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Deep Ploughing European Home Lighting Market, With Diversified Channels To Meet The New Era Of LED Lighting

Dec 03, 2018

In recent years, with the development of LED industry increasingly mature, the general lighting market gradually become saturated, the major lighting brands in order to compete for market share and launched a fierce competition. "The channel wins, the terminal is the king." 

Channel layout has become a key link in the competition of lighting enterprises, and it is also an important way for lighting enterprises to improve product coverage and share, improve market competitiveness and maintain market competitive advantage. As Taiwan's LED packaging enterprise benchmark billion light, understand the importance of channel access for lighting enterprises. In order to expand the lighting sales channels and make up for the shortage of European access, billion light acquired the German lighting company Wofi in 2013. 

So far, Wofi officially become a subsidiary of billion light. After the integration of billion light, Wofi now how to develop? How does the company lay out sales channels in Europe? How is Europe's overall lighting market performing this year? 

With these questions, Ledinside interviewed Mr. Huang Liyu, general manager of Wofi, and asked him to share some of the current developments in Wofi and the overall state of the European lighting market.

Based in Europe, deep ploughing high-end home lighting field Mr. Huang Liyu introduced that Wofi was founded in 1959 and has a long history. 

It has been 60 years since the Wofi brand, and in Germany and other parts of Europe, we are no stranger to Wofi. From the point of view of the product, at present, Wofi main products in favor of home lighting, including table lights, chandeliers, headlights, ceiling lamps and so on, product positioning high-end. 

Wofi is also planning to add these apps because of strong demand for outdoor garden lights, kitchen lights and more. From the market access point of view, Wofi's main market for Europe, 70% of the turnover in the German-speaking industry, currently in Germany's home lighting sector accounted for about 8% of the market, in the forefront. 

In 2017, Wofi's turnover was 60 million euros and its gross margin was about 60%. From R & amp; d and product technology, WOFI has a strong design and R & amp; d team, its team of designers mainly in Europe. The company has also invested considerable costs in R & amp; D and innovation, and product updates are fast. 

At the same time, Wofi also has "made in Germany" DNA, although at present in the production chain with Chinese manufacturers, but from R & amp; d to design and manufacturing are strictly controlled, product quality, process level can be effectively guaranteed. 

wofi Chandelier and floor lamp 

European lighting market demand back temperature at the end, Luminaire preference return to tradition Speaking about the state of the European lighting market this year, Mr. Huang Liyu said the performance of the overall European lighting market was more bland this year. Because of the high latitude of Europe, the long daylight Time in summer, the short night time, is the low season, and autumn and winter season day time is very short, the required lighting time is correspondingly longer, so the demand for lamps is rising, is the lighting industry peak season. 

The gap in operating income is more pronounced in the light season, usually about 4:6. 

But the climate has been surprisingly good this year, even setting a record of high temperatures in Europe for a century at the same time, with a significantly longer day than in previous years, so the overall demand is not so good at the moment, but it has gradually improved since entering Q4. At the same time, he points out that some of the more obvious market trends can be observed in the European lighting market at present. First of all, the market returns to tradition, take the retro route, led filament lamp with the traditional luminaire design LED lamp mode developed rapidly.

 Secondly, indirect lighting forms are more and more favored, see the light, the pursuit of a comfortable and beautiful light environment; In addition, the rapid development of e-commerce, in Europe at a rate of 20% to 30% per year compound growth, resulting in traditional channels such as furniture stores, such as the share of sales decline.

Develop diversified channels to develop the Chinese market with high quality products. Needless to say, channel access is critical for lighting companies. How to establish a huge sales network and smooth channel access, has become a lighting enterprises to expand the market must cross the "threshold." 

Different enterprises, different products, different stages of development, channel patterns are also different. Mr. Huang Liyu said that at present, the main sales channel of Wofi is "middle and high-end furniture store + E-commerce" mode. As the main products of Wofi in favor of indoor home lighting, positioning high-end, so high-end furniture stores become the inevitable choice of Wofi product channel access. In addition, it can be observed that more and more consumers in Europe prefer to buy lamps in DIY type decorative building materials stores (such as B&Q, etc.), and the prices in this type of shop are lower in price and more diverse in style.


Therefore, the company plans to strengthen the DIY store channel layout, such as the younger sub-brand and other promotion, in order to improve the popularity of products in various grades of the market. At the same time, Wofi also set up a outlet (direct store) in Germany, and plans to continue to add three next year. Let products directly face the consumer community, reduce circulation costs to ensure the cost advantage of the terminal, so that end consumers profit, its cost-effective products are popular with consumers. And with the increasing popularity of the network, consumer shopping habits have changed, e-commerce model has become a trend. 

As a result, Wofi has set up exclusive online stores for luminaire sales at Amazon and other online shopping platforms. 

In addition, through brand and design advantages, Wofi also plans to introduce high-quality lamps and light sources in the Chinese market from 2019 to provide high-end lighting products of consumer quality, as well as optical decoration services with advanced design concepts, so as to enhance the lighting environment and quality of life in home life. Ledinside believes that in the future, as competition in the lighting industry continues to intensify, channel access will be more diversified. Therefore, the lighting enterprises must keep pace with the times, keep up with the pace of development of the times for multi-channel management, multi-point flowering, in order to be invincible in the fierce market competition. Wofi company Deep ploughing the European lighting market, open up diversified channels, and plans to high-quality, design concept leading products to develop the Chinese market, such a development strategy is highly compatible with the current lighting market demand, the future development space is optimistic.