Real case: how do LED lamps sell hundreds of millions of sales?

In the northern Anhui city of Suzhou, there was a small county town named Dangshan, where Wang Shizhen began his lighting career in the early 90s of last century. At first it was just a small hardware store, selling lights, and selling wire and cable, switch socket, door lock and other hardware accessories. Later, in order to seek greater development, Wang Shizhen went to Suzhou, and in 2009, he turned to Hefei, the capital of the provincial capital. At that time, Hefei's economy was maintaining a high speed of up to 17% of the GDP. Wang Shizhen took advantage of this good situation and managed to get a steady foothold in Hefei. At present, Wang Shizhen has been a provincial agent for several famous lighting brands, with thousands of square meters of warehousing and logistics center, with annual sales of hundreds of millions of yuan.

Brand charm, joining the beauty

The cooperation between Wang Shizhen and the lighting of the United States began in 2011.

Talking about the cause of cooperation with the United States, Wang Shizhen replied: "lighting is a low brand and low concern industry compared with household appliances, IT, fast products and other industries. Lighting brands are generally lack of influence in the public consumers. Even if it is a leading enterprise such as OPPLE and Rex, the common people do not necessarily know. "

"But the beauty of the lighting is different. The "beautiful" brand influence has gone deep into the thousands of consumers, in villages and towns, in rural areas, even if the farmers with low cultural level know the "beautiful" brand. The beauty of lighting, with other lighting enterprises can not compare the brand advantage. At the same time, as a hundred billion level home appliance carrier, the American group also has a strong capital strength, advanced management experience and strict quality control.

And the United States of lighting for more than four years of cooperation, Wang Shizhen on the quality of the products, after-sales service and other aspects of the United States have shown a high degree of recognition, operation is also a stable operation. In 2014, the lighting sales of the United States reached about 10000000 yuan. In the first half of 2015, the performance of about 15000000 yuan has been completed. It is expected to reach 2500-3000 million yuan in the whole year. That is to say, the sales of the Anhui lighting area in the United States will be expected to achieve 50% to double growth in the large environment of the overall domestic lighting market in this year.

The two secrets behind the growth of the counter trend

In 2015, influenced by the macroeconomic environment, the impact of e-commerce and the ecological changes of the industry, the lighting market has entered an unprecedented glacial period. According to the research data of the ancient town lights, the market sales are generally down by about 30% in the terminal. And it's not a chance to fly in the Anhui market.

According to Wang Shizhen, according to Wang Shizhen, facing the white hot competition and the pressure of transformation, the lighting of the United States has actively carried out two aspects of work in the Anhui region: one is to strengthen the distribution, and the two is to embrace the electric business enthusiastically.

Strengthen distribution and refine terminal

In the past, Anhui was an extremely easy place to be fleeing. The northern Linyi, the Northwest Zhengzhou, the southwest Wuhan, the South Changzhou and Nanjing, the surrounding large logistics wholesale bases and the lamps and lanterns market will be surrounded by Anhui, the phenomenon of channeling is more prominent, the whole market is fragmented. In recent years, with the rise of Wang Shizhen's large local distribution and the expansion of brand influence, the phenomenon of channeling has been basically solved.

In Wang Shizhen's view, the beauty of the lighting has a relatively perfect regional protection system, which is conducive to the protection of the interests of the channel merchants. For the operation center, it is necessary to strengthen the depth distribution and service ability of the county and county market and refine the terminal.

As a Wang Shizhen starting from the county store, he has a good understanding of the consumption patterns, consumption preferences and the survival state of the distributors in the township market. He not only increased the distribution input, strengthened the service delivery capacity to the terminal, and carried out meticulous market development, maintenance, service and management to the terminal. We are now working on the intensive cultivation of the sales channels, and setting up a credit system with the long-term cooperative businesses to provide the necessary help for the businesses with financial difficulties.

Embrace e-commerce, distribution and win-win

The era of e-commerce has come, "O2O", "Internet +" and other concepts of great heat. According to statistical data, in 1-12 months of 2014, Taobao (including Tmall) sold all kinds of lighting appliances (including lamps and Guang Yuan) up to 21 billion 700 million yuan, a full increase of 20 times more than the sales of 1 billion yuan in 2011. With the post - 1980s and post-90s, more and more favors online shopping, and Wang Shizhen is also actively engaged in the business.

"In 2013, we began to try e-commerce, after the two years of exploration, now on the business model and operation have been more understanding, online sales are starting to start, and now the monthly sales of 2 million yuan has exceeded. Wang Shizhen said. It is understood that at present, the American source electric has opened a store in Tmall, the main beauty of the lighting of the LED ceiling light, LED desk lamp, LED bulb lamp, LED tube lamp and light belt, switch socket and insert and other products.

The cost of e-commerce is up to 30% compared with the operating cost of 8%-10%. But Wang Shizhen believes that the direct face of terminal customers by e-commerce is not only conducive to enhancing brand influence, but also based on mass data for consumer research. In order to avoid line - line conflict, he separates the products of two sales channels. At the same time, in order to protect the interests of downstream distributors, Wang Shizhen also established a mechanism to share the interests of e-commerce sales with distributors.

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