2014 Gaogong LED New Year Forum: O2O into LED channel next competition point
[High-tech LED reporter Li Jingyu] High-tech LED Industry Research Institute (GLII) statistics show that in 2013 China's LED application industry reached 208.1 billion yuan, an increase of 31%. The lighting market represented by indoor lighting is growing rapidly, showing a booming growth trend. It is expected that the output value model of indoor and outdoor LED functional lighting in China will exceed 100 billion yuan in 2014. The indoor and outdoor functional lighting of LED still continues the explosive growth trend in 2013, which is the main engine for the development of LED industry.
On February 23, 2014, the New Year Forum hosted by Gaogong LED, LED Lighting E-Commerce and Supply Chain Integration Summit was held in the Manjiang Red Hall on the third floor of Shangri-La Hotel, Pazhou, Guangzhou. In the morning, LED lighting e-commerce special, Gaogong LED Director Dr. Zhang Xiaofei and O2O research services, such as Pinto, Tongfang Lighting, Bee Network (formerly Guangyi Impression Lighting) and Kasman Lighting, gave a keynote speech on the LED lighting enterprise channel and response strategies in the era of mobile e-commerce.
Dr. Zhang Xiaofei took the lead in making a statement at the meeting. E-commerce is launching a strong impact on the offline multi-level distribution system of traditional lighting, and gradually evolved into an indispensable fourth channel for LED lighting companies, especially for those who did not have it. Enterprises with the advantages of offline channel resources, e-commerce channels can be used as a magic weapon to open sales channels.
He also said that the development of e-commerce has brought about marketing changes in lighting channels. In particular, the rise of the mobile Internet has led to a omni-channel sales model across the entire network, which is profoundly changing the industrial landscape.
Liu Wanyi, CEO of Pinto.com, directly raised the word “subversion†to alert the status quo of LED lighting channels. She said that it is not the Internet that is subverting traditional enterprises, it is a backward thinking mode and organization. Under the impact of the Internet wave, the channel business circle accustomed to the traditional mode of thinking is undergoing a difficult adjustment period.
In fact, Liu Wanqi’s words have great practical significance in the LED industry. In recent years, the LED industry as a whole has developed rapidly, and the midstream and upstream sectors are rapidly undergoing technological change and supply chain optimization to adapt to the market. However, this top-down value chain reform has not been well transmitted to the downstream channel field, and has intensified the imbalance of LED industry chain development.
Some practitioners believe that the biggest crux of the structural imbalance in the LED industry appears in the channel path. With the increase in the number of LED companies, the competition is becoming increasingly hot, and the traditional sales channels of goods are gradually overloaded, and the emerging electronic channels are not subject to the diversion effect because they are not valued by LED companies.
Therefore, how to reconfigure the new channel system has become a key point in the LED industry. Liu Wanzhen believes that Internet thinking should be carried out in every link of traditional enterprises, and the advantages of the Internet should be used to enhance the competitiveness of enterprises in the channel field. This method is currently the hot O2O mode.
The O2O integration online and offline operating philosophy has created a good business vision for the company, but its operability has been questioned by many traditional industries, especially in the interest-sharing scheme between the online and offline.
Liang Tuxin, head of Tsinghua Tongfang LED Lighting E-commerce Center, elaborated on the reasons and countermeasures of LED e-commerce price war. Liang Tuxin believes that the "price war" phenomenon reflects the misjudgment of LED enterprises on the development model of e-commerce. He explained that the so-called price war of LED companies is actually a continuation of the traditional circulation mode of physical business extensive operation, rather than applying new thinking to look at e-commerce channels.
Liang Tuxin said that Tongfang Lighting adopted a strategy of transforming “price war†into “value station†to deal with competition in e-commerce channels. He said that behind the value war, it covers the comprehensive strength of the comprehensive strength of all aspects of enterprise procurement, reserve, supply chain, logistics and distribution, and payment. The test is the true strength of the enterprise.
Therefore, Tongfang Lighting has adopted three strategic decisions in the field of e-commerce “value warâ€, including implementing differentiated competition strategies, strengthening logistics and after-sales service, and strengthening emotional communication with consumers.
Liang Tuxin believes that with the maturity of the online shopping model, the "value war" will become the consensus of the entire LED industry. LED e-commerce will enhance the user experience from commodity prices, product quality, logistics express, after-sales service, etc., expand market share, and create a fair and reasonable competition.
At this summit, Zheng Hongda, an analyst at Guojin Securities Research Institute, brought good news to everyone. He said that with the improvement of electronic payment methods, the two camps of operators and financial institutions began to cooperate with each other in the advantages of users and businesses, and gradually formed a clear plan of interest sharing.
He said that the current domestic online and offline consumption ratio is 1 to 9. If the two can be combined, there will be huge market opportunities. He expects O2O to increase market share to trillions in the next five years. Obviously, according to the development of this trend, most traditional industries, including the lighting industry, will benefit greatly.
Gu Baoqiang, product manager of Guangzhou Kasman Lighting Co., Ltd., explained the advantages of O2O mode from the perspective of consumers, distributors and LED companies.
He believes that dealers can use online traffic guidance to obtain more customers and profits; consumers can enjoy low-cost online shopping and physical store services; and enterprises are expected to obtain large-scale high-viscosity consumers. And get the user's consumption data, easy to carry out a series of brand activities such as group purchase, new product pre-sale, and re-master the market initiative!
Therefore, Gu Baoqiang suggested that LED companies should add O2O components to the existing channel policies when they are doing marketing plans, and step on the rhythm of channel change.
On February 23, 2014, the New Year Forum hosted by Gaogong LED, LED Lighting E-Commerce and Supply Chain Integration Summit was held in the Manjiang Red Hall on the third floor of Shangri-La Hotel, Pazhou, Guangzhou. In the morning, LED lighting e-commerce special, Gaogong LED Director Dr. Zhang Xiaofei and O2O research services, such as Pinto, Tongfang Lighting, Bee Network (formerly Guangyi Impression Lighting) and Kasman Lighting, gave a keynote speech on the LED lighting enterprise channel and response strategies in the era of mobile e-commerce.
(The summit site)
Dr. Zhang Xiaofei took the lead in making a statement at the meeting. E-commerce is launching a strong impact on the offline multi-level distribution system of traditional lighting, and gradually evolved into an indispensable fourth channel for LED lighting companies, especially for those who did not have it. Enterprises with the advantages of offline channel resources, e-commerce channels can be used as a magic weapon to open sales channels.
(Dr. Zhang Xiaofei, Chairman of Gaogong LED)
He also said that the development of e-commerce has brought about marketing changes in lighting channels. In particular, the rise of the mobile Internet has led to a omni-channel sales model across the entire network, which is profoundly changing the industrial landscape.
Liu Wanyi, CEO of Pinto.com, directly raised the word “subversion†to alert the status quo of LED lighting channels. She said that it is not the Internet that is subverting traditional enterprises, it is a backward thinking mode and organization. Under the impact of the Internet wave, the channel business circle accustomed to the traditional mode of thinking is undergoing a difficult adjustment period.
(Goodway Network CEO Liu Wanyu)
In fact, Liu Wanqi’s words have great practical significance in the LED industry. In recent years, the LED industry as a whole has developed rapidly, and the midstream and upstream sectors are rapidly undergoing technological change and supply chain optimization to adapt to the market. However, this top-down value chain reform has not been well transmitted to the downstream channel field, and has intensified the imbalance of LED industry chain development.
Some practitioners believe that the biggest crux of the structural imbalance in the LED industry appears in the channel path. With the increase in the number of LED companies, the competition is becoming increasingly hot, and the traditional sales channels of goods are gradually overloaded, and the emerging electronic channels are not subject to the diversion effect because they are not valued by LED companies.
Therefore, how to reconfigure the new channel system has become a key point in the LED industry. Liu Wanzhen believes that Internet thinking should be carried out in every link of traditional enterprises, and the advantages of the Internet should be used to enhance the competitiveness of enterprises in the channel field. This method is currently the hot O2O mode.
The O2O integration online and offline operating philosophy has created a good business vision for the company, but its operability has been questioned by many traditional industries, especially in the interest-sharing scheme between the online and offline.
(Tsinghua Tongfang LED Lighting E-commerce Center Leader Liang Tuoxin)
Liang Tuxin, head of Tsinghua Tongfang LED Lighting E-commerce Center, elaborated on the reasons and countermeasures of LED e-commerce price war. Liang Tuxin believes that the "price war" phenomenon reflects the misjudgment of LED enterprises on the development model of e-commerce. He explained that the so-called price war of LED companies is actually a continuation of the traditional circulation mode of physical business extensive operation, rather than applying new thinking to look at e-commerce channels.
Liang Tuxin said that Tongfang Lighting adopted a strategy of transforming “price war†into “value station†to deal with competition in e-commerce channels. He said that behind the value war, it covers the comprehensive strength of the comprehensive strength of all aspects of enterprise procurement, reserve, supply chain, logistics and distribution, and payment. The test is the true strength of the enterprise.
Therefore, Tongfang Lighting has adopted three strategic decisions in the field of e-commerce “value warâ€, including implementing differentiated competition strategies, strengthening logistics and after-sales service, and strengthening emotional communication with consumers.
Liang Tuxin believes that with the maturity of the online shopping model, the "value war" will become the consensus of the entire LED industry. LED e-commerce will enhance the user experience from commodity prices, product quality, logistics express, after-sales service, etc., expand market share, and create a fair and reasonable competition.
At this summit, Zheng Hongda, an analyst at Guojin Securities Research Institute, brought good news to everyone. He said that with the improvement of electronic payment methods, the two camps of operators and financial institutions began to cooperate with each other in the advantages of users and businesses, and gradually formed a clear plan of interest sharing.
(Zheng Hongda, an analyst at Guojin Securities Research Institute)
He said that the current domestic online and offline consumption ratio is 1 to 9. If the two can be combined, there will be huge market opportunities. He expects O2O to increase market share to trillions in the next five years. Obviously, according to the development of this trend, most traditional industries, including the lighting industry, will benefit greatly.
Gu Baoqiang, product manager of Guangzhou Kasman Lighting Co., Ltd., explained the advantages of O2O mode from the perspective of consumers, distributors and LED companies.
(Kashiman Lighting Product Manager Gu Baoqiang)
He believes that dealers can use online traffic guidance to obtain more customers and profits; consumers can enjoy low-cost online shopping and physical store services; and enterprises are expected to obtain large-scale high-viscosity consumers. And get the user's consumption data, easy to carry out a series of brand activities such as group purchase, new product pre-sale, and re-master the market initiative!
Therefore, Gu Baoqiang suggested that LED companies should add O2O components to the existing channel policies when they are doing marketing plans, and step on the rhythm of channel change.
(CEO round table dialogue)
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