[Source: Gaogong LED 's " LED Lighting Channel" magazine February issue reporter / Zhou Jianhua]
Terminal "sandwich layer"
An agent in the Xiamen area of ​​Fujian said that in the past two or three years, the cash flow was relatively easy, often received after the completion of the distributor meeting, and now the provincial agent of LED products, especially the strong brand - whether it is traditional Lighting or professional LED agents need sufficient funds to transfer the time difference between the distribution and payment deadlines.
"I hate to open an order meeting!" Liao Cong, the general agent of a certain LED lighting brand in Xiamen, did not hide his dissatisfaction with the company. The ordering meeting is more and more frequent, the distribution shop owners are interested, and the agents are beginning to meditate: the ordering meeting is completely based on ordering. There is no breakthrough. What can it bring to the terminal store and what will it bring to the agent?
"LED prices change rapidly, technology changes faster. Distribution does not dare to do inventory, but the total generation can not simply push this 'Pear' back to the enterprise 'self-use', after all, one of our important functions is warehousing logistics and distribution, inventory is very The key." Liao Cong explained.
He also mentioned another concern: last year signed a joint venture contract of a Zhongshan brand branch, the manufacturer because of the transformation of traditional home lighting, research and production and production lag, the LED market is not well understood, so the delivery cycle It was extended for three months, so that distributors did not buy it and terminal engineering customers were lost. This situation leads to unsalable products, and the money is naturally difficult to collect. We are more uncomfortable in the middle of the enterprise and distribution.
The problem reflected by the difficulty of collection is that the chain of “manufacturer-agent-distributor or engineering customer†is not smooth. Most LED brands have doubled their tasks in 2012. "There must be growth, but the doubled explosive growth is definitely not complete." The painful agents only pass on the pressure to the distribution store. "At present, there are more than 10 excellent terminal brands on the market, and there are about 5 in each region. It is difficult for other second- and third-line brands to enter the market. There are not many strong brands in the store, and the operating pressure is very high." Zhang Bin, the agent of the brand in Hubei Province, said.
“The more difficult the upstream is, the more difficult it is.†This sentence summarizes the “ecological chain situation†that is difficult to collect at the end of the year. Take the account book of the LED brand represented by Zhang Bin as an example. This year, the main reason is the small and medium-sized customer store. He analyzed that it is almost impossible to make money by making a product of a brand. If these small-scale stores have to order 3-4 brands of goods at the same time, they will calculate one to two for each brand of 5-6 million yuan. Nearly 300,000 yuan will be taken within a month. The collection time of each brand is almost crowded at the end of the year, and the funds of small and medium-sized distribution stores are naturally tight. "In the past years, it was possible to give 30,000 yuan at a time. Many of them will give 10,000 yuan this year."
Agents and logistics companies with difficult collections are like “sandwich biscuitsâ€. They don’t dare to offend at both ends: companies need to receive remittances on a regular basis, recover high market input, distribute stores to order pressure, and because of inventory, funds, etc. The problem has been delayed. This also "forced" most agents to strengthen services, actively cooperate with customers to promote inventory and other ways to increase turnover, flexible policies, whether the product has a bright spot is the key.
Spreading goods
"There are a series of vocabulary such as poor access, unstable engineering, accounts receivable, and accounts payable, which are enough to describe the situation of LED enterprises in this year. The collection of terminals is difficult, but it does not affect the influx of LED products and the distribution of goods. Occupy the 'mood' of the commanding heights of the market." Sun Wei, director of lighting marketing, said to the "Lighting Channels" reporter.
Faced with the distribution of goods, the first thing that provincial dealers think of is that the cooperative enterprises will come to “pay the bill†– one is to obtain the funds or credit line support of the upstream enterprises; the other is to extend the delivery period of goods, obtain the support of inventory goods, and reduce the purchase price. Increase product profit margins, etc. NVC Lighting has promised to provide its channel operators with a market credit line of 200 million yuan within one year, which is a practical action to enhance dealer confidence, covering 36 operating centers nationwide, more than 2,200 brand stores and more than 1,500. Dealers, in the form of cash and goods.
"Many traditional enterprises have changed LEDs, or LED new brands are facing the problem of merchant trust. Credit is equivalent to distributing goods to some extent. Of course, this depends on the customer's situation." Zhou Shuiming, general manager of Foshan Jiamei Lighting Marketing said.
Of course, this "burning money" depends on the company's financial strength and background operations. In 2012, Hangzhou Hongyan Electric launched a “broad†distribution activity: to distribute its LED products to unconditionally and risk-free distributors, and select 300 high-quality distributors to provide LED products with a total price of 20 million yuan. After the contract expires, the remaining goods can be returned unconditionally.
"Three years and 10 billion is my goal for Hongyan LED lighting." Wang Yancheng, president of Hongyan Electric. What gives him confidence is the local government's support for the LED industry. At the beginning of 2012, China's Putian Group, the parent company of Hongyan Electric, signed a strategic cooperation agreement with the Hangzhou Municipal Government. The Hongyan Linan Energy-saving Lighting Industry Base and the Intelligent Lighting Research Institute landed. Subsequently, the Hangzhou Municipal Government issued a "40" new policy, which will be funded in the field of semiconductor lighting, and the maximum amount of individual funding can reach 10 million yuan.
However, without the above-mentioned SMEs such as Philips, NVC, Hongyan and other brands, they only have to endure the painful period of their own distribution. Li Qiang is a business owner engaged in LED outdoor decorative lighting products for 6 years. He smiled and said to reporters: "We still have nearly 2 million yuan in payment yet, and it has been more than two years. Now we have no hope. ."
According to its introduction, the current LED products are of the same quality, the competition has already become hot, and the new enterprises have no advantage in terms of capital and brand. Only by relying on “selling goods†to earn a reputation can they survive. If you can survive the painful period of no brand awareness, the collection problem will be alleviated.
In addition, even if you directly face the terminal engineering customers, LED companies or agents also have a headache. "At present, the sales of LED terminals mainly rely on engineering orders, but the return period is relatively long. If EMC has basically two to three years to withdraw funds, and the rigid price reduction of LEDs will occur every month, so it is a test of the enterprise. Capital chain.†Zhu Yan, deputy general manager of Tsinghua Tongfang Lighting Division.
Terminal "sandwich layer"
An agent in the Xiamen area of ​​Fujian said that in the past two or three years, the cash flow was relatively easy, often received after the completion of the distributor meeting, and now the provincial agent of LED products, especially the strong brand - whether it is traditional Lighting or professional LED agents need sufficient funds to transfer the time difference between the distribution and payment deadlines.
"I hate to open an order meeting!" Liao Cong, the general agent of a certain LED lighting brand in Xiamen, did not hide his dissatisfaction with the company. The ordering meeting is more and more frequent, the distribution shop owners are interested, and the agents are beginning to meditate: the ordering meeting is completely based on ordering. There is no breakthrough. What can it bring to the terminal store and what will it bring to the agent?
"LED prices change rapidly, technology changes faster. Distribution does not dare to do inventory, but the total generation can not simply push this 'Pear' back to the enterprise 'self-use', after all, one of our important functions is warehousing logistics and distribution, inventory is very The key." Liao Cong explained.
He also mentioned another concern: last year signed a joint venture contract of a Zhongshan brand branch, the manufacturer because of the transformation of traditional home lighting, research and production and production lag, the LED market is not well understood, so the delivery cycle It was extended for three months, so that distributors did not buy it and terminal engineering customers were lost. This situation leads to unsalable products, and the money is naturally difficult to collect. We are more uncomfortable in the middle of the enterprise and distribution.
The problem reflected by the difficulty of collection is that the chain of “manufacturer-agent-distributor or engineering customer†is not smooth. Most LED brands have doubled their tasks in 2012. "There must be growth, but the doubled explosive growth is definitely not complete." The painful agents only pass on the pressure to the distribution store. "At present, there are more than 10 excellent terminal brands on the market, and there are about 5 in each region. It is difficult for other second- and third-line brands to enter the market. There are not many strong brands in the store, and the operating pressure is very high." Zhang Bin, the agent of the brand in Hubei Province, said.
“The more difficult the upstream is, the more difficult it is.†This sentence summarizes the “ecological chain situation†that is difficult to collect at the end of the year. Take the account book of the LED brand represented by Zhang Bin as an example. This year, the main reason is the small and medium-sized customer store. He analyzed that it is almost impossible to make money by making a product of a brand. If these small-scale stores have to order 3-4 brands of goods at the same time, they will calculate one to two for each brand of 5-6 million yuan. Nearly 300,000 yuan will be taken within a month. The collection time of each brand is almost crowded at the end of the year, and the funds of small and medium-sized distribution stores are naturally tight. "In the past years, it was possible to give 30,000 yuan at a time. Many of them will give 10,000 yuan this year."
Agents and logistics companies with difficult collections are like “sandwich biscuitsâ€. They don’t dare to offend at both ends: companies need to receive remittances on a regular basis, recover high market input, distribute stores to order pressure, and because of inventory, funds, etc. The problem has been delayed. This also "forced" most agents to strengthen services, actively cooperate with customers to promote inventory and other ways to increase turnover, flexible policies, whether the product has a bright spot is the key.
Spreading goods
"There are a series of vocabulary such as poor access, unstable engineering, accounts receivable, and accounts payable, which are enough to describe the situation of LED enterprises in this year. The collection of terminals is difficult, but it does not affect the influx of LED products and the distribution of goods. Occupy the 'mood' of the commanding heights of the market." Sun Wei, director of lighting marketing, said to the "Lighting Channels" reporter.
Faced with the distribution of goods, the first thing that provincial dealers think of is that the cooperative enterprises will come to “pay the bill†– one is to obtain the funds or credit line support of the upstream enterprises; the other is to extend the delivery period of goods, obtain the support of inventory goods, and reduce the purchase price. Increase product profit margins, etc. NVC Lighting has promised to provide its channel operators with a market credit line of 200 million yuan within one year, which is a practical action to enhance dealer confidence, covering 36 operating centers nationwide, more than 2,200 brand stores and more than 1,500. Dealers, in the form of cash and goods.
"Many traditional enterprises have changed LEDs, or LED new brands are facing the problem of merchant trust. Credit is equivalent to distributing goods to some extent. Of course, this depends on the customer's situation." Zhou Shuiming, general manager of Foshan Jiamei Lighting Marketing said.
Of course, this "burning money" depends on the company's financial strength and background operations. In 2012, Hangzhou Hongyan Electric launched a “broad†distribution activity: to distribute its LED products to unconditionally and risk-free distributors, and select 300 high-quality distributors to provide LED products with a total price of 20 million yuan. After the contract expires, the remaining goods can be returned unconditionally.
"Three years and 10 billion is my goal for Hongyan LED lighting." Wang Yancheng, president of Hongyan Electric. What gives him confidence is the local government's support for the LED industry. At the beginning of 2012, China's Putian Group, the parent company of Hongyan Electric, signed a strategic cooperation agreement with the Hangzhou Municipal Government. The Hongyan Linan Energy-saving Lighting Industry Base and the Intelligent Lighting Research Institute landed. Subsequently, the Hangzhou Municipal Government issued a "40" new policy, which will be funded in the field of semiconductor lighting, and the maximum amount of individual funding can reach 10 million yuan.
However, without the above-mentioned SMEs such as Philips, NVC, Hongyan and other brands, they only have to endure the painful period of their own distribution. Li Qiang is a business owner engaged in LED outdoor decorative lighting products for 6 years. He smiled and said to reporters: "We still have nearly 2 million yuan in payment yet, and it has been more than two years. Now we have no hope. ."
According to its introduction, the current LED products are of the same quality, the competition has already become hot, and the new enterprises have no advantage in terms of capital and brand. Only by relying on “selling goods†to earn a reputation can they survive. If you can survive the painful period of no brand awareness, the collection problem will be alleviated.
In addition, even if you directly face the terminal engineering customers, LED companies or agents also have a headache. "At present, the sales of LED terminals mainly rely on engineering orders, but the return period is relatively long. If EMC has basically two to three years to withdraw funds, and the rigid price reduction of LEDs will occur every month, so it is a test of the enterprise. Capital chain.†Zhu Yan, deputy general manager of Tsinghua Tongfang Lighting Division.
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