Home lighting market slipped and LED penetration harder

After more than half a year in 2011, LED home lighting industry did not appear a good market. In May of this year, the major home lighting brands collectively made efforts to hold dealer conferences one after another. The relevant strategic positioning, product planning, talent pool, and channel strategies gradually surfaced. A “breakout” battle has been quietly pulled. Prologue.

He Zaihua, a senior research fellow at China Investment Consulting Co., Ltd., pointed out that a very real problem facing home lighting is the construction of channels. Channel construction is not only facing high costs, but also facing fierce market competition. In recent years, first-tier cities such as Beijing, Shanghai, Shenzhen, etc. The penetration rate of LED household lighting has not seen large-scale improvement. After many companies actively explored second- and third-tier cities with broader market prospects, the cost problems brought about by sinking channels have seriously hindered the expansion of the market.

According to the observation from the lighting companies' profitability in 2010, companies with brand effect and good channels are the main profit holders of the market, but it can also be seen from various cost expenditures that the channel construction costs of the second and third tier cities account for the total sales. The proportion has exceeded 20%, which is not affordable by SMEs. It must be said that the high cost of channel construction, the tedious intermediate links and the lack of marketing strategies are all restrictive factors that hinder LED penetration into home lighting.

Zhang Yanlin, research director of China Investment Consulting Co., Ltd. pointed out that from the perspective of the environment, the overall home furnishing market has experienced a downturn. Before LED lighting has entered the era of civilian prices, the promotion of LED home lighting cannot be underestimated. The current rising cost of the industry has greatly affected the quality and credibility of LED lamps, weakened the confidence of consumers, and has had an extremely adverse impact on the development of the entire industry. Not only is the quality crisis of small enterprises, brand companies also face a crisis of credibility. In the future, in the development of the LED lighting market, we must pay more attention to the high quality performance of our products.

According to the "2011-2015 China Semiconductor Lighting (LED) Industry Investment Analysis and Prospect Forecast Report released by the China Investment Advisor, it shows that in order to get rid of the external and internal negative factors, the overall home lighting industry passed the adjustment strategy in the first half of 2011. Strategies such as positioning, product development, marketing models, channels, and talents have all sought breakthroughs in a positive attitude. The prospect of home lighting is still very wide, especially after the LED cuts into the indoor lighting, the market potential is even more limitless.

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