Youshang Group: Optimistic about the cooperation with Philips Lumileds

[Source: High-tech LED "LED Good Products" magazine February issue / Long Zonghui] "I am very pleased to be a partner of PhilipsLumileds, with Philips Lumileds' high quality and complete product line, plus the Friends of the Group for many years in power, control , anti-static high pressure and heat treatment technology experience, will certainly create value for customers and meet customer needs." On December 20, 2012, Philips Lumileds announced the change of the original global exclusive agent distribution system, the first time in 20 years to add new Agents enter their distribution system. Li Zhongping, executive vice president of Youshang Group, expressed great confidence in the interview.

Founded in 1980, Youshang Group mainly provides sales services for semiconductor electronic component suppliers. It has represented many brands in the LED field and many mainstream power IC manufacturers.

Fancy product advantage

On November 15, 2010, Youshang Group officially merged with the United Nations General Assembly to increase revenue and optimize the operating platform to provide better service to all customers.

“After being merged into the Great United Group, the financial, warehouse and logistics are managed in a unified manner. At the point of view, we share the office to save management costs. However, our management system is completely separated and competes fairly under the framework of the Great UN Group.” Huang Yeming, associate director of L Business Group of Luneng Co., Ltd., said that in recent years, most industries have become more centralized, and the requirements of large-scale customers for distributors are getting higher and higher. In addition to the cost performance of products, it is necessary to have the ability to grow with customers. Including sufficient integrity, complete technical support, a strong operational platform and a strong capital structure, which is the competitive advantage of the Grand United Group.

At present, the profit of the channel provider basically comes from the price difference between the original factory and the customer, and the value of the agent must come from its own management ability. After all, the profits given by the original factory are very limited, so it is necessary to adjust the profits through its own management.

“There is no competition but cooperation between the agent and the original factory. Youshang Group advocates “one-stop service” and cross-uses our own service platform. Although the market strategy of the product is formulated by the original factory, we also have the logic of our own market operation. Thinking.” Huang Yeming believes that Youshang Group does not make production, so it will not conflict with manufacturers and customers. We have access resources in chips, lamp beads, encapsulants, modules and even LED lamps. The customer has a problem, we explain the solution, the customer has no problem, we assist in sales.

However, in recent years, faced with the rise of local distributors, international channel dealers such as Youshang Group are generally under pressure.

The advantages of international distributors are a wide range of product lines, comprehensive platform operations, extensive coverage areas and professional service levels. These are the symbols of credibility and support in the eyes of large customers.

“In a short period of time, it has little impact on international distributors.” In Huang Yeming’s view, LED sales must include overall value, namely price, technical service, backup stock, and product content. Today's LED products are not as profitable as before, no matter who will enter this market, it will be a hard battle.

“Only by improving operational efficiency and optimizing service quality, we can maintain market opportunities.” Huang Yeming said that from the perspective of supply capacity, quality control and integration services, Youshang Group has considerable advantages. But the channel trader has always been the assistant of the original factory. If the product itself has no advantage, we cannot turn it into the "world first." “The original sales strategy is as important as the customer's choice.”

Centralized management of product master

“Youshang Group adopts a centralized management model, and the control of product line planning is still concentrated in Taiwan.” Huang Yeming said that the customer’s service surface is operated locally, and there are 24 stagnation sites in Greater China. It is distributed in Shanghai, Shenzhen, Beijing, Chengdu, Chongqing, Guangzhou, Shunde, Xiamen, Fuzhou, Qingdao, Harbin, etc. At present, the total number of sales personnel in the above-mentioned areas is about 700, including about 150 marketing engineers.

"In fact, we designed LED engineering board together with Fuchang Electronics a few years ago. Four years ago, the lighting solutions of Youshang Group were operated by ourselves." Huang Yeming said that before this company also represented Osram's LED products. Some experience gained in providing LED light electromechanical thermal solutions to local customers.

"LED is obviously more complicated than standard components. We will gradually extend the reach of the service network. In addition to telephone communication, it is very important for sales personnel to come to the customer one-on-one with the customer." Huang Yeming said.

According to Huang Yeming, at present, each agent line of Youshang Group is equipped with several product manager (PM) and sales manager. In the division of labor, the product manager is responsible for the marketing strategy of the overall product, while the salesperson is responsible for communicating with the customer. In the sales network structure, Youshang Group adopts the mode of radiating external points of the main point, and all the sites are close to serving customers.

From the current point of view, Youshang Group's agent line in LED has become more complete, can fully meet the needs of various customers, and mainly in the middle and high-end products. Faced with the improvement of the quality of domestic LED products, Huang Yeming believes that the domestic brands are not excluded. For example, now Youshang Group has already reached an agency cooperation with Ruifeng Optoelectronics (300241.SZ). "China's LED lighting manufacturers, mostly based on foreign trade, norms, patents, performance, brands are very important. So I believe that as long as good products have a market in China, just need people to open up." Huang Yeming said.

Unfinished: For more information, please check the February issue of Gaogong LED's "LED Good Products" magazine.

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