At the beginning of December 2007, news about Shanghai Luyuan's upcoming involvement in domestic home lighting caused strong repercussions in the Shanghai lighting business community and dealers.
Mr. Xu, Marketing Director of Dunge Group, said that the two brands are now more suitable to share a quality sales network. At the same time, it is also a challenge for channel distributors to grow and progress along with the development of the company. Some dealers said that with the increase of Shanghai Luyuan light source and home lighting, the channels will be gradually independent.
For Shanghai Luyuan to choose the brand vertical extension, the US TCP marketing director Wang Qingsheng said that its purpose is mainly three aspects: first, to expand market share, occupy more market segments; second, the brand vertical extension to block Customer churn, change between brands to transfer within the brand; third, deal with aggressive behavior of major competitors.
Li Feng, general manager of Shanghai Baodi, said that if Shanghai Luyuan appeared in the imitation of the Ou Pu series of home lighting products, its product price positioning can only match the Shanghai Luyuan brand. If another new brand is launched, its brand promotion cost will be very large. . The key issue is how to not hurt existing brands.
In mid-December 2007, the reporter conducted a survey of more than 30 Shanghai Luyuan dealers in Shanghai. The results showed that 60.5% of dealers were very supportive of Shanghai Luyuan's involvement in home lighting, and 31.5% of dealers expressed concern that Shanghai Luyuan entered home lighting. Only 8% of dealers have an indifferent attitude.
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