Zhongming Semiconductor: Powering the domestic market

Since: [Source LED Engineering's "LED lighting channel" 2013 No. 6 (total of 42) reporter / Xiongyu Heng] European and American financial crisis, the overseas market downturn, certification to enhance the threshold, gave its exports once domestic LED lighting into a quandary. At the same time, the demand for LED lighting in mainland China has increased significantly since the beginning of this year, and the prospects are promising. Affected by this, many export-oriented enterprises have fought in the domestic market. And those companies that have cultivated the domestic market but have little strength, have finally begun to exert their strength.

"The home lighting market is expected to usher in an outbreak, and the perfect channel layout will become the key for enterprises to seize the market." Wang Zejia, general manager of Zhongming Semiconductor's domestic marketing, said that this year is the year of market explosion, and it is also the key year for Zhongming to deploy domestic lighting channels. Zhongming will establish a complete provincial agency system across the country, opening 50 specialty stores and 200 store-in-shops, so that Zhongming's lighting products will really sink to the terminal channels, paving the way for brand building.

At the beginning of the establishment of Zhongming Semiconductor, the main markets were also overseas, and occupied a large market share in the European and American markets, successfully establishing two major brands, Civilight and V-light. Since 2012, Zhongming Semiconductor has begun to comprehensively deploy domestic channels and achieved good results. With the growth of domestic market demand, Zhongming now hopes to rely on existing channels to formally launch its domestic market.

"Lighting Channels": The industry believes that this year's LED lighting market will usher in an outbreak, and the "Lighting Channel" reporters generally visited this year's performance, compared with last year's performance. What is the specific situation of the public?

Wang Zejia: After the baptism of the market in the previous two years, the development of LED has become blind and rational. As LED technologies become more mature, the performance of LED lighting products has steadily increased, while prices have been declining, and the price/performance ratio has increased rapidly. In addition, consumers' acceptance of LED lighting has improved significantly, both in engineering channels and in terminal channels.

All of the above have provided the necessary conditions for the promotion of LED lighting scale, which led to the outbreak of market demand, which is also a normal thing.

Specific to the public itself, we also clearly feel that the domestic lighting market demand has significantly warmed this year, orders have increased significantly compared to previous years. In the first quarter of this year, we only achieved sales of 32 million yuan in the domestic market. At the beginning of the year, we set a target of 120 million yuan in annual sales in the domestic market. Now it seems that it will not be difficult to complete the sales target for this year.

"Lighting Channels": Before Ming Ming, the main focus was on overseas markets, and there were corresponding brands in the European and American markets. Although there were also domestic markets in the past, there was little effort. How do you view the status quo of the domestic market? How to position its products?

Wang Zejia: At present, the main channel of domestic LED lighting is still in engineering, and the engineering channel is the fastest growing market demand for commercial lighting. Commercial lighting will certainly become a must for enterprises. Although the potential of the home lighting market is large, it takes time to fully open it. I don't think this time will be too long, so the channel layout in the early stage is very important.

Zhongming combines the actual situation of the market and divides its products into three categories. The first is the civilian light source, mainly for the end consumer, cost-effective, mid-range positioning; followed by commercial light source, such products have higher performance requirements, mainly used for high-end commercial lighting, positioning in the high-end; finally commercial lighting, including ceiling lights , downlights, wall washers, grille lights, track lights, light panels, etc., is also a high-end positioning.

In these three categories, the civilian light source is our offensive product, directly facing the end consumer, its high cost performance is the weapon that Zhongming seizes the market. Commercial light source is our defensive product, with high performance and price. It is mainly used for large shopping malls, high-grade office buildings, high-end clubs and other lighting, which is used to ensure the company's profits.

"Lighting Channels": You mentioned that Zhongming hopes to use the civilian light source to open the terminal market, and will inevitably increase the construction of terminal channels. What kind of planning does Zhongming have in terms of terminal channel construction? What has been achieved?

Wang Zejia: The home lighting market will usher in an outbreak, and the perfect channel layout will become the key for enterprises to seize the market. Home lighting has to face consumers through terminal channels, so the construction of terminal channels will become an important component of our channel construction this year.

As early as last November, Zhongming held a dealer conference in Shenzhen, attracting dealers from all over the country to participate actively, and there are not a few dealers who signed contracts with Zhongming on the spot. In March of this year, we held another agent conference. Up to now, our provincial agents in various provinces of the country have been confirmed, laying a foundation for Zhongming's terminal channel construction.

In addition, in order to make Zhongming's lighting products really sink to the terminal and enhance the brand image of Zhongming, this year we plan to build 50 specialty stores and 200 store-in-shops nationwide. At present, more than 20 stores have been completed, and more than 60 stores have been completed, and the rest will be completed by the end of this year.

"Lighting Channels": According to the "Lighting Channels" reporters on-the-spot visits, at present, in the terminal market, the proportion of dealers who represent LED lighting has reached more than 90%. However, for the choice of agency brands, they are still relatively blind, you are How to treat it? In terms of the support policies of the agents and distributors, are there more exciting places?

Wang Zejia: At present, the LED lighting industry does lack a relatively strong leading brand, leading to the fact that the entire industry is still in the category competition, not the era of brand competition. How to guide the industry from the category competition to the brand competition, it is worthy of every lighting company to ponder and make unremitting efforts.

Zhongming divides its products into three categories, which are not only aimed at participating in the market competition, but also to enrich the existing product lines of Zhongming. In order to fully meet the needs of consumers and establish a self-owned brand when opening a specialty store. Dealers have transformed from traditional lighting. Faced with different lighting patterns of LED lighting, it is often quite confusing. This requires us to make correct guidance to help them quickly adapt to the LED lighting marketing model and quickly generate profit.

At present, Zhongming is promoting the N+1 strategic alliance sales model in China, N represents commercial lighting agents (1 for each prefecture-level city), and 1 stands for civilian agents (1 for each province) . The so-called strategic marketing model is that Zhongming will send a domestic sales team to assist local agents in the local lighting channels (secondary dealers) and the lighting market (including civil and engineering). This model has low risk and rapid return on investment, and is welcomed by Zhongming agents and distributors.

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