Upstream and downstream information asymmetry in LED lighting industry
December 10 14:11:27, 2023
Many people's understanding of O2O stays on the concept of online orders and offline services, and the lighting industry's O2O is developing in the end. In this regard, Opel Lighting China CEO Ding Long bluntly: The current lighting industry channel maturity has not yet reached the level of easy control of O2O. Ding Long's explanation of whipping up, reflecting its nuanced understanding of the entire lighting industry. Traditional enterprises and channels are in urgent need of transformation Compared with previous years, the lighting terminal market this year appears to be relatively sluggish, reflecting the hidden concerns behind the transformation of the entire lighting industry, which is worthy of consideration for each lighting person. In this regard, Ding said that the transformation is not only a problem faced by traditional lighting companies, as with traditional enterprises, the traditional channels also need to be transformed. Ding said that the current transformation of the lighting industry is mainly faced with three challenges: First, the so-called LED transformation, not a simple product transformation, but the corresponding transformation of the production system, management system; Second, the industry downstream information update is slow, Second, The third-line market has been slow to accept new thinking, which has caused the transition of local dealers to lag behind. Third, dealers and customers will transition from simple trading relationships to full-service relationships. After all, the so-called transformation of the industry is only the upgrading of products on the surface, but has not yet penetrated into the company's genes. Therefore, companies must first implement genetic transformation to achieve transformation. He frankly stated that in addition to increasing LED production and sales, Op-transformation tends to shift to the attitude of the service provider. Ding stressed that the most important thing is to transition to offline services. He said that the future of the leading lighting industry is not product technology, but extremely well-placed services and solutions. Ding Long believes that the technology and quality of products will be generally homogenized sometime in the future. Enterprises and distributors will not be able to win by simply selling products. Therefore, providing lighting solutions and services to customers will be a new focus of competition in the industry. New business outlet. Transformation should be the first system and then the product for the LED transition, Ding Long bluntly, Op LED transformation behind, is the result of the entire system quality changes Oupu. The so-called transformation is by no means an enterprise simply realizes full LEDization in its products, but before the LED transition, the company must firstly do a bone marrow rebirth and blood replacement, and the first enterprise must transform the entire system before the products can follow. Ding Long stated that most of the lighting companies' failures are to transform products first, and then adjust the enterprise system structure. The latter mode of transformation will inevitably cause enterprises to fall into a lot of passive. It is understood that op lighting sales this year, all channels are steadily rising, which in essence benefits from its efforts in the LED transition in the past two years. Ding Long revealed that the proportion of Opto LED lighting has exceeded 50, which also shows that Op lighting has made a major breakthrough in LED transition. In terms of channels, Optech's most eye-catching feature recently was that during the Double 11th Shopping Festival, it achieved a total of 94.43 million yuan in e-commerce sales performance. This is the upgrade, update and promotion response rate of Opal products based on consumer demand. The results of the team's seamless cooperation, which is also the key to Oppen's success in building an online platform. At the same time, Ops leads home lighting, which is also the basis for the rapid development of Optronics. When referring to home lighting, Ding Long emphasized that changing from products, services, and other aspects closer to consumers is the current direction of further efforts by Op Lighting. For example, home lighting products should conform to the needs of consumers, change to intelligence, stylization, and diversification; for example, the establishment and improvement of a more complete service system such as easy-to-change lamps and access to the community. In addition, Ding Long also revealed that Op lighting commercial lighting business is also rapidly improving. We have signed purchasing agreements with many well-known catering and apparel brands, such as Adidas, to provide them with lighting solutions that meet the customer's experience. For this reason, our commercial lighting has also been recognized by more and more customers. Distributors are always the biggest asset of Ops in the lighting industry. Because information asymmetries often exist upstream and downstream, upstream companies and downstream distributors often lack timely and effective communication, which easily leads the industry to stereotype certain phenomena. . In an interview, Ding Long frankly stated that in the Op Art system, there are indeed a few people who have cracked in the cooperation due to the discomfort brought about by the changes in the Op Art in recent years, thus forming a stereotype on Op lighting. For example, he said that the cooperation between enterprises and dealers is like marriage, and marriage is a common advance and retreat for both parties. Once a party has stopped and the other party has moved forward, one side cannot understand or can not follow the pace of the other. Marriage will have contradictions and even crises. Ding Long said that this is not only a problem faced by the Oupu system during the transformation process, but also a difficult problem for each company in transition. It is also an important threshold for channel change. In view of this, Ding Long solemnly stated the ops concept of cooperation, this idea is intended to set aside the heavy fog between the op and its dealers. The dealer system has always been the best partner of Op lighting, and it is also the biggest competitive advantage and wealth of Op lighting. For each distributor, Op Lighting has always adhered to the principle of not giving up, and gradually guided distributors to realize their own transformation in the wave of industrial restructuring, change the business philosophy and sales methods, thus achieving a win-win situation with Op. Ding always said. Only the pace of business and distributors, consistent ideas, and in-depth integration, a variety of new sales model will become possible in order to be the ultimate success, as O2O model, implementation can not be separated from the company and the dealer in all aspects Close cooperation, small logistics management, large inventory allocation.
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