The overly competitive crisis in the lighting market cannot be ignored

The market is the place for trading, and the lighting market is even more unusually fierce. The competition is fierce and excessive. In the face of lighting and tempting cakes, many investors have invested in lighting stores in recent years. However, the market environment is turbulent. While large shopping malls continue to emerge, there are also many lighting stores that have been eliminated in the competition. Although the prospects are broad, business needs to be cautious and potential crises cannot be ignored.

1, hardware behind, renovation and transformation investment

At present, about 65% of the lighting stores in large and medium-sized cities in the country are old buildings and old buildings that were built many years ago. They are old and outdated, and their infrastructure is backward. For example, lack of parking space, when the rain filled the water around the store floor, etc., and the unreasonable interior decoration layout also brings consumers a lot of time and physical consumption. “I have seen the lighting market in a lot of cities in Shanghai and Chongqing. Now they have created a model for shopping malls. They have surpassed department stores in terms of shopping environment and services, and created a good shopping environment for consumers so that consumers can Willingly pay for his wallet.” Mr. Li has been lighting for more than 10 years in a capital city in the Mainland. When assessing the environment of local lighting stores, he said that the hardware environment of the store is in urgent need of upgrading.

The lag in hardware facilities has not only brought great inconvenience to consumers' shopping, but also left them eclipsed by fashion and modern competition rookies, resulting in the loss of merchants. The hardware decoration and transformation need to invest a lot of financial and material costs, to a certain extent, will also cause a substantial increase in the cost of shopping mall operations. With it, the store will balance the profit margin with rents rising by about 10-30%. In fact, for the balance between the increase in rent after the renovation and the actual profitability of the stores, the management wisdom of the store management has been tested for many years.

2, strong enemy ring, pressure heavily investment

For lighting stores, investment can be described as its lifeline. On the one hand, the newly opened lighting store offers a variety of preferential policies, and strives to increase the occupancy rate of the merchants. On the other hand, the old stores with deep accumulation of resources are also trying to retain the settled merchants.

As more and more investors have entered the field of operation of lighting stores, competition between lighting stores has become increasingly fierce, especially in Beijing, Shanghai and other developed cities, the competitive situation has become increasingly intense. On the one hand, the new entrants continue to divide the market cakes, resulting in the diversion of merchants and consumers. On the other hand, due to the continuous impact of the financial crisis at the end of 2008, many lighting companies have adopted austerity and wait-and-see strategies for the dull business. It is understood that there are cases in Shanghai, Guangzhou and other lighting stores that have not yet hired full rents, while those with weaker strength and poor management will face greater pressure for survival.

3, demolition, lighting stores headache

“One of the reasons that we have not dared to grow big is that we are afraid of market demolition. It is not only decoration costs that are lost for each relocation, but the key is the loss of old customers.” One store investor said that all kinds of unpredictable factors The relocation of the stores has not only caused the enthusiasm of the store operators to be frustrated, but also hindered the development of the entire industry.

In fact, since the old professional lighting market was established in the late 1990s, it has been more than 10 years old. With the rapid development of urban construction, the old market that used to be located at the edge of the city has now become a bustling urban center area. Lighting stores that are older than the building market have either influenced the urban environment because of their presence or hindered the process of urban development. The focus of demolition and reconstruction in urban planning and construction.

The demolition and relocation of the stores is to make the previous renovations and transformations into non-productive. What is more important is the loss of merchants and customer resources accumulated over the years. The relocated stores will face the issue of publicity and investment again.

Some stores, because of municipal construction and other reasons, are unable to develop with the established thinking. Although some stores have not been relocated, their daily operations have been affected due to environmental modification and traffic control.

4, management, lighting the store's weakness

According to Rong Gonghua, deputy general manager of Chongqing Oriental Lighting Plaza, a serious fault in the lighting store talents has caused more and more store operators to feel that high-end management personnel are "will be hard to find." This is because the lighting industry started late and its high-end talent reserves are not enough, and the imported “brains” are not known to the industry. At present, most stores have reserved high-end talents in the stores by strengthening training and instructing manufacturers to assist them in internal training.

Compared with department stores, household appliances, and home industries, the lighting industry is relatively young and mature. At present, large-scale chain stores such as B&Q and Homes have not yet emerged. Among them, the obsolescence of ideas, the backwardness of the management model, and the shortage of high-end management talents are the three major constraints on soft power.

Some lighting store operators hold a kind of "small rich and secure" mentality, reluctant to engage in advertising, branding investment, competition awareness is not strong. Many lighting stores are very simple to manage when they are in the early stages of operation. Generally, even if the shops are rented out, there is no way to talk about after-sales service. With the intensification of competition in recent years, the brand awareness of the store operators has gradually become clear, but compared with department stores, home appliances, etc., there is a set of standardized and systematic store management methods, lighting stores are still exploring in the management mode, Perfect stage.

5, rental costs rose

At present, many lighting stores are operated by leasing, and they have no proprietary rights. After several years of meticulous cultivation, market sentiment has gradually increased, and most of the markets have gained a lot of operating profits. However, the continued rise in housing prices has also made the rental price increase at the time of the renewal of the contract become an ironclad thing. At least about 10%, or about 30%, the high rents have brought enormous pressure to the store operations, and further affected the relationship between businesses and stores.

In order to have more brilliant prospects for lighting stores, we need a more professional store.