[Channel Research] Langshi Lighting: Five Years of Dreams

[Text|High-tech LED lighting channel Zhongshan Station reporter Zhou Jianhua] "The brand is simple to do, the OEM is very difficult to turn the brand." As early as 2004, domestic OEM lighting companies represented by Langshi Lighting in Nanhai, Foshan, have started brand building projects.

Ten years, coupled with the LED boom, has "Lang Shi" already stepped out of its own world from the hardship of OEM to its own brand? What kind of thinking did we leave on the journey of building our own brand?


<br> <br> from OEM to brand this year with a new image appeared Guangzhou International Lighting Exhibition Langshi lighting, scored the biggest audience booth area, up to 584 square meters, during the dealer meeting also invited Hong Kong Star Wan Yiliang and Taiwanese star Zhuo Yiting helped out, attracting the attention of many insiders.

In the past two years, the operation of this OEM manufacturer started on the channel is very eye-catching. “Lonshi Lighting plans to create a 'Lang Shi Meng' in five years: launching the dream in 2014, starting the industrial park in 2015, planning for listing in 2016, planning for 2017, and official listing in 2018.” General Manager Summer at the beginning of this year It is clearly stated.

At present, Langshi Lighting has 25 offices across the country, involving 31 operators, and more than 2,000 distribution outlets nationwide, which has formed a certain brand reputation and influence in the industry.

Langshi Lighting was formerly known as “Zhongnan Hardware Polishing Factory” which started with hardware processing in 1991. In 2003, “South Leopard Industrial Co., Ltd.” was established, which successfully transformed into the traditional energy-saving lighting industry.

When the new factory in Hengjiang Hardware Industrial Zone was relocated in 2004, Chairman Xie Lunhua realized that with the impact of macro factors such as rising domestic human resources and raw material costs, it will become a major bottleneck for enterprise development in the future. In the same year, he said: “OEMs only have processing fees and they have no right to distribute their own products. I have always hoped to change the structure of this industry chain and create higher added value through accurate product planning. ”

The formation of all these bottlenecks has caused pressure on OEMs, as Xie Lunhua, chairman of Langshi Lighting, said, “With the rising costs of materials and labor in recent years, the price of OEMs is hard to rise because The vicious competition in the industry has even caused the price of OEM to fall, and the profit margin of the OEM has become narrower and narrower. This is the ending I don't want to see."

From the timeline, the commercial enterprises represented by NVC, Sanxiong and Aurora are expanding rapidly. Among them, NVC has set up 35 operation centers across the country, which is setting off a prelude to the transformation of NVC channels. At that time, domestic OEM lighting companies in Foshan Nanhai had already started brand building projects. In this context, Langshi Lighting is involved in the battle for terminal resources in this market, and it is necessary to do adequate preparations.

As we all know, doing OEM and branding follow different rules of the game, OEM is a lot of money, brands need big investment, marketing, channel construction and so on. In contrast, the market risk of branding is obviously much greater than that of OEMs.

At the end of 2004, Langshi began to officially enter the period of operation of the brand. Xie Lunhua, who is a production manager, knows that the key to branding is positioning. The operation of the market brand and the production of the product are completely different. The professional people do professional things and do the brand “this life is the first time.”


While starting to set up his own marketing team, Xie Lunhua also began his field market examination. In 2005, Xie Lunhua and his team faced the same problems encountered by other companies that built their own channel brands:

1. In the future, who will sell the products with the “Langshi” trademark? (Product Positioning)

2. Whose products are sold in the hands of those who have the "Langshi" trademark? (Market Terminal Dealer)

3. How can Langs find those who sell "Langshi" products. (Marketing, brand communication)

In the end, Langshi decided to position the product in the middle and high-end product line, which is in line with Xie Lunhua's business philosophy of “doing the best”.

After nearly three years of development, Langshi Lighting has set up offices in 25 provinces in 2008, developing more than 80 specialty stores and more than 250 distribution outlets, using regional exclusive agency system to protect the interests of dealers in each region. And company service staff in each area.

However, in the following years, Langshi Lighting's performance in the channel brand was flat, and it was not until 2012 that the strategy was adjusted to “highly fight high” to create a strong brand.

"Langshi price is relatively close to the people. At present, it is better to do LED tube, LED tube spotlight, LED ceiling lamp and LEDT5 tube. Because T5 is listed earlier, the life is longer, the quality is good, and the reputation is very good." This is the evaluation of dealers who have operated the Langshi brand for more than ten years in the Shanghai market.


The product needs to be strengthened. "The new light source has given Langshi new opportunities. The development of LED has given Langshi hope, confidence and motivation. At the same time, it has also achieved the scale of Langshi's today. The achievement of Langshi Lighting is not only LED. With the support of the Langshi team and a group of dealers, the cooperation between the two parties can achieve a win-win situation, and the realization of 'Langshou Dream' can be realized more quickly.” Chairman Xie Lunhua firmly believes that LED is the powerful force of Langshi’s “second takeoff”. Push hands, so in the past two years, invest heavily in order to quickly occupy some of the high-quality channel resources.

It is understood that as early as 2004, Langshi Lighting began to develop LED commercial products, which is regarded as the forerunner in the field of domestic LED commercial lighting, both domestic and foreign. The LED high-power ceiling light produced by it has already replaced the halogen lamp.

Originally, Langshi Lighting intends to promote LED commercial lighting in the domestic market, first in the domestic market, and then select key areas for further promotion, and will actively participate in various exhibitions, set up display cabinets in various places, etc., fully display LED Commercial lighting products.

However, its positioning has been widened again, from small aperture LED flower lights to high-power LED downlights and factory lighting lamps, etc., Langshi has production. In 2005, it produced LED lawn lights; in 2006, LED high bay lights were made.

However, the lack of featured features in many categories has also made Langshi's channel core competitiveness not obvious. "The differentiation of Langshi products is not obvious, the manufacturer's reaction speed and product line development can't keep up with the market demand, there is no main feature, the brand is not loud enough." The above-mentioned Beijing dealers also confess the disadvantages of Langshi in the channel. This also undoubtedly explains from another angle why Langshi Lighting has also experienced a period of transition during the process of building its own brand.

According to the research report of Gaogong LED station reporters, the cooperative dealers reflected that the Langshi LED product line is rich, and it can meet the local market demand, accounting for 59%. The product difference is not obvious, and the update rate is slow, accounting for 31%. 10%.

Throughout the successful creation of independent channel brand lighting companies, no matter what kind of marketing model and means to achieve scale acceleration, the key focus is always to accurately locate products, and will make great efforts in product integration, the products are done fine All, special and excellent. For dealers, the most concern is product quality and marketing.

At present, China's LED industry and various local standards are uneven, and supervision is also their own. And more than 10,000 companies in the existing LED industry chain, the products are also mixed. Looking back at the first half of 2014, the LED industry is full of problems such as “ditch powder”, leakage of insulation devices, and failure of light parameters.

In this regard, Langshi Lighting naturally understands that products are the foundation of the survival and development of enterprises. LED technology is becoming more mature, and the level of awareness of LEDs is getting deeper.

The general manager publicly stated in the summer that enterprises that seize the market at low prices and disregard the quality of products not only damage the rights and interests of consumers, but also seriously damage the reputation of enterprises in the market.

According to dealer research, distributors and end consumers agree that the quality of Langshi LED products accounts for 73%, and that 15% of the quality and the same level of brand advantage are not obvious, and 12% still remains to be observed.

“Consumer word of mouth is the advantage of Langshi. Now the market is very positive for Langshi. However, the cost performance advantage of Langshi products is not particularly obvious in the market. Especially for product development and business teams, Langshi should work hard to develop The core competitiveness of the products, the professionalism of the business team needs to be strengthened." An agent in Langshi, Hebei Province, said relatively favorably.

Speaking of the future channel layout, General Manager Summer said: Internet trading will become one of the mainstream ways of future sales. E-commerce will become one of the focuses of Langshi Lighting's development in 2014.

“For the channel layout, Langshi Lighting mainly adopts the layout of 'three lines': traditional dealer channels, engineering designer channels, and e-commerce channels.” Langshi lighting channels are fully blooming. In addition to the layout of traditional channels, Langshi Lighting actively expands its e-commerce business, opening flagship stores in Taobao, Tmall, Dangdang and Jingdong, and through various effective channels for resource integration and strategic cooperation.

It is reported that Langshi Lighting has recently launched a number of series of LED lighting products, mainly in the circulation category and engineering products.

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