Channel burning effect is less than expected LED companies should reflect
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Why is Evergrande, not Greentown? In the past few days, Ma Yun, who likes to play cards without a common sense, has given the public a difficult problem. But actually, on June 5th, at the press conference of Alibaba’s acquisition of Evergrande Club 50, when Ma Yun talked about the acquisition, he seemed to have the opportunity to either become the first, or defeat the first, or the first Cooperation.
As Ma Yun said, compared to Hangzhou Greentown, Evergrande in front of him is not a fishing rod, but the first big crocodile in the domestic football industry. Some people say that Evergrande has no foundation, it is a local tycoon who burns money, but it is also burning money, even more prosperous. Beijing Guoan, Shandong Luneng and other teams have not yet reached the position of being able to win the wrench with Evergrande.
Football seems to have nothing to do with LED, but it is related to the business level, but it is the same. It has entered the LED industry in the era of capital competition. If enterprises only blindly burn money and cannot use the money on the cutting edge, there is no prospect.
In the past two years, the competition of lighting channels has gradually become hot. In addition to the traditional lighting enterprises to capture the LED lighting market through the accumulation of channel advantages, some LED companies, especially the wealthy listed packaging and lighting companies are guided by the high cost performance of products. Self-built channels. The styles they use in the channels are not the same, and the final channel effect of the company is not optimistic.
In just two years, some LED companies have developed more than one hundred dealers, and they have followed traditional lighting companies to set up many direct sales centers throughout the country. But frankly, compared with the funds invested, the benefits are not high.
Rectangular lighting is a pioneer in channel expansion. According to the information disclosed in December 2013, the company has established an agent system in more than 30 provincial-level administrative regions and hundreds of municipal and county-level administrative regions, with over 1,000 distributors.
However, large-scale channel construction generated sales expenses of up to 52 million yuan for Changfang Lighting, an increase of 84.80, which resulted in the growth of Changfang Lighting's 2013 revenue growth of 42.03, but the net profit fell by 42.21, becoming LED package. One of the companies with a large decline in profits among the companies.
Burning money by self-built channels seems to have made the company somewhat overwhelmed and let other companies look at it. Can it be modified?
In fact, it is also a matter of spending money. How to spend money on the cutting edge has become a problem for enterprises to consider.
Hongli Optoelectronics Secretary-General Deng Shou-Tie was openly and honestly not long ago. Due to the high cost, the dealer-level business has been suspended. The company is currently mainly a municipal engineering channel, working with engineering companies, because such channels do not require any investment.
This is not empty talk, Hongli Optoelectronics just announced the acquisition of Dongguan Xin Quan 30 shares, its intention to project lighting project is clear, and has previously increased its capital of the main lighting EMC project, the wholly-owned subsidiary of the company.
For the long-term lighting that has invested hugely in the previous circulation channels, it is not intended to completely withdraw. Since December of last year, the domestic channel of Changfang Lighting has changed a lot. At the brand strategy upgrade conference in January this year, Changfang Lighting abandoned the original multi-brand strategy and turned to develop a unified rectangular LED lighting brand.
At the same time, the use of relatively low-cost e-commerce channels has also become an alternative for LED lighting companies.
In addition, LED lighting companies have set up a wishful thinking to acquire traditional lighting companies to obtain channel resources. On May 19, Weiwei Co., Ltd. signed an equity transfer agreement with Pinshang Lighting, stipulating that it will receive 100 shares of the lighting on the cash. The lighting has already had a certain influence and market position. After the completion of the acquisition, Weiwei will be able to cut into the domestic lighting market with huge market capacity in the short term.
In terms of brand building, it is also the current focus of LED lighting companies. Through the sports culture industry packaging, please celebrity endorsement is considered by many manufacturers to be a powerful drug for brand building. The investment is huge. However, like Lehman Optoelectronics sponsors Super League, in addition to earning a reputation, it is worth to obtain long-term publicity effect. Observed. Enterprises do not properly carry out brand marketing, so that they ignore the will of the business from time to time, ignore the relationship between the end, and finally can not tell who is the protagonist.
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