It is the general trend for LED to take the road of e-commerce

Jack Ma said: "In the 21st century, there will be either e-commerce or no business." It can be seen from this sentence that the 21st century is the era of e-commerce. With the rapid rise of e-commerce, online shopping has become popular and has penetrated into every aspect of life. For the LED industry, which emphasizes "channels win, terminal is king", as channel competition becomes increasingly fierce, many companies are beginning to explore how to transition from traditional channels to e-commerce. At present, in the LED market, the prices of LED products are chaotic, and the quality of products is mixed. Each company has different market trends. Some make high-end products, some make mid-range products, and some sell wholesale to customers... The traditional channels of LED products are blocked, which puts great pressure on LED companies. Finally, they chose to "connect to the Internet" and invest in the e-commerce model. E-commerce can win the favor of LED companies, which naturally has its merits. Making good use of e-commerce channels will bring a new development path to the company.
E-commerce channels are the first choice for emerging small and medium-sized enterprises. The rise of e-commerce channels has brought new sales opportunities to many LED companies, especially emerging small and medium-sized LED companies. Allan Leighton, former chairman of the Royal Mail, once said: In times of uncertainty, what good companies need is focus, positivity and decisiveness, rather than implementing an ostrich policy or a wait-and-see strategy. Therefore, compared with brand companies that are forward-looking and backward-looking, small and medium-sized enterprises will definitely be the best practitioners of e-commerce for LED displays. traditional threadThe mainstream of LED sales is government procurement, large-scale projects, design institutes and designer channels. For emerging small and medium-sized enterprises, they often do not have much achievements in traditional channels. For old enterprises with complete sales channels, even if emerging enterprises gather in traditional LED channel sales, even if they will not be directly eliminated, they will not occupy too much channel advantage. In addition, when a company opens a directly-operated store, the store rental alone will eat up nearly half of the store's profit, and this does not include the initial decoration costs and the labor costs caused by the continued operation of the store. For emerging small and medium-sized LED companies, they did not have the support of large funds at the beginning of their establishment. The important thing is that opening ten or hundreds of directly operated stores will not have much effect. They need to complete regional coverage of large and medium-sized cities across the country. To complete nationwide coverage, the costs required are not affordable by emerging small and medium-sized LED companies. Pan Yanwei, marketing manager of Tongpu Technology, said, "The rent of the Huaqiangbei LED Trading Center has now reached 400 yuan/㎡ per month, which is very stressful for enterprises." On the other hand, e-commerce channels have advantages such as no geographical restrictions, a wide audience, shortened intermediate circulation links, low initial construction costs, large profit margins, short payback time, and easier implementation of flat management. From the perspective of LED companies themselves, emerging companies and brands do not have mature and stable offline sales channels, and rarely receive engineering orders. Online sales are mainly targeted at C-end customers, and e-commerce channels are low-cost and widely covered.Features provide them with a good opportunity to quickly open channels and seize the market. Therefore, e-commerce channels are very popular among emerging LED companies. Channel segmentation, e-commerce is preferred for new product promotion. Qian Qibo, general manager of Taobao's Hangzhou Operations Center, once pointed out that corporate marketing is always consumer-centered. It is not e-commerce and physical commerce that generate sales, but the brand and product itself. E-commerce and physical commerce are just sales channels. There is no one who wins or loses, but the integration brings benefits to consumers. E-commerce brings people the convenience of time, and physical commerce brings people the experience of space. The trend of virtual and real to a stable state is the law of change. To achieve such a state where the virtual and the real tend to be even, it is particularly important to do a good job of channel segmentation. Different products are launched for different channels, and for the initial sales of new products, e-commerce is easier. Generally speaking, after a new LED product is developed, if it is promoted through traditional channels, most LED companies will hold a new product launch conference to promote the new product and invite corresponding dealers to watch the effect of the new product. Such a link often requires a long cycle. On the other hand, with the development of LED technology, many new products will be copied by other companies soon after they are launched. Therefore, the promotion of new products needs to be fast, which is difficult to achieve through traditional channels. The e-commerce model does not require too much service product sales and promotion, and the cost and investment are relatively low, which is conducive to giving full play to the price advantage and can promote new products as quickly as possible at the lowest price.Go out wide. In addition, an online store does not have to be run full-time, part-time work is also possible. Only those who are specifically responsible for corporate product promotion are required to work part-time to promote new products in the online store. Online stores also have greater freedom in operating time. Enterprises are free to carry out some new product promotion activities on the online store according to the needs of product promotion. The most important thing is that the online store is a store that never closes and covers the world. Users from all over the country can watch the new LED products launched by the company 24 hours a day. LED products are advancing in the civilian market, and e-commerce may become mainstream. As of September 26, 2014, if you enter the keyword "LED display" on Taobao, 73,500 products will appear, and if you search for "LED display" on JD.com, you will find 1,119 products. It can be seen from the above that in addition to traditional channels, LED companies are also actively building e-commerce channels. The current mainstream view is that the future sales of LED companies should be a combination of online and offline. Because for the LED civilian market, e-commerce channels are complementary to each other. The continuous improvement of e-commerce channels can promote the exploration of the civilian market, and the growth of the civilian market can in turn promote the prosperity of e-commerce channels.
According to the China IT Research Center, the number of online shoppers in China will reach 310 million by the end of 2013, continuing to maintain a rapid growth momentum. Among the 310 million online shoppers, according to statistics, the main consumer group is Internet users with a monthly income of 3,000 to 10,000 yuan or more. Although this income range wants to be inIt is somewhat reluctant to buy a good LED display screen in an online store, but as the technology of LED products improves, the quality stabilizes, and the price bottoms out, it will also contribute to the rapid increase in civilian demand. Industry insiders predict that LED will enter the civilian market on a large scale in the next year or two. As more and more companies compete in this field, LED product prices will decline. One of the factors that hinders the large-scale application of LED display products is price. Once the cost of LED display screens drops significantly, it will inevitably promote the accelerated popularization of LED display products. Under such a large-scale popularization trend, e-commerce companies, with their large consumer groups, wide coverage, and convenient and affordable advantages, carry out large-scale and standardized online sales to cater to the fast-paced life of the 21st century and satisfy the "lazy" mentality of consumers. It may become the mainstream of LED products in the civilian market in the future.