Upstream enterprises in the lighting industry began to strengthen channel control rights



In the era of “channels are kings”, major enterprises have spared no effort in the development of channels. After the rapid channel expansion in previous years, in 2009, more and more companies gradually discovered that the number of channel outlets is important, but the quality is more important. As a result, some companies began to make drastic adjustments to the channel.


Jiamei Lighting is a typical representative of lighting enterprise integration dealers in 2009



In the first half of 2009, the resurgence of NVC Lighting and Zhejiang Huace in the lighting industry in China was the essence of the competition for channel ownership. Behind this incident, we can see that Chinese lighting companies are integrating their own dealer resources in order to achieve the purpose of controlling channel terminals.
The sales of an enterprise is to find the market demand and meet this demand. For companies, the needs of dealers are also very important. However, if the needs of the dealers do not match the requirements of the company, the cooperation between the company and the dealers needs to be adjusted. This is the integration of the dealer resources. This integration process is undoubtedly painful and cruel, but it is also a pain that must be experienced in the growth of companies and dealers. Because only by continuous adjustment, companies can adapt to the development of the market, in order to promote the further improvement of corporate brands, in order to grow into a great company.
The purpose of the integration is to highlight the quality of the business after the completion of the initial "staking the horse", many lighting brands gradually found that investing the same human and material resources, the effect produced in different regions and different outlets is completely different: some outlets are proactive, with Enterprises do a good job in market development, and the operating efficiency has doubled. Some outlets are waiting passively, relying on the support of enterprises, and it is difficult to complete business performance. They often complain that the support of manufacturers is not enough. Some outlets have a moderate attitude and just complete the company’s account every year. The various tasks will not be highly prosperous without delay. This fact tells companies that it is necessary to classify their distribution outlets, support quality dealers, stimulate middle-class dealers, and eliminate inferior dealers. At the same time, companies need to strengthen the management of dealers and eliminate the artificial barriers of dealers to brand communication.
The role of a quality business is like a general's role in an army. On the battlefield, there is a saying that "one will reach the thousand troops", and the same is true in the dealer channel resources. In 2009, the selection of outstanding dealers in China's cities and cities will select high-quality merchants in second- and third-tier cities across the country, so that enterprises have clear goals when choosing partners. Because of this, Dongguan Jinda Lighting Co., Ltd. specially named the Top 500 Outstanding Distributors in China, on the one hand, showing the strength of the company in front of these excellent businesses, and on the other hand, laying the groundwork for cooperation with these excellent merchants.



At this stage, the integration of dealers is based on the pioneering achievements of enterprises in the market channel terminals over the years. We can find that there are thresholds for the demand for dealers: 100 companies are just the beginning of enterprise development; more than 500 companies are only corporate brands. The initial establishment; more than 1,000 means that enterprises enter a period of rapid development; more than 2,000 means that enterprises are already in the first group in the industry.
Judging from the examples of enterprises integrating dealers, they are basically some companies that have established brand status in the market, such as NVC and Op. These enterprises have a large number of outlets, and they have more advantages and resources, and they have stronger control over the market. Therefore, the integration of dealers is relatively strong. Of course, in addition to these two brands, other lighting brands have also gradually integrated the dealer channels, such as Jiamei, Benbang, and Pinshang, etc., which are also adjusting the market. These adjustments are also the promotion of quality distributors and elimination of backwardness. A process for the dealer.
Enterprises value dealers' performance and loyalty. There are not many high-quality dealers in the market. Each city is often controlled by individual dealers. Then, companies must be careful when they want to integrate dealer resources. In the process of integrating dealer resources, enterprises must pay attention to the principle of “door-to-door”. The dealers who are not necessarily the largest and most powerful are the best choices.
In 2009, Jiamei Lighting initiated the operation of the operation center and built operation centers extensively throughout the country. In the process of the establishment of Jiamei Lighting Operation Centers across the country, those dealers who have been working hard with Jiamei Lighting for many years and have maintained stable development have become the first glare of the local Jiamei Lighting Operation Center. They are not necessarily the largest local distributors, but they are against Jiamei Lighting. The loyalty and their huge performance growth potential are all highly valued by Jiamei Lighting. Thanks to the support of these distributors, Jiamei Lighting Operation Center has expanded its work and quickly established a number of operation centers throughout the country.



Integration promotes dealers to enhance their operational strength For enterprises, the ultimate goal of dealer integration is to increase market turnover and thereby increase corporate profits. Therefore, there are two key factors in this: one is the contribution of the enterprise, and the other is the output of the dealer. Let's take a lighting brand store as an example to analyze some of the contents of the enterprise integration dealer.
As a specialty store, the company pays attention to the location, brand influence, turnover, business area, standardization, professional operation level, and engineering undertaking capacity of the store. In the early stage of the enterprise integration of dealers, it is often adjusted around the operating performance of the specialty stores, which is why many lighting brands shouted “improving the operation level of single stores”. However, in the middle and late stages of the integration work, the influence of the specialty stores on corporate branding, the standardization of management, and the ability to develop sustainablely are all considered in the integration process. Therefore, the integration of the stores into the stores is also very careful.
Market control rights become the biggest difficulty. There is no doubt that the purpose of enterprise integration of dealers is to strengthen the control of enterprises in the channel terminals. However, as a dealer with a certain influence in the local market, is it willing to be integrated by the company and lose its control of the market?
The cancellation of NVC Lighting and Zhejiang Huace reflects the unwillingness and disappointment of dealers under the enterprise integration policy. Zhejiang Huace quickly formed cooperation with brands such as Seaton Lighting and TCL Lighting. Similarly, Henan dealers’ complaints about Hengya Lighting are also a violation of the rights and interests of enterprises under market integration. This shows that the road to integrating the market is not smooth.
The integration of dealer resources by enterprises will inevitably lead to contradictions between manufacturers, and this contradiction involves the interests of both parties. Some enterprises arbitrarily give up to dealers, regardless of the late market services, resulting in worse and worse word of mouth, and eventually rejected by the market. Some companies pay attention to the appeasement of the original dealers, so that the integrated dealers know their own gaps, so that the integrated dealers are convinced, and ultimately the market integration process of the company is unusually smooth. Only when the distributor grows up in the process of integration can it grow in the market with the company.

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