Can TCL Lighting Improve the Market Test

Recently, TCL Group released the 2013 Semi-annual Report. The report shows that TCL Group achieved a total operating income of 39.06 billion yuan, an increase of 31.5%, and a net profit of 1.07 billion yuan, an increase of 122.2%. The report card is really bright.

As one of the important industries of the TCL Group, TCL Lighting has ushered in a new development opportunity as LED is booming. To this end, TCL Lighting senior leaders have publicly stated that: TCL Lighting will achieve 40% of sales in 2013 and reach a target of more than 60% in two years. However, can this TCL lighting that has been high hopes in the traditional lighting period but is rather disappointing to recover? Can you recover confidence? Still have to wait for market observation and time test.

Industrial layout "King of the return" plan to restart

From glory to decline, from decline to confusion, from confusion to exploration, from exploration to re-emergence, along the way, the development of TCL lighting is accompanied by surprises, twists and controversies. In 2013, with the launch of the "King of the Return" program, TCL Lighting is like a "revealing lion" once again strongly into the vision of the lighting industry, seeking to open up a new world.

In 2011, TCL Lighting cooperated with Taiwan Hongqi and invested RMB 300 million to establish an LED packaging system to create a complete LED lighting industry chain. In 2012, TCL Lighting launched 6 series of LED lighting products at a new product launch conference, totaling more than 500 models, covering LED light sources, home lighting, engineering lighting, and commercial lighting. In the same year, TCL Lighting and its EMC strategic customer, China Guangdong Nuclear Power Group Energy Saving Industry Development Co., Ltd. formed a core strategic partnership, and devaluated corporate financing support services, through the "4P + financial services" model to achieve new breakthroughs in marketing model. In 2013 TCLLED new global release and LED popularity summit, TCL Lighting in the introduction of more than 300 models of new LED lighting, but also the first to publish the first LED universal declaration, namely "LED lighting "4321" Universal Declaration." In the same period, TCL Lighting also won the “2013 Most Influential Brand in the LED Industry” and other honors.

Li Chunhang, deputy general manager of TCL Lighting, once stated publicly that “in the past 12 years, TCL lighting has made me struggle and I have lost myself. Now, TCL lighting has not yet returned to its peak.” However, in recent years, TCL Lighting has been In the series of actions, it is not difficult for us to see the determination and confidence of TCL Lighting to develop LED lighting that has been “sleeping” for a long time. At the TCL Lighting New Product Launch Conference in April this year, Li Chunhang publicly promised that TCL Lighting will achieve a sales ratio of 40% in 2013 and a goal of more than 60% in two years. It can be seen that TCL Lighting is confident and motivated in the future development.

Channel layout channel development aims at "integration"

The year of 2013 is an extremely crucial year for the LED lighting market to break. Many LED companies invariably fall into the “channel construction”. In addition to giving full play to the advantages of nearly 30 offices nationwide and thousands of distribution outlets, TCL Lighting also strengthened the layout of traditional lighting channels such as circulation, engineering, and commercial display, while expanding e-commerce channels, supermarkets, and special lighting channels. Achieve multi-channel common development.

“TCL Lighting's channel network has covered more than 70 city and county-level markets in Henan, and has received extensive customer trust.” “In the first half of this year, TCL has built a new 100-square-meter TCL in the lighting market of Jinfu, Gansu. Lighting LED image store.” “TCL Lighting has completed the renovation and upgrading of the new showroom on the first floor of the new hardware coating market in Wuhan Rudigakukou.”... In the TCL Lighting National Market Investigation, the TCL lighting is also acting on the channel. Can not be ignored.

TCL Lighting senior leaders once stated that TCL Lighting's channels are mainly engineering, and the circulation field needs to be further expanded. Therefore, it is necessary to increase the number of channels, and on the basis of doing a good job of engineering channels, increase the creation of circulation channels, such as construction of monopoly. Stores, hardware markets, 34 cities, etc. Industry veterans have stated that TCL Lighting’s current emphasis on channels and its aggressiveness are aimed at “recovering lost ground”.

At the same time, TCL Lighting is also implementing the "1+N" channel model in circulation channels, launching "LED National Tour Promotion Conference", "Long Teng Action", and "customer growth project" to help customers develop rapidly; in the field of LED engineering, TCL Lighting has implemented "Nanny-style" engineering marketing, combined with financial services, integrates resources. In addition, at the sales terminal, TCL Lighting's first "digital store", through the creation of experiential interactive terminals, to achieve terminal display standardization, effectively enhance the terminal sales force.

It is worth mentioning that in order to speed up the vertical integration of the LED industry chain, this year, TCL Group, Ruifeng Optoelectronics and Taiwan's wholly-owned subsidiary, Yuxing Enterprise, jointly invested 200 million yuan in Huizhou City, Guangdong Province. Zhongye Hi-Tech Development Zone has established a joint venture LED company. The new company is named “Huaru Optoelectronics Technology (Huizhou) Co., Ltd.”. Among them, TCL Group invested 102 million yuan, holding 51%; Ruifeng Optoelectronics invested 50 million yuan, 25% of the shares; Yuxing company invested 48 million yuan, 24% of shares.

Industry veterans said that this move will help enhance the overall competitiveness of TCL Lighting in the LED industry chain and will also help its channel expansion and performance in the end market.

Market performance "reality" catch up with the "target" is difficult "In recent years, TCL lighting product sales have maintained a steady growth rate. Compared to the same period last year, TCL lighting sales in Henan market this year rose more than 20% year-on-year "This year, the sales of TCL lighting products in Lanzhou market have increased by 20% compared with the same period of last year."... In the investigation of the performance of TCL Lighting's national market with TCL Lighting's distributors and agents as the main research objects, Some merchants have affirmed the performance of TCL Lighting in the terminal market.

However, in this market research, "TCL lighting LED sales share is limited, and the product price is high" is an indisputable fact. "TCL lighting LED products account for about 5% of our total sales. Others are other brands of LED products." "This year, TCL Lighting's product sales increased by 20% over the same period of last year, but traditional lighting products still account for absolute Leading position.” “Because TCL lighting LED products are currently at high prices, some customers can't accept it...” National market research shows that only about 8% of merchants report that TCL Lighting's sales of LED products and traditional products accounted for the same proportion. Or slightly higher.

From the results of this market research, it can be seen that the goal of “TCL lighting will achieve 40% sales in 2013 and 60% in two years” is not easy to achieve. At the same time, there are businessmen frankly not willing to agent TCL lighting LED products, in addition to concerns about TCL lighting products cost advantage is not enough outstanding, but also pointed to TCL lighting market management is more confusing, both in the hands of distributors getting goods, but also in the classification Agents take goods in the hands, seriously affecting the vital interests of businesses.

According to predictions from industry veterans, in 2013 and 2014, the domestic LED market will usher in explosive growth. It can be seen that although the long-distance road is long on the LED road of TCL lighting, “the prospects are expected to expire”. TCL Lighting Development LED lighting industry has its own advantages, such as strong R & D strength, rich LED products, high brand awareness, but there are also enormous difficulties and challenges. Therefore, it needs to be taken seriously.