LED enterprise's way of survival: quality and profit

Quality and profit are the way to live

Therefore, "small proportion, low two purchase rate and limited profit" have become the three major bottlenecks of online sales of LED lighting products. Next, let's take a look at the various marketing costs of the online platform. Although online shop operation looks easy, a small office and warehouse can maintain the daily operation of the network, but in fact, the various expenses and exorbitant taxes operating on the website are not lower than that of the entity stores: employee wages, production costs, promotion costs, material flow costs, daily office and management fees. The total cost of using, after sale, platform, commission, etc. can be combined to account for 40% or even more of the cost. If the impulse is to be carried out, the promotion cost is at least 30%, and the current market environment is sluggish and the price war is slaughtered, which makes the business enterprise of the original thin profit more difficult to kill the enemy one thousand and damage eight hundred.

How to break through the three major bottlenecks

At the same time, because there is no support for high profits, the electricity supplier has no guarantee in terms of product quality, after-sales service and so on. Online platforms rely on poor quality and low price to eat low-end consumer market. Consumers are happy after buying that moment, and every day is painful. In addition, for the company's own operation, the long-term low profit or even loss makes the enterprise's risk reduction ability very low. According to statistics, the current middle class group accounts for about 100 million people, and by 2020, it is estimated that there will be 6-7 billion people. It can be seen that quality consumption and products are the future trend of the market.

Cheap goods are happy when buying, but after purchase?

Whether it's a physical store or an electronic business enterprise, there will be no way out without profit. A lamp, hundreds or even more than 1000 accessories, hundreds of processes, the average gross profit is only 30-50%, how can support the national channel cost and brand publicity costs? Lighting stereotypes products rely on scale effect to improve the performance price ratio, while the lamp accessories are various, and the sales volume of individual enterprises is generally not high. Therefore, to do the best and make a profit, not only the cost of raw materials such as glass, hardware and wood will be used to determine the price of lighting, but the added value should be improved through design innovation, craftsman spirit, cultural creativity, brand and so on.

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