Force LED lighting, conspiracy and overt traditional lighting manufacturers

In the face of the pack four, the traditional lighting manufacturers channels have been threatened. And because the LED lighting light source relative to the previous show different development characteristics, the traditional lighting manufacturers suffered a hitherto unknown challenge, can protect channel advantage, hold market share become a serious challenge with the rapid rise of LED.

1) dealer operating mode is not the same

LED lighting products are currently in the process of rapid development, product replacement speed is very fast, which determines the dealer can not operate in accordance with the previous business model. Such as LED products are not suitable for too much inventory, insiders said to LEDinside, the production of products, if not sold within 3 months, it is likely to become unsalable goods. Although the traditional lighting has developed a large number of dealers, but the change in business model still takes a long time. The change in the operating mode of the process will cause fluctuations in the dealer, that is, the hands of traditional lighting manufacturers to control the dealer's chips to reduce.

2 (LED) lighting industry brand effect has not yet formed

The traditional lighting industry, has created a strong brand influence, OPPLE, Ya Ming, NVC brand has been deeply known to the public. But the LED lighting industry, the real brand effect has not yet formed. For consumers, LED lighting is a new thing, the concept of brand consumption has not yet formed. For the sale, the choice of traditional manufacturers or LED manufacturers, the brand has not yet become a very important bargaining chip. Traditional lighting manufacturers and LED lighting manufacturers are building LED lighting brand.

In the face of LED lighting manufacturers snatch, traditional lighting manufacturers will take a variety of measures to keep their channels.

1) prohibit their own channel dealers to participate in the investment promotion of other manufacturers.

In the history of Ford, nationstar, billion light solid-state lighting, KingSun LED manufacturers held investment conference, traditional lighting manufacturers never watched their system the dealer was removed and completely indifferent. At the beginning of May 2013, NVC brand Henan agents Draper micro-blog lighting system, inform the dealer, forbidden to participate in billion light and other LED brand conference organized, prohibited the display and sale of billions of light and other brands of LED products, once discovered will be taken to stop the goods and cancel all products of NVC franchise measures. Traditional lighting manufacturers have a brand and scale advantages, there is a threat to the dealer's capital, but whether the dealer will pay, remains to be seen.

2) accelerate the pace of transformation, to consolidate their channels.

On the one hand, the traditional lighting manufacturers on the other side of the system to prohibit the dealer agent LED brand, on the other hand is accelerating the pace of transformation, because this is the most effective way to retain the dealer.

In Figure 7, NVC revenue accounted for more than LED (unit: million yuan)

Figure 8, the proportion of solar lighting LED revenue (unit: 100 million yuan)

Data sources: corporate earnings, LEDinside finishing

2012, the traditional lighting manufacturers began to force LED lighting. In 2012, NVC dropped 6.6.% in the case of total revenue, LED lighting revenue grew 86.5%, reaching 248 million yuan; Yankon 2012 LED revenue grew nearly 9 times, reaching 364 million yuan, LED lighting revenues accounted for the proportion of total revenue increased by 12.4 percentage points, up to 14%; the introduction of FSL General Manager, 2013 increase investment in LED lighting products. In addition, several other second tier traditional lighting manufacturers also have a breakthrough in LED lighting.

Table 3, other traditional lighting manufacturers LED lighting transition dynamics