LumEfficient’s Randy Reid warns Chinese audience not to bypass distribution and sell direct.
Reid explained that Chinese lighting companies who sell through Amazon or online are competing against over 100 other companies and only able to sell on price. They miss the opportunity to capitalize on features and benefits, and therefore miss higher margins, that come with working through the existing rep-distributor channel.
In the presentation, Reid discussed those different channels and the value of each one.
In addition, he also discussed the need for manufacturers to create products that have unique features and benefits and how flooding the market with cheap commodity products, at low margins, does not serve anyone well.
LumEfficient, located in Nashville, began their business in 2010 selling LUXIM’s Light Emitting Plasma lights. As LED technology continued to improve in efficiency and reliability, LumEfficient gradually began replacing their entire LUXIM brand of LEP luminaires with the Resilient brand of LED luminaires. Although LumEfficient’s products are designed for heavy industrial use, most are sold in the general lighting market because of their competitive price points. LumEfficient has products installed throughout the U.S. as well as India, Russia, Taiwan, Germany and the UK.
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