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Although the lighting market is picking up, who grabbed the dealer's market?

Source: Suzhou Puju Lighting Electric Co., Ltd. Date: 2018-05-10 Views: Loading ...

The survey data of the national lighting market in the first quarter of this year shows that, although the market is picking up, the passenger flow and sales orders of dealers are still not optimistic, and the market prosperity index is still not high. At the same time, it was found that for this status quo, most dealers believe that the Internet has grabbed orders, designers have stopped customers, and high-end customers have directly purchased from Dengdu Ancient Town.

It sounds reasonable at first, but it's not. The data shows that pure Internet sales of lamps only account for 9% of the total market share. Invisible channels also only divert a very small number of customers at the top of the pyramid. Direct customers who purchase lamps in Dengdu Town only account for 15% of total sales. Most luminaire sales are still relying on traditional distributor channels. So who grabbed the dealer's market?

Customers' needs

In recent years, economic growth has slowed down, overcapacity in the industry, and oversupply of products. The proportion of "consumption" in the "troika" driving the economy has continued to rise, and post-80s and 90s have rapidly risen as the main force of consumption. They lived in a well-off society from an early age. They do not have the kind of mentality of reluctant to consume after the 60s, and they are different from the 1970s who made a fortune overnight with the help of the spring breeze of reform. They do not have a strong desire to show off their wealth, nor do they need to prove themselves out of poverty by buying a lot of useless "high luxury goods". It is more focused on the value of goods, consumer experience and service enjoyment. Consumption concepts have also shifted from "buying products" to "enjoying services" and from "meeting daily needs" to "improving the quality of life". If the dealer fails to capture the psychological needs of the customers conveyed by this consumption upgrade, it will inevitably miss the customers who should be their own services.

The importance of brand effects

It is reported that under the situation that the overall operating environment of the industry is not optimistic, the sales of NVC Lighting increased by 53% in the first quarter, which in a sense indicates that consumers are paying more attention to product quality and brand effects. The so-called quality, that is: the performance is excellent, the details are in place without the need for luxury; the so-called brand, in addition to endorsing the product quality, product culture, artisan spirit allows consumers to buy a brand of products, feelings and trust. At the same time, it brutally reflects the cruel fact that "the market is still there, but it no longer belongs to you."

Can't satisfy customers

As we all know, the users of lighting are basically local customers with a certain economic strength. They are all above the middle class and like high-quality products. However, the current status of the lighting market cannot meet their needs for three reasons:

Local dealers, especially third- and fourth-tier dealers, operate mostly inferior and low-priced products, and some are even counterfeit and inferior;

In order to prevent customer churn, more than 70% of dealers use their own brands. "De-branding" isolates the connection between consumers and lighting brands, which severely hinders consumers' branded consumption needs;

Manufacturers have too few outlets, and most products are isolated from consumers. According to surveys, lighting manufacturers' channels are filled with less than 30% of first-tier brands, and less than 10% of second- and third-tier stores have specialty stores.

These current conditions have caused high-end consumers to simply not be able to buy their favorite products locally.

Conclusion

It can be seen that this consumption upgrade originally brought new opportunities to the traditional dealer channels, but the dealers themselves did not capture the psychological needs conveyed by the customers, resulting in their product positioning, brand selection and marketing models. In the opposite direction, they missed their customers and lost their own markets.

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