Where is the development space for the “big rural market�
In addition to the real rural market, including county, county-level cities and small and medium-sized cities and towns, we call it the “big rural marketâ€, which is also the “third and fourth-tier market†that lighting companies often talk about.
Why open up the rural market? For the first-line lighting enterprises, the primary and secondary markets are almost in saturation, and they need to rely on the third- and fourth-tier markets to achieve performance breakthroughs and improve their own development. For enterprises that are not first-line and have certain strength, The quality resources of the second-tier market are firmly grasped by the first-line brands. The market potential of the third- and fourth-tier markets is huge and gradually stimulated. Therefore, these powerful enterprises will consider doing something in the rural market.
So, where is the space in the big rural market?
First, urbanization and stimulation. It is understood that the National Development and Reform Commission, led by the Ministry of Land and Resources, the Ministry of Housing and Construction, the Ministry of Finance and other ministries and commissions to participate in the preparation of the "National Plan for Promoting Urbanization and Healthy Development" has been released. The plan involves the construction of more than 20 urban agglomerations, more than 180 prefecture-level cities and more than 10,000 towns, providing a development idea for new urbanization.
The launch of new urbanization will also become a “life-saving straw†for many industries. Among them, the LED lighting industry will significantly benefit from the advancement of new urbanization.
The trend of urbanization and low-carbon energy conservation is an important growth point for the LED industry in the future. The development of urbanization will bring opportunities for LED enterprises to develop. Relevant experts believe that the acceleration of urbanization will drive the development of infrastructure in urban and rural areas, stimulate investment and stimulate consumption.
As a part of the building materials industry chain, the LED industry will have more market demand as other industries develop, which will stimulate the development of the LED industry and inject a fresh vitality into the LED industry. However, whether the LED industry can benefit from the medium and long-term needs to be tested by the market, and enterprises need to continuously improve the system of technology and services.
Second, real estate driving. At present, the focus of China's real estate market has clearly shifted to second- and third-tier cities. Affected by policies such as the “New Five Articlesâ€, the first-line residential market has been suppressed, and with the booming development of the county and town markets and the increase in per capita income of residents, they are expected to become the “blue ocean†of real estate.
According to relevant data, the demand for real estate in county-level cities and townships in China will continue to rise in the next few years. The main consumer groups are local residents and migrant workers.
It is estimated that in the next 10 years, China's average annual housing “just needs†is about 250 million square meters. It can be seen that the prosperity of the “big rural†real estate industry will bring new opportunities for LED lighting.
Third, product profits are guaranteed. Consumers in the third and fourth-tier markets are sensitive to product prices, but their enthusiasm for brand pursuit is not diminished. In addition, in the first- and second-tier cities with relatively developed information and concentrated brands, the products and brands available to consumers in the rural lighting market are few. At the same time, in terms of product selection, it is usually led by the contractor or decoration master of the building. The lighting products from the production workshop to the rural people still have a certain profit margin, which is also the reluctance of the lighting enterprises to give up the third and fourth grade markets. One of the reasons.
What is the current performance of this market?
LED lighting energy conservation is well known, but most of them are currently used in outdoor and public areas of lighting, indoor lighting, especially home lighting in the first and second-tier cities have not yet been popularized, the third- and fourth-level market performance can be imagined. Therefore, this market can only be said to be "potential stocks". How to bring LED lighting into the homes of ordinary people is a headache for countless businessmen.
With the rapid development of the third- and fourth-level market economy and the improvement of people's living standards, people's requirements for lighting quality are also increasing. But relatively speaking, the consumption power of the third- and fourth-tier markets is still insufficient. If the price of LED lighting products is too high, even energy-saving is difficult to promote. Therefore, how to maintain the advantage in price is the key to LED lighting companies participating in the third- and fourth-level market competition.
China is a big agricultural country. Nowadays, incandescent lamps and energy-saving lamps are commonly used in rural households. The market that sells 1 billion incandescent bulbs a year is in the third- and fourth-tier markets. With the rapid development of the rural economy and the improvement of people's living standards, farmers' requirements for lighting quality have also increased. Especially since the implementation of the national policy of promoting energy-saving lighting, it has further stimulated the huge rural market demand. Here, the “rural market†is not a geographical meaning, but represents a consumption power and level.
According to a survey by the reporter, at present, the rural market is still dominated by energy-saving lamps. In some remote areas, incandescent lamps are still in use. The survey results show that light source and household products are selling well in the rural market.
During the Chinese New Year holiday, the staff of the large lighting all-media market returned to their respective hometowns and conducted a survey of the local lighting market. The information collected was all-encompassing, but generally reflected a problem: LED lighting has not yet gone on a large scale. In the third and fourth-tier markets, the penetration rate of LED lighting in coastal counties and cities is higher than that in inland areas. The specific market conditions are summarized as follows:
1. There are few lighting and lighting stores, and lighting products are mixed with building hardware products for sale. In Yanxi Town, Taihe County, Jiangxi Province, the reporter learned that if local consumers want to buy lamps, they often choose to buy them in hardware stores, which has become an inertial thinking. The local Chungen Hardware Store sells a lot of lighting products and is well known in the local area.
2. The network channels of the first-line brands such as Opus and Foshan Lighting have penetrated into towns and villages, and consumers' brand awareness is getting stronger and stronger. Located in Zixi County in central Jiangxi, Ou Pu, Hua Yi, Philips and other well-known lighting brands can be traced, and the location of the store is located in the prosperous area of ​​the county.
3. E-commerce has occupied a small share of the rural market. As the current transportation is more convenient, logistics, postal and other methods can promote the development of lighting and lighting electronic commerce. According to the survey, the groups that generate online shopping behavior in rural areas are mostly young people who work outside the country and are led by them.
4, the surrounding city lighting market squeezes the living space. For the county and town level markets, the impact of the prosperity of the urban lighting industry on them should not be underestimated, which also caused a large number of customer diversions, which reduced their certain profit margins.
In addition, with the rise of the LED agricultural lighting market in recent years, LED is favored as a new type of lighting source that can be used in agriculture, such as LED plant lights and bath lighting. It is understood that plant lighting covers the entire growth stage of plants from cultivation, growth to flowering. With the reduction of available land resources and the increasing environmental pollution, the cultivation of vegetables and flowers indoors has become the trend of future agricultural development. Agriculture is also bound to open up a broader market for LED applications.
How should the rural market operate?
According to the comprehensive survey results, the factors affecting the development of the rural market include the inconvenience of transportation, the rapid development of surrounding cities, the lack of attention of upstream enterprises, and the inaction of agents. The above series of factors have deeply affected the development of rural lighting industry. .
During the Spring Festival, the lighting person Guo Dawei inspected the rural lighting market in Kaifeng, Henan, reflecting the real situation and giving his thoughts. Guo Dawei released his market survey of rural lighting electrical products. The sample object is the hardware and decoration store in the town of Mugou Township, Kaifeng County. The results of the survey: First, the rural decoration is close to the city and is close to the city. The per capita living is spacious, mostly villa-like structure. Second, the electrician socket is one step ahead, branding, such as flying sculpture, Guipai; three, lighting shop has 4, decoration shop and selling lamps 5, Ou Pu Xian layout; Fourth, low-end flat low-voltage lamps, energy-saving lamps and T8 Mainstream, LED lighting is in trial sale, product price is expensive, LED bulb retail price is 15 yuan; 5, rural eager brand, rural shopping increasingly branding; 6, village contractor or decoration master to lead the consumption direction of rural lighting .
After the investigation of the area of ​​the town of Mugou in Kaifeng County, Guo Dawei proposed a five-point operation strategy for lighting manufacturers to develop the rural market: 1. Specialized team operations; 2. Decoration workers are encouraged by architects; 3. Rural lighting energy-saving education box cars; 4. Targeted product development and positioning; 5. Firmly grasp the Spring Festival, holidays and wedding season in rural areas.
Knowing the space, status quo and impact of the “big rural marketâ€, how do we do a good job in the rural market?
1. From the perspective of the enterprise, it is necessary to develop products in a targeted manner, strengthen brand promotion, and serve more. Rural consumers usually have a “face to face, a good pictureâ€, and “quality assurance, safety†is also their point of appeal. Because of this, rural consumers are more “superstitious†brands. Therefore, the enterprises in the countryside must be targeted when establishing channels, and must conform to the consumption habits of farmers.
In terms of brand promotion, including wall advertising and shop recruiting (through the important national highways of cities, counties and towns, houses on both sides of provincial roads; entrances to villages, village committees, canteens, etc.), cross-street banners and broadcast speakers The filming of the countryside, the direct sales of caravans, etc. are all effective means of advertising.
2. Agents should be targeted to allocate energy to the rural market. The local agents are the core force that directly promotes the development of the local market. If the agents do not care about their distribution outlets, or “do not actâ€, then the distribution outlets cannot “produce food†for the general agent, so that Form a vicious circle. The distribution points of the third and fourth grades cannot be ignored. Therefore, agents should pay more attention to distributors and work hard on logistics, publicity and services.
3, dealers should be broken, gather consumers, and timely spread brand reputation. The local distributors should be the people who know the local consumers best. They can gather the contractors, construction workers and decoration workers from all districts and villages to help them recommend products and give them a certain bonus point. On the other hand, one-on-one service, which is not difficult for rural areas.
Some people in the industry believe that LED lighting really penetrates into the third- and fourth-tier markets, and it takes a long time. In the next 2-3 years, it will be the golden period for the development of LED lighting industry. The major LED lighting manufacturers must not ignore the third and fourth-tier markets. The market prospects of large rural areas are limitless.
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