The lighting industry has undergone a glorious period in 2007-2008, especially at the end of 2008. The local lighting stores in various counties and cities in Jiangxi are very busy, and the provincial capital is more prosperous. The county-level dealers get the goods at the municipal level. Dealers to the provincial capital to get goods, a busy scene. If it was the lighting distributor who entered the lighting industry in 2008, it just happened to catch up with the most glorious period. At that time, many lighting dealers in the building materials market said that the economic crisis in the past mainly affected foreign countries and had little impact on our domestic market.
However, in 2009, this peak season began to fade and turned into a depression. In the recession, the industry will slowly enter the shuffling period, but the process is very slow.
Hard three years
At the end of 2009, an in-depth investigation was conducted in various building materials markets in Fuzhou, Fujian and Nanchang, Jiangxi. At that time, many lighting dealers did not make any money. Only after a few years of precipitation, they accumulated a lot of popular retail stores and contractors. They are making money. Many lighting dealers attribute the bad business to the market into the off-season. But for next year's business, lighting dealers still have confidence.
However, in the first half of 2010, the feedback was that the dealers in the first half of the year were basically losing money. The reason for this is that the first half of the year is the off-season of the market. The second half of the year is the traditional peak season for the lighting market. The reason is that many people must buy a house at the end of the year. Will be renovated. By the end of 2010, the feedback was that the lighting market was worse than 2009. Nanchang Taoyuan Lighting Market, Xiangjiang Home Building Materials Market and Fuzhou Haixi Wholesale Market, a few lighting dealers could not help but start to withdraw, but came in again. Batch of new lighting dealers. At the same time, new building materials stores are also expanding. Among them, Nanchang has newly added Xiyingmen Lighting Store and Sunlight Lighting Plaza, and Fujian Fuzhou has added Red Star Macalline and Real Home.
With the expansion of new stores, it is even worse for the major lighting dealers in the building materials market to operate. At the same time, as domestic housing prices continue to rise, major media have reported that house prices have exceeded the bottom line of Chinese people. At the end of 2010, all lighting dealers attributed the bad business to the real estate bubble because the housing prices were too high, and the people who actually bought the houses could not afford the houses, resulting in less traffic in the building materials market year after year. However, many dealers in Nanchang and Fuzhou said that they are optimistic about the lighting market in 2011 because the state will introduce policies to limit real estate speculation and build affordable housing.
In 2011, the state introduced major governments to limit real estate speculation, but the effect was not good. The higher the house price, the lower the market traffic. By the end of 2011, lighting dealers began to complain about the market prospects, reflecting that the business was too difficult to do and could not see the market prospects.
Three major reasons for market penetration is only 7%
At present, traditional lighting still occupies an absolute market share advantage, and the market penetration rate of LED lamps is still very low. According to the latest data from the High-tech LED Industry Research Institute (GLII), the penetration rate of LED lamps accounts only about 7%. The main reasons are as follows:
1. The price of LED lamps is high. At present, the price of 5W LED bulbs sold in KA stores averages between 60-70 yuan, while the price of ordinary energy-saving lamps with the same light efficiency is between 7-15 yuan, and the price difference between the two is several times. At the same time, the packaging instructions for LED products are too simple and do not allow consumers to have a comprehensive understanding of the products.
2. Promotion is lagging behind. At present, there are thousands of downstream manufacturers specializing in the production of LED lighting fixtures in China, but there are not many merchants specializing in LED products in the terminal market. At this stage, in addition to government policy support, other forms of marketing are lacking. From the terminal merchants visited by GLII, most merchants have insufficient knowledge of LED lamps, which makes it impossible to correctly communicate LED lamps to terminal consumers. Advantages and differences from traditional lamps.
3, retail distribution is not strong. There are a large number of traditional lighting products sold in the popular KA stores, but the distribution of LED lamps is very limited. At present, domestic KA stores, only Carrefour, Wal-Mart, these large-scale stores have a small number of brand LED lamps for sale, and the number of branding brands is very small, only a few brands, such as Jucai, Kabostone, Firefly, BYD and so on.
However, in 2009, this peak season began to fade and turned into a depression. In the recession, the industry will slowly enter the shuffling period, but the process is very slow.
Hard three years
At the end of 2009, an in-depth investigation was conducted in various building materials markets in Fuzhou, Fujian and Nanchang, Jiangxi. At that time, many lighting dealers did not make any money. Only after a few years of precipitation, they accumulated a lot of popular retail stores and contractors. They are making money. Many lighting dealers attribute the bad business to the market into the off-season. But for next year's business, lighting dealers still have confidence.
However, in the first half of 2010, the feedback was that the dealers in the first half of the year were basically losing money. The reason for this is that the first half of the year is the off-season of the market. The second half of the year is the traditional peak season for the lighting market. The reason is that many people must buy a house at the end of the year. Will be renovated. By the end of 2010, the feedback was that the lighting market was worse than 2009. Nanchang Taoyuan Lighting Market, Xiangjiang Home Building Materials Market and Fuzhou Haixi Wholesale Market, a few lighting dealers could not help but start to withdraw, but came in again. Batch of new lighting dealers. At the same time, new building materials stores are also expanding. Among them, Nanchang has newly added Xiyingmen Lighting Store and Sunlight Lighting Plaza, and Fujian Fuzhou has added Red Star Macalline and Real Home.
With the expansion of new stores, it is even worse for the major lighting dealers in the building materials market to operate. At the same time, as domestic housing prices continue to rise, major media have reported that house prices have exceeded the bottom line of Chinese people. At the end of 2010, all lighting dealers attributed the bad business to the real estate bubble because the housing prices were too high, and the people who actually bought the houses could not afford the houses, resulting in less traffic in the building materials market year after year. However, many dealers in Nanchang and Fuzhou said that they are optimistic about the lighting market in 2011 because the state will introduce policies to limit real estate speculation and build affordable housing.
In 2011, the state introduced major governments to limit real estate speculation, but the effect was not good. The higher the house price, the lower the market traffic. By the end of 2011, lighting dealers began to complain about the market prospects, reflecting that the business was too difficult to do and could not see the market prospects.
Three major reasons for market penetration is only 7%
At present, traditional lighting still occupies an absolute market share advantage, and the market penetration rate of LED lamps is still very low. According to the latest data from the High-tech LED Industry Research Institute (GLII), the penetration rate of LED lamps accounts only about 7%. The main reasons are as follows:
1. The price of LED lamps is high. At present, the price of 5W LED bulbs sold in KA stores averages between 60-70 yuan, while the price of ordinary energy-saving lamps with the same light efficiency is between 7-15 yuan, and the price difference between the two is several times. At the same time, the packaging instructions for LED products are too simple and do not allow consumers to have a comprehensive understanding of the products.
2. Promotion is lagging behind. At present, there are thousands of downstream manufacturers specializing in the production of LED lighting fixtures in China, but there are not many merchants specializing in LED products in the terminal market. At this stage, in addition to government policy support, other forms of marketing are lacking. From the terminal merchants visited by GLII, most merchants have insufficient knowledge of LED lamps, which makes it impossible to correctly communicate LED lamps to terminal consumers. Advantages and differences from traditional lamps.
3, retail distribution is not strong. There are a large number of traditional lighting products sold in the popular KA stores, but the distribution of LED lamps is very limited. At present, domestic KA stores, only Carrefour, Wal-Mart, these large-scale stores have a small number of brand LED lamps for sale, and the number of branding brands is very small, only a few brands, such as Jucai, Kabostone, Firefly, BYD and so on.
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