Wu zheng zhe who has over 10 years experience on LED lighting industry, gave a speech about “LED lighting Sales channel competition strategy” on 2013 China LED forum days a go.
Firstly he said there would be some periods for the Industry competition evolution; Through handling the different periods, enterprise could build the market channel layout. For LED industry, the Industry competition evolution periods includes: replacement time before 2015, Popularizing period from 2015 to 2018, innovation period from 2018-2020. In those periods, the industry would be in product competition period, channel competition period, Brand competition. And now for LED enterprise, how to break out at the stage of product competition.
Firstly, be clear about the product range. In the period of LED replacement, LED lighting products are clearly designed to replace the relevant traditional lighting products. The standard names, prices reference and representative brands are formed in this period. For example, LED T8 tube was defined as the middle and high class product in Philips but defined as low class product in FoShan lighting. These definition become a standard basement for other LED companies’ pricing. Meanwhile, the representative brands were built in the competition.
He said, the second half year of 2013 to 2014 second half year will be the key year of forming Category brand. Why we talked about the Category brand here?
Because in the traditional lighting, there were representative brands in every category. Traditional lighting company from living to be famous and forming its own brand. For example, NVC started from lighting fixture and Jia mei started from downlight. At the time of led lighting product competition, some LED Products like LED light bulbs and LED downlight and LED tube light, did not yet build a brand of LED company. Therefore, in the period of LED replacement, building a representative brand is better for distributors to occupy more market share and setting up the sales channels.