In recent years, China’s declining birth rate since the 1990s has gradually affected the supply of workers in the labor market.
Besides, 3 decades of economic growth has cultivated the Chinese market’s strong spending power, and transformed the country’s status in the world supply chain from a “global factory” into a “factory and market”. The 2 trends have caused annual increase in China's human costs and rental costs, making the cost advantage of online companies to be more and more prominent in the competing market channels.
Reflected into the LED lighting industry, although traditional offline distribution channels play an important role in marketing, the lighting E-commerce market has soared. The offline advantages of traditional lighting brands boosted the rapid e-commerce performance.
Traditional lighting companies trying out online models first emerged in 2013, and their performance was on par to new lighting online companies. In 2014, synergy effects from online and offline retail, and brand advantages of traditional lighting enterprises have been more and more prominent.