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China's lighting dealer prices continue to rise
- May 06, 2017 -


China's lighting dealers to take the initiative to seek their own development

Lighting as a traditional industry, is currently facing rising raw material prices, rising labor costs, increasing competition in the market and other harsh external situation, profit margins greatly compressed, it can be said that the lighting industry is facing unprecedented pressure.

Lighting companies and dealers last a "life-saving straw"

It is understood that many of the lamps and lanterns dealers in the traditional store business difficult circumstances difficult to carry the store cost pressures and operating pressure, and change the channel management has become part of the lighting business and dealers "life-saving straw."

Channel costs to increase significantly

"Open new store investment is getting higher and higher, the first time in the first-tier cities to open the shop, when the investment is only tens of thousands of dollars only, but now in the first line, second-tier cities to open a standard store investment at least need hundreds of thousands On the million, in the 34 market shop also need tens of thousands of "lighting business owners issued such a sigh, shop costs more and more investment, which has become a business have to face a huge challenge.

"Not only the cost of rising shop, in fact, the original traditional channels of operating costs are also rising sharply." A lighting business market official said, on the one hand the rent on the store up; the other hand, by the impact of inflation, stores Staff wages, commission is also a substantial increase; coupled with the rising cost of logistics and transportation, channel costs than in previous years is a substantial increase.

Human hard costs continue to rise

At present, China has begun to enter the era of high wages, almost all of the lighting business operators of their channel wages are substantially increased, which also led to the channel operating costs. "In the market competition is very intense, for the terminal, the excellent staff is scarce core resources in order to keep people, high wages, high commission is also the business had to do things." The industry believes that the high wage era, corporate channel operations The hard labor costs will only continue to rise.

 

In the development of enterprises, logistics and transportation is also a big problem in the first and third tier cities, lighting products, the price difference is very different, for example, the same batch of lamps sold to Beijing and Urumqi, the price difference is much, because there are different transportation costs, but Online price is uniform, so the dealer will not be delivery, installation, sale of the initiative. Lighting industry, the cost of logistics is much higher than other categories, and faced with off-site transportation, installation, sale and other issues, which is its smooth development of electricity business model a major obstacle.

 

All in all, the lighting dealers to take the initiative to seek their own development, change in the change to adapt to changes in the environment in order to get rid of all aspects of the shackles, to achieve personal promotion and development.

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