Guan Yong: LED channel dispute like volcanic eruption

"The LED channel dispute is like a volcanic eruption. People who are immersed in the environment feel oppressed or feared. People on the outside may feel magnificent and comparable. We hope we can all find our way in this great change." 2012 On the afternoon of November 6, Guan Yong, general manager of Zhejiang Sunshine Lighting Group Co., Ltd., expressed at the CHINASSL2012 semiconductor lighting market summit forum.

With the penetration of semiconductor lighting products into various market segments, the channel has become a contestable spot for major manufacturers. In the LED outdoor lighting has become no doubt became the mainstream, commercial, office, industrial lighting this year started faster, home lighting from the professional to the home of the educational conversion is about to start the background, LED enterprise distribution channels are still facing numerous difficulties .

What are the major difficulties that LED companies have in the distribution of channels? Guan Yong said that it mainly focuses on the following three aspects: First, the lack of LED leads to difficult channel construction: If the product chain is not long enough, it cannot fully support the storefront. The product price is still relatively high, the channel penetration rate is not high; the quality of products varies greatly, and dealers and users need time to identify. Second, the competition in the channels has become more intense, leading to competition for resources and difficulties in opening up channels. The current situation is that dealers choose manufacturers, rather than manufacturers selected dealers; dealers are very numb to conventional marketing methods, lack of innovative ideas lead.

Third, the construction of the channel itself takes time. First of all, the establishment of user's cognitive time requires the establishment of confidence after using the experience, but the quality problem delays the cognitive time. LED companies lack experience and service systems have not yet formed. Once the channel is formed, it means that all links of LED from production to sales should be smooth, but the LED industry has fewer professional talents. No matter whether it is professional sales personnel or maintenance personnel, it is very lacking. LED has knowledge on the entire chain. The demand for services has many needs. In addition, the establishment of hidden channels is also like that of slow-rocket fish. Compared with traditional channels, the main body of invisible channel resources is more decentralized, and the key links such as distribution parties, designers, constructors, and purchasers have also stayed at the LED level. In the semi-understanding stage, the LED brand's deep penetration still needs time.

Guan Yong suggested that the company's channel construction is not only a matter of choosing which channel to build, but also a choice of channel selection mode. Currently, the lighting market is mainly focused on direct channel operation, small-area agency, and provincial agency. System, implicit channel agency system, project direct operation, etc., these methods also have the advantages and disadvantages coexistence, and the companies adopting these operating modes are seeking the refinement of the principle model, and the diversification of modes, several modes of choice. It depends on where the company’s capabilities are.

Guan Yong said that the main considerations in channel capabilities include product design and R&D, supply chain and production, sales and channels, branding and marketing, organizational management capabilities, personnel capabilities, and financial capabilities. Therefore, it is important for companies to do a good job of segmenting markets. , concentrate on the market in the subdivided market.

Guan Yong suggested that "winning" does not lie in choosing the right channel, choosing the right channel operation model, and more importantly, whether the channel business philosophy is leading and cohesive. In particular, the concept leads, from selling products to selling ideas. It is the best time to attract long-term partnerships from merchants to choosers, find excellent dealers, and establish long-term relationships. The dealer capital growth model accelerates customer feedback loops and obtains feedback on user experience more quickly through channels. Do not only focus on the increase in the number of outlets, and the increase in dealer signings. After all, the LED channel construction time is only about 2 years, and it takes 3-5 years to settle.