LED lighting large rural market development space exploration

Affected by the environment, many lighting companies have focused their attention on China's vast third and fourth-tier markets. For first-line lighting companies, the first and second markets are almost saturated, and they need to rely on the third and fourth-tier markets to achieve breakthroughs in performance and improve their own development. For companies that are not first-line and have certain strengths, The high-quality resources in the second-tier market have been firmly grasped by the front-line brands. The potential of the third and fourth-tier markets is huge, and they are gradually being stimulated. Therefore, these powerful companies will consider doing something in the rural market.

So, where is the space in the big rural market?

First, urbanization stimulus. According to reports, the “National Plan for Promoting the Healthy Development of Urbanization” has been released by the National Development and Reform Commission, and participated in the preparation of the National Plan for the Promotion of Healthy Development of Urbanization, which was prepared by various ministries and commissions such as the Ministry of Land and Resources, the Ministry of Housing and Urban-Rural Development and the Ministry of Finance. The plan involves the construction of more than 20 urban agglomerations, more than 180 prefecture-level cities and more than 10,000 towns across the country, providing development ideas for new urbanization.

For the start of a new type of urbanization, it will also become a “life-saving straw” for many industries. Among them, LED lighting industry will significantly benefit from the advancement of new urbanization.

Urbanization and low-carbon energy-saving trends are important growth points for the LED industry in the future. The development of urbanization will bring development opportunities to LED companies. Relevant experts believe that the speeding up of urbanization will drive the development of infrastructure in urban and rural areas, stimulate investment, and stimulate consumption.

As a part of the building materials industry chain, the LED industry will have more market demand along with other industry developments, thereby stimulating the development of the LED industry and injecting fresh vitality into the LED industry. However, whether the LED industry can benefit from the mid- to long-term needs to be tested by the market, companies need to continuously improve the technology, services and other systems.

Second, real estate driven. At present, the focus of China's real estate market has shifted significantly to second- and third-tier cities. Affected by policies such as the “New Nation Five”, the first-line residential market was under pressure, and with the booming development of the county-level market and the increase in per capita income of the residents, they are expected to become the "blue sea" of real estate.

According to relevant data, real estate demand in county-level cities and townships in China will continue to rise in the next few years. The main consumers are local residents and migrant workers.

It is estimated that in the next 10 years, China's average annual residential "just needed" about 250 million square meters. This shows that the prosperity of the "big rural" real estate industry will bring new opportunities for LED lighting.

Third, product profits are guaranteed. Consumers in the third and fourth-tier markets are sensitive to product prices, but their enthusiasm for the brand continues unabated. Coupled with relatively first-tier and second-tier cities with developed information and concentrated brands, there are few products and brands available for consumers in the rural lighting lighting market. At the same time, in the selection of products, usually led by the construction contractor or decoration master, lighting products from the company's production plant to enter rural people, still have some profit margins, which is also lighting companies are reluctant to give up the third and fourth markets One of the reasons.

How is this market currently performing?

Energy-saving LED lighting is well-known, but most of the current lighting used in outdoor and public areas of the lighting, indoor lighting, especially home lighting in the first and second-tier cities have not yet been popular, three, four market performance can be imagined. Therefore, this market can only be said to be "potential shares." How to bring LED lighting into the homes of ordinary people is a headache for countless businesses.

With the rapid development of the tertiary and tertiary market economies and the improvement of people’s living standards, people’s requirements for lighting quality are also increasing. But relatively speaking, the consumption power of the third and fourth-tier markets is still insufficient. If the price of LED lighting products is too high, it is difficult to promote even if it is energy-efficient. Therefore, how to maintain an advantage in price is the key for LED lighting companies to participate in the third and fourth-level market competition.

China is a big country in agriculture. Today, rural households generally use incandescent lamps and energy-saving lamps. The market for selling 1 billion incandescent bulbs is in the third and fourth-tier markets. With the rapid development of the rural economy and the improvement of people’s living standards, farmers’ demands for lighting quality have also increased. In particular, since the introduction of the national policy of promoting energy-saving lighting, the government has further stimulated huge rural market demand. Here, "rural market" is not a geographical meaning, but represents a kind of consumption ability and level.

According to a survey by the reporter, at present, the rural market is still dominated by energy-saving lamp products. In some remote areas, incandescent lamps are still in use. The survey results show that light source and household products are more popular in the rural market.

After the New Year holidays, the staff of the lighting and all-media market returned to their hometowns and conducted a thorough investigation of the local lighting market. The information collected was all-inclusive, but it generally reflected a problem: LED lighting has not yet taken a large scale. In the tertiary and tertiary markets, the penetration rate of LED lighting in coastal counties and cities is higher than that in inland areas. The specific market conditions are summarized as follows:

1, lighting lighting stores are rare, lighting products and building hardware products mix and match sales. In Yanxi Town, Taihe County, Jiangxi Province, the reporter learned that if local consumers want to buy lamps and lanterns, they often choose to buy them in hardware stores. This has become a kind of inertial thinking. The local Chungen Hardware Store sells more lighting products and is well-known locally.

2. The online channels of the industry's first-line brands such as Oupu, Foshan Lighting, etc. have already penetrated into towns and villages, and the brand awareness of consumers has become stronger and stronger. Located in Zixi County in central Jiangxi, famous lighting lighting brands such as Op, Huayi, and Philips can all be found. The shops are located in the bustling area of ​​the county.

3, e-commerce has occupied a small share of the rural market. Thanks to the increasingly convenient transportation, logistics, postal services and other methods can boost the development of lighting and lighting electronic commerce. The survey found that the groups that generate online shopping in the rural areas are mostly young people who work outside the home and are led by them.

4, the surrounding city lighting market squeezed living space. For the county and township markets, the prosperity of the city lighting industry can not be underestimated, which also caused a large degree of customer diversion, and compressed their certain profit margins.

In addition, with the rise of LED agricultural lighting market in recent years, LED as a new type of lighting source can be used in agriculture, such as LED plant lights, bath lighting and so on. It is understood that plant lighting covers the whole growth stage of the plant from cultivation, growth to flowering. With the reduction of available land resources and the increasingly serious environmental pollution, planting vegetables and flowers indoors has become the trend of future agricultural development. Agriculture will also open up a broader market for LED applications.

How to operate the rural market?

According to the comprehensive survey results, the factors that currently affect the development of the rural market include the inconvenience of traffic, the rapid development of neighboring cities, the lack of attention paid by upstream enterprises, and the inaction of agents, etc. The above series of factors have a profound influence on the development of rural lighting industry. .

During the Spring Festival, the lighting person Guo Dawei investigated the rural lighting market in Kaifeng, Henan Province, reflecting the real situation and giving his thoughts. Guo Dawei released his market survey of rural lighting electrical appliances. The sample is for a hardware and decoration shop in the township of Kaifeng, Yi County. The survey results are as follows: 1. The rural decoration is close to the city and quickly approaches and the per capita living is spacious. Most of them are villa-like structures. Second, electrical outlets first step, branding, such as Feidiao, your school; Third, there are four lighting shops, decoration stores and sell lamps 5, Oupu first layout; Fourth, low-end flat-panel low-voltage lamps, energy-saving lamps and T8 Mainstream, LED lighting is in the trial status, product prices are expensive, LED bulbs retail price is 15 yuan; Fifth, rural areas are eager to brand, rural shopping increasingly brand; Six, the village contractor or decoration master led the direction of rural lighting consumption .

After investigating in the area of ​​Mugou township in the county of Kaifeng, Guo Dawei proposed a five-point operation strategy for lighting manufacturers to develop the rural market: 1. Specialized team operations; 2. Renovation, that is, architects, incentives; 3. Rural lighting energy-saving education. 4, targeted product development and positioning; 5, firmly grasp the Spring Festival, holiday and wedding season in rural areas.

Knowing the space, status quo, and influence of the “big rural market”, how do we do well in the rural market?

1. From the perspective of the enterprise, it is necessary to develop targeted products, strengthen brand promotion, and provide more services. Rural consumers are usually more “faceful, good-looking” and “quality assured and safe” are their appeal points. Because of this, rural consumers are more "superstitious" brands. Therefore, the enterprises in the countryside should be targeted when establishing channels, and they must be consistent with the peasants' consumption habits.

In terms of brand promotion, it includes wall advertisements and shop tricks (through important national highways of cities, counties, and towns, houses on both sides of the provincial highway; village entrances, village committees, canteens, etc.), cross street banners, and radio speakers. Implanting films in the countryside, caravan direct sales, and so on, are all effective advertising methods.

2. The agents should be targeted, allocate their energy equally, and cultivate the rural market. Local agents are the core force that directly promotes the development of the local market. If agents do not care about their distribution outlets, or if they do not, then the distribution outlets cannot “produce grain” for the general agent. In this way, they will Form a vicious circle. Third and fourth-level distribution points cannot be ignored either. Therefore, agents should pay more attention to distributors and make efforts in logistics, publicity, and service.

3, dealers should be broken down, gather consumers, timely dissemination of brand reputation. Local dealers should be the ones who know the most about local consumers. They can gather contractors, construction workers, and decoration workers from various districts and villages to help them recommend products and give them a certain amount of commission. On the other hand, doing services on a one-to-one basis is not difficult for rural areas.

Some industry professionals believe that it is still a long time before LED lighting really penetrates into the third and fourth-tier markets. The next 2-3 years will be the golden period for the development of the LED lighting industry. The major LED lighting manufacturers must not ignore the third and fourth-tier markets. The market prospect of large rural areas is indispensable.