Advantages and disadvantages of home lighting multi-brand operation mode

This year, there are many companies that use multi-brand operation mode for home lighting. Some of them are strong brands. For example, Jinhan Lighting has derived three major sub-brands, such as the “Knight” who dominates modern iron art, the “Piaget” who dominates the project crystal, and the “dynasty” that dominates the modern crystal lamps; some are leapfrog extension product lines. Relatively independent operation to establish sub-brands, such as Guanhua Lighting invested more than 2 million yuan this year to create energy-saving lamps Division; some are to improve the end-user demand segmentation, such as Qilang lighting new push the two major brands "Sellony", "Oschlo" , To enter the European lamps and other fields; some in order to fill the gaps in the channels, increase profit margins, such as Yudi home modern low-voltage lamp series products, mainly to walk away from customers.

Autron Lighting, which has done well in the field of home lighting, also introduced the crystal lamp of the Palace. However, companies that rely on multi-brand operations to break the second-line brand position have not yet emerged. Home lighting is an industry with low attention and high participation. That is to say, consumers usually pay less attention to it, but they actively intervene when there is demand. At present, there are no fewer than 1,000 companies in the area of ​​home lighting in the ancient town. This kind of industry characteristics determines that lighting is more of a channel brand. The effectiveness of the Volkswagen brand is not obvious enough. As a result, a company can seize the market with high, medium and low brands, and the dilution effect of low-end brands on high-end brands will not be too great.

Advantages and disadvantages of home lighting multi-brand operation mode

However, some insiders believe that the benefits of multi-brand operation are to integrate market resources to the maximum extent, meet the consumer needs of different levels of customers, and decentralize operational risks; the disadvantages are distraction management, the use of dispersed capital, and increase the difficulty of business management. . Cases of multi-brand operation failures abound, and lighting fixtures have recently emerged. In the event of a shortage of funds, they attempted to expand market share by increasing their brands and eventually induced a crisis in the capital chain. The multi-brand operations like Huayi and Shengqiu Group have been relatively successful, but their approach is the joint-stock cooperative system.

Hongguang Lighting has also developed a modern home lighting brand for the high-end market in the provincial capital, but it did not promote it. Chairman Huang Liangxi said: “Because I know that this high-end brand has only 5% of the living space, and the biggest market for home lighting is still Traditional classic home lighting products are mainly second- and third-tier cities, so even if multi-brand operation does not work in a balanced manner, it can be divided into good and small, and can be done in a good manner."

According to industry veteran marketers, multi-brand operations can, of course, quickly increase the market share of corporate products and make full use of corporate market network resources to achieve the goal of improving the competitiveness and influence of enterprises. However, multi-brand operation has a management and research and development of the company itself. There are high requirements in terms of production, sales, and capital. Therefore, the company must fully consider the development status and needs of the enterprise in making decisions, positioning, and selection. Multi-brand operation is a double-edged sword. With good use, companies can occupy a large area and quickly increase sales. However, if even a brand does not work well and wants to engage in multi-brand operations, there is no doubt that the company is dead.