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New direction of lighting enterprises: expansion to third- and fourth-tier cities
Under the background of slowing economic growth, destocking of the real estate market is one of the five major tasks of China's economy this year. With the increase of income level and the acceleration of urbanization, the focus of LED lighting consumption has been extended to the second, third and fourth tier cities. At present, the layout of big brands in first-tier cities is relatively mature and the market competition is fierce. The second, third and fourth-tier cities are still a blue ocean. It is difficult for large brands to fully cover them. Small and medium-sized brands can sneak into the market. Destocking will drive the market to pick up. The destocking of the property market is still one of the priorities of the government in 2016. Since the Spring Festival, with the reduction of the down payment ratio by the state and local governments, the reduction of the deed tax business tax, the release of restrictions on purchases and other favorable policies for the property market, the real estate market has been booming, and the transaction volume of new and second-hand housing has increased significantly. At this stage, the inventory in all parts of the country has shown a hot trend. Among them, Guangdong Province will digest 26.3 million square meters of inventory in the next three years; Chongqing said that the target of real estate destocking this year is 8 million square meters. In Hebei and Fujian, various incentive policies have been introduced to support farmers in buying houses. At present, the volume of first-tier cities in the real estate market has risen, and the volume of second-tier cities has increased. The third- and fourth-tier cities have not yet risen. In general, the destocking policy will activate a portion of the potential incremental market and bring new growth demands. The warming up of the upstream real estate industry will drive the economic development of building materials, home improvement, lighting and other industries. With the gradual release of rigid demand and improved demand for real estate, the demand for home lighting and commercial lighting will be greatly boosted. Among them, home lighting ceiling lamps, downlights, spotlights, commercial lighting spotlights, track lights, etc. will become key products. The demand for home lighting has always been proportional to the volume of real estate. Destocking in the property market means that more lighting fixtures are needed to decorate new homes. For buyers with rigid purchasing power demand, for the sake of capital considerations, more and more cost-effective LED lighting products will be pursued, and the price may still be the dominant factor. For the rigid demand of first-tier cities, due to the consumption habits and financial strength, more high-quality, large-brand LED lighting products will be considered. In this regard, Liu Yu, general manager of Shandong Yutai Optoelectronics, said that real estate destocking provides a good opportunity for lighting products to enter thousands of households, and the demand for lighting and lighting products involved in home decoration will show a clear upward trend. This has a great impact on home lighting, but it may take a while to gradually reflect. At the same time, real estate destocking can increase the demand for engineering lighting, and will provide more important business opportunities for lighting companies and merchants, such as cooperation with real estate developers, project bidding, and group orders. As early as 2011, Sanxiong Aurora signed a strategic cooperation agreement with Vanke Group to provide LED lighting and lighting solutions for Vanke Group, and was awarded as a qualified material equipment supplier by Vanke for 7 consecutive years.