In recent years, the rising prices of raw materials and upstream components and the increase in labor costs have caused a rise in production costs. Moreover, the increase in consumer brand awareness and the increase in the cost of distribution channels have increased year by year. Under the combined effects of many factors, many lighting companies have proposed a slogan for transformation.
Before, I talked with some lighting companies' bosses or bosses. The lighting companies in 2011 were a bit sluggish. Breakthroughs have become a consensus for everyone. After receiving some interviews with the media, they often mentioned how the lighting companies were transformed. . Therefore, at the crossroads of lighting companies' development to the present transition, I think it is necessary to discuss several issues.
What is the profit model of the company?
In fact, the core of this problem can be divided into three questions: Whom does the company earn, what it takes to make money, and how to make money. Perhaps many lighting companies will think that the product is priced at a higher price, the cost is reduced a bit, the cost is reduced a bit, and daily savings are a little, and the company naturally gains profits.
If things are so simple, lighting companies must also talk about what transformation? Taking a home lighting company as an example, domestic sales in 2010 completed more than one billion yuan in sales, and in the field of home lighting, it should be regarded as a medium-sized enterprise. However, after deeply decomposing the sales structure of this company, you will find that the reality is so cruel: the company's new stores in 2010 are estimated to be around 300, and the products of each store are hanging out, plus channels are created due to a large number of channel promotions. The large inventory of inventory, down throughout the year, the actual sales of less than 60 million yuan, the average annual sales of each store may be less than 100,000 yuan.
Regardless of whether or not these stores can achieve profitability well, from the perspective of manufacturers, can companies rely on these terminal stores to obtain continuous profitability of the company? Can these stores support the company's future sales of 500 million yuan? If we want to achieve 1 billion yuan, how many stores will we need to open?
The personal point of view is that any lighting company must rely on this profit model at the initial stage. This is a necessary process, but after a certain stage of development, especially after many companies have completed the accumulation of primitive capital through this model, Relying on this profit model, it may be possible to maintain the status quo of the company's sales, but if it is to achieve greater performance, it is necessary to rethink the issue of the profit model.
What is the business marketing model?
This is somewhat similar to the previous “What is the profit model?†But I still want to list it out separately, perhaps because of the marketing system. It is undeniable that nearly 90% of the lighting companies are taking production roads; only a small amount of lighting companies have begun to take the road of brand management. In the few enterprises that take the brand road, the basic operation mode is mainly the store model, hardware channel model and engineering model.
At present, the home lighting industry has swarmed with the store model, or it is entering the hardware channel, but in fact, many companies have no ability to access the channels because they do not have corresponding product packages.
Recalling the marketing model of the lighting industry's first-line brands: Sanxiong Aurora excels in engineering marketing, Huayi is also a master of engineering, Foshan Lighting is popular in circulation products, Oupu is in alliance with real estate, NVC is a two-pronged approach of engineering and designer channels... But many What are the highlights of the company? Is the channel model good? Is the innovation based on product model well known? Or is it known for its diversified marketing activities?
In the case of the company where the author works, because the company is still on the second-tier brand, its operating mode can only take some steadfast marketing services to serve as a highlight support. For this reason, the author has been emphasizing the need to strengthen the service to the channel within the company, to implement the channel sinking focus, and truly serve the dealers intentionally, helping franchisees to open stores, open stores, and earn money. We only have the marketing strategy of “open one, become one†and “nanny-style service model†in order to win the favor of the majority of franchisees in the traditional marketing field.
Where is the company's core competitiveness?
At present, the sales trend of many brands in the lighting industry is still relatively good. However, to maintain the long-term passion and brand loyalty of channels, what are the competitive advantages that companies are proud of? If NVC's core competitiveness is technology and channels, the core competitiveness of Ops is brand and R&D. What is the core competitiveness of many brands?
Is core product a product? At present, many companies occupy the mainstream sales of the company's products are basically OEM, the company basically has little control, but also subject to the fluctuations of these OEM manufacturers, the current increase in raw material prices led to many brands in the industry in addition to price increases This is the proof.
Is core competence a channel? At present, many companies have a dominant position in the business structure of all logistics-level agents (that is, brand products account for more than 40% of their agency sales). If the company is not a major part of the sales structure of these agents, how can they be the company's core competitiveness?
Is the company's core competitiveness a marketing strategy? Is it brand? Is it R&D and technology? Going further, we will find that many of the brands that do better are in fact only slightly more competitive than those currently struggling on the Red Sea. How do many lighting brands stand out?
Personal point of view is: return to the essence of marketing - products, create a product leading strategy, then, which products to build? How to build the product's core competitive advantage and further evolve into the company's core competitiveness? This point I will elaborate in the next article.
Perhaps many companies think that it is too early to consider these issues, and that if we don’t want to “kill one enemy and lose 800 yuan†in the fierce battle of the Red Sea, I think we should go earlier to find our own. Nine Swords", otherwise where will tomorrow's cheese be?
Before, I talked with some lighting companies' bosses or bosses. The lighting companies in 2011 were a bit sluggish. Breakthroughs have become a consensus for everyone. After receiving some interviews with the media, they often mentioned how the lighting companies were transformed. . Therefore, at the crossroads of lighting companies' development to the present transition, I think it is necessary to discuss several issues.
What is the profit model of the company?
In fact, the core of this problem can be divided into three questions: Whom does the company earn, what it takes to make money, and how to make money. Perhaps many lighting companies will think that the product is priced at a higher price, the cost is reduced a bit, the cost is reduced a bit, and daily savings are a little, and the company naturally gains profits.
If things are so simple, lighting companies must also talk about what transformation? Taking a home lighting company as an example, domestic sales in 2010 completed more than one billion yuan in sales, and in the field of home lighting, it should be regarded as a medium-sized enterprise. However, after deeply decomposing the sales structure of this company, you will find that the reality is so cruel: the company's new stores in 2010 are estimated to be around 300, and the products of each store are hanging out, plus channels are created due to a large number of channel promotions. The large inventory of inventory, down throughout the year, the actual sales of less than 60 million yuan, the average annual sales of each store may be less than 100,000 yuan.
Regardless of whether or not these stores can achieve profitability well, from the perspective of manufacturers, can companies rely on these terminal stores to obtain continuous profitability of the company? Can these stores support the company's future sales of 500 million yuan? If we want to achieve 1 billion yuan, how many stores will we need to open?
The personal point of view is that any lighting company must rely on this profit model at the initial stage. This is a necessary process, but after a certain stage of development, especially after many companies have completed the accumulation of primitive capital through this model, Relying on this profit model, it may be possible to maintain the status quo of the company's sales, but if it is to achieve greater performance, it is necessary to rethink the issue of the profit model.
What is the business marketing model?
This is somewhat similar to the previous “What is the profit model?†But I still want to list it out separately, perhaps because of the marketing system. It is undeniable that nearly 90% of the lighting companies are taking production roads; only a small amount of lighting companies have begun to take the road of brand management. In the few enterprises that take the brand road, the basic operation mode is mainly the store model, hardware channel model and engineering model.
At present, the home lighting industry has swarmed with the store model, or it is entering the hardware channel, but in fact, many companies have no ability to access the channels because they do not have corresponding product packages.
Recalling the marketing model of the lighting industry's first-line brands: Sanxiong Aurora excels in engineering marketing, Huayi is also a master of engineering, Foshan Lighting is popular in circulation products, Oupu is in alliance with real estate, NVC is a two-pronged approach of engineering and designer channels... But many What are the highlights of the company? Is the channel model good? Is the innovation based on product model well known? Or is it known for its diversified marketing activities?
In the case of the company where the author works, because the company is still on the second-tier brand, its operating mode can only take some steadfast marketing services to serve as a highlight support. For this reason, the author has been emphasizing the need to strengthen the service to the channel within the company, to implement the channel sinking focus, and truly serve the dealers intentionally, helping franchisees to open stores, open stores, and earn money. We only have the marketing strategy of “open one, become one†and “nanny-style service model†in order to win the favor of the majority of franchisees in the traditional marketing field.
Where is the company's core competitiveness?
At present, the sales trend of many brands in the lighting industry is still relatively good. However, to maintain the long-term passion and brand loyalty of channels, what are the competitive advantages that companies are proud of? If NVC's core competitiveness is technology and channels, the core competitiveness of Ops is brand and R&D. What is the core competitiveness of many brands?
Is core product a product? At present, many companies occupy the mainstream sales of the company's products are basically OEM, the company basically has little control, but also subject to the fluctuations of these OEM manufacturers, the current increase in raw material prices led to many brands in the industry in addition to price increases This is the proof.
Is core competence a channel? At present, many companies have a dominant position in the business structure of all logistics-level agents (that is, brand products account for more than 40% of their agency sales). If the company is not a major part of the sales structure of these agents, how can they be the company's core competitiveness?
Is the company's core competitiveness a marketing strategy? Is it brand? Is it R&D and technology? Going further, we will find that many of the brands that do better are in fact only slightly more competitive than those currently struggling on the Red Sea. How do many lighting brands stand out?
Personal point of view is: return to the essence of marketing - products, create a product leading strategy, then, which products to build? How to build the product's core competitive advantage and further evolve into the company's core competitiveness? This point I will elaborate in the next article.
Perhaps many companies think that it is too early to consider these issues, and that if we don’t want to “kill one enemy and lose 800 yuan†in the fierce battle of the Red Sea, I think we should go earlier to find our own. Nine Swords", otherwise where will tomorrow's cheese be?
China leading manufacturers and suppliers of DC Support Capacitors, DC Capacitor , and we are specialize in Electrolytic Capacitor, High Voltage Capacitor , etc.DCMJ DC Support Capacitors
China leading manufacturers and suppliers of DC Support Capacitors,DC Capacitor, and we are specialize in Electrolytic Capacitor,High Voltage Capacitor, etc.DCMJ DC Support Capacitors
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