The domestic lighting industry is in an "excessive competition" state


Ex-cessivetion refers to the frequent occurrence of price wars, resource wars, and advertising wars among enterprises in an industry. In the Chinese lighting industry, the price war between the major companies has become increasingly apparent, and the competition for limited resources has never stopped.

At present, the competition among Chinese lighting industry companies is quite fierce. On the one hand, limited channels of advantage have been divided; on the other hand, new capital and new enterprises have entered the lighting industry, further exacerbating market competition. Under this circumstance, the survival pressure of lighting enterprises has greatly increased, and the phenomenon that the strongest in the industry is stronger and the weak ones are eliminated is more obvious. The phenomenon that enterprises can compete for increasingly diminishing resources and continuous entry of external capital indicates:

First, the pressure on the survival of enterprises has increased

Since the beginning of 2009, the dealer conferences of major lighting companies have not stopped. This year's dealer conference is not only a large number, but also has a high frequency of launching, and the company has taken the initiative to let go of its squad and conducts roving meetings in various regions of the country. On the surface, this is the company's initiative to approach the market and win over dealers everywhere. In fact, companies are doing this as a last resort. After years of rapid growth, due to the macroeconomic impact, the Chinese lighting industry in 2009 has been in a state of low growth. When major companies are investing in industrial parks and production lines in good years, they are now paying off their accounts. In some mass media, we also continue to see news such as “200 million lighting financing for daily operating expenses” and “Guangzhen lighting company actively selling 40% equity”. Therefore, under the pressure of survival and development, major companies have to actively explore the market, and it is not surprising that large and small dealer meetings are naturally held.

Second, the advantages of resources are increasingly concentrated

In the lighting industry, NVC is known as the "Whampoa Military Academy" for commercial lighting, and Op Lighting is known as the "University Hall" for home lighting. In 2009, a number of "graduates" from the NVC department and the Opus department were robbed by other companies and took up high positions. At the channel terminal, dealers operating NVC and Opp are also being seen by other brands. All these phenomena show that both high-quality talents and high-quality channels are increasingly concentrated in the hands of well-known brands. If the brand rises in the future, it will have to “dig the corner” from these well-known brands.

However, with the improvement of the internal management of well-known brands and the regulation of market operations, the “wall corner” is no longer so easy to “dig”, and high-quality resources are no longer so easy to find. In other words, the quality resources of China's lighting industry are scarce, and gradually become strange goods. At this time, it is worth pondering whether the company continues to dig the corners or cultivate its own team.

Third, the capital is overturned

The financing of NVC Lighting is no longer a new thing. In 2009, many capitals entered the lighting industry is the most important thing to watch. In the field of LED lighting, capital power is undoubted. Foxconn, with its strong capital, invested billions of dollars in Jinan and invested 500 million US dollars to build LED lighting production base in Jinan; Country Garden, as a famous real estate development enterprise, invested 160 million US dollars to set up Lishi Optoelectronics in Wujin District of Changzhou to enter the LED energy-saving industry; There may not be much understanding of Fujian Longyan Yihao Special Lighting, but the capital behind it is Fujian Feifei Company, a well-known mobile phone battery manufacturer in China; Disina, a well-known stationery manufacturer serving the world's top 500 Wal-Mart and Home Depot, has also entered the domestic lighting market. Officially launched a series of lighting products in the domestic market... These companies have made extraordinary achievements, not only bring huge impact to existing brands, but also quickly enter the market with strong capital strength, and will gradually eliminate a large number of small and medium-sized lighting enterprises that do not have strong financial strength. .

Fourth, the promotion means the same as the business model aging

In the past National Day and Mid-Autumn Festival, major brands and distributors fought bravely, hoping to get a good harvest with the help of “Golden September and Silver 10”. To this end, some companies even launched a promotional campaign a month in advance. However, there is no new way of promotion, almost the same promotion means, so that consumers have a sense of fatigue. In fact, the Chinese lighting industry has not only made no innovations in sales this year, but also lacks new ideas in its business model.

Since the specialty store model, the logistics center model and the operation center model, the Chinese lighting industry has not yet seen a generally accepted business model. Although there is Yangye Lighting's network marketing, there is the “S+?” marketing model of Yihao Lighting, but these models have not been widely recognized by the industry. Therefore, the aging of China's lighting industry business model has become a reality, this model of aging not only banned the development of the lighting industry, but also limited the industry's innovation power.

5. The lack of confidence in the business is unclear.

In 2009, the dealers appeared very quiet, no longer try various new business models, and no longer seek breakthroughs, but stick to an acre three-point land, silently adhere to the existing business structure.

Where is the reason? It turned out that with the changes in the macroeconomic environment and the reduction of the income of the lighting industry, more and more dealers' business confidence began to shake, and some dealers even withdrew from the lighting industry and switched to other industries. In the absence of confidence, businesses are naturally reluctant to break through the existing model and carry out business changes. The reason for the lack of business confidence is due to the inability to grasp the future direction of the industry. In addition to further sales growth, market share has further expanded, businesses have no clear understanding of their own value, and companies can not provide a more reasonable development model. The dispute between NVC Lighting and Zhejiang Huace on the ownership of the channel also reflects the disagreement between the manufacturers and the merchants in the development direction.

Sixth, the more polarized

In 2009, NVC Lighting and Op Lighting continued to lead, and Jiamei Lighting, Benbang Lighting and other companies rose up and continued to optimize products and channels. At the same time, in Shili Deng Street, Guzhen Town, Zhongshan City, the turnover rate of the facade is very high. Almost every day, there is a facade change hand, and even some of the facades are free for one month. It can be seen that some weak enterprises have to quit, and some enterprises are struggling to survive and die. In the terminal market, the power of the brand has gradually emerged. The merchants of famous brands such as NVC, Op, Sanxiong Aurora and Honeywell Langen are obviously better than those who do not operate well-known brands. The phenomenon of polarization is not only evident in upstream companies, but also in downstream dealer channels.

Seven, the industry entered the "Nali" era

In April, an article in the "Guzhen Lighting" weekly magazine "The industry's bottom-selling in the 'Nelly' era" announced to the industry that the Chinese lighting industry's Nali era is a foregone conclusion, and this is indeed the case. Under the huge operating pressure, the price of the product has dropped and the operating profit has become very meager, and there has never been such a rich income in the past. Therefore, economies of scale are very important, which is one of the fundamental reasons for the expansion of Yaming, Langeng, Benbang and TCL. In the era of Nali, some companies with relatively weak strengths were also ingenious and embarked on the road of product innovation. Such as the cotton lamp of the ancient town Hamley lighting, Shunde Futian electrician's point switch. Zhejiang Yangye Lighting used the network for brand alliance, which also created a new world.

postscript

After decades of rapid development, China's lighting industry has continued to grow as a whole, but now it has faced a development bottleneck. The above 7 points are only prominent among many problems in China's lighting industry, and they have already affected the future development of China's lighting industry. The key to solving these problems lies in "integration", including the integration of enterprise resources, the integration of terminal resources, and the integration of supporting resources. Next, we will explain to the readers that China's lighting industry has begun to enter the "integration era" and jointly explore the development of China's lighting industry.

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