Although the price neglects the quality of LED guardrail tube enterprises, it is difficult to open the domestic market

“Since 2006, the market demand for LED guardrail tube has risen steadily, and it is growing at a rate of 10% per year. Now it has become a general-purpose decorative lighting product”, Mr. Huang Yun, project manager of Greenman, said that the LED guardrail tube passed near The market development in the past few years has entered a period of steady development, and the prospects are very impressive. He even predicted that if the introduction of soft materials is successful, LED guardrail tubes may replace LED strips, accounting for 50% of the decorative lighting market, accounting for 30% of the LED lighting market.
The products are uneven, and the profits of the manufacturers are gradually declining. In the domestic market, Greenman, who is taking the brand route, is positioned in the middle and high end of the production of LED guardrail tubes. Huang Yun said that the sales area of ​​LED guardrail tubes is mainly concentrated in the northeast, southwest, and southern China. These places are generally emerging cities with more municipal and lighting projects, and cities with more large-scale events. He believes that urban construction and lighting projects have driven the market demand for LED guardrail tubes, and this demand is increasing year by year. However, Huang Yun also pointed out that the price difference between the mid-end and high-end products of Greenman is three times.
A merchant who did not want to be named said that the price of LED guardrail tube products on the market is getting lower and lower, and the quality of products is uneven. “Because we are operating in the wholesale market, the profit is relatively low. The general logistics wholesalers are only 10%, the estimated manufacturers are 15%, and the dealers and advertising companies are between 30% and 50%.”
The vicious price competition has caused market confusion, which is a major problem in the current LED guardrail tube market. In order to obtain more profits, various small and medium-sized enterprises use cheap and inferior raw materials to produce products, which disturbs the market that is not mature enough. Because the current low-end LED guardrail tubes are flooding the market, many engineers even prefer to guarantee quality. High prices from Shenzhen, Shanghai and other places to buy relatively quality guardrail pipe products.
Guo Yijun, general manager of Zhenmei Lighting, said that the current drawbacks of the domestic LED guardrail tube market are: 1. The industry standard is missing, the market is in a vicious competition; 2. The consumer terminal has no direct product cognition ability, only the price, the product quality is placed next. 3, due to fierce competition in the market, many LED companies can not develop domestic market. Today, the United States lighting has already focused on the LED market, which will reduce the domestic market share.
When talking about the demand for LED guardrail tubes in domestic and foreign markets, Mr. Qian Tanghao, general manager of Zhenmingli Group, said: “Foreign markets generally only require simple decorative effects. At present, the demand for LED guardrail tubes tends to be stable; The decorative requirements are higher, and many complex performance effects of rich colors and dynamic changes are required. With the continuous emergence of large-scale bridges and construction projects, the demand for LED guardrail tubes in the domestic market is very large."
Guo Yijun, general manager of Zhenmei Lighting, admits that “LED string lights and LED rainbow tubes are popular in foreign countries; in the domestic market, because consumer terminals have no direct product awareness, customers only ignore the quality of prices, leading to some high-end positioning. It is difficult for LED guardrail tube enterprises to open the domestic market.

The sales volume of the project is large, and the invisible channel “catty” serious industry people know that the main channel of the LED guardrail tube is the engineering project. Taking Greenman as an example, they regard the engineering channel as the main direction of attack, and continue to cooperate with the design side, and gradually increase the development of hidden channels. In addition, LED guardrail tube manufacturers will maintain close contact with engineering design companies and advertising companies, and carry out brand promotion through exhibitions, online e-commerce, etc., so that customers can directly find the door.
The unspoken rules of engineering channels have always been the consensus of the industry, and the field of LED guardrails is no exception. "Industry unspoken rules are there, designers or design units will have some rebates, the range is generally around 10%." Jiang Hongliang, general manager of Chengdu Honghui Lighting revealed.
Li Weigen, general manager of Linyi Jiayang Lighting Co., Ltd. also said that the hidden rules of sales are widespread. "But we did not directly participate in the project, so we rarely encountered it. Some advertising companies brought customers around to add a 5 yuan, according to the wholesale price of 35 yuan. It is about 40 yuan, and the minimum cost of installing a product is 7 yuan. Due to the high installation cost, the advertising company will do the 'article' again."
Guo Yijun, general manager of Zhenmei Lighting, also said that regarding the hidden rules of hidden channels, the rebate is different from person to person, generally until the two sides are satisfied. He pointed out that some large-scale projects are not well-regulated due to lack of supervision, and most of them have gray interest relations. Some projects generally require the manufacturer to ensure that no problems occur for two years, or that the manufacturer is designated to perform maintenance. He pointed out that because the LED guardrail tube is generally applied in the engineering field, the engineering party generally purchases LED guardrail tubes of different quality and grade according to the engineering requirements. If the key project is concerned, it will pay more attention to the quality of the LED guardrail tube. However, in order to seek profit points, the engineering side often uses some LED guardrail tubes that are not very good in quality. This has led to the development of some of the best quality products that are often unfavorable in the domestic market.
However, Huang Yuan believes that the larger the engineering unspoken rules, the more often the projects with large projects need to have excellent product quality and strict supervision.

Whether to adopt the monopoly model is still controversial In the middle of this year, Auman was the first LED brand in China to become the first LED brand to eat crabs in the industry. At present, Auman has more than 20 specialty stores in China. Li Xiaoping, the general manager of the company, believes that the store is an extension of the service. Only by means of dealers in various markets, the service of the company can keep up. The specialty store is an exhibition hall. Enterprises must learn to go out and the brand can open the market. He also pointed out that opening a specialty store should ensure the integrity of the product and should be sufficient to support the operation of the store.
Different from the thoughts of general business leaders, Li Xiaoping said: “It is too tired to do the project. The big project pays special attention to quality and service. The monopoly mode allows local dealers to get involved, so that the service and supply of the company can keep up with the market needs. He also said that when customers have a certain sense of consumption, when purchasing products, they will choose a brand with good reputation, and will focus on the issue of cost performance.
Because it is the first company in the industry to try to do the monopoly model, Li Xiaoping is very committed to his own store model. In his view, today's LED field, including the sale of guardrail tubes, the biggest market competition in terms of services.
Now, Auman has formed a complete pre-sale, sale and after-sales service system and established a 24-hour response mechanism. According to his plan, the sales process of the store is divided into three steps: 1. According to the customer's needs, the product is designed first in the computer; 2. After the customer confirms, the budget is made for the project, and the engineering party must cable the cable. Good; 3, provide products.
In addition, Li Xiaoping also believes that the model project is a live advertisement for corporate brands. In 2010, Auman plans to build a model project in every city in the country. Li Xiaoping said that as technical barriers continue to be broken, products will tend to be homogenized. The future is a service-oriented society, and Auman will rely on excellent service to take the road of branding. "After all, the gold cup silver cup is not as good as the customer's reputation. At the same time, product quality is also a crucial factor."
And Greenman Optoelectronics Huang Yun believes that because LED guardrail tubes mainly go to specialty stores, engineering companies, designers and other channels, these business development is mainly to contact with engineering companies or directly send salesmen and municipal engineering decoration companies, to the store The demand is not big. Especially for market development, the cost of the store is huge, including engineering training, information grasping, after-sales service, manpower, material resources, etc. The conditions for setting up a specialty store are still immature.

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