Detailed NVC, OPPLE five big channel LED lighting business model advantages

The channel business model to summarize the LED indoor lighting enterprises can be divided into five kinds, which are model (NVC operations center + intensive distribution channel mode, OPPLE + hidden) mode (professional market intensive distribution mode), channel mode, a mode of Sidon interpretation (LED is the leading regional flowerlantern large direct supply mode), town mode (loose type channel cooperation mode). In this paper, the advantages and disadvantages of the above five models are elaborated.

A model (NVC operations center + + implicit intensive distribution channel mode)

With similar or imitate the NVC NVC enterprises include: three male Aurora, Sidon, on Jia Mei, Ji Hao, etc.

1 features and advantages:

Strong operational center, the regional market operations prominent

Network of high quality, single output

Product line rich, cost-effective

Engineering tender policy flexibility

Great influence in the field of Engineering

Consumer reputation obvious

Abundant capital strength

2 disadvantages

Poor controllability, if a customer is not good, to bring a large area of the market impact.

Distribution and distribution business, can not provide more value-added services for high-end customers, customer loyalty is not high.

The management system is chaotic, the rule of man color is strong

Accounts receivable more financial risk

Channel stability is poor, especially after the introduction of the new deal in 2011, a greater impact on the channel

Serious conflict in engineering field

Serious loss of high-end designers

3 comments:

1) although NVC and most of the operations center, there is no equity bond (law is legal entity operating two independent business entities, independent), but through the office of NVC (or business) to participate in the resident market management guidance and monitoring, or to economic sanctions, cancel operations center. Intervention and control of the. (in addition to NVC brand, as well as the NVC operations center operations over a long period of time, a large amount of inventory and downstream customers resources affected by factors such as the control of NVC)

2) over the past two years, especially in parts of NVC shares of the company shares and try to take the mode of distribution model, though this model in the field of home appliances is more common, but the lighting industry is still the first time. But that point in the channel innovation once again at the forefront of the industry.

3) after the financing of NVC funds, is the use of this advantage, strengthen the channel system and engineering project investment, such as free shop, increase the credit limit, special engineering support. These means to the industry's second tier brands caused great pressure. It can be said that if the commercial lighting brands can not and the difference between the NVC second tier market and products, blindly learning NVC products and channel model, is bound to enter the market and products at the same time shrinking.

4) NVC's operations center, not only to expand the market, but also bear the role of channel management, shared development and operation cost channels. At the same time, NVC channel model can also provide companies with a considerable amount of money without interest to the downstream distributors, to advance payment policy "; take the form of deferred payment to suppliers. Although unable to determine the interest free capital scale, but it can provide liquidity for NVC.

5) it is worth noting that the manufacturers do not want to copy the NVC model several successful. NVC has first mover advantage and scale advantages, to a certain extent to mimic obstacles, improve the imitator cost, and to coordinate the new channel model and the original channel interests, itself is a very difficult process; moreover, the channel advantage of NVC, the essence is the organic unity of stores and operations center and contact channels, the rebate policy, while the simple imitation is difficult to achieve channel coordination. Another very important reason is that NVC first mover advantage with low cost expansion advantages, because of high quality resources industry (channel resources, implicit channel resources) is limited, after the manufacturer if you want to achieve the same effect, it means the promotion cost more.

Two, OPPLE model (professional market intensive distribution model)

With OPPLE or similar imitation of OPPLE enterprise including Otlan, A, OKES, light, TCL, odeer Bailitong, juhao and Huayi etc.. Sales of these enterprises in about 100 million, has been learning to OPPLE as an example, but over the past few years, not a brand reached 2 hundred million of sales, in fact, from a simple trick to copy the sales of OPPLE, OPPLE is almost impossible to catch up. The world is easy to move, offensive and defensive potential difference. The following, we analyze the OPPLE model, for OPPLE as a model of a number of home lighting enterprises to provide the necessary inspiration.

1 advantages:

The number of professional market outlets, network quality is good

Product channels extend to hardware, towns, supermarkets, daily chemical and other channels

Channel risk is small

Strong channel control

Two or three market competitive advantage

Consumer reputation good

2 disadvantages:

The single output rate is not high

The product structure is inconsistent with the consumer demand in the primary market

Professional market channel conflict

No breakthrough in the field of Engineering

Hardware channels, township market channels have not yet achieved effective coverage

Although the store model is conducive to goods