How to chew the LED project channel this fat?

Since the project channel because of its large quantity, high profit businesses become a hotly contested spot, currently, LED lighting into the "key distribution channels", as a piece of "fat", the channel to horses and other channels of its own advantages, but its potential "high risk" is not a general business can afford on the one hand, the channel occupied the capital, long period of payment; on the other hand, the present stage LED retail share is low, most businesses are in the engineering of survival, market competition has become increasingly fierce.

In the face of increasingly low profit channel, many businesses have said powerless, but still adhere to the "do not abandon, do not give up", the LED era, how lighting project channel performance? And industry experts to explain.

LED era of direct participation in the engineering channel manufacturers

Deputy general manager of Guangdong Huari Lighting Co., Zhao Jianfeng made a comparison of the traditional lighting era and the era of LED lighting engineering channel: "in the traditional lighting era, lighting engineering manufacturers generally with the dealers together, only a few such as Olympic Games, World Expo, all will be transported because of the tender requirements and the need to direct cooperation with the manufacturers. In the LED era, due to vigorously promote the government, more and more outdoor projects and municipal projects are involved directly by the manufacturer to reduce dealer link, greatly increased the profits of manufacturers, so the engineering channel has become a 'fat' lighting industry. "

For the manufacturers directly access the project channel this, BYD lighting channel director ho Lun also agreed, in October 2013, BYD group was registered in Guangdong province BYD Energy Co. Ltd., opened a new mode of cooperation channel engineering. In the original project, such as direct sales agent model, the project operation to bring more possibilities, greater space.

He Lun explained: the original traditional project channel cooperation, the way is relatively simple, the agency funds pressure, the project follow-up cumbersome. Now, BYD provides one-stop service for engineering channels, in short, BYD out of the funds, BYD out of technology, BYD products, BYD after the sale, the ultimate benefit sharing. In this way, the operation of the project in the project to reduce the risk and circulation, and ultimately bring more smooth profit margins. "

At this stage, the performance of the project channels?

In the LED era, there are some differences between the engineering channel and the traditional channel, what is the performance of the LED channel under this mode of operation?

Ho Lun bluntly, the current stage of the project channel profit is relatively low. The main factors leading to the changes are: first, the market competition is fierce; second, the LED market matures, the price system is gradually stabilized.

Zhao Jianfeng also said that now the profit decline in the project: "the previous project according to product price in more than 50 points, now some project basically do not make money, everyone grab a single, this is the result of the competition. Large projects are generally tender, the fight is the strength of the enterprise. Because the owner may specify a brand or set some special (standard) threshold, which makes the general engineering firm to intervene; while for small projects in general, not too many special requirements, we can all go for the relative pressure is smaller. As for the engineering problem of payment, according to contract, order, pay part of goods to pay part of the finished part, and pay about 3-10 is customer service quality customer service to return to gold, the basic is more difficult, it is need to consider the cost of project quotation. "

Zhao Jianfeng summed up the characteristics of the project, the market with high returns, but high returns are often accompanied by high risk, the investment risk, and face the pressure will be much greater than the normal distribution and retail channels to China, regardless of day lighting or other LED companies, this year LED lighting project channel is both risks and opportunities.

Multi channel brand building success

As an enterprise, how to break through?

BYD lighting channel director Lun Lun described BYD's strategy in the engineering channel war. BYD lighting mainly undertake the project, the current stage of greater demand for energy conservation, such as commercial lighting: shopping malls, hotels, medical, office buildings and other energy-saving transformation; municipal office, street lights, tunnels and other energy-saving transformation. Its share of turnover as high as 80%.

BYD lighting to cope with the fierce market competition and high risks, in addition to continue to develop the engineering market, BYD lighting group based on the brand appeal and strong financial support, settled in the entity Mall (Sundan, WAL-MART) to enter the retail market, in addition, the electricity supplier platform operation, such as Tmall, Amazon and other Jingdong it is also actively expanding, used with the channels of regional agents to do offline publicity, so they formed complementary and engineering channels, to further enhance the brand influence. To sum up, BYD lighting has been multi-channel direction, but according to the specific period, to make a specific focus adjustment.

Zhao Jianfeng said that at present the whole market is facing difficulties in financing, competitive pressure situation, some companies have begun to shift to other directions. For example, the transformation of the electricity supplier, online shopping is more and more favored by the public, the electricity supplier as a virtual trading platform market is unlimited, as long as the local logistics can solve product supply problems, thus, radiating customers more widely, not only solved the tedious line transactions