E-commerce wind strong LED lighting agents in the "dual track system" to find a living machine

E-commerce has become a topic that cannot be avoided in the whole industry chain this year. While increasing the efforts of e-commerce channels, enterprises are looking for opportunities to cooperate with offline dealers. As a traditional LED lighting agent, how to face this “e-commerce wind”? The author visited the East China lighting market and had an in-depth exchange with Zhong Linqiang, the general manager of Hangzhou Luofeng Lighting Appliance Co., Ltd.

Question: What is the change in sales this year compared to last year? Analysis of the main influencing factors?

Zhong Linqiang: This year's sales have dropped by about 20% compared with last year. According to the operation of the store, the following reasons are analyzed. First, due to the regulation of real estate, there are fewer people buying a house. Affected by the economic environment, last year's buying of houses (prospective housing) has a small turnover, and this year's delivery of housing is small. Naturally, the decoration is correspondingly reduced. If the situation of buying a house in the second half of this year will pick up, next year, the piece of home decoration materials will show a spurt development, so this business has a cycle cycle principle.

Second, Taobao shock: the price is low, users buy more online, there will be less to the store.

Third, the scale of the decoration company: the development of the hall, the network of materials, including building decoration materials, all the hall, the customer has signed all the materials at the time of signing the contract, switches, auxiliary lights.

Fourth, home improvement work equipment: all done fine decoration, Green City, and Vanke, Vanke has canceled not to do the embryo, only hardcover, home improvement this piece is less.

Question: What are the solutions to the current status quo?

Zhong Linqiang: The ancients cloud: the poor will change, the change will pass, this sentence applies to the current dealer operating mode innovation. As far as Luofeng's business is concerned, there is a certain advantage in the location and brand of the store. In addition, the replacement is fast and the processing is fast, so the situation is not the worst. The traditional retail model takes the business as the main business model, but the times are improving and it is necessary to become a business. For example, communicate with some project managers and industry designers to develop more sales channels. Such as European lamps, the main high-end market, the main channels are mainly designers. In the early stage, there will be certain channels to precipitate. After the designer channels are mature, the number of projects will gradually increase.

Question: Is it trying to cooperate with the property company? Will it be promoted to the "home" door?

Zhong Linqiang: I once reached a cooperation with a property company in a certain district. I used about 200 square meters as the stagnation point. With three years as the cooperation period, the entire decoration can be basically completed in three years. Then the question before us is: If you only sell lights in three years, then these three years are white. So we thought about reaching a consensus with the first-line brands such as home building materials (cabinet, tile, bathroom, integrated ceiling, household appliances), this idea coincides with the various manufacturers, and has received strong support, from image display, showcase support etc.

Taking the integrated service provider model as a starting point to create a small home store. With the high degree of symmetry of information and consumers becoming more rational, we have worked hard on the operation of the store. Guarantee several advantages: First, the same product, reduce profit points. Second, strictly control the quality of products; third, 24-hour service, as long as the products out of the store have problems, 24-hour service is in place.

Achieve a win-win situation with diversified development; gain word of mouth with professional and meticulous service.

Question: Have you ever thought about opening a store online? Increase sales channels.

Zhong Linqiang: I have already done e-commerce for nearly two years, but there are the following problems when doing e-commerce: First, the company does not agree. Many companies face the tough attitude of dealers doing e-commerce. If you do e-commerce, you will cancel the dealership. The online business is just beginning, so dealers are not willing to take risks. Second, there is no profit. Involved in e-commerce for nearly two years, daily delivery and packaging, sales volume is also 8000 / day, more than 200,000 in January, more than 200,000 gross profit only earned about 3,000 yuan, even labor, packaging, return goods are not enough.

Question: Do you consider online cleaning?

Zhong Linqiang: We mainly do lanterns and commercial photos. In total, the cost of taking pictures and production is not enough. The promotion cost and the cost of processing the tail goods are extremely unbalanced. To give an example: online promotion, users need to pay for each click on your product. After clicking, the customer will first ask about the product. If there are 100 people who click on your advertisement, you will have to pay more than 2 pieces per click. The advertising fee, 100 people is more than 200 pieces, the inquiry rate is only 5-6%, according to 10%, more than 2 pieces here more than 20 pieces, in fact, we only need 5% here actually need to pay 30-40 pieces, and then Only 1/3 of your chats (100 talents and 1.5 people) are sold with you. My product price is more than 2 pieces per piece (because it is a clearance product, the price will be very low), for example, an average person can buy 10 Can only sell more than 20 yuan, but the promotion fee should be 30-40 pieces, even if it is not enough. There is also promotion, peers tens of times a day, the cost of one day is quickly used up, 2 more expensive, Philips has a word when the highest click, 28, also done. How much sales do you have on that day? Click on 100 people, 2800, 6% to consult, 6 people to consult only 2 people to buy, can only be lost. Because it is the tail goods, there are not many things, too hard, and it is handled on the site.

Question: What is the current relationship between manufacturers and merchants doing e-commerce? Does the manufacturer have any support policies?

Zhong Linqiang: The company's previous sales were mainly divided into wholesale department, engineering department, domestic sales department and foreign sales department. Now it is different. It is divided into two departments. All the previous departments are packaged as channel department, and then another e-commerce department. In the domestic marketing, foreign marketing, domestic marketing is divided into engineering department, circulation department. Now the network merchant channel has risen to the same level as all channels, directly from a department managed by the headquarters. The network provider channel reports directly to the headquarters, and the branch offices are incapable of managing it. The headquarters directly supports it. Like Opt, they have already standardized the requirements of the flagship store, which is directly authorized by the headquarters, and the products have been staggered from the offline. The United States has also done this, but also engaged in online, it is also staggered, the product is not wrong, the entire marketing management team can not be staggered. At present, some brand entities are also doing online, but it is different from the online authorized flagship store. The products are different, but the price is similar. Online products are sold for 60 pieces, and the line is just stuck at this point. The batch is 57, 58 and the flagship store sells 60, so you can only sell 60. A large number of online speculations are not making money. In fact, they don’t make money. The online price is 60. The cost is not 57, but 30. But online clicks and promotion require money, need to invest, no profit, how to invest, no investment. Bigger?

postscript:

The author summarizes the confusion of dealers in the East China market: first, the dealers hope to have a platform and brand that is guaranteed and reliable, and secondly, they can find a platform that matches the dealers and provides certain service support. Third, there can be a system and model for making money. Fourth, I have been doing business for decades and suddenly I don’t understand this market. I don’t know which brand can make him make money and develop. Fifth, dealers don’t know how to do today’s market because they used to be business. There are customers sitting there, because the annual real estate prices are growing, the business is increasing, and now the market is shrinking. Many engineering companies and e-commerce companies are squeezing their retail market, they don’t know what to do now.

After the interview, Zhong Linqiang expressed his helplessness in doing e-commerce for upstream enterprises. Resellers are restricted to upstream enterprises, and they are waiting for the e-commerce channel. Only in the gap between the “dual-track system” of enterprises, they are looking for the last line of life. During the visit, many merchants said that e-commerce is not a trend, but a fact.