China's lighting distributors continue to rise in cost

China's lighting distributors should actively seek their own development of lamps as a traditional industry. At present, they are facing the harsh external situation such as rising raw material prices, rising labor costs and increasingly fierce market competition. The profit margin is greatly compressed. It can be said that the lighting industry Faced with unprecedented pressure.
The last life-saving straw for lighting companies and dealers It is understood that many lighting dealers have difficulty in slamming store cost pressures and operational pressures in the face of difficult traditional store operations, and changing channel operations has become a life-saving for some lighting companies and dealers. straw.
The channel cost is increasing with the increase of the investment in the new store. When the first store opened in the first-tier cities, the investment at that time was only tens of thousands of dollars, but now it is necessary to open a standard store investment in the first-tier and second-tier cities. It needs hundreds of thousands of millions, and it takes tens of thousands of lighting companies to open stores in the third- and fourth-tier markets. This is a sigh, and the cost of opening stores is increasing. This has become a huge challenge for enterprises. .
It is not just the increase in the cost of opening a store. In fact, the operating costs of the original traditional channels have also risen sharply. The head of a lighting company's marketing department said that on the one hand, store rents are rising; on the other hand, due to inflation, the wages and commissions of store employees are also increasing substantially; plus the increase in logistics and transportation costs, channel costs. Compared with previous years, it is increasing substantially.
Hard labor costs continue to rise At present, China has begun to enter the era of high wages. Almost all lighting companies have significantly increased the labor wages of their channel operations, which has led to an increase in channel operating costs. Nowadays, the market is very competitive. For the terminal, excellent clerk is a scarce core resource. In order to keep people, high wages and high commissions are also things that companies have to do. The industry believes that in the era of high wages, the hard cost of manpower for corporate channel operations will only continue to rise.
In the development of enterprises, logistics and transportation are also a big problem. In the first- and third-tier cities, the prices of lighting products vary greatly. For example, the same batch of lamps sold to Beijing and Urumqi are much different in price, because the transportation costs are different, but The price on the line is uniform, so the dealers have no enthusiasm for delivery, installation, and after-sales. The logistics cost of the lighting industry is much higher than other categories, and it faces problems of transportation, installation and after-sales in different places. This is a major obstacle to its smooth development of the e-commerce model.
All in all, lighting dealers should actively seek their own development, change in change to adapt to changes in the environment, in order to get rid of all aspects of the constraints, to achieve personal improvement and development.