Lighting stores form a monopoly of land, small and medium-sized businesses are difficult to protect



As the saying goes, "Ten major nine won't win," big and win, and strong and big are always linked. The same is true for big stores, from 50m2 to 500m2 to 5,000m2... The big stores are not only bigger and bigger, but the forces are getting bigger and bigger. From “one party overlord” to the national leader, a strong monopoly is gradually formed in the industry. The situation, like a whirlwind, wraps around the entire lighting industry.


Jinan Hongli Lighting Store with a total area of ​​5,000 square meters


“The big store can make the industry more and more formalized. Most of the products in the big store are clearly priced, which eliminates the smashing of goods and effectively promotes the healthy development of the industry.” Jin Qingwei, general manager of Jinan Hongli Lighting, said. Needless to say, big stores have had a huge impact on businesses, stores, manufacturers and even the entire lighting industry.
Intensified business polarization With the continuous development and growth of the lighting and lighting industry, the awareness of business brands has increased, and the gap between businesses has become larger and larger. The stronger the stronger, the weaker the weaker, the stronger the merchants operate in the big store mode, increase the competition for the market, form a powerful scale force, and pose a strong threat to small and medium-sized businesses. Some weaker and poorly-operated businesses are caught in the situation of customer loss, or give way to “strength” or force themselves to grow bigger. It is natural that some small stores face elimination or being annexed. This has further led to a more serious business polarization.
The big store forms a monopoly position for a big store, and the small store makes a profit. The dealers who operate the big store model are not making a small profit, but a powerful force and the benefits that come with it. The store is bigger, it can stand out in the same industry, reflect its status as a river and lake, and can strongly control the upstream brand resources, and can more easily profit from the competition in the engineering channel, win the favor of more consumers, and seize more Market share.
“The big store has a sensational effect and can attract customers' eyes widely. It can also win sales while gaining people's traffic. Large stores can form a strong channel effect, and can seize the opportunity in the invisible channel. The more market share, and the formation of monopoly, monopoly resources, monopoly channels, etc.." A dealer who has deep research on the big store model said.
Some powerful merchants saw that some merchants tasted the sweetness of big stores, and they also actively went to the operation of Ma Dadian, embarked on the road of scale expansion, and established the status of “one party overlord”. Zhengzhou Gorgeous Lighting Co., Ltd. is a very successful case. It has created the leading retail business model in the Central Plains region by means of hypermarket operations. It is known as “Suning” in the lighting industry.
The status of small and medium-sized businesses is difficult to protect or forced to become stronger. Nowadays, the lighting and lighting industry has entered the brand era. When brand competition is intensifying, big stores are an inevitable choice for businesses to become bigger and stronger.” Industry people have a common understanding of the future of business. .
In the early stage of the development of China's lighting and lighting industry, dealers mainly focused on small-scale operations, mainly selling products to make money. However, with the increasingly fierce competition, some powerful merchants began to implement brand management, expanding their scale, forming a monopoly position in the market, and forming strong pressure on merchants who still adhere to the traditional management methods. Small and medium-sized businesses may unwillingly withdraw from the stage or implement branding. Business is forced to become bigger and stronger, in order to seek their own living space. Under the spur of the fierce competition in the market, merchants will inevitably put more energy into the upgrade of storefronts, thus maximizing the attention of dealers, consumers, designers and other customers.
Under the jungle law of the jungle, the weak can only be ruthlessly swallowed by the strong forest beasts. In this situation, it is necessary to enhance the store's strength in all aspects. Those small shops that do not have the talented resources and abundant funds and other conditions do not want to be eliminated, they must embark on the road of restructuring.



The store ushered in a standardized development of large stores and stores are also to win by scale, with a large area and a full range of products, but the two rights and responsibilities are different. The former's powers and responsibilities are dealers, mainly operating products; the latter's rights and responsibilities are the stores, to provide business platforms, earning rents and management fees. With the gradual enhancement of the lighting business, some merchants call the board store to operate the big store in the hypermarket mode. Whether it is renting a large exhibition area in the store, operating a big store, or building a big store outside the store, it has a certain effect on promoting the development of the store.
Large stores enter the store, such as Tigers and Tigers stores in the hypermarket can promote the development of large stores to a certain extent. The role of the well-known big stores in the store is even more powerful. Because it helps the store's own brand to improve and benefit. For the store, the big store has great plasticity, has the advantages of strong channel effect, passenger flow, high profit, etc., can drive the traffic of the store as a whole, and expand the popularity of the store; large merchants can help the store to gather people and business. After the thriving of the store, many merchants who have not entered the market will see the strength of the store and then choose to enter. This is the potential benefit binding point between the big store and the store.
Single store stimulates store upgrades At present, more traditional lighting stores are like the department stores of the year. The market entry threshold is low, the quality of the products is uneven, the management is loose, the after-sales service is not guaranteed, and the brand promotion awareness is weak.
There are also more and more large stores in the markets across the country that avoid professional lighting stores. Some strength merchants will choose to build a 1-2 storey single store in a lot of people. Their complete products, special services, strong channel resources and high sales volume will naturally drive some merchants who operate the big store model, “depending on the gourd painting”, followed by avoiding the store and choosing to build their own stores. Bringing certain threats to the survival of the store. In order to seek development, the store will upgrade itself to a certain extent. Moreover, large-scale advertising campaigns, brand promotion methods, and effective means of integrating resources will inevitably affect the operation of the store from the side, further promote the market positioning of the store and its norms in terms of services and business policies.
Someone has made such a prediction in the upgrade of the manufacturer relationship: If the domestic lighting dealers form a close-knit "China Lighting Dealer Alliance", they only need to tighten their belts for a year and a year. China's domestic sales of lighting manufacturers will be closed down. It is enough to see that dealers have a strong voice in the Chinese lighting market.
With the rise of big stores and the growing power of the big stores, big store businesses are increasingly controlling the vast majority of the right to speak in the Chinese lighting market. At this time, the relationship between the manufacturer and the merchant has also undergone a fission.



The equal dialogue between manufacturers has increased the early stage. In the lighting and lighting industry, merchants have relatively limited voice, and most of them are passive in cooperation with manufacturers. The relationship between manufacturers is mostly the relationship between buying and selling. The manufacturers are in a dominant position. Generally, what is produced by the manufacturers, what the merchants sell, and the manufacturers are different. With the increasing brand awareness of manufacturers and gradually focusing on channel development and maintenance, manufacturers have established a relatively stable relationship, but they may break down at any time as the mutual interests change and development. The cancellation of NVC Lighting and Hangzhou Huace illustrates this point.
When the big stores are popular, the equal dialogue between manufacturers will be further increased. The original weak position of the merchants was reversed, and the cooperation situation of equal and mutual benefit and two-way choice of the manufacturers appeared. For the merchants, the store is big, and in the face of the upstream brand enterprises, they can also honor the position of the right to speak with respect and dignity, and can strongly control the upstream brand resources, and the independent choice of the merchants will increase; for the manufacturers, After the expansion of the storefront, some start-up companies need to rely on the brand effect of the merchants and the monopoly of the resources of the industry as their own crutches to expand the development of the enterprise. "Cooperate with the big store, it is a real strong alliance, and at the same time act as a number of powerful brands, which can drive each other and finally achieve a win-win situation." Guo Dawei, marketing director of Zhongshan Huayi Group, said.
Vendor alliance is expected to appear as a vendor alliance, that is, vendor integration, that is, manufacturers are loyal to each other, look to the future, consider each other for the other party's interests, and achieve a win-win situation for the alliance. It is reported that some manufacturers in the industry have begun to seek all-round cooperation with merchants to jointly fund, jointly manage and jointly operate stores.
After the store's store area has expanded and its strength has become stronger, some businesses have begun to start a new stove and develop into the manufacturing industry, which has accelerated the integration process of the industrial chain. The mutual penetration of industrial capital and commercial capital makes businesses not only merchants but also manufacturers. The cooperation between manufacturers in management, channel development, information flow, capital flow and other aspects is closer, thus forming a strategic alliance relationship.

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