Chengdu LED companies are hard to get dealers "heart"

[Source: Gaogong LED 's " LED Lighting Channel" magazine January issue / Qiu Zuling]

"For dealers, the quality of the agent brand is directly related to the positioning and profit margin of the dealer. Today's LED development is not mature enough. How to find a good partner is a problem that I have been paying attention to." Chengdu Aihua Lighting distributor Zhao Bin said.

In response to the problem of Chengdu dealer lighting brand agency, the reporter visited the lighting stores, enterprises, etc., and got a deep understanding of which lighting brands are represented by dealers, what requirements are there when choosing agents, and what attitudes are to local brand agents.

Building a first-class LED base in the west
Chengdu, as the western heavy city of “foreign capital westward, domestic capital westward shift”, has developed a “China Fortune Fourth City” with rapid, innovative and wealth labeling. After more years of development, more and more LEDs have been formed. The company has established a production base here, which not only includes local brands, but also attracts many well-known overseas brands.

On August 20, 2012, Philips (China) Investment Co., Ltd. held the groundbreaking ceremony for the Philips Professional Lighting (Chengdu) Demonstration Park in the Western Campus of Chengdu High-tech Development Zone. Liang Hanfeng, president of Philips Lighting Division Greater China, said, "Philips Professional Lighting Demonstration Park will rely on Chengdu's strong radiation capability in the western region, relying on Philips' innovative application and special customization capabilities in LED lighting to serve faster and better. The majority of China's central and western regions and even the Chinese market."

Chengdu is stepping up the construction of a first-class LED base in the west. In the modern industrial port of Jixian County, the first phase project of “Sichuan Yuanli Optoelectronics”, the largest LED production base in western China, was officially put into operation, with an estimated investment of 540 million yuan. The person in charge of the modern industrial port of Jixian said: "Chengdu Modern Industrial Port has grown from the first two companies to the present 13 and witnessed the rapid development of Chengdu LED industry in the past few years. From January to April 2011, completed industrial investment. The amount is more than 30 billion yuan, with a growth rate of 90%. At present, more than 20 LED companies are planning to settle in, and more than 10 LED companies such as New Zealand AsiaInfo and Shanxi Guangyu Semiconductor Lighting are accelerating construction. Chengdu Modern Industrial Port will be in 2017. Become the first-class LED production and research base in the west."

Han Wei, chairman of Sichuan Liheng Weiye Co., Ltd., a subsidiary of New Zealand AsiaInfo Group, said, “The county government has given many preferential policies and its geographical location extends in all directions. The advantages of these two aspects have led the company to finally decide to invest 660 million in the county. '".

Nowadays, Chengdu has Chengdu, Dongjun, Chengdu Shilan and other upstream enterprises, Xinli Light Source, Zhonglan Chenguang and other midstream enterprises as well as downstream enterprises such as Sichuan Yuanli and Jinming Optoelectronics. The city is engaged in the production of LED lighting application products and service enterprises. More than 40. In Jixian, Jintang and Gaoxin West District, a relatively complete industrial chain has been formed.

Agents are far away
During the visit, the reporter learned that Chengdu's local enterprises are considering the development level of the enterprise itself or the reality that the lighting stores are too chaotic. Many enterprises have chosen engineering channels that are much higher than the profit of the store channels.

So what impact does the local company's not sinking have on the choice of brand agents for local dealers in Chengdu? What are their thoughts on the choice of local brands?

Zhao Abin, a distributor of Chengdu Aihua Lighting, told reporters: "The businesses in Chengdu are basically not responsible for the products produced by local manufacturers. For example, the brands such as Philips, Jiamei, Darwin Lighting and Ford, which are represented by our store are not Chengdu."

The reporter found that the number of local LED brands represented by distributors in Chengdu lighting market did not even account for 1/4 of the entire store. Most of the products were mainly from Zhongshan Guzhen, Shenzhen, Dongguan and Foshan.

In this regard, Zhao Bin mentioned that “the biggest problem for enterprises that set up factories in Chengdu to produce LEDs is raw materials. Previously, they also cooperated with local enterprises in Chengdu Shuangliu Industrial Park, but the shortage of raw materials seriously affected daily operations. LEDs in Chengdu Enterprises, it is better to say that it is an assembly plant, because raw materials are almost all transported from Zhongshan and other places. To change the status quo in Chengdu, it is necessary to solve the problem of raw materials, rather than simply assembling products."

Hu Zhimin, a distributor of lighting lighting in Chuanhui, pointed out that "LED lighting design, R&D and manufacturers are mainly concentrated in the Pearl River Delta region. Chengdu is located in the west, the industrial chain is not perfect, and the research and development capabilities are insufficient. It will take a long time to develop. In this case, our dealers can't afford it."

Zhao Bin added, "Inland enterprises are relatively lagging behind in terms of product information. The information here cannot keep up with the pace of coastal enterprises and cannot meet the needs of dealers. Now, all the prospective dealers know how to do business well. You can't 'close yourself', you must go out and get to know the information. Some dealers go to the southeast coastal areas such as Zhongshan every three months, and contact several excellent companies to conduct on-the-spot investigations and learn about new products."

It is often the case that new LED products in Zhongshan, Shenzhen and other places have been put on the market, and the price is also very favorable, but the Chengdu market is still some old products. The manufacturers in Zhongshan are concentrated, and the dealers can compare and choose the survival of the fittest. However, Chengdu will not work, manufacturers are few, confidence is lagging, and there is less room for choice. These reasons make dealers very passive.

In order to change the lag of information, it is best to have a well-known high-level internal management company in Zhongshan and other places to personally understand the information of product replacement, if it is not enough to meet the needs of customers before they can understand the new information is too late.

In addition, if the dealers and the enterprises in Zhongshan, Shenzhen and other regions require the goods to be received within five days, the production cycle of these enterprises is short, and the dealers can receive the goods on time. However, local enterprises will not be able to supply goods in time because they need to purchase raw materials from the coast. In the process, if there is a difference, the supply will be delayed.

Zhao Bin mentioned that if the dealer does not get the goods, if the customer is waiting for the decoration, it will not only cause losses to the customer, but also affect the reputation of the dealer.

Of course, the profitability of the agent's brand is the biggest motivation for dealers. From another perspective, dealers are the “food and clothing parents” of lighting manufacturers, and companies should make profits as much as possible for dealers. However, some enterprises in the inland cities need to provide coastal LED production bases for raw materials. When they are transported to the mainland for assembly, they will increase costs. The ex-factory price of the products is much more expensive than that of coastal enterprises. When they reach the dealers, there are not many “oil and water”. Naturally difficult to enter the dealer "eyes."

How to win
In Chengdu, companies are reluctant to enter the store, and dealers are not willing to represent local brands. Under this double barrier of "ignoring each other", it directly affects the development of the LED lighting industry. In order to change this situation, it is necessary to rely on the joint efforts of enterprises and distributors to closely link the LED development chain in the Mainland and promote the development of the industry.

On the one hand, companies need to improve the status quo through the preparation of stocks, the production of raw materials, and the special research of core technologies. To solve these problems, the mainland dealers will give up the “staying far and near” and then turn to the agent from the “local” brand.

On the other hand, dealers should support the development of local enterprises, establish contacts with local enterprises and communicate at any time, and timely feedback the first-line market conditions to enterprises to help enterprises adapt to market changes and adjust development ideas.

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