LED companies want to establish a shared value chain

For manufacturers, a good relationship between manufacturers and distributors may not be successful, but the lack of good cooperation between manufacturers and distributors must fail. The process of the manufacturer's sales is, in a sense, the process of dealing with the dealer. The relationship is handled well, and the glory is good. On the contrary, it is damaged.
For many LED manufacturers, the more obvious phenomenon in channel development is whether the channel is dominated by manufacturers or by distributors. The former has increased investment, and manufacturers can't afford high operating costs; the latter is to hand over the network to dealers, but it seems to lose control of the channel while reducing input. The basic rule for solving this problem is to establish a model of strategic cooperation based on the shared value chain. There is no big difference between the LED industry and the traditional industry in market operations. Under the background of channel wins and fierce market competition, creating a new type of vendor strategic cooperation model has become an important issue in the current LED industry.
A general LED enterprise channel value chain includes: channel planning channels to expand logistics distribution terminal coverage channels to maintain terminal management promotion. As a manufacturer, we can't go to the extremes of offering only products, policies, and purely hand-carrying practices that only do the pressing and dunning; the same can't be done. The dealer function is limited to the distribution and fund settlement, and the rest of the functions are provided by the manufacturer. Another extreme of the package. The core of the vendor's shared value chain cooperation is that the factory and the distributor cannot be separated in the channel value chain, but must be integrated in the entire channel value chain, so that both vendors participate in the value chain and in the value chain. The links determine their respective functions. The sharing, participation and sharing of benefits of all links are one of the basic prerequisites for manufacturers to achieve strategic cooperation.
How to achieve the maximization of the respective utility of the vendors, the maximization of the marginal effects of the channels and the maximization of the interests of both parties, the basic effort lies in the design and implementation of the model of the vendor sharing in all aspects of the channel value chain, and this model must have products. Multi-faceted solutions such as brand, organization and capital.

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