Three major changes in LED companies

       The author suggests that all LED enterprise decision makers temporarily put aside the so-called "Internet thinking" and first analyze the current external environment of the enterprise and the changes that are happening and will happen soon. At the same time, don't simply equate Taobao and JD.com with the Internet. Don't be fooled by their outward appearance, and see the advantages and disadvantages of e-commerce. At present, the external environment of LED enterprises is undergoing three major changes, which have a profound impact on the business behavior of all enterprises.

       First, the penetration of mobile Internet into various fields is rewriting the rules of the game in various industries.

       There are two specific manifestations: 1. The mobile Internet completely breaks the information barrier and enables users to obtain information anytime and anywhere. Information asymmetry between sellers and buyers is disappearing, so businesses that used to make money from information asymmetry will die. At the same time, users are no longer easily fooled, and the saying that "buyers are not as good as sellers" is being rewritten. Therefore, good product, good user experience will be the only way out.

        2. Information communication will transition from centralized to parallel communication, the path of enterprise brand communication will be greatly changed, and word of mouth will become the main basis of user communication. How to make customers like your products and services from the bottom of their hearts become the yardstick for thinking about business.

        Second, there are two major changes at the user level:

        1. User focus has gone through three stages: (1) The earliest stage: focus on price, represented by Taobao; (2) past and present: focus on quality and price, represented by Tmall and jingdong; (3) Present and future: Service, experience and spiritual consumption, which represents O2O.

         Electricity is flawed sales way, it is mainly suitable for standard and non-standard products the low end of the form, requiring users to experience and service of standardization in the high-end products, its value is not large, is not a real threat to the survival and development of these enterprises, at the same time, represented by Tmall electric business platform of the cost of sales is very high, this is the LED enterprises are faced with the problem.

         In addition, online shopping accounts for only about 9 percent of total retail sales in China. In the United States, it's about 12 percent. The ratio will continue to grow, but the period of rapid growth is over. The basic online shopping customer online shopping, this is why Taobao to go to the countryside to brush the reason.

         2. Users born in the 1980s and 1990s have gradually become one of the main forces of consumption. However, decision-makers in a large number of enterprises are all born in the 1960s and 1970s.

        Third, the enterprise without boundary competition

        The most typical case is Luo Pangzi suddenly sold mooncakes some time ago. In the past, the decision-makers of enterprises knew who was the opponent, but now, there is no way to know where the enemy will emerge. Cross-border has become an important trend. Therefore, my judgment on the current situation is that the major changes in the market environment have led to the gradual failure of the old rules of the game, while the new rules have not been established. It's easy for business decision makers to get lost at this stage.

         The transition between the old and new rules has given rise to widespread "Internet anxiety".

         The Internet of traditional enterprises, especially non-standard product manufacturers, is not a simple taobao and JINGdong shop, nor is it a self-built O2O platform, but needs a comprehensive system to enable enterprises to connect with the Internet step by step and in an orderly way, and finally achieve the overall Internet of enterprises. Specific recommendations for decision makers to consider the following aspects.

        1. Self-established O2O platform to solve the Internet of existing marketing channels, namely the system from headquarters to agents (branch offices) to retail terminals (offline and online).

         2. The whole network marketing system, namely Tmall and jingdong store opening as the main online sales channel system; meanwhile, balance the interest conflicts with offline stores and agents through some effective means. We should establish a mechanism for the division of interests and division of labor. For eligible categories, Internet sub-brands can be independently developed, and products and corresponding brands can be designed purely according to online gameplay.

        3. The sales channel data of e-commerce, stores, mobile terminals and other products are integrated in order to realize effective precipitation of data, realize the standardization of terminal operation through data, and establish a new enterprise driving force with data as the asset.

       4. Electronic and mobile business or sales management. That is, the original marketing related behaviors are digitized through the mobile Internet to improve efficiency.

       5. Infiltrate business management into terminal stores, digitize various business behaviors of terminals, realize effective monitoring and support of terminals through digitization, and realize effective links between headquarters and terminals, headquarters and users.

       6. Enterprise internal management and mobile electronic management of upstream suppliers. Realize real-time information transmission to improve the overall operation efficiency of the enterprise.

       The above content means the comprehensive Internet of traditional enterprises, which I will call "broad O2O". It is suggested that policy makers should proceed from the reality of enterprises and make gradual deepening and reform, but they must start early rather than wait and see, otherwise they will be completely marginalized after three years, not alarmist.