Analysis of LED E-commerce Sales Channel Potential

According to data from iResearch, in the past two years, the scale of transactions in China's e-commerce market has maintained a steady growth, with growth rates over 20% year-on-year, of which SME B2B business accounted for 53.5% of the total market turnover, with With the continuous expansion of the e-commerce market, the transaction volume of C2C has also gradually increased. It is expected that by 2016, C2C and B2C will account for 50% each. In the B2C field, Tmall accounted for 56.7% of the total, which was B2C's largest platform; Jingdong ranked second, accounting for 19.6% of the total. Data from the Tmall platform shows that the overall sales of light fixtures and lanterns are on a rising trend. In March 2011, sales of this category were 50 million yuan. By 2011, the total sales of lamps and lanterns exceeded 200 million yuan. In 2012, the sales volume of lamps, lanterns and accessories reached 600 million yuan, an increase of 200% year-on-year, among which light source products accounted for about 10%, and Tmall platform LED average daily search time was 150,000.

The lamp lighting trades in the e-commerce channel have significant geographical differences, mainly in Guangdong, Jiangsu, and Zhejiang provinces, with Guangdong accounting for 13.12%; in terms of cities, Shanghai, Beijing, Hangzhou, Shenzhen, and Guangzhou rank among the top five; In Tmall's purchase of lighting fixtures and lighting fixtures, the number of young people aged 25-29 is 25-29, accounting for 25.09% of the population aged 30-34. Lighting manufacturers that sell products through Tmall platform are mostly well-known manufacturers under the line. More than 40% of the stores have been certified by Zhongtian. Lamps sellers have higher concentration. 62.73% of the sellers are located in Guangdong Province, 12.70% of the sellers are in Shanghai, and Zhongshan City, Guangdong Province, has 46.35% of Tmall lamps lighting sellers.

For traditional lamp lighting manufacturers, the potential and growth of online channels are currently higher, and more and more consumers choose online shopping. The development of e-commerce channels is not inconsistent with online sales promotion. Traditional enterprises are turning to e-commerce platforms. In terms of talent pools, information systems, business models, etc., all face challenges. Wei Qi mentioned that product storage and logistics are a major difficulty faced by traditional manufacturers. In 2012, there were furniture manufacturers that took six months to complete the delivery of sales products on the double eleventh day.

Wei Qi believes that not all traditional enterprises are suitable for the e-commerce platform, and high-level enterprises do not pay attention to it, the core team's capabilities do not match, and the products and brands do not differentiate evenly. Enterprises are not suitable for blindly entering the e-commerce platform.

For LED product manufacturers, e-commerce channel is a good platform to promote sales of products, but it must combine their own product characteristics, company development, and must not blindly cut into the e-commerce platform.