The "Top Ten Weirdnesses" of the Lighting Industry in Zhongshan Ancient Town: Difficult for outsiders to understand, but not surprising for insiders

Zhongshan Ancient Town is the world-renowned "Lighting Capital of China". The lighting industry is the leading industry in the ancient town and the economic pillar of the ancient town. However, during the past 20 years of rapid development of the lighting industry in the ancient town, ten "weird" phenomena have appeared.

The first "weird thing": the payment was "lent" to the freight department for free

In the Guzhen lighting industry, the person who receives the payment is not the manufacturer but the freight department. Because the manufacturer is worried that the dealer will not pay after receiving the goods; the dealer is worried that after paying, the manufacturer will not deliver the goods or the product quality is not up to standard; so the freight department takes advantage of the situation and assumes the role of "collecting payment on behalf of the goods." However, after the freight department collects the payment, it does not pay it to the manufacturer immediately, but waits for a period of time before issuing a check to the manufacturer one or two months later. Therefore, the payment is equivalent to being "loaned" to the freight department free of charge for a period of time.

The reason is the lack of integrity in the lighting industry, so manufacturers and dealers have acquiesced in the "loan" from the freight department.

The second "weird": "Road Gate" is repeated

Traveling seems to be nothing new in the ancient town. The frequent incidents in 2014 only caused most people in the lighting industry of the ancient town to sigh "Here we go again."

The main reasons for running away are: ① There is little own capital, unable to adapt to the fierce competitive environment, and unwilling to take risks and responsibilities, so they leave. ② The funds are abundant, but blind development leads to a loss of funds and is out of control. ③ Malicious debts, taking possession of the supplier's funds and fleeing with the money, and then changing places and re-entering the world after the news is over. The most abhorrent and terrifying thing is the third type. Entrepreneurs with conscience will pay off all debts such as workers' wages and suppliers' payments before closing the business.

The third "strange": underground factories are blooming everywhere

The lighting industry has a low threshold, low production environment requirements, and 2 or 3 people can open a factory. Sanwu products can also be sold in large quantities. Even if they are seized, they can be restarted immediately in another place. Therefore, underground factories have been repeatedly banned.

The fourth "weird": the failure rate remains high

Chinese people like "cheap" goods, and manufacturers are even more interested in them. There are not many products on the market that are truly CCC certified, and there are even fewer products that can truly pass CCC standards. Of course, the failure rate in random inspections remains high.

The fifth "weirdness": short product lifespan

On the one hand, three-no products flood the market, on the other hand, businesses pursue low-priced products with low quality requirements, and short-lived products have become a common phenomenon.

The sixth "strange": lighting products are updated very quickly

In the lighting industry, lighting products are updated so fast and with such frequency that it is staggering. The new model launched by the manufacturer has become an old model after 3 months, and it is already a classic if it can be sold in the market for a year or more. This is all due to the fierce competition in the lighting market. New products are imitated soon after they are launched, and profits continue to decrease. Only new products can bring higher profits. Market demand forces manufacturers to continuously launch new products.

The seventh "weird": product homogeneity is serious and plagiarism is prevalent

There are not many manufacturers that actually develop products. Most of them imitate other people's new products when they see them selling well (commonly known as "copycat"). Even if the manufacturer applies for a patent, the product is updated quickly and the cost of rights protection is high, so in the end it can only be ignored.

The eighth "weird": QQ groups and B2B platforms are flooded with advertising information

QQ groups are established for communication and cooperation, but now QQ groups are full of ads, and on various B2B platforms, manufacturers are flooding with information, and the same product appears N times with different titles.

The ninth "weird": local tycoon manufacturers willfully give out lavish gifts

New product launches, purchasing festivals, dealer conferences, celebrity endorsements, ordering a Mercedes-Benz, a BMW, a Land Rover every year...

The tenth "strange": checks flying all over the sky

"Last month's payment?" "Come and collect it at the end of the month." But the check received was from two months later. Whether it can be cashed by then is still a question. . .

These phenomena are "strange" and difficult for outsiders to understand, but people in the circle are not surprised at all.