January 28, 2022

China's LED lighting market shifts to second and third tier cities

Channels are the extension of corporate brand and sales, and are the focus of most companies, but the survival rate of channel outlets is a difficult point for channel construction. At present, LED has made the traditional channel of lighting construction a money-saving game. The price war has made the channel of high investment even worse. Both manufacturers and merchants have a common question: How long can it last? The impact of e-commerce has increased the survival of traditional channels. What are the future survival capitals of enterprises and distributors? In 2014, it should have been a hot LED lighting explosion year, but in fact, whether it is a large enterprise or a small dealer, they are lamenting that business is difficult to do, and the reasons for survival are difficult, or the investment is hot and the market is cold. The competition is fierce, or the real estate is sluggish, causing the related industries to suffer the same cold, or the impact of e-commerce. In short, everyone seems to be not good. LEDs make lighting traditional channel construction turned into money games. The above reasons seem to affect the lighting industry's cold, but not the fundamental reason? the answer is negative. Some people say that companies that enter LEDs must face the fact that there is no channel. After years of development, the traditional lighting brands have accumulated a lot in the channels. It can be said that they have established their own hills and territories. The emerging LEDs want to rush into these territories, they must take a unique feature. Roads, such as rural encircling cities, for example, preemptively occupy the lighting market in second- and third-tier cities and even fourth-tier cities. In our industry survey in Jiangxi, our Qiming Action Group found that in recent years, the lighting market in Jiangxi Province has risen rapidly. The lighting market has expanded from the original single lighting store to the lighting wholesale city, gradually moving towards the modern large lighting square, professional There are more and more lighting cities. Although the current development of LED lighting in Jiangxi is constrained by the consumption concept, level and habits, the development trend of LED in Jiangxi market is still relatively weak compared with the big cities. However, the pace of progress in Jiangxi is rapid and firm, and many large professional lighting markets are in municipal planning. Under the guidance of rapid construction. Jiangxi dealers showed a rational cold thinking in the LED lighting boom For the choice of LED lighting brands, Jiangxi dealers did not show the blindness of the follow-up style, showing more calm and wait-and-see and calm choices. In the case of China's lighting market encountering a large-scale cold wave, Jiangxi's lighting market has shown such a warm and welcoming reason, because Jiangxi dealers have tried their time to find a way to surround the city with the characteristics of Jiangxi. Whether it is the growth of LED lighting companies or distributors, or the huge market stock, Jiangxi's lighting industry is making great strides forward and is full of stamina. The road of rural encircling the city in Jiangxi is in fact in line with the law of market development. On the one hand, in the first-tier cities, there are not a few lighting stores. All store operators have set their sights on the big cake in the first-tier cities. The existing lighting stores are centered on the provincial capital and have gradually become saturated. As a result, operators of lighting hypermarkets have become an option to expand into second- and third-tier cities, and shifting target customers is a bigger change. On the other hand, in recent years, second- and third-tier cities have quietly smashed low-carbon wind energy-saving lamps, electric vehicles, and solar baths. The enthusiasm of the second and third-line citizens for the low-carbon revolution is increasing, which provides LED lighting for the second and third-tier markets. Strong consumer support. Third, the real estate industry related to the lighting industry has gradually shifted its focus to second- and third-tier cities, which has made the real estate market in second- and third-tier cities show a growth momentum, which indirectly led to the shift of the lighting market to the second- and third-tier markets. Throughout the national lighting circulation field, the sales channels of the store not only changed from provincial capitals to prefecture-level cities, but also prefecture-level cities are infiltrating into county-level cities, showing a step-down sinking mode. This seems to imply that the entire market format is taking place. huge change. Some enterprises that have been keeping a close eye on first- and second-tier cities have gradually accelerated the pace of sinking channels and expanded their territory in second- and third-tier or third- and fourth-tier cities. Then, what impact will the lighting market shift to second- and third-tier cities have on these cities? 1. The competition in the second and third-tier markets has intensified. Lighting brands competing in second- and third-tier cities will bring competition for channel resources among major brands. The game between first-line brands and second- and third-line brands will lead to new brand strategies, marketing strategies and channel models. 2. The new product strategy is ready to go. As the consumption power of second- and third-tier cities is relatively low, the price is firstly adapted to the consumption demand of the second- and third-tier cities. Many first- and second-line lighting brands will inevitably change their product strategies according to the progress of policy implementation, and develop suitable for second- and third-tier market sales as soon as possible. Low-end new products. 3. There is a large-scale lighting store. Although there are many lighting cities in the second and third tier cities, the lack of climate-based hypermarkets is dominated by specialty stores or small stores. With the increase in the consumption potential of lighting in the second and third tier markets, the encirclement of lighting stores to second and third tier cities has become an inevitable trend.

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