How to solve the rising cost of lighting and lighting industry


In general, the current labor cost in the field of lighting and lighting distribution in China has increased by an average of 13.5%. In addition, as the lighting lighting distribution industry is in the ascendant, the management of national distribution enterprises are not standardized, and there is a general situation of “four insurances and one gold” in labor and employment. This situation will inevitably gradually become standardized, which means that dealers will also face The labor cost of 42.8% rose. Adding these two parts together, dealers are likely to face a 56.3% increase in labor costs. We assume that the labor costs of small and medium-sized dealers account for 15% of the total operating costs. The resulting increase in labor costs may result in a total increase in dealer operating costs of up to 8.5%. Moreover, the recruitment expenses and the loss and loss expenses are not included here. In the face of the dilemma of rising rents, rising labor costs and rising operating costs, how can we break through the encirclement?


The newspaper found in a series of recent investigations:

First, the strength of dealers generally do not have to worry about rising operating costs;

Due to the strength of dealers, storefront area, agent product brands, product types and quantities are far more than ordinary businesses, and almost every strength dealer will have the most active one or more well-known brands on the market. Regional general agency rights, with more than two marketing channels. Although their total labor cost is much higher than that of ordinary businesses, the proportion of labor costs in total operating costs is much lower than that of small and medium-sized dealers, and will decrease as the total turnover increases. Therefore, this part of the strength of the dealer is not worried about the increase in labor costs. On the contrary, they will attract excellent talents to join their own team by appropriately raising the salary of employees, or increase training investment to improve the overall quality of the company's own team, thereby enhancing their competitiveness and improving their channel and product integration capabilities.

Therefore, how to find ways to develop itself, from the business area, agent brand, product grade, service capacity, scale of operation and other aspects to achieve rapid improvement in comprehensive strength, is currently many small and medium-sized dealers must consider when conditions are available The primary issue.

Second, the hidden channels are not afraid of labor costs;

In the previous surveys of this newspaper, it was found that the impact of labor costs on the businesses of hidden channels such as engineering projects is not obvious. This is because the hidden channel is larger than the wholesale retailer. The profit margin is large and the scale of operation is large. The labor cost structure is mostly composed of basic salary plus commission and bonus. If the labor cost rises, it proves that there is a new project. The breakthrough, the company's overall operating income increased accordingly, so they will not be trapped because of rising labor costs.

It can be seen that dealers pay attention to and develop hidden channels under conditions of conditions, which is a "good medicine" against the sharp rise in labor costs.


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