, almost the same lamp, which buys a thousand, it sells eight hundred, and there are six hundred, it looks annoying and very unremarkable. In response, Su Hongmei, who has worked hard in the lighting market for many years, said that, indeed, there is no lamp market that can be made without counterfeit goods. Someone who owns a lamp sells well. After two days, the same lamp is hung on the other home. At the same time, many small distributors are always happy to "make profits in disorder."

Because there is no time for busy work, in the end, a lot of engineering lamps that are recommended by friends for use in public spaces are used. One is that quality is guaranteed, and the other is that it feels cool and unique. However, ordinary consumers do not have such an approach. It is their only choice to rush into the mixed lighting market.

LED lighting designer is busy making money unremittingly looking after the ordinary family If there is professional guidance, consumers on the LED lighting, LED lighting on consumer behavior will be calm, however, an LED lighting designer said, the lack of lighting manufacturing and distribution issues In addition to supervision, the lighting design link is also seriously missing the attention of ordinary families. In some LED lighting designers' view, home lighting is the “lowest level” design category and does not have a large-scale project. Therefore, there is no professional who checks the lighting of ordinary families.

It can be seen that the lack of manufacturing, sales, and design links is the root cause of confusion in the domestic lighting market and the primary form of home lighting. It is only for the LED lighting industry that circulates money. The light turns on itself.

Rejection of plagiarism in the beginning of lighting plagiarism Now, the lighting market also has a positive voice. For example, Shilihe Lighting City promotes the concept of energy-saving lamps. For example, Bandung Huiyang Lighting City often publishes popular trends, etc. These show that the lighting stores have to a certain extent A positive move. However, industry sources said that the lighting market needs a thorough baptism.

In terms of plagiarism, in fact, not to mention plagiarizing foreign brands, it has become a common practice for domestic brands to copy and copy each other. For this type of phenomenon, many lighting markets said that there was no solution, and Su Hongmei said that in the future, squatters would have to be “worst”. First of all, the market will have the situation of co-existence of international big names and domestic brand names. Of course, the most taboo plagiarism will be displayed on the same stage. Therefore, the dealers who have no strength to rely on fisheries to survive in troubled waters are actually not welcome. Second, how big is the strength of non-brand manufacturers, once infringement or illegal sales problems, actually squatters will be sanctioned. Also, as previously stated by Ms. Wen Fang, brands that do not give strength to after-sales service, return, etc., will be managed by the market according to all the rules in the actual system, until the satisfaction of consumers.

There is no standard platform lighting tree brand intentions are not able to fully describe the above all kinds of lighting market "chaos", is not to say the name of the lighting store owner said the text is chaotic to the root. Su Hongmei, general manager of Suiwu Lighting City, did not reject the topic. She said that since the economic crisis in 2008, lighting manufacturers turned their eyes to China, many former export-oriented factories are looking forward to building their own brands. However, the non-standard management of lamps and lanterns stores has caused the lamp manufacturers to be weak. The "station" rule for some lighting stores is that whoever has a good relationship and who has a good position has a large platform. Dealers who do not have a standard operation and whose products are not too stiff will stir up the lighting market.

What actually squatters want to do is to rationalize the chaos in the lighting market. It is understood that brands such as Taichang, Huangjia, Angel, Qilang, Kaiyuan and other standardized lamps and lanterns are eager to have a fair competition platform and stay away from price confusion and product confusion. Swarovski, Feng Pan and other foreign brands need a window to be presented to the Chinese audience. In recent years, Marsden, MiGao Flora, Micah, etc., who are quite popular with the "China's Luminous Design Rookies" style, are even more concerned about the importance of standardized and transparent competition for their original products.

According to industry sources, it is still a long time before the lighting market reshuffles and when consumers are not worried or worried.

Before 1999, the construction machinery industry had almost no credit sales, and it was mainly based on full sales. From 1999 to 2003, construction machinery ushered in a period of rapid development, and credit sales began to be gradually used. In May 2004, Caterpillar, an industry giant that established a financing services company in Beijing, financed construction equipment for the first time. Brought to China. Nine years later, Xugong, Zhonglian, Sanyi, Liugong, Xiagong and other major domestic construction machinery companies have established their own financial leasing companies and their businesses have developed rapidly. As of the end of 2012, the construction machinery manufacturers’ financial leasing The company has reached 26 and the balance of the contract reached 150 billion yuan.

With the development of the business, many companies in the industry have repeatedly used the promotion function of financial leasing and gradually achieved great results. Aggressive business policies have stepped up overdue market demand. The lack of thorough credit review has also led to the release of certain creditworthy customers. The overall equipment inventory of the industry has soared, the competition in the end market has intensified, and the equipment rental profits have been diluted. In the event that the terminal operating leasing market itself is affected by the downturn, the cash flow generated by the renting equipment will, to a certain extent, be difficult to pay for the lease of finance lease equipment.

After the financial leasing method was introduced into the construction machinery industry, the original simple sales management work became very complicated, but the construction machinery manufacturers and distributors were still heavy sales and light creditor's rights in the market operation. When the sales were busy, the dealers wanted to be all All the staff are sent to the sales line. When the payment pressure is tight at the end of the month, the owner of the dealers personally call to collect the rent. The means are single, the process is extensive, there is no standard, there is no stipulation, and they are still at a simple and crude level. The debt management work It has obvious passiveness and cannot form a systematic system, resulting in cumulative profits that have been operating for many years are all “floating” in the market. Once the capital chain breaks down, it will create an irreversible situation.

Financing lease is an industry that relies on debt management ability to “eat”. Debt management is the ability of the finance leasing company to be a household and is the company’s core competitiveness. In the current market situation, how much a financial leasing company's business can do depends on its ability to manage its claims. Just like one person, how much you can eat, how much your appetite can be, depends on your ability to digest. Financing leasing companies can effectively improve their competitiveness only by raising the level of creditor's rights management and strengthening their risk control capabilities.

However, subject to various constraints, if a financial leasing company conducts a single direct management of its claims, it will fall into a wheel war, but it will be incessantly exhausted and exhausted. It will not necessarily achieve good results. In order to manage creditor’s rights for financial leasing, financial leasing companies must arrange their systems and work with manufacturers and distributors to coordinate, cooperate with each other and work together to build a three-dimensional credit control system. Under the big background, we must unify our thinking, identify abnormalities, implement responsibilities, correct problems, and resolve risks.

For the management of creditor's right for how to do a good job of construction machinery financing leasing, how to build a three-dimensional creditor's rights control system, combined with practical work, personally think that the following seven concepts need to be corrected:

First, it is necessary to re-examine the sales work to sell equipment and realize payment. Construction machinery is used as a means of production. Customers purchase construction machinery is an investment behavior based on the judgment of future investment returns. While selling equipment, construction machinery manufacturers should do a good job in pre-sales sales risk management, conduct prudent pre-sale credit review, provide risk warnings and guidance to customers, and prevent customers from blindly ignoring their own operating capabilities and future anti-risk capabilities. Investment, otherwise it will form a demand bubble and increase the risk of default.

In the process of sales, construction machinery manufacturers should not commit to the customer's various conditions, depict various blueprints, give extremely low policies, persuade customers to seize opportunities, work harder, expand production and operations, and achieve sustainable development. Make wrong judgments about the future situation and market demand.

Reconsidering the sales work is not only responsible for the customer, but more importantly, the construction machinery manufacturer is responsible for it. Only by taking a rainy look at the sales, can we avoid the late crisis of the overnight rain, due to the sales of construction machinery. It should be an orderly closed loop. After the product is sold, it is necessary to recover the payment. The payment is the lifeline of the company's survival and development, and it is the company's core interests. Selling is by no means a simple sell of equipment. It should be sold and realized. The failure to realize sales of repayments is to create bad debts for the company.

Second, we must learn how to correctly view the overdue before 2003, construction machinery operating lease market is hot, equipment rental investment rate of return is high, the cash flow of the leased equipment can basically pay the credit sales repayment, then the customer overdue It is rare, if the customer is overdue then, it can basically be characterized as extremely poor operating capacity or bad debts.

However, today's credit sales are very developed, overdue is a relatively common phenomenon in the construction machinery industry. This does not mean that the nature of today's customers has changed, mainly because the market environment has changed. Overdue, in addition to the client's malicious debt arrears, there are many other reasons, including economic growth, market competition, reduced station prices, operating profits, operating difficulties, and so on.

However, at present, any construction machinery manufacturer in the industry will not cancel credit sales because it has overdue, because although full sales appear to be the most risk-free, they have the least risk and value, and they have the least promotion effect on sales performance.

Overdue is the product of credit sales, there are credit sales, will certainly produce overdue. However, we must not cancel credit sales because of overdue, but only through effective debt management, reduce overdue, and eliminate the possibility of conversion from overdue to bad debt.

Third, to understand the rules of the game of credit sales have just said, credit sales must be overdue, overdue is the product of credit sales. In the design of game rules, financial leasing companies are merely providers of funds and receive the time value of money; vendors and distributors are suppliers of products and services, and they are also recommenders of customers and need to provide normal performance to customers. Joint guarantee. If there is a problem with the performance of the customer, the distributor and the manufacturer will need to buy back the equipment, which means that the entire process must be performed.

Given that the meager era of construction machinery sales has arrived, it is unrealistic if every equipment with overdue problems will eventually require dealers and vendors to buy back pockets. However, this is the game rules for credit sales. If this system design is changed, the credit sales of construction machinery will not work, because the financial leasing companies cannot always bear the costs of overdue management.

This leads to a problem. How can the cost of debt management and overdue management be compensated?

The answer is that corporate profits should come from the market and come from customers. Claims management and overdue management costs must be made up from the market. The terminal market is the ultimate source of dealer profits and supply stations. Early-stage dealers always had a view that “sales look at the market and profits look at the factory” and place all profits on the factory's sales difference and incentive policies. This view is not very tenable. After all, under the credit sales model, these profits provided by the manufacturers may not be sufficient to make up for claims management and overdue management costs, although this factor cannot be used as a reason for dealers to exempt from the repurchase obligation.

"Tao, channels also. By "road", take advantage of the meaning of the channel." Entering the new era of LED lighting, LED listed companies in the capital area, after a series of painful or frustrating, began to reflect on, and began to Comprehend the true implications of the "Channel is King" lighting lighting industry.

"Halfway" in the industry's biggest names in recent years, LED lighting has become the industry's "Taro", many companies have never been involved in the lighting field have poured into the LED lighting industry. Many listed companies in the upper reaches of the industry, such as LED packaging and LED chips, have also actively turned to the field of applied lighting in the past two years. They have started to develop LED lighting fixtures, focusing on general lighting products, and fully deploy the domestic LED lighting market. Taking Shenzhen Wanrun Technology Co., Ltd. as an example, Wanrun Technology, known as the “leading company in LED packaging field”, has gradually shifted its focus to the LED general lighting field in recent years, and is committed to providing cost-effective products. Such LED enterprises transformed from the past, compared to traditional lighting companies, their channel development is still in its infancy, and many blank areas have yet to be developed. Wanrun Science and Technology has made investment advertisements at this year's Guangzhou International LED Lighting Fair and has recruited distributors, agents and other partners nationwide.

In 2012, the lighting industry continued to spread news that LED listed companies vigorously expanded their channels. They dispatched elite teams to “wash out” across the country in an attempt to invigorate the entire domestic market and embed their products in the market. Before getting involved in the LED general lighting field, the channels of listed LED packaging and chip companies are mostly in the “high places”, mainly for lighting companies. After joining the army of LED lighting, channel sinking became a problem they had to face. For the dilemma of the previous channel blank, these listed "big names" racked their brains, each with a strange move.

Taking Taiwan Everlight LED lighting as an example, last year, Taiwan Everlight LED Lighting joined hands with the large-scale lighting media to hold a large-scale public welfare LED knowledge popularization activity "LED lighting auditorium" nationwide tour, officially announced its full entry into the domestic market. In 2013, according to Yiguang Electronics Group, in order to strengthen its efforts in the mainland market and deepen the layout in the lighting application end, Everlight has established a management organization in Shanghai that governs the mainland lighting business: Everlight Lighting Management (Shanghai) Co., Ltd. The general manager of Guangdong Boao Division Enterprise Design Co., Ltd. and the famous marketing expert Wu Zhengyu were appointed as the general manager of the company, and the sales elites were recruited nationwide for "devil-style" training. In 2012, at Lintong, Shandong, at the opening ceremony of “LED Lighting Lecture Hall”, Ye Xufu, Chairman of Taiwan Everlight Electronics, mentioned that Everlight has vertically integrated the entire LED industry chain. For the domestic market this battle, Yiguang LED lighting Have already done enough preparation.

Accelerate the layout of channels In brand promotion, LED listed companies have not relaxed at the moment. In 2012, listed companies such as Everlight LED Lighting, National Star Optoelectronics, Snow Light Optoelectronics, and Rectangular Lighting were actively promoting the mainstream media of the industry. While adding value to the brand, they also sounded the clarion call for the national market. It is undeniable that these LED lighting "new recruits" have a large gap in the demand for channel construction. Therefore, they are active both in publicity and investment promotion. For example, from the second half of 2012, Foshan Guoxing Optoelectronics held a general LED lighting product promotion conference (patrol) throughout the country, established an operation center, and recruited business partners who are sincere partners, intending to expand channels.

The proportion of lighting products is not large, channels need to sink, publicity needs to be increased, and the pain of transformation is the current status of LED listed companies. Although they are transformed from the LED industry in the upper reaches of the field, but in the new era of LED, They are also a group of companies that have the most potential to become the trend-goers. Looking at the 2012 LED industry, combined with the reports of various LED listed companies, we can see that in the past year LED companies did not achieve good results, including: LED display industry profits have declined, the industry vicious competition, industry The relevant laws and regulations are not perfect, and the rapid decline in the prices of products brought about by vicious competition has also lowered the profitability of enterprises. In view of this, in 2013, as the “year of channel construction” of the lighting industry, every move made by LED listed companies was particularly critical.

Merchants on the road "reaction"

At this year's Guangzhou International LED Lighting Exhibition, the reporter noticed that Shenzhen Zhouming Technology, which specializes in LED display, and Shenzhen Wanrun Technology, which specializes in LED packaging, listed LED “big wrists” to set up dedicated LED lighting areas in booths. , exhibited its new LED lighting, attracting a large audience. From packaging, chips to GM, from display screens to lighting fixtures, these companies have turned beautifully. Compared to the traditional lighting giants with more than 10 years of lighting history, there is no industry precipitation, they appear to be "congenitally inadequate", especially the supplement of the channel network, so the LED listed companies in the past two years of frequent action, and continue to hold promotion meetings across the country , Dealer conferences, the formation of elite sales team to focus on operations in order to seek a market place.

According to relevant statistics, in 2012 more than 60% of LED listed companies' profits decreased. In the same year, overcapacity, price wars, closures, mergers and reorganizations, industry dramas such as the blazes of light in the LED industry continue to stage, the entire LED industry did not usher in the spring as expected. From the end of last year to the beginning of this year, various listed companies have successively displayed a one-year “harvest”. Words such as “declining performance” and “poor operating conditions” frequently appear in the annual reports of listed LED companies. It is understood that LED lighting in the market share of LED companies is not large, and some companies even LED lighting ratio is not even one-tenth. In recent years, LED lighting has developed rapidly and its potential is obvious to all in the industry. Faced with a small share of the LED listed companies lighting section, LED listed companies seem to have a kind of "hearted" feeling. Thus we should see that LED listed companies should pay more attention to the lighting sector and let the potential of LED lighting be fully utilized.

For the dealers at the terminal, LED listed companies are "rich, handsome," "white, rich, beautiful," and there is a "can not be met" feeling. LED listed companies are relatively high on the threshold of merchants in terms of investment, not only "sincerely and sincerity," but also "door-to-door". LED listed companies generally have performance, image, and propaganda requirements for cooperative businesses, which makes it difficult for businesses to make large profits in their early operations. Guiyang Guoguang Lighting General Manager Jie Zhongfa stated that the listed companies’ product prices are generally high, the policies are not flexible enough, and the mechanisms are relatively overstaffed. This is a test for dealers. At present, LED product prices have become so popular that people’s acceptance and purchasing power are low. The status quo, the agency listed brands such as holding a "double-edged sword", have the ability to control is "even more powerful", otherwise it would be "self-defeating."

At present, the lighting application field is still the protagonist of the project, especially the outdoor lighting is still dominated by government projects. With the promulgation of the national LED favorable policies, product prices will gradually decline, and the penetration rate will further increase. The advantages of LED-listed companies in the engineering field are more prominent, and engineering channel providers are often the best choice for LED-listed companies.