LED Wants To Illuminate The Rural Market

How to make a breakthrough in the price and channel of LED has become the most realistic problem for lighting enterprises. In recent visits, reporters found that the rural secondary and tertiary market has become a new territory for LED enterprises to develop in the channel. How to make LED become a "good quality and cheap" commodity to enter the second and third-line market smoothly may be an urgent problem for LED enterprises to solve.

Channel breakthrough: LED wants to "illuminate" the rural market

Since last year, with the downturn of European and American markets, the domestic market has gradually become one of the main battlefields for many brand enterprises to turn to. LED lighting has always been characterized by "high price and high grade". With its large-scale and industrialized application, the price has been greatly reduced, which makes it possible to expand the vast rural market. It is known that many LED enterprises regard the rural market as one of the main directions in the future.

The attractive prospect of the rural market has also been recognized by Mr. Liu, Marketing Director of XXXX Co., Ltd. A survey shows that incandescent lamps are commonly used in rural households in China, which consume eight times as much electricity as LED lighting and twice as much as fluorescent lamps. With the growing energy crisis, energy saving and power saving has become a global consensus. In addition, LED lighting does not contain mercury, is not easy to break, and waste can be recycled, and has become the first choice of new green lighting products in the world.

"Almost all businesses, including LED companies, believe that China's LED agricultural lighting market will see revenue in two years. From now on, the vast countryside will become the largest market for LED lighting." Liu Zhu said that the LED lantern Market in the first, second and third-tier cities has been hit by the cold foreign market and the downturn of the domestic real estate market.

Some purchasers also said that at the end of 2017, the project of "phasing out incandescent lamps and accelerating the promotion of energy-saving lamps in China" was officially launched. The vast rural areas will also become the largest market for LED lighting.

Question: Product "good quality and low price" test the competitiveness of enterprises

The "Happy Family" ceiling lamp developed by Nippon Lighting has a price of about 230 yuan per lamp. Manager Zhang said that their goal is to be the leader of LED ceiling lamp in China, because the main market is rural market, so they have tried their best in price. "Attacking the rural market must be of high quality and low price." Manager Zhang said that compared with similar products, the company's products will be cheaper to 70-80 yuan per capita. Only in this way can it be more competitive in the rural market.

With the rapid development of rural economy and the improvement of people's living standards, farmers'requirements for the quality of living lighting are also improving. But relatively speaking, rural consumption is still insufficient, if the price of LED is too high, even energy saving is difficult to promote. Therefore, how to maintain the advantage in price is the key for LED enterprises to participate in the rural market competition.

In 2017, the home lighting industry has been struggling and wandering. The biggest bottleneck is undoubtedly the channel. The first-and second-tier market quality resources are firmly grasped by the first-tier brands. The third and fourth-tier market investment costs are too large for many enterprises to have investment conditions. The main consumer market of home lighting is the third and fourth-tier markets. Home brands want it. Increasing sales share can only help distributors to develop township sales channels. To achieve "good quality and low price", on the one hand, to reduce manufacturing costs, on the other hand, to optimize channels to reduce operating costs, only by controlling costs, can we make greater concessions.

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