LED lighting retails in the cold, no electricity supplier

April 09, 2023

[Source: "Engineering LED- lighting market," 12 issue of reporter / Xiongyu Heng]

On November 11th, this day, dubbed "Single Day", has become a veritable "online shopping carnival."

This year's "Single Day", the carnival is still. According to statistics, more than 20 major e-commerce companies in China achieved an overall sales of more than 20 billion yuan on the same day, achieving a major leap on the basis of last year. Among them, the e-commerce company Suning easy to buy 1 billion yuan, Jingdong Mall 600 million yuan, Taobao more orders 105.8 million, sales of 19.1 billion yuan topped the list, set the e-commerce sales myth.

The cost of building a platform in Taobao is relatively low, and the consumer groups are very large. “E-commerce and wealth creation” is highly respected by many merchants.

However, the current LED lighting enterprise terminal sales are cold, channel construction is difficult, and the focus of its channel is constantly tilting toward the e-commerce platform. The B2C platform for the retail market has sprung up.

"For LED lighting companies, e-commerce platforms are suitable for volume, even small profits but quick turnover is also profitable." Chen Qikai, general manager of Schmat Lighting, mentioned that according to relevant statistics, the sales volume of a certain 3W bulb during the National Day can reach tens of thousands.

Usually, the means by which e-commerce attracts consumers lies in discount promotions, and LED merchants are no exception. Open the Taobao web page, information on LED lighting products price reduction promotion emerges endlessly. The reporter noticed that the promotion of Taoyuan.com in Shanghai Hanyuan Lighting is amazing. In nearly 100 pages, among the hundreds of LED lighting products, over 80% of the products are in promotion.

“Although many LED lighting companies are experimenting with e-commerce, the actual results are debatable.” Zhang Xiaofei, CEO of Gaogong LED, said that after all, the current LED lighting channel is mainly based on engineering, and the retail market has not been fully opened.

In this regard, Tsinghua Tongfang Vice President Wang Lianghai is more optimistic. At present, Tongfang LED lighting products are selling well on new e-commerce platforms such as Jingdong, eBay and Taobao. Due to the low operating costs, the price of e-commerce promotion is lower than that of traditional channels. For example, the price of 3W-4W LED bulb is only 20 yuan, the sales volume is relatively large, and the profit is also considerable.

The popular e-commerce market

Currently, e-commerce channels are mainly divided into two categories: B2C and B2B. Among them, B2C faces consumers, including Jingdong, Taobao, eBay, Amazon, Gaogong LED Mall, etc.; B2B is mainly for customers, including Alibaba, China Electronics Manufacturing, Global Online, etc. LED lighting companies mainly focus on retail sales for the B2C platform.

In the above-mentioned e-commerce platform, there are many merchants and homes that are stationed in Taobao. Jingdong Mall and Amazon are close behind.

"Taobao's consumer groups are more complicated, leading to diversification of LED lighting businesses, and product prices are also more messy." Tan Jian, general manager of Laiwei Optoelectronics said that compared with Taobao, Jingdong Mall focuses on consumer electronics. The audience is relatively narrow. However, consumers' trust in Jingdong Mall is much higher than Taobao.

In terms of fees, the current occupancy fee for Jingdong Mall is 6,000 yuan per year, and then the security deposit is 30,000 yuan. If you enter the e-commerce district of Taobao Tmall and other brands, the resident fee will be 20,000 yuan per year, and another 100,000 yuan will be paid.

The brand mall guarantees 100,000 yuan, but it seems to be insignificant for the construction of millions of physical stores. At the same time, the annual fee of 20,000 yuan, the operating costs can be described as low. At present, LED lighting manufacturers are accustomed to the e-commerce channel. They do a good job in product and website maintenance in the early stage, and expand the brand influence. Later, several employees can operate easily.

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