Traditional enterprises: maintain production capacity in the off-season
Langtai manager Han Jinliang
Langtai's sales this year have remained stable compared with the same period last year, but sales in June fell slightly compared with January to May because this year's off-season arrived earlier than before. Moreover, the overall market situation this year is not very prosperous. Although the market has recovered at the beginning of the year and industry activities have been wave after wave at the beginning of the year, the entire industry has gradually become colder from the end of April to the beginning of May.
Since 2014, the real estate market has not been very prosperous. First, the growth rate of real estate investment dropped in the first quarter and the housing sales area dropped sharply. Then, the real estate inventory situation also deteriorated significantly. The downturn in the real estate market affected the market demand in the lighting industry. Judging from the feedback of Langtai's dealers, the terminal market situation is not optimistic, and dealers' replenishment volume is not large, which may be due to the impact of e-commerce. Now many companies are preparing to develop e-commerce channels. Of course, e-commerce is a trend, but it is not yet mature at present, and it will take time to develop and grow.
We will experience the off-season every year, just keep a calm mind and treat it. In the off-season, every company's strategy is different. We mainly rely on stores to receive orders, but we will not consider promotional activities for the time being, because they have little effect and the effect is not obvious. In addition, we will not do inventory. The current market is unstable, and if we do inventory, it will increase risks. In terms of production capacity, we will maintain a stable state, or develop other products and increase product lines
There will be no inventory in the off-season
Mo Haihong, Dengzhimei Lighting Manager
Compared with the situation in the first half of 2014, the sales volume in the so-called off-season from July to August will not deviate too much. Generally speaking, the market situation in recent years will make us lantern people excited. As the industry develops, our business will naturally come; but it will also make us negative, because the low-price vicious competition in the industry has disrupted the development order of the market, and we will also feel sad about the successive incidents of running away. This industry is getting harder and harder to do, and it is getting more and more sad.
Dengzhimei mainly produces modern crystal lamps, and the new product update cycle is one month. First, the market changes too fast, and we must keep up. Moreover, crystal lamps are about fashion, and the styles must keep up with the trend and remain novel, otherwise we will fall behind. Secondly, the market competition is fierce. If others start selling new crystal lamps and you are still stuck in the old style stage, you will miss the opportunity to increase sales, so we will not choose to keep inventory. Thirdly, we must understand consumer needs and develop new customers on the basis of ensuring profitability.
During the off-season, Dengzhimei will consider opening an open market to add another sales window and a platform to promote products.
LED companies: Whether it is light or not, the key is up to you
Li Zhiwei, deputy general manager of Qunfujia Lighting
In fact, the off-season is closely related to a company's annual plan, so whether the off-season is light or not depends on you.
Sales volume is first thought of and then made. If you want to make sales, you must first understand two questions: First, where is the room for future sales growth? The second is which tasks can generate sales, especially those that can generate sales continuously.
Some companies lack systematic sales planning, resulting in falsely high sales data. In the traditional off-season, actual sales will decline, and there is a large deviation from the monthly sales estimate; another point is the lack of analysis of customer groups. Whether the off-season is light or not mainly depends on the actual situation of the company to make a full-year sales plan. As far as the situation of Qunfujia Lighting itself is concerned, the annual sales estimate will be analyzed based on the sales situation in recent years and used as reference data. In fact, this approach is correct. Qunfujia's sales in the first half of this year are very close to the estimated figures, and the deviation is very small.
The product update cycle of Qunfujia Lighting is 45-60 days. The current market competition is becoming increasingly fierce, so new product releases must be ahead of similar products, usually about one month in advance. Recently launched new products include high-power LED low-voltage lamps, high-power LED acrylic panel lamps, all-acrylic lamps, and wrought iron special-shaped lamps with a new and stylish look. Among them, the iron special-shaped lamps are more individual in style and are suitable for small and medium-sized homes in large and medium-sized cities. The target consumer group is consumers in the 1980s and 1990s.
In addition, Qunfujia will conduct internal outdoor development activities within the company in early July to bring together various departments of the company to strengthen corporate culture and team cohesion; in August, a dealer conference will be held and an autumn new product launch conference will be held. In addition to market expansion, marketing center staff will visit key areas across the country, such as South China and Southwest China. Marketing must be done step by step. It is said that you can't eat hot tofu in a hurry. And all this is preparation for the start of work in the second half of the year.
The off-season for export sales is the peak season for domestic sales
Guan Jin, Sales Director of Sylvia Electronics (Suzhou) Co., Ltd.
Xivia mainly engages in export sales, which are mainly concentrated in the European market. The off-season for export sales is the peak season for domestic sales. The off-season for domestic sales is from July to August, and the off-season for export sales is the opposite. In September-October, during the off-season for the export market, we will carry out product innovation and transformation. The traditional off-season in the domestic sales market has no obvious impact on Sylvia, whether it is the domestic or export market, because judging from the increase in the number of orders and the number of customers, it can be seen that Sylvia's sales increased in the first half of 2014.
Xivia only launched the domestic sales market in 2013. At present, domestic sales are mainly based on exhibitions. It carries out marketing, brand promotion and sales through exhibitions. Now it has also opened a store in Xiaolan Jiuzhou City, Zhongshan. However, domestic sales do not mainly rely on orders from stores. Stores mainly play the role of product showrooms, windows for brand promotion and platforms for customer negotiation and cooperation. In the peak season of October, we will participate in the Hong Kong Autumn Fair. Because Sylvia's brand positioning is different from mass-market products. Our products are simple, fashionable and cost-effective. Therefore, it is easier to find customers who meet our product positioning at the Hong Kong Fair.
Now, for domestic sales, we have built an e-commerce platform on Tmall, but the effect has not yet reached expectations. We will make adjustments to the e-commerce platform construction plan. For example, in the future, Tmall will serve as a supporting platform. After adjustment, we will build a network-wide e-commerce platform, such as Vipshop, JD.com and other professional transaction e-commerce platforms. Although e-commerce is not yet popular enough, its impact on traditional channels cannot be ignored. There are now more and more stores in the industry, and they are even in a state of saturation. The number of people in the stores is also getting smaller and smaller. It can be seen that the emergence of e-commerce has caused traditional stores to shrink rapidly. Therefore, in the future, we will focus on e-commerce channels and supplement traditional channels.
Silvia also has another brand, FARO, which is derived from the Spanish brand. FARO currently has sales outlets in first-tier cities such as Beijing, Shanghai, and Guangzhou, because the FARO brand is positioned at the high end, and consumer groups in these first-tier international metropolises generally have high spending power.
The off-season is the rule, and the slowdown in growth is normal
Pan Gaofeng, general manager and chief engineer of Venzhuo Power
The so-called off-season exists objectively no matter which industry it is in, and it is also the law of the entire lighting market. Regarding the off-season, each company has its own attitude. Some companies say that the off-season is not weak, and some think that the off-season is very slow. Both opinions do exist, because no matter which one is said, it is due to the actual development of the enterprise itself.
Whether it is the sales volume compared with the same period last year, or the sales volume in June this year compared with January to May, until now, Wenzhuo Power has achieved relatively stable growth. However, the entire market will be relatively weak from July to August this year, and our company expects it to be flat or have a smaller growth; in general, the overall market is still okay, but the growth rate has slowed down, such as the case of Wenzhuo Power Supply.
Off-season promotion: 3 points for 100,000 yuan back
Yan Shimei, general manager of Jiangmen Yanchuang Lighting Co., Ltd.
Yanchuang Lighting has three product lines: commercial lighting, home lighting, and engineering lighting, with commercial lighting being the mainstay. The main products are LED bulbs, LED ceiling lights, LED downlights, LED track lights and COB light sources. LED bulbs are the flagship product, so we stock some LED bulbs during the off-season.
In the current industry, product updates are generally very fast. Some update products once a month or quarterly, but Yan Chuang is different. Yan Chuang will decide the speed of product updates based on his actual situation. Moreover, the market is sluggish this year, and he believes that sales will be even weaker in the off-season this year. Then, in order to stimulate the growth of sales and enhance the confidence of dealers in off-season sales, Yanchuang will formulate preferential product policies. For example, if a dealer purchases a shipment of 100,000 yuan, we will give 3 points back.
During the off-season of July and August, Yan Chuang will consider expanding the market and try to enter the terminal market. Firstly, there are potential sales in the terminal market, and secondly, it can reduce the cost of intermediate channels. We are currently mainly engaged in the retail and dealer channels, and we also do some engineering channels. The engineering channels are generally introduced by customers. With the arrival of the peak season in September, brand and market promotion will be carried out, and e-commerce will also be built. Currently, the Alibaba platform is being considered.
Data analysis
According to sample survey analysis, 75.00% of traditional and LED companies have maintained an increase in lamp sales this year compared with the same period last year, 12.00% have remained flat, and 13.00% have declined. Among them, 43.00% of small-scale enterprises have a growth rate between 15.00% and 20.00%, and 57.00% of medium-sized and above enterprises have a growth rate of 25.00%-30.00%.
Judging from the comparison of sales between June 2014 and January-May, growth and decline were equally divided, with growth mainly concentrated between 20.00% and 25.00%, while declines at 20.00% accounted for 94.00%, followed by 10.00%.
Judging from the industry market performance in the first half of this year, 50.00% believe that sales in July and August will be similar to those in the first half of the year, while 20.00% are expected to increase sales in July and August, and 30.00% are expected to decrease. Among the 20.00% of companies that believe that sales will increase in July and August, three reasons are the most prominent: first, the market is recovering faster at the beginning of this year than last year; second, market demand is still growing; these two factors each account for 40.00%; third, new outlets or new customers are increasing, accounting for 20.00%.
On the contrary, the reasons for the expected decline in sales in July and August are mainly reflected in three aspects: first, 57.00% believe that the market is sluggish this year; second, 29.00% are due to poor market conditions and reduced dealer orders; third, 14.00% believe that customers have a wait-and-see attitude towards new products.
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