May 31, 2020

Behind the "up" sound

Core point of view: Qiu Jianwei wrote: Lu Zuhui entered the 2008 New Year, and the series of products of lighting companies such as NVC, Langeng, and Pinshang successively raised the price, ranging from 10% to 15%. This move indicates that the lighting industry has been planning for a long time. The market strategy has quietly detonated. Industry experts are delighted that this move is very likely to be a precursor to the industry's entry into the mature stage or the national brand's move toward international brands.

In recent years, the total cost of business operations such as marketing, raw materials, and human resources has soared, but the price of lighting products has been forced by the pressure of market competition. Some of the brand-name companies are trying to control costs to ensure profits, and they are willing to cut corners and damage consumers. In order to seize the market, some rising brands have to adopt low-cost strategies and struggles, and the entire lighting industry is in a state of extreme instability.
Previously, because the enterprise brand building was in its infancy, the manufacturers had not formed a strategic alliance, and there was no community of interests that formed a symbiotic and co-prosperous. At the same time, there were many enterprises in the lighting industry, and dealers had a large choice in product agency, so As far as the dealers are concerned, the manufacturers are in a weak position. Even if the cost is raised, they are not willing to raise prices. They are afraid of inadvertently offending the dealers, and they are both off and on. Therefore, most of the price increase problems are handled through the replacement of products.
Nowadays, brand enterprises dare to open up their prices so openly, reflecting four gratifying phenomena from a deep level: First, lighting consumers have become mature and rational, and their brand consumption awareness has been significantly improved, calling for the arrival of high quality and high quality era; Second, dealers' awareness of brand management has increased. They have begun to recognize the importance of moving forward and retreating with brand manufacturers in the process of meeting the changing needs of consumers. Third, manufacturers have achieved certain results in brand building and channel expansion. The influence in marketing is gradually weakened, and the strong discourse power of the brand is forming. Fourth, each link of the entire lighting industry chain gradually forms a benign interaction.
Due to the asymmetry of information, a large number of small and medium-sized enterprises in the past rely mainly on the ignorance of consumers, and report the sky-high price to obtain short-term profits. As the market competition continues to intensify, in the past two years, everyone has gone to the other extreme to “small profits but quick turnover”. For the blind, low-priced dumping, after hitting the bloodshed, there is no money to buy "Yunnan Baiyao", the market has not formed a pattern, but there has been chaos.
In contrast, companies in developed regions and countries such as Europe and the United States, both at home and abroad, have tried to guide consumers through maturity through the “four highs” (high taste, high quality, high service and high price). Get the maximum benign sustained profit. Although "special offer", "big sale" and so on are almost out of their reach, they are still in the international market, and their days are very hot.
Therefore, our lighting companies should learn from the German concept of "Seiko", the industrial products as art, and the lighting products as art. Of course, before this, companies must first complete the cultivation and accumulation of “five products” (quality, brand, taste, character and conduct).
All in all, the price increase is the only way for the lighting industry to move towards industrial upgrading competition; the price increase is a powerful internal driving force for the industry pattern; the price increase sounds the assembly number of “five products” as the new competitiveness, and the lighting industry is about to be announced. We are welcoming the "four highs" high-level competition era.
Some people worry that this price increase will cause some businesses to abandon cooperation, but more people believe that price increases are conducive to enterprises to optimize customer resources, which is more beneficial to the long-term development of enterprises. China's Nanpai clothing representatives Humen Songying, China's container giant Shenzhen CIMC and Zhejiang clothing tycoon Shanshan, etc., they are the big winners of "price increase." Take Song Ying, for example, before 1998, Song Ying shirts sold for 30 yuan / piece, business is booming, agents all over the country, annual sales of 200 million yuan. This year, Songying adjusted the strategy to assist the high-end market, the product price increase, each shirt sold for 300 yuan, the original agent almost all away from him, business plummeted, but the new positioning of Song Ying quickly won high-end customers The recognition of Song Ying’s annual sales has reached 800 million yuan, and many provincial-level figures wear pine eagle shirts. The successful price increase of Songying apparel left a good comment for the collective price increase of the lighting industry.
Zhang Ruimin said: "A true international brand enterprise is a brand that sells more products, sells more expensive, sells quickly, and sells for a long time." Chinese companies cannot always accept the fate of high quality and low price! The national brands in our lighting industry are gradually moving towards the realization of international brands. High-quality branded products will not only sell much, sell fast, sell for a long time, but also sell expensive!
(The author’s point of view does not represent the position of this newspaper)

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