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In order to gain a larger living space, some packaging companies choose to expand downstream. For example, Hongli Optoelectronics has Latiya Lighting, and Wanrun Technology also has a part of lighting products. Changfang Lighting’s revenue from lighting products accounted for 30% of total revenue last year.
Packaging companies involved in downstream applications, the different strategies adopted in the channel, the final effect is not the same.
Hongli Optoelectronics began channel construction in March 2012. At that time, Hongli Optoelectronics had about 100 dealers, and there were direct sales centers in five cities including Shenzhen and Suzhou. Li Guoping, the chairman of the company, said at the time: I have invested a lot of money so far, and frankly the income is not high.
On April 3 this year, Hongli Optoelectronics Secretary-General Deng Shou-ti said in an interview that the dealership is now suspended, not done, and the cost is too high. At present, the company is mainly a municipal engineering channel, and cooperates with engineering companies. Such channels do not require any investment.
Wanrun Technology also takes a cautious attitude towards the investment in physical channels. Hao Jun, the company's director-general, told reporters that since last year, the company is also building channels, there are several stores, but not a large-scale construction, channel construction has not been the focus of the company in recent years.
According to Hao Jun, subject to the price factor, the company believes that the civilian market has not really started yet. Therefore, Wanrun Technology is currently focusing on commercial lighting and lighting engineering. The characteristics of this product also determine that it does not need to develop dealers on a large scale and conduct large-scale channels. Promotion.
Rectangular lighting is also expanding its channels in the downstream industry. According to the information disclosed in December last year, 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.
Large-scale channel construction generated sales expenses of up to 52 million yuan, an increase of 84.80 year-on-year. Although Changfang Lighting's revenue increased by 42.03 in 2013, its net profit fell by 42.21, which became a big drop in profit for LED packaging companies. One of the companies.
Mei Zhimin, the brand director of Chau Ming Technology, told reporters that in terms of traditional channels, building a store would have to subsidize 100,000 yuan, and 100 stores would have lost 10 million. Hao Jun said that if you want to build a direct sales store, 100,000 is not enough, you may need 200,000 yuan.
Traditional channel construction also faces inventory problems. Mei Zhimin pointed out that after the store is built, the manufacturer has to press the dealer to press the goods, but the LED is an electronic product, and the inventory price risk is very high.
On April 10, the reporter called Changfang Lighting Securities Department. The staff said that at present, Changfang Lighting is already doing brand integration, and will be based on the Changfang brand. The other two LED lighting brands are subject to development.
The days of LED upstream companies are difficult, and the downstream is also not good.
Based on the expectation of the LED lighting industry, many listed companies have cut into this field, such as Qinshang Optoelectronics and Zhouming Technology; traditional companies such as NVC Lighting and Foshan Lighting are obviously not willing to hand over the market to their opponents. They have sacrificed The price of the knife to maintain their relative advantage in the LED lighting industry.
In the downstream of the LED, because the companies are setting foot on each other's sites, the competition pattern of the industry is inconsistent, and the short-term connection is inevitable.