Dongguan LED factory 掀 "electric shock" agents do not dry

September 25, 2020

Since the beginning of this year, more and more Dongguan small and medium LED factories have opened flagship stores on major e-commerce platforms to develop sales channels. However, after a period of operation, many companies have found that due to different online and offline prices, the contradiction between online stores and offline agents is growing. As offline is still the mainstream channel for LED companies, experts suggest that if the LED industry really wants to embrace e-commerce, it must establish brand awareness, rationally share profit with distributors, and gradually unify online and offline prices.

LED business: self-built micro-channel platform extension channel <br> <br> With LED lighting products gradually enter the mainstream lighting, LED enterprise channel battle a house on fire. Renesas Optoelectronics (located in Changping), which previously focused on the production of automotive lighting, also launched its own LED lighting products this year. In the face of chaotic competition in offline channels, Reese has decided to specialize in online channels. According to the plan of Li Xueyong, general manager of Reese Asia Optoelectronics, this year, the products independently developed by the company will appear on the e-commerce platform and the WeChat platform.

Yingtong Photoelectric Lighting Technology Co., Ltd., located in Songshan Lake, has been “electric shock” for more than a year. Wang Jiancheng, chairman of Yeston Optoelectronics, told reporters that Yingtong Optoelectronics was launched in Tmall's flagship store last year. Since then, online sales have become an important channel for Yingtong Optoelectronics products. "It has been working for a year and it works very well." Wang Jiancheng said.

According to the person in charge of the Dongguan E-Commerce Association, “The data shows that the LED products sold through the e-commerce platform are on the rise. The company can use this platform to open up new sales channels and achieve dislocation competition with large enterprises.”

Price fight: agents after the threat of interruption of business <br> <br> electronic business platform in operation for some time, many companies have realized that, if not dealt with the interests of the channel's online shop and at a good line, it will face great Unbalanced market risk and channel structure.

"Because the agent inquired about the company's products online, the sales price is 20% cheaper than the offline, which directly caused the dissatisfaction of the agent, and even threatened to interrupt the agency business." A person in charge of a Dongguan company said frankly.

The person in charge of a company in Dongguan said frankly that the biggest advantage of online channels is that the price is cheap, but offline is still the mainstream channel for LED companies, which requires enterprises to balance the interests of online and offline agents.

Wang Jiancheng also feels the same: “To be an online channel, you must have a dedicated team, and the service and management must keep up. This is a big challenge for traditional companies.”

Experts suggest that the LED industry must truly embrace e-commerce, establish brand awareness, rationally share profit with distributors, and gradually unify online and offline prices.

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