LED channel is king, behind the throne is gold

Channel to get the world, such as NVC, although the traditional lighting manufacturers, but the channel has the advantage, once the force LED, the pace of development will be very fast. In 2012, NVC's revenue has been close to 250 million yuan, LED in 2010 and 2011 revenue growth of more than 100%, in 2012 revenue growth also close to 9.

Figure 6, NVC in LED lighting applications revenue (100 million yuan)

Throughout the LED lighting factory, 2012 LED lighting business revenue more than 200 million of the minority. Nationstar, Mason technologies, honglitronic other packaging manufacturers have to enter the LED lighting, but in 2012 revenue is still less than NVC. The main reasons for NVC has a strong network marketing channels, and no one will think of NVC LED technology than the LED lighting manufacturers strong.

Figure 7 various manufacturers, 2012 LED lighting application revenue and growth rate of contrast (unit: RMB)

NVC revenue more than traditional lighting manufacturers is not accidental. NVC LED lighting 2011 revenue of 133 million yuan, and LED lighting manufacturers have little difference, the main reason for the 2011 LED sales channels is not mature, was still mainly in engineering and export.

Into 2012, due to the rapid growth of commercial lighting market, sales channels gradually obvious advantage. NVC LED 2012 revenue grew nearly 9, and no lighting manufacturers channel advantages of the general revenue growth is not obvious.

Has owned the channels in the market power of the king, however, the establishment of the channel behind the need to invest a lot of money, but also need to take greater risks.

Opened 10 stores a year to spend 150-200 yuan, but does not necessarily have the effect. As of June 2012, KingSun has 100 operators in the store, only one or two stores profit. Honglitronic 2012 channel costs about 3 million 270 thousand yuan, while in 2011 this figure is zero. However, in 2012 LED lighting revenue fell 14 percentage points year on year, it can be seen, the channel effect is difficult to achieve immediate results, the cost recovery is a long process.

In addition, channel construction is a long-term process, with persistent, not intermittent, need to continue funding. Before, there is no certain influence once stopped, brand influence will not be formed, it may come to naught.