Upstream and downstream information asymmetry in the LED lighting industry

Many people understand O2O, stay on the concept of online orders, offline services, and the development of O2O in the lighting industry? In this regard, Ou Pu Lighting China CEO Ding Long bluntly: At present, the channel maturity of the lighting industry has not yet reached the level of easy to control O2O. Ding Long’s explanations were fused into it, reflecting its nuanced understanding of the entire lighting industry. Traditional enterprises and channels are in urgent need of transformation. Compared with previous years, this year's lighting terminal market appears to be relatively low, reflecting the hidden worries behind the transformation of the entire lighting industry. It is worthy of every lighting person to ponder. In this regard, Ding said that the transformation is not only the subject of traditional lighting enterprises, just like traditional enterprises, the traditional channels also need to be transformed. Mr. Ding said that the current transformation of the lighting industry mainly faces three challenges: First, the so-called LED transformation does not mean a simple product transformation, but a corresponding transformation in the production system and management system. Second, the downstream information of the industry is slow to update. The third-line market is slower to accept new thinking, which makes the local dealers' business transformation relatively lagging behind. Third, dealers and customers will transform from a simple trading relationship to a full-service relationship. In the final analysis, the so-called transformation of the industry is only a superficial upgrade of products, but has not yet penetrated into the genes of enterprises. Therefore, in order to achieve transformation, enterprises must first achieve genetic modification. He admits that in addition to increasing LED production and sales, Oup's transformation is more inclined to change to the attitude of the service provider. Ding stressed that the most is the transformation to offline services. He said that the future of the lighting industry is not product technology, but extremely well-equipped services and solutions. Ding Long believes that the technology and quality of products will be universally homogenized one day in the future. Enterprises and distributors will not be able to win by simply selling products. Therefore, providing lighting solutions and services to customers will be the new competitive focus of the industry. The new way out for enterprises. The transformation should be systemic and then the product for LED transformation, Ding Long bluntly, behind the transformation of Optel LED is the result of the quality change of the entire system. The so-called transformation is not the simple realization of the company's full LED on the product, but before the LED transformation, the enterprise must first do a good job of bone marrow rebirth, blood replacement, and the transformation of the entire system of the enterprise, and then the product can follow. Ding Long said that most lighting companies are guilty of transforming products first, and then adjusting the enterprise system structure. The latter transformation method will inevitably lead to many passives. It is understood that the sales of Op Lighting's various channels this year are steadily rising, which is essentially due to the efforts made in the LED transformation in the past two years. Ding Long revealed that Ou Pu LED lighting has accounted for more than 50, which also indicates that Op Lighting has made great breakthroughs in LED transformation. In terms of channels, Oupu’s most recent attraction is: In the Double Eleven Shopping Festival, it achieved a sales performance of 94.43 million yuan, which is the upgrade, update, and response speed of the company according to consumer demand. The result of seamless collaboration between the teams, and these are the key to the successful construction of the online platform. At the same time, Oupu leads home lighting, which is also the basis for the rapid development of Optel. When it comes to home lighting, Ding Long emphasizes: From the aspects of products and services, it is closer to the changes of consumers, which is the direction of the further efforts of Oupu Home Lighting. For example, home lighting products should adapt to the needs of consumers, and change to intelligent, stylized and diversified; such as the establishment of a more complete service system such as easy replacement of lights and entering the community. In addition, Ding Long also revealed that the Ou Pu commercial lighting business is also rapidly increasing. We have signed purchase agreements with many well-known domestic and international catering and clothing brands such as Adidas. We provide them with lighting environment solutions that meet the customer experience. For this reason, our commercial lighting has also been recognized by more and more customers. Distributors are always the largest wealth of OP in the lighting industry. Due to the information asymmetry in upstream and downstream, upstream enterprises and downstream distributors often lack timely and effective communication, which makes the industry stereotype a certain phenomenon. . In an interview, Ding Long said frankly that in the Op-system, there are indeed a few people who have cracked in cooperation due to the discomfort brought about by the recent reform of the Opus, thus forming a stereotype for Op Lighting. He said, for example, the cooperation between enterprises and dealers is like marriage, and marriage is a common advance and retreat for both parties. Once one party stops and the other party is brave, one party cannot understand or cannot follow the other party's pace. There will be contradictions and even crises in marriage. Ding Long said that this is not only the subject of the Oup system in the process of transformation, but also the transformational problem of each enterprise, and it is also an important threshold for channel reform. In view of this, Ding Long solemnly clarified the cooperation concept of Op, which is intended to set aside the fog between Obp and its dealers. The dealer system has always been the best partner of Op Lighting, and it is also the biggest competitive advantage and wealth of Op Lighting. For each dealer, Op Lighting always adheres to the principle of not giving up, and gradually guides dealers to realize their own changes in the big wave of industry transformation, change business philosophy and sales methods, and thus achieve a win-win situation with Op. Ding always said. Only companies and dealers have the same pace and concept, and deep integration, a variety of new sales models will be possible, in order to ultimately succeed, as in the O2O model, the implementation is inseparable from the company and dealers in all aspects. Close cooperation, from logistics management to large inventory allocation. Ding Long concluded.

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