Lighting market to start channel distributors with a positive attitude towards the first brand

Channel is the premise, the first tier manufacturers is the key. LED lighting is undoubtedly the main driving force for the industry, and its penetration depends on the channel, the channel's acceptance of LED lighting products and promotion efforts is the premise of industry growth. In the channel area, we think has a large market share in the market leading enterprises focus, its penetration ability and brand influence of LED plays an important role in accelerating, is an important catalyst.

Figure 1: distribution of domestic lighting channels LED ratio (2011.8)

Source: Engineering LED, Yankon, information industry research, CITIC Securities Research Department finishing

Figure 2: real estate development enterprises, the top 500 lighting brands

Source: real estate assessment center, company announcements, industry research, CITIC Securities Research Department finishing

Dealer acceptance increased significantly. Our latest research shows that the domestic lighting channels (mainly for the lamps and lanterns market) dealers on the acceptance of LED lamps has been greatly improved. Currently, the channel sales of LED products dealers accounted for about 41%, of which the proportion of franchised LED products dealers accounted for about 3%. With the further maturity of LED lighting products (performance improvement, price decline), we believe that the proportion of dealers operating LED products will continue to improve. At present, although the proportion of LED lighting products in the dealer shipments are still very low, but 40% of the dealer support has enabled LED lighting products with a channel based.

First round attitude toward a positive attitude. The traditional lighting market leader has officially entered the field of LED lighting, Yankon and other manufacturers have achieved mass production, commercial lighting market leading enterprises NVC also set up a joint venture company take LED package and a series of initiatives to actively layout. 2011 LED lighting faster than most of the manufacturers are expected, the traditional lighting manufacturers will increase investment, the overall strength of first-line manufacturers will become an important catalyst industry.