The traditional channel is Kongpan LED small and medium-sized enterprises difficult to enjoy the outbreak of dividend

Following last year, Zhongshan billion yuan enterprises after the death of male lighting factory, Phoenix light fell once again caused a hot industry. Phoenix legend into the field of LED, heavily invited Phoenix Legend rally, and force channel brand building, from the massive to lose contact with the end, just 3 years time.

Phoenix legend in the 3 years of light reduction, the reporter found that, under the fierce competition in the homogenization, the new company into the industry if the force channel construction is facing the traditional giants, and huge capital investment and the effect is less than expected risk; but if you do not expand the channels, it will be in danger of being carved up the market. LED small and medium-sized enterprises in the channel seems to fall into the "do not die, do die" dilemma.

The dilemma behind the LED outbreak

This year is known as the outbreak of LED, the industry boom continued to rise, the relevant performance of listed companies grew significantly. Alternative to traditional lighting and new market double stack, bringing the high growth of LED lighting. For this year's performance growth of the industry, Dou Linping, Secretary General of the China Lighting society in the recent Guzhen lighting expo.

Chairman, Zhongshan Association of lighting industry Huayi Lighting Group Chairman District Bingwen said, thanks to technology, LED lighting products prices in the past five years, a decrease of about 80%, most of the products overall cost-effective than traditional lighting products, resulting in the LED market broke out.

Attractive cake also attracted the brightest capital, homogenization of competition is inevitable. "In 1999, when the town of large and small enterprises together is about 400, and now has a number of lighting companies, even if the cake is big, it is impossible to divide the more than 20 thousand. "Wen bing.

Reporters found that relying on the Chinese lights are complete industrial chain, enterprises need to be able to easily buy spare parts, so low barriers to entry, where the streets are lighting enterprises or workshops. Prior to the owners said that in the town as long as 100 thousand yuan will be able to enter the line, rent a plant, buy a few electric iron, hired two workers, they can start.

Reporters earlier in the town to see a factory in the factory, the boss did a civil servant, 30 years old, see LED profitable industry, they began to venture. In order to save the rent, the boss in the relatives of the plant opened up a small piece of space, supporting the two case, with a soldering iron soldering parts together, and then shipped out of a box.

But a lot of homogenization of competition so that we do not have money to earn. Dou Linping said that the current LED lighting industry output value of about 500 billion yuan, up to more than 20 thousand companies, this situation will not last long. With the completion of the LED lighting replacement of the traditional lighting market, and finally left about 5000~10000 home business is more reasonable, which also means that 50%~75% companies will be mercilessly eliminated. "

Phoenix Legend spend tens of millions of subsidies channels

Phoenix legend is inverted in the channel construction and brand promotion. Its official website, in 2012 Phoenix Legend spent 3 million yuan contract Phoenix legend, invited to become a spokesperson for the company's brand image. 2013 Phoenix Legend endorsement costs rose to about 5 million yuan, so do is to do the brand, to please the market. Guangdong Guangya lighting institute director Liu Jun said.

Phoenix legendary chairman Xiao Jin said, when the enterprise development to a certain extent, the development will be subject to various constraints, to create a brand as an important strategy for sustainable development of enterprises".

He also said, to create a brand is a never-ending road, no turning back, hard headed to go down. The official website of the legendary Phoenix light also opened in January 19, 2013, becoming the window to promote its brand and rally.

At the same time, Phoenix Legend light large area laying sales outlets, after nearly 10 years, the company has built more than and 800 sales outlets in the terminal market in 2012, just a year, based on the original development of nearly 1000 sales outlets.

March 31, 2013, Phoenix Legend held a celebration of the 10 anniversary of the local town stadium. According to Sina Locke reports, company introduction, when the Phoenix light legend channels covering the country's 70% provinces, there are more than and 300 core distributors, more than 1 thousand distributors, and will train more than 1000 core distributors in the future nationwide, 3000 distributors. In the country set up 3000 image stores, monopoly, so that more than 50% of the prefecture level market to see the legendary Phoenix bus advertising, outdoor advertising, etc..

In fact, the Phoenix Legend of light like me each province general agent, the country is about 20 or so, each province's distributors of up to 50 or so, so the distributors located in cities and counties of about 100 stores, propaganda bombastic composition. "Phoenix Legend Jiangsu total agent Li Hou (a pseudonym) said.

"Phoenix light legend in the country before the introduction of the shop channel, to join the dealer store subsidy is 1000 yuan per square meter, is generally more than 100 square meters, light decoration subsidies will advance 100 thousand yuan to 100 thousand yuan, the dealer, the dealer will give a general 50 thousand yuan. Zhongshan Juya beauty lighting business ancient Po Keung, hundreds of dealers said that subsidies should also be tens of millions of yuan.

Li Hou also said that the Phoenix light in the laying of the channel to pay this is mainly the cost of singing, advertising and promotional costs as well as materials showcase, decoration costs. May be in order to give the dealer confidence, Feng Guang's legendary provincial dealer conference are arranged in five star hotel, each cost is also to be two or three