The future of O2O in the LED lighting industry will be in the second, third and fourth tier cities

At present, O2O's hype in the lighting industry is hot, and many people will ask, is it easier to do O2O from a first-tier city or a second- and third-tier city? I think it is the latter. why? The first-tier cities have a lot of big brands, and the competition is fierce. In the second and third tier cities, the competition is relatively small and the opportunities are more. Why are second- and even fourth-tier cities more likely to develop? First, the second and third tier cities have a large population base. They occupy the mainstream market for mass consumption. In particular, many young groups will choose to develop in second- and third-tier cities where housing prices are relatively low. After many 80s and 90s, after a period of rushing life, they will choose to settle in second- and third-tier cities where competition is relatively less intense, because the cost of consumption is lower and the pressure on buying a house is small. Second, large brands are difficult to fully cover, and small and medium-sized brands can sneak into the market. The layout of first-tier cities is relatively mature, consumers can buy online, or go to specialty stores. In the second and third tier cities, hypermarkets and brand stores are relatively limited. The combination of online and offline brands and agents will be a blue ocean. The consumption power of second- and third-tier cities is not bad, and with the improvement of living standards, they are increasingly demanding home decoration, they want to choose a unique and safe brand. The lighting company's O2O experience model allows them to participate in the entire purchase process and solve the problem of mistrust. Compared with pure e-commerce platforms, traditional enterprise offline channels have stronger penetration. For example, Haier Mall, its logistics and distribution covers more than 2,500 counties, the channel sinks to be smooth, and nearly half of the online mall orders come from the third- and fourth-tier cities. However, the problem has come. The orders in the third- and fourth-tier cities are scattered and the situation is different. Each platform must learn to find a partner to leverage. At present, the sinking of various platform channels is solving the payment and distribution problem. The key is to see who runs faster and understands the local market. From the perspective of mode, there will be more interactive ways between online and offline. QR code, store information terminal, mobile APP and virtual reality technology have gradually entered commercial applications. The online and offline combination will be closer and the user experience will be more perfect. Information opacity in the lighting industry will be further eliminated. From the perspective of development strategy, from the key areas to the second and third tier cities, relying on the experience and technology of the key city home experience center, it will bring a new experience to the second and third tier cities.

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