Discussion: LED lighting enterprise profit model is what?

In 2011, some of the lighting business malaise, breakout has become the consensus of everyone; it is often mentioned how to transform the lighting business issues. In recent years, rising prices of raw materials and upstream parts, coupled with rising labor costs, resulting in increased production costs. Moreover, the brand awareness of consumers, the cost of the distribution channel has been rising year by year, under the joint action of many factors, many lighting companies have put forward the slogan of transformation.

Before, I and some lighting business owners or executives have talked about before, some low-spirited lighting enterprises in 2011, breakthrough has become a consensus; after some media interviews, also often mentioned lighting enterprises how to transition issues. Therefore, in the development of lighting enterprises to transition now, I think it is necessary to explore several issues.

Discussion: LED lighting enterprise profit model is what?

What is the profit model of the enterprise?

In fact, the core of the problem can be broken down into three questions: who should earn money, take what to make money, how to make money. Perhaps a lot of lighting companies will think that a higher price of the product, the cost of compression point, the cost of a little lower, a little bit of daily savings, companies will naturally profit. If it is so simple, lighting companies have to talk about the transition?

To a home lighting companies, for example, in 2010 the domestic sales of more than 1 yuan to complete the sales, in the field of home lighting, it should be regarded as medium-sized enterprises. But further decomposed sales structure of the enterprise, you will find that the reality is so cruel: the company in 2010, the national new store is estimated at about 300, each store are hung, and due to the large number of engage in marketing channels resulting in a large backlog of channel inventory, throughout the year to the actual sales of less than 60 million yuan. The average annual sales per store may be less than 100 thousand yuan.

The store can be a good way to achieve profitability, from the point of view of the manufacturers, the company can rely on these terminal stores to get the company's continued profitability? These stores can support the future sales of 500 million yuan of this enterprise? If you want to do 1 billion, and how many stores need to open it? Personal view is that any one of lighting enterprises in the initial stage is to rely on this profit model, this is a necessary process, but after a certain stage of development, especially a lot of enterprises rely on this model to complete the primitive accumulation of capital, relying solely on the profit model, may be able to maintain sales status of enterprise, but to to achieve greater performance, rethink the problem of profit model.

What is the marketing model? This and the front of the "profit model is what? "A bit similar, but I still want to separate out, perhaps perennial in the marketing system reason. It is undeniable that nearly 90% of the lighting companies, are the production of the road; only a small number of lighting companies, began to take the road of brand management. And in the few enterprises to take the brand road, the basic mode of operation is also the main store model, hardware channel model and engineering model.

At present, Home Furnishing lighting industry by like a swarm of bees store model, or enter the hardware channels, but in fact, many companies because there is no corresponding ancillary products, enter these channels and then appear. A lot of business highlights it? To channel model is good? Innovation in the product model is good? Or a variety of marketing activities?