LED lighting industry four channel model brand agency model is still the mainstream

Brand agency model: it is still the mainstream no doubt, even in the channel win, the terminal is king today, the brand agency model is still the most common LED lighting industry, the most common channel model. The so-called brand agent refers to the manufacturers of goods through multi-level agents, after several changes to the final consumer. The ownership of goods still belongs to the factory, in the agency business agents, manufacturers to attract customers, solicit orders and contract, and from buy low and sell high profit price.

It is understood that the current LED lighting industry continues to follow the four channel model: brand agent model, direct mode, engineering model and network marketing model. Different types of products in different stages of development, the channel model used by enterprises is not the same.

Brand agency model: it is still the mainstream no doubt, even in the channel win, the terminal is king today, the brand agency model is still the most common LED lighting industry, the most common channel model. The so-called brand agent refers to the manufacturers of goods through multi-level agents, after several changes to the final consumer.

The ownership of goods still belongs to the factory, in the agency business agents, manufacturers to attract customers, solicit orders and contract, and from buy low and sell high profit spreads. Before the emergence of brand agency model, LED lighting industry is in a state of bulk operations.

Just a simple business relationship between the manufacturers and merchants, basically no after-sales service. Due to the high cost of manufacturers around the purchase, when wholesalers will be fixed as few manufacturers purchase. At the same time, with the development of the industry and competition intensifies, manufacturers began to select high-quality businesses, trying to stabilize the quality of the business, to promote the frequency and quantity of merchants.

So, start a multi item production, conditional credit, customer service return rate. As a result, this time the relationship between wholesalers and manufacturers on a relatively stable, although it is only a trading relationship, but the cooperation has a certain continuity and mutual cooperation. Then, with the further development of LED lighting industry, on the one hand, manufacturers of products and styles gradually rich, almost exclusively to meet the needs of wholesalers; on the other hand, agents also require regional protection. Thus, LED lighting industry brand agency model came into being.

Brand agency model has a unified image and a certain brand appeal, businesses do not bother to find sources. Some manufacturers provide training for businesses and business operation support, but manufacturers of businesses also have a set of strict system requirements, such as image display, distribution and settlement etc..

After entering in 2013, the brand store model increasingly prosperous. The store has a good brand image display, product categories and styles are more, the price is relatively stable, is conducive to the manufacturer's brand building and timely access to terminal sales information. These unique advantages allow LED lighting manufacturers have strengthened the construction of the store. However, at present, because many manufacturers are not in place, to understand the brand monopolized pattern real product line is thin, lack of professional marketing and service team and other reasons, LED lighting company store mode still exists weak profitability, cry up wine and sell vinegar phenomenon, store mode in the LED lighting industry is not tepid.

Direct mode: when the enterprise develops to a certain stage, the brand becomes the inevitable demand of the enterprise. However, in the process of cooperation with distributors, more or less will have some friction in the cooperation. Sometimes because of different ideas, different interests, but also to the development of a number of obstacles. Manufacturers set up outlets can get rid of the dealer control, reduce the loss of intermediate profits. First of all, competition raise the terminal operating costs, direct channels can reduce the cost of circulation so as to ensure that the terminal cost advantage; secondly, direct channels can refine the successful profit model to replicated nationwide; thirdly, direct marketing channels to get rid of the barriers intermediate channels, brands can take control of the terminal, more flexible autonomy strong, so that the terminal operations become more refined, more market operation plan and system; finally, the direct channel is more conducive to brand management and maintenance, is conducive to brand long-term development.