The vicious cycle of the hidden channel of the LED industry is "poisoning"

With the rapid expansion of the LED lighting industry chain, the hidden channel of this game has been murderous, and the situation has changed. On the one hand, it is a promising market prospect in the future, and on the other hand, it is a terminally struggling competition. The outlook seems to be happy and beautiful, but the reality is cruel and cruel. It is difficult for LED lighting companies to resist the trend and trend, and the most difficult thing is to fight.

In the post-industrial era where the terminal is winning and the channel is king, almost all lighting companies are aware of the need to build a complete sales network. "If we try to test the water in 2012 and start it in 2013, then in 2014, the channel war between LED companies is the stage of being shirtless and close-knit," said Mr. Li, a director of a lighting company in Foshan.

Eat kickbacks into "regulations"

The so-called hidden channel refers to the key person or company that can decide and recommend the customer. It has become a part that the enterprise must consider and increase in the development market. “The hidden channels of the domestic LED lighting industry mainly include home improvement companies, tooling companies, installation companies, design companies, commercial replacements, brand chains, engineering companies, etc.” The person in charge of a certain engineering lighting company said truthfully. Especially in the field of engineering sales, designers have become an important part of engineering sales. Lighting products can not be marked on the design drawings, only technical specifications; usually many companies will promote lighting products through designers. Put your best products and products with technical thresholds into the designer's drawings and design. Just like the name of the hidden channel, this is an opaque channel, the price of the product is opaque, the sales rules are opaque, and the information such as consumers, designers, and enterprises are seriously asymmetrical. It has become the ring of the designer's “huge rebates”.

In the unannounced visit, it was found that some lighting salesmen were not surprised by the phenomenon that designers were buying kickbacks, and they did not evade when talking about such problems. According to an industry insider who asked not to be named, “This has become a rule, whether it is a business or a designer. If a designer and a brand of a business do not talk about the 'introduction fee', many designers will obstruct Consumers buy this brand.” A merchant in a lighting city revealed, “Many designers enter our store and talk about the kickback problem. Many people even pretend that they are designers to buy lights, and hope to get the designer’s rebate. , fueling the bad atmosphere of this industry."

A person in charge of the decoration company said: "Because most of the consumers are laymen and are not familiar with the market situation, they still need designers to make recommendations. This will cause lighting sellers and designers to reach a community of interests, and many lighting companies will also ban them. The designer's rules for eating kickbacks are written into the contract, but there are still some difficulties in the supervision and implementation of the actual operation." Many designers are just a bitter smile. "For kickbacks, you may only use different pursuits to explain." A designer friend is outspoken, some people rely on the owner to provide a comfortable home environment to satisfy, while others rely on seeking the greatest economic benefits to complete the lust, which is two different pursuits.

Rise <br> <br> relationship hidden channels for products and brands, can be said that the rational allocation of similar shape and the relationship of God, and resources is also very important, someone says "do not put all your eggs in one basket", in order to In this way, the danger of being annihilated by the whole army is reduced. Just as the designer appreciates the beauty and appreciates the products with unique appearance, it is necessary to know that the current market feedback situation, the owner pays more attention to the lighting products in terms of function rather than appearance (appearance is only a sub-item) ), and for products, only in use can better reflect their value.

The rise of today's hidden channel value chain has greatly stimulated domestic LED lighting companies, including LED lighting companies such as Qinshang Optoelectronics, Hongli Optoelectronics, Everbright, and Extreme, which have “consciously” built a hidden channel business model, and Proactively acquire project intelligence information through hidden channels. In contrast, the funds are mobilized to encircle these enterprises and make them a “big meal” in the market. It has also been said that "designers" can establish their own channels, and many enterprises still need to occupy the market at the same time as more confrontation and collision, or with no blood.

The "vicious circle" cycle, what is wrong?

There is an old saying in China: "Ming repairing the road, dark crossing Chen Cang". "Chen Cang" - is the establishment of hidden channels. Some enterprises in the LED industry have actively adjusted and developed a diversified business model, which has created a “blood road” for enterprise development; some enterprises have fallen in the industry shuffle, and have not yet seen the dawn of market warming; At the time of distribution, the pace of resource integration between industries is also accelerating and adjusting. Cross-border, listing, alliance and other events are not uncommon.

“Compared with traditional channels, the main body of hidden channel resources is very dispersed. The key links such as distributors, designers, construction parties and purchasers will not be aware of the LED products in the market. There is no fixed business place. It is difficult to adopt the distribution model to manage, the sales volume is unstable, the project type appears, and the characteristics of the relationship among the end customers are not liked," an industry source said.

In the opinion of some designers, as long as it is a first-line brand product, and the quality and quantity are no problem, then which one thinks that the most expensive and most famous product is good, do not need to pick. Under the influence of this concept, small and medium-sized LED companies will find it more difficult to develop hidden channels. The main reason is that the brand awareness of small and medium-sized LED companies is weak, and it is difficult to enter the designer's “eyes”.

"The product will not exist in a certain space for no reason, its existence has its rationality, and this rationality is the designer's humanized space processing and shaping, in order to meet the owner's usability and aesthetic needs. We don't just provide products, we are more about providing technical cooperation and support," said Mr. Liu, a home improvement design company. Some small and medium-sized LED companies do not have enough funds to support their large-scale development of hidden channel market, and it is difficult for designers to understand or apply these enterprise products.

Word-of-mouth derivative "poisoning effect"

According to the survey report, 97% of the designers will recommend materials to the owners in the design, and more than 50% of the owners will choose to buy the recommended products from the dealers recommended by the designers. This is the most important factor in the designer channel to attract companies, because each designer is running a circle of their own owners, this circle is more through friend introduction and word of mouth. Therefore, the owner believes and relies on the professional and aesthetic perspective of the designer, thus creating a more unique choice and voice for the designer.

As far as the current situation is concerned, the designer channel mainly exists in the form of local distributors, and the enterprises only support the product research and development. “For the designer channel, some dealers win with high rebates. The dealers who win this way only pursue short-term benefits. They generally do not concentrate on acting on a certain brand and often change brands.” This is actually a chain reaction. For both companies and designers, both parties are operating their own circle (word of mouth), and one loss is lost.

A manufacturer who does not want to be named admits that there will be a very unbelievable but very helpless phenomenon in the LED industry: in China, the highest price may buy the worst LED products, while the most favorable prices in foreign countries are often Can buy very high quality LED lighting products. Therefore, small and medium-sized lighting companies may wish to calmly think about their own characteristics. In an era of increasingly transparent information, in order to reflect the soul of the product, we must first tell the product story, a true "brand", there must be consumers who are loyal and willing to promote the brand. However, what enterprises lack is “independence”, there is no “uniqueness” without “independence”, and there is no “uniqueness” and even “recognition” cannot be established. So what is the word of mouth? To make the word-of-mouth real, we must create our own brand, and make the quality of the products bigger and stronger, and do a good job in order to occupy a place in the increasingly fierce competition.

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