With the arrival of the new home retail era, more and more companies are adopting a sinking strategy, so will dealers disappear, and where are the dealers’ outlets?
by the manufacturer’s “oppression”
1, manufacturers’ sales tasks are getting heavier.
Only know about the increase every year, manufacturers often only consider themselves, did not consider that there are so many competing products in the market, the products of the manufacturers are more and more homogenized, the sales increase is weak, and the inventory and labor costs increase. The main reason is that manufacturers rarely do real work from marketing. To put it plainly, product upgrades are too slow. The actual dealers are the most exposed to the market, and it is clear that many manufacturers’ products have been unable to keep up with the actual demand, but each time the dealer’s innovation and other details can not reach the company’s top management.
2, manufacturers often find replacement dealers.
A product is in a certain area, the dealer has made it into a local big brand from scratch, just as hard as raising a child, but the manufacturer turned his face and even turned a regional business. In order to replace the dealers or some of the manufacturers, the area was quickly cut off, and many years of hard work was cut off. In the end, the advantages of mastering the terminal channels were basically gone. As a manufacturer’s thinking, manufacturers are always bigger than dealers (even if the actual assets are not as big as dealers), because manufacturers control the absolute rights of products and brands.
3, the quality of business and integrity of the manufacturer is always a problem.
The cost of advance payment can not be basically written off, resulting in deep grievances, but for a business or a high-level manufacturer to come once, a few glasses of wine will promise a lot of “pits”, dealers can not Do not jump in because there is no initiative. Even if you don’t make this manufacturer’s product, you will have a dealer to do it right away, even better than you, because when you change the dealer, the manufacturer will often increase the input cost, even if the dealer is strong, in his own chassis, except for himself. People do this brand, but think about it, manufacturers will increase sales in other areas, or after a few years, from the product “live”. There are no dealers who can absolutely control the market.
Accepted by the market and the channel of “bullying”
1, the cost of the store increased year by year, what is reasonable and unreasonable, such as the increase of the savage beast, the dealer’s meager profit How to support 3-5 years?
The main reason is that the offline is hit by the line (the store does not have a closed-loop industry circle, such as scene experience, such as thoughtful services, such as entertainment needs; at the very least, there are a lot of stores with a lot of spare The seat? The customer wants to have no place to rest, who wants to go to the store often? So consumers go to IKEA to sleep). The offline is shocked, the flow of people and profits is greatly reduced, and the cost of labor and other costs is high, so it is only possible to ask the dealers and manufacturers for money (for manufacturers, the store is slowly but often, want to skip the dealer directly Manufacturers cooperate because of the lure of profit in the middle).
2, manufacturers must both sell and be popular, dealers can not meet, can only be maintained on the edge of elimination.
The main reason is that dealers do not have professional professions and cannot operate the market professionally, but now the situation is that the professions are not necessarily able to sell. In order to complete the indicators given by the store every year, the dealers will not hesitate to buy sales to drink and quench their thirst, or some dealers rely on multi-care workers or promoters to increase sales.
3, the store will ruthlessly abandon itself and directly Look for cooperation with manufacturers. There are too many such examples, so I don’t have to give examples, because everyone knows to go to intermediate and maximize profits.
4, channel costs are getting higher and higher, regardless of the size of the store, have learned the cost.
It seems that the cost is everything, the product is not important, but these costs, manufacturers often swear or do not support, facing their employees’ “family livelihood” and the manufacturer’s “card throat task” How to do? Is it to let your employees take the so-called “best sellers” in the silly death of the channel?
Distributor’s short board
1, funds. How much money, how much work, many dealers are struggling on the line of life and death, and even if the funds break, they can be closed tomorrow.
2, staff team. People at the dealer level is a very painful thing. Nowadays, young people are more and more difficult to manage. The dealers themselves will not lead the team. Some dealers find good professional managers, but they can’t find them. Appropriate, it is painful, many employees stand on their own for 2-3 years. Because the dealer threshold is too low, even if there are people, it is difficult to bring out a professional team. The root cause of this pain is that they do not operate the brand by themselves.
3, brand selection. This is by luck, the choice is not right, the effort is in vain, the good brand will not be easily represented by the agent, the sales of the agent after the agent does not necessarily pick up. There are too many small brands, and it is difficult for them to distinguish whether they have potential for development.
4, the terminal control. The difference in the structure of the agent’s products has led to the strength of the terminal’s control. The development and savvy of the second batch of merchants has exceeded the capabilities of the dealers. Because the goods of the manufacturers are actually flying, the development space of the second batch of merchants is available. There are also some B2B platforms and experts who say that dealers are revolutionary objects and have to be replaced.
The dealer will not disappear, but the dealers in the excess link will be optimized. The future dealership pattern will change. Expressed in another language: dealers as a group will not disappear, but as individuals, if they do not transform or transform unsuccessfully, the probability will disappear. Dealers have to change from “sitting business” to “trading”, but they encountered great resistance at the time. Later, a group of new dealers known as “businessmen” emerged, and “sit-off” was eliminated.
Merchants are going out, not only do people have to go out, but the goods have to go out. “Car sales” become marketingStandard. Later, we proposed “visiting sales”, and the separation of people and vehicles was greatly resisted.
Fortunately, many big businessmen have now turned around. Now, we have proposed a third-party “unified warehouse” in the B2B environment, which is an improvement on the basis of “visiting sales”. To put it bluntly, it is to strip the warehouse function from the dealer and still encounter resistance. For so many years, dealers are constantly denying. Every time you negate, you will encounter resistance. Therefore, the traditional elimination and the rise of the new force are too normal.
1, the core functions of the dealer
What is the core function? Just leave it, the dealer does not exist as a group. As long as the core functions are irreplaceable, dealers as a group will not disappear. The elimination and renewal of individuals is normal. Due to the high backwardness and fragmentation of Chinese channels, Chinese distributors carry too many non-core functions, so many people think that these functions are the natural functions of dealers, but they are not. As a division of labor, manufacturers (brands) carry the role of value creation, and businesses (all types of businesses, including agents, distributors, retailers) carry the role of value transfer. Of course, there will be creativity in the process of value transfer, otherwise there will be no progress in value transfer. At the same time, merchants may also participate in the value creation of brand owners, but they are not core functions.
There are about four functions that the dealer undertakes: funds, promotion, orders, and warehouse allocation. Funds, warehouse allocations, and orders are all core tasks of non-value transfer, especially warehouse allocation, which is the transfer of goods, not the value transfer. Which of the above functions is a core function? I think it is promotion, promotion is the real value transfer, and others are the functions derived from it.
2, dealers and B2B
B2B appeared as a new species, so someone gave the dealer a “death penalty”, it seems that the dealer can do, B2B Can do, and fewer links, more efficient. Of course, some B2Bs are currently low in integration and inefficient, but they cannot be used to negate the efficiency logic of B2B. In the past, we emphasized distribution and marketing. It is because China does not have an efficient third party, and dealers are forced to do things that are not within its core functions. For example, the distribution in the United States is all done by a third party. B2B has emerged, which carries the integration functions of some channels, which is an improvement in China’s circulation, although this progress is combined with the Internet. As an integrated function of the channel, B2B’s advantages are concentrated in the integration process. If there is an advantage in integration, it will be handed over to it in the future. Such as order integration, unified warehouse allocation.
As for big data and internet finance, they are derivative functions and are not core functions. Channel integration services have long appeared in the United States, such as third-party distribution, but the dealers are still alive, indicating that not all functions of the channel have integration advantages.
3. Promotion is the core function of the dealer
Promoting, to a large extent, is a relationship activity. Interpersonal activities, small organizations have more advantages. Unlike the classic product strategy of multinational companies, Chinese companies are pushing new products faster than multinational companies. Product promotion, in addition to back-end support (advertising, communication, branding, etc.), depends largely on the channel’s trinity. Teacher Shi Wei proposed the trinity of the Internet era—cognition, transaction, relationship, and trinity. This is the trinity brought by online communication. The reason why China’s marketing in the past can creatively propose “to fight against brands through channels” is brand-driven and channel-driven, because China’s channels are also trinity – relationship, cognition, and transaction. The same is the Trinity, but the logic is different.
The trinity of the Internet, the premise is that communication produces cognition, while the offline trinity, on the premise, the relationship produces cognition. Communication generates cognition, which is the advantage of the Internet. Relationships generate cognition, which is an offline advantage. Despite the Internet age, the traditional Trinity will not disappear and will exist for a long time.
The proportion of virtuality will rise, but it will never be possible to replace reality. Based on the promotion of interpersonal relationships, small organizations have advantages, social radius and business radius overlap, there are advantages in traditional social relationships, and interest centers have more clear advantages. I have repeatedly stressed that B2B certainly has an advantage, but we must not think that it is omnipotent, otherwise there will be only enemies and no friends. Admit that you have a disadvantage, and then cooperate with the advantaged party, there are friends.
4, agglomerate the core functions
The world is in a state of great power, and it will be steadily. As a channel integration party, B2B divests non-core functions, which is an improvement of China’s channels. Even if there is no Internet, China will come to this step, but it is not so fast. Don’t think that the current dealer’s form is the norm, just that it is abnormal.
Future dealers, divesting warehouses, focusing on core functions, their advantages will be better. In the current dealer organization structure, the proportion of warehouse staff is too large, daily work is transactional, and core functions are often forgotten. Future dealers will be lightly loaded, there will be no warehouses, no vehicles, drivers, library management and even internal staff will be greatly reduced, resulting in reduced management complexity. Is this not a good thing?
(provided by Shenyang Building Materials Network) <
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