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At the end of 2011, Shida plans to establish 50 LED lighting stores across the country. Currently, there are 10 well-established cities in Chongqing, Shanghai, Beijing and Wuxi.
At the beginning of 2012, Hongli Optoelectronics announced that it has invested nearly 10 million yuan to open 8 image stores.
In May 2012, Hongyan Electric plans to build about 1,000 LED lighting image stores.
In the second half of 2012, the Firefly Group also plans to open LED stores.
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Since last year, a number of LED listed companies including Qinshang Optoelectronics, Shiyida, Hongli Optoelectronics, etc. have launched LED lighting store construction plans. At the same time, Ou Pu, Foshan Lighting and other traditional lighting companies also launched L ED lighting new products and channel expansion plans at this year's dealer conference.
However, on the one hand, LED lighting manufacturers are eager to open the market, and on the other is a cruel reality.
“If downstream companies build their own retail channels, they need to spend a lot of energy and financial resources.†Zhou Xuejun, marketing director of PHILIPS LUMILEDS Asia Pacific, said that enterprises can cut through the engineering channels and establish a good reputation. With the brand, retail will be solved. He said that in the past two or three years, these companies may have to bear the risk of no return on investment.
The deputy general manager of Huacan Optoelectronics, Bian Difei, is even more astounding. Nowadays, many companies go to specialty stores, which is more like a market trap.
"Loss money" still takes time
To build an LED lighting store, manufacturers must have a very rich product line, including product types, quantities and models. At this stage, most domestic LED lighting companies are still unable to meet this requirement.
In August 2011, Qinshang Optoelectronics began to launch the “100 City Store†program. As of the end of last year, the company has established “light experience centers†in Shanghai, Nanjing, Xiamen, Xi'an, Suzhou, Guangzhou and Zhongshan.
For why choose this time point to start the layout channel, Li Xuliang, chairman of Qinshang Optoelectronics, said that in the LED lighting market, the main dish has not yet come up (real market competition), so it is necessary to catch up before the main dish is served. Be prepared and try your best.
At present, Qinshang Optoelectronics has already operated in 100 specialty stores. It is understood that only one or two stores in these 100 companies make money. Li Xuliang said that it is still very difficult for LED lighting stores to make money through retail channels. He said that the implementation of "100-city thousand stores" is very difficult: first, the indoor product line requirements are very rich; second, must have a good brand; third, there must be a sound after-sales service; fourth, to Consider differentiated products by considering customer needs.
“In the first two years, we first asked for quantity, let more than 100 specialty stores publicize and make brands.†Li Xuliang said that LED lighting has reached a critical point, and building a brand is the best time.
However, Gong Weibin, chairman of Ruifeng Optoelectronics, expressed another concern that building a brand requires a lot of money and time to accumulate. He said that there are many lighting cities in foreign countries, there are many brands in it, this is a very successful model, but it takes a long time to accumulate, and the most important thing is to rely on everyone to invest money, many brands rely on burning money to burn from.
It is understood that the current establishment of an LED lighting store in China requires nearly 2 million a year. Zhang Xiaofei, director of the High-tech LED Industry Research Institute, said that even if it invests 10 million to build five LED stores nationwide, the effect is not very obvious.
In this regard, Zhou Xuejun said that at this stage, LED lighting companies can try to do some contact and layout with some dealers, the focus should still be placed on the project.
"In the long run, if you want to be a brand, you must have the most basic bottom line." Zhou Xuejun pointed out that LED lighting companies should not rush to make breakthroughs in the retail market, it is better to do export in the professional channel. If you build a word of mouth on some projects and form a very stable project channel, this will definitely help the sales in the next year or two.
At the third meeting of the first G20-LED Summit, members of the participating companies also said that the LED lighting industry needs to build a brand platform. Large channel operators like Suning and Gome can reduce the operation of each brand. Cost, on the other hand, the effect of market expansion will also be more reflected.
On the other hand, at this stage, channel providers still have some doubts about LED lighting.
Recently, "High-tech LED" visited the lighting city in Beijing and Xi'an to understand that most of the traditional lighting products agents do not understand the LED lighting products and the strength of LED manufacturers, and the quality of the market is uneven LED lighting. The product also caused a lot of trouble for the agent.
The reporter found that in some local lighting cities, there are only a few LED lighting stores, and most of them only set up LED lighting areas in the original traditional lighting stores.
"If LED lighting manufacturers set up their own stores in the lighting city, there is basically no possibility and hope for profit." Zhou Xuejun pointed out that before including lighting brands like Philips, the dealers in each lighting city are also dealers themselves. The company only gives certain binding posts. For now, for most LED manufacturers, they are more inclined to cooperate with traditional channel vendors to use their existing channels to sell LED lighting products.
Engineering channel first
"Now do LED lighting stores, retail gross margins of 40% -50%, but the volume is not in retail, but in engineering." Foshan to send lighting general manager Xu Pingan pointed out.
Since LED lighting fixtures do not exceed the advantages of traditional lighting in terms of price and brand, the retail channel naturally encounters great resistance.
“In the traditional lighting consumer group, 60%-70% are professional users, and 30%-40% are home users.†Zhou Xuejun believes that professional users (engineers) occupy the largest market share among lighting consumers.
Now, the LED home lighting market has not yet fully started, and the market demand for large and small commercial shops and engineering LED lighting has gradually warmed up. Li Xuliang pointed out that 60%-70% of the projects are currently from newly renovated commercial shops. Although the number is small, the demand is still very large.
In fact, many industries are cutting into the market through professional users. From the current product and cost characteristics of LED lighting, the channels are still concentrated in engineering in the short term. Xu Pingan pointed out that due to the pursuit of effect and personalization, engineering lighting requires a wide variety of products and can be customized according to demand. This puts higher demands on both agents and manufacturers.
For agents, the agent products need to pay a certain deposit, the more varieties, the more deposits. Many agents are not willing to take the risk of this fund, which also causes the problem that there are not many stocks and incomplete types in the specialty stores.
Xu Pingan believes that at this stage, LED lighting stores should take both retail and engineering roads to ensure turnover and seize future market opportunities. 
LED lighting self-built channel encounters å°´å°¬
[Source: "High-tech LED - Research and Review" May issue / reporter Tang Guirong] In 2011, Qinshang Optoelectronics launched the "100 City Thousand Stores" program, and plans to build thousands of "Light Experience Centers" in hundreds of cities across the country.