Delixi electrician, lighting double sword

Text / Kong Lingquan In recent years, with the rapid development of China's lighting industry, China's lighting market has staged a wonderful drama that is changing and competing, and foreign companies are rushing to settle in, and other domestic industry giants are actively participating, China's lighting industry The first round of “shuffling” has been basically completed, and the industry is moving towards a stage of large-scale operation and brand development, and a new era has begun.
A few days ago, the reporter got the news that Zhejiang Delixi International Electric Co., Ltd. integrated Delixi International Electric and Delixi International Lighting into the brand of “Delixi? Home Furnishing” in 2008, and entered the domestic lighting market as a well-known electrician. Brand, Delixi International Electric chose to enter the lighting market at this time for strategic considerations? With this question, the reporter interviewed Cheng Minquan, executive deputy general manager of Zhejiang Delixi International Electric Co., Ltd.

Delixi International Electrician Deputy General Manager Cheng Minquan Market Strategy Established Brand Positioning Reporter: Cheng Zong, Hello! I heard that your company will integrate Delixi International Electric and Delixi International Lighting into the "Delixi? Home Electric" brand this year. At the same time, it will enter the domestic lighting market during the year. Is the news true?
Cheng Zong: Yes. However, we have not officially announced this plan yet. In April, we will hold a business briefing session in Zhengzhou and the unveiling ceremony of “Delixi? Home Electric”. You are welcome to attend.
Reporter: Thank you Mr. Cheng for his invitation. I really want to know, what is your concept of "Delixi? Home Electric"?
Mr. Cheng: As the core enterprise of Delixi Group and the leading backbone enterprise in China's construction electrical industry, we have been committed to the R&D, production and sales of building electrical appliances. After so many years of doing it, I feel that this industry has a hard wound, it has been It is a low-profile industry. The product interface is always engineered, technical, and cold, and can't enter the consumer's heart. This is not conducive to the establishment and promotion of the brand image. In response to this situation, we repositioned the brand in 2008, and took the lead in launching the concept of “home electrical” in China, and positioned “Delixi? Home Electric” as the “home electrical overall solution expert”. To provide consumers with a full range of home electrical products and one-stop services with technology leadership, cost-effective, distinctive human characteristics and more personality characteristics to reflect our unique brand value.
Reporter: It turns out that. However, what does this have to do with Delixi's full involvement in the lighting market?
Mr. Cheng: In fact, we started lighting projects as early as 2003. In 2004, we started selling grille lamps and bracket lights, mainly for engineering projects. In mid-2005, we increased home lighting products and energy-saving lamps with retail channels. At the end of last year, the company invested in the establishment of a lighting electrical production base in Guangdong and began the comprehensive development of lighting products. However, before this, lighting products were only a supplement to sales, giving dealers a tool to make money. According to our new brand positioning, lighting and electricians must be a complete match, otherwise "home electrical", "home" There is no way to talk about the electrical overall solution experts. Therefore, our involvement in the lighting market is only a tactical action, and its strategic purpose is to enrich and realize the brand positioning of “Delixi? Home Electric”.
Strong backing supports "dancing with wolves"
Reporter: The lighting market has been very competitive in recent years. How do you view the market you are about to enter?
Mr. Cheng: The total sales of the domestic lighting industry has increased from 45 billion yuan in 1999 to about 200 billion yuan, which is increasing by more than 20% every year. With the Beijing Olympic Games and the 2010 Shanghai World Expo in China, many cities in China are carrying out urban lighting renovation projects, and a large number of residential home improvement projects are expected to maintain an average annual growth rate of more than 15% in the next few years. Speed, this is undoubtedly a huge and tempting cake. Nothing is too early, and frankly, we are also coming to this cake.
However, there must be competition in places where there are cakes, and the bigger the cake, the bigger the competition. At present, participating in the cake, not only some old brands in the lighting industry, such as Yaming, Sunshine, etc., some local companies with competitive advantages in other industries also joined, such as TCL, Matsumoto, Kisho, etc. At the same time, international lighting brands such as Panasonic, Philips, GE, Osram, Huage, Regani also carry out the production and development of lighting products in China through joint ventures and cooperation. Obviously, we have joined a game that dances with wolves.
Reporter: Dancing with wolves requires not only courage, but also strength and capital. So, what is the cost of Delixi's participation in this game?
Mr. Cheng: There are three main reasons for our capital: First, strong parent brand support. Delixi Group is a well-known national large-scale industrial enterprise. The total assets of the group are more than 5 billion yuan and the brand value is 2.828 billion yuan. Its comprehensive strength ranks among the top 500 private enterprises in China. As the core enterprise of the group, Delixi International Electric Co., Ltd. is undoubtedly famous for its brand awareness and reputation. This will bring huge sales expectations and consumer confidence to the market. Second, strong channel support. At present, we have offices in more than 20 large and medium-sized cities such as Beijing, Shanghai and Wuhan. There are more than 600 service outlets and thousands of sales outlets throughout the country. Through this channel, our lighting products can be very short. In the time of the "last mile", to reach the consumer; Third, strong product development, production capacity support. We have advanced R&D, production and testing equipment, and established a product research and development center in 2004. We have more than 10 top engineers in the industry, more than 50 technicians, more than 40 people in testing and quality, and are in the forefront of product technology research and development. .
“S + Mn marketing model” to ensure a win-win situation: As the saying goes, “Everything is difficult at the beginning”, then how does Deli West enter the first step of the lighting market?
Cheng Zong: Our steps are very clear, there are three main steps. The first step: find the entry point. We have divided the lighting market into two pieces. The big one is commercial lighting, including outdoor and engineering. Philips, GE, Osram, Panasonic and Thorne are all inside. Our overall positioning is home electrical, and the entry point is naturally home. Lighting, so that we have avoided the competition with many powerful opponents, and can concentrate on the use of limited resources, but also strengthen the brand positioning, one by one; second step: channel integration. As I said before, we have a strong channel base, but this channel was originally sold by electricians, so you may see a "double-headed snake" phenomenon in the early stage, under the same brand of "Delixi International Electrician". There are electricians selling, but also selling lighting, but the goal of our channel integration is to turn them into "one-stop", one into one, and fully upgraded to "Delixi? Home Electric"; the third step: The transformation of the marketing model. At present, most domestic manufacturers adopt multi-level distribution channels. The channel has multiple levels to restrict its only ordinary sales function. There is no way to implement large-scale marketing to improve the profitability of the channel. We are in the existing channels. On the basis of the flat shift to the channel, the agent is transformed into the company's large-scale retail terminal and service platform, the distributor is transformed into the company's exclusive store system network, and the agent wholesale function is transformed into a marketing service function: to provide consumers with professional and convenient, Based on safe and credible services, it provides a service system for the after-sales product replacement, management support and global marketing implementation of the store network; the product sales function of the conversion distributor is risk-free business investment cooperation: The business investment platform, loading brand promotion, service center promotion support, achieving steady and rapid growth of the business, truly become an expert in the overall solution of home electrical. This ensures that the value of the “home electrical overall solution expert” promises to consumers can be realized. This is also our original "S+Mn marketing model"
Reporter: How long do you think it will take you to complete these three steps?
Cheng Zong: These three steps are actually a process of cyclic operation. Some areas will be very fast, and some areas will be slower. This depends on the strategic deployment of the company to the regional market and the individual level of awareness of the dealers. At present, we have begun to establish such a platform in some areas, but to achieve nationwide replication, it takes three steps and takes time.
Reporter: To build such a strong S+Mn marketing network, you need to get support from many dealers. How are you going to convince your dealer?
Cheng Zong: The ancients said, "If you want to take it, you must give it first." If you want to get the support of the dealer, it depends mainly on what you can give him. At present, the main problem in the channel is that there is no sustainable protection and no marketing system support. In response to this situation, we have done four things for the dealers: competitive product lines, reasonable profit margins, and strict market protection. And the marketing support of the system ensures that the dealer can make money continuously and steadily. At this time, I told him that the integration of these four things requires a platform. Just like you need to run a car for transportation, giving you such a platform is like giving a car to be transported. You said that the dealer will Refused?
Reporter: This is a win-win result.
Cheng Zong: Not only a win-win situation, our ultimate goal is to rely on such a strong network to realize the value of the “home electrical overall solution expert” commitment to consumers, so consumers are also winners.
Reporter: Yes, there is no winner of the consumer, there is no winner of the manufacturers and businesses. Finally, please ask Cheng to make an expectation on the market prospect of “Delixi? Home Electric”.
Mr. Cheng: “Delixi? Home Electric” is a brand new brand. It is really a long way to be recognized by the market, but its appearance will inevitably have a huge impact on the traditional building electrical market, even one. The revolution of field value and concept! We have made a five-year plan to integrate 80-100 flagship stores in the first year, and then grow at a rate of 100 per year. In 2012, we basically achieved a nationwide network layout.
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