Is it alarmism or the general trend that the hotte

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Is it alarmism or the general trend that dealers will eventually disappear

with the arrival of the new retail era of home furnishings, more and more enterprises adopt the sinking strategy, will the dealers disappear and where is the outlet for the dealers

being "oppressed" by the manufacturer

1. The sales task of the manufacturer is getting heavier and heavier

every year, they only know how to increase. Manufacturers often only consider themselves, not considering that there are so many similar competitive products in the market. The products of manufacturers are becoming more and more homogeneous, the sales volume is weak, and the inventory and labor costs are increasing instead. The main reason is that manufacturers rarely make serious efforts in marketing. In short, product upgrading is too slow. The actual dealers are the most exposed to the market, and they know that many manufacturers' products can't keep up with the actual needs, but every time the dealers' innovation and other details can't reach the top of the company

2. Manufacturers often find and replace their own dealers

for a product in a certain region, the dealer's zero investment and expansion of production enable us to meet the growing product demand and start to make it a local big brand, which is as hard as "raising children", but the manufacturer said that it would turn around, and even change a regional business to replace the dealer for the task, or some manufacturers quickly cut off the region, and their efforts for many years would be cut off a little, Finally, the advantage of mastering terminal channels that I think basically disappeared... As a manufacturer, the manufacturer is always bigger than the dealer (even if the actual assets are not as big as the dealer), because the manufacturer holds the absolute right of products and brands

3. The business quality and integrity of manufacturers are always problematic

many prepaid expenses can't be written off basically, causing deep complaints. However, if you change a business or the senior management of the manufacturer comes once, a few drinks will promise a lot of "pits", and the dealer has to jump in, because he has no initiative. Even if you don't make this manufacturer's products, there will be dealers immediately, even better than you, because when changing dealers, manufacturers tend to increase investment costs. Even if dealers are strong, no one makes this brand in their chassis except themselves, but think about it, manufacturers will increase sales in other regions, or in a few years, their products will "live"... There is no dealer who can absolutely control the market

being "bullied" by stores and channels

1. Store fees are increasing year by year. What is reasonable or unreasonable, such as the increase of floods and beasts? How can the dealers' meager profits support the year? The main reason is that offline stores are impacted by online stores (there is no closed-loop business circle of the economy at all, such as scene experience, such as considerate service, such as entertainment demand; at least, there are a few stores with a lot of spare seats? Customers have no place to rest, and who wants to visit stores often? So consumers go to IKEA to sleep). Offline is impacted, the flow of people and profits are greatly reduced, and the cost of labor and other costs remain high, so we can only ask for money from dealers and manufacturers (for manufacturers, stores slowly, often want to skip dealers and cooperate directly with manufacturers, because of the temptation of profits in the middle)

2. The manufacturer needs both sales volume and popularity. The dealers can't meet it and can only maintain it on the edge of elimination. The main reason is that the dealers are not professional enough to operate the market professionally, but now the situation is that the sales volume may not be able to be produced professionally. Dealers do not hesitate to buy sales volume to quench thirst every year in order to achieve the targets given by the store, or some dealers rely on more talliers or promoters to achieve an increase in sales volume

3 Stores will ruthlessly abandon themselves and directly seek cooperation from manufacturers. There are too many such examples, so I don't need to give them, because everyone knows how to maximize profits by de intermediation

4. Channel costs are getting higher and higher. Stores, large or small, have learned to charge. It seems that the cost is everything. It doesn't matter what the product is, but the manufacturers often cheat or don't support these costs. What should they do in the face of their employees' "living at the golden intersection of China's Riverside economic belt and coastal economic belt" and the manufacturers' "throat task"? Is it to let their employees hold the so-called "best sellers" in the channel foolishly

dealer's weakness

1 Funds. How much money do you have? How big things do you do? Many dealers are struggling to survive. Even if the capital breaks, they can close down tomorrow

2. Personnel team. Personnel is a very painful thing at the dealer level. Nowadays, young people are more and more difficult to manage, and dealers themselves do not lead the team. Some dealers find good professional managers, but it is good to find suitable ones, so it is painful. Many employees have established their own doors for years. Because the threshold of dealers is too low, even if there are people, it is difficult to bring out a professional team. The root cause of this pain point is that they do not operate their own brand

3. Brand selection. This depends on luck. If you choose the wrong one, your efforts will be in vain. A good brand will not be easily represented by yourself, and you may not be able to carry the task of sales immediately after acting. There are too many small brands, and it's hard to tell whether they have development potential

4. Terminal control. The difference in the structure of their own agent products has led to the strength of terminal control. The development and shrewdness of the second batch of dealers have exceeded the ability of dealers. Because the goods of manufacturers are actually flying all over the world, there is room for the development of the second batch of dealers. Some B2B platforms and experts have said that dealers are the object of revolution and should be replaced

dealers will not disappear, but dealers with redundant links will be optimized. The form of dealers will change in the future. In another language: dealers as a group will not disappear, but as individuals, if they do not transform or the transformation is unsuccessful, the probability will disappear

dealers wanted to change from "business" to "business", but they encountered great resistance at that time. Later, a group of new dealers called "dealers" rose and "merchants" were eliminated

business is to go out, not only people but also goods. "Car sales" has become the standard configuration of marketing. Later, we proposed "sales visits" and encountered great resistance to the separation of people and vehicles. Fortunately, many big businesses have turned around now. Now, we have proposed the third-party "unified warehouse and distribution" under the B2B environment, which is a progress on the basis of "sales visits". To put it bluntly, the [warehouse configuration] function is stripped from the dealer, and it is still resisted. Over the years, dealers have been denying it. Every negation will encounter resistance. Therefore, the traditional elimination and the rise of new forces are too normal

1. Dealer's core functions

what are the core functions? Without it, dealers as a group will no longer exist. As long as the core functions are irreplaceable, dealers, as a group, will not disappear. It is normal for individuals to be eliminated and reborn. Due to the high backwardness and fragmentation of Chinese channels, Chinese dealers 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) bear the function of value creation, and merchants (all kinds of merchants, including agents, dealers, retailers) bear the role of value transmission. Of course, there will also be creativity in the process of value transmission, otherwise there will be no progress in value transmission. At the same time, businesses may also participate in the value creation of brands, but they are not core functions. Dealers undertake about four functions: capital, promotion, order and warehouse allocation. Funds, warehouse allocation and orders are not the core work of value transfer, especially warehouse allocation, which is the transfer of goods, not value transfer. Which of the above functions is the core function? I think it's promotion. Promotion is the real transmission of value, and other functions are derived from it

2. Dealers and B2B

B2B emerged as a new species, so someone sentenced dealers to "death". It seems that B2B can do what dealers can do, with fewer links and higher efficiency. Of course, some b2bs have low integration and efficiency at present, but we can't deny the efficiency logic of B at the B2 delivery ceremony. In the past, we used to emphasize distribution and marketing because there was no efficient third party in China, and dealers [were forced] to do things that were not within its core functions. For example, the distribution in the United States is all completed by a third party. B2B has emerged, which carries the integration function of some channels. This is the progress of China's circulation link, although this progress is combined with the Internet. As the integration function of the channel, B2B's advantages focus on the integration link. Where integration has advantages, it will be left to it in the future. Such as order integration and unified warehouse and distribution. As for big data and Internet finance, they are derivative functions, not core functions. Channel integration services, such as third-party distribution, have long appeared in the United States, but dealers still live well, indicating that not all functions of the channel have integration advantages

3. Promotion is the core function of dealers

promotion, to a large extent, is interpersonal activities. Small organizations have more advantages in interpersonal activities. Different from the classic product strategy of multinational corporations, the product innovation speed of Chinese enterprises is far faster than that of multinational corporations. Product promotion, in addition to backstage support (advertising, communication, brand, etc.), largely depends on the trinity of channels. Teacher Shi Wei proposed the trinity of cognition, transaction and relationship in the Internet era, which is brought about by online communication. The reason why Chinese marketing can creatively propose "channel against brand" in the past, brand driven and channel driven, is that Chinese channels are also Trinity - relationship, cognition and transaction. The same is Trinity, but the logic is different. The premise of interconnected Trinity is that communication generates cognition, while the premise of offline Trinity is that relationship generates cognition. Communication produces cognition, which is the advantage of interconnection. Relationship generates cognition, which is an offline advantage. Despite the Internet era, the traditional Trinity will not disappear, and this standard will exist for a long time from the date of implementation. The proportion of virtual will rise, but it will never replace reality. Based on the promotion of interpersonal relationships, small organizations have advantages, social radius and business radius overlap have advantages, traditional social relations have advantages, and interest centers are more clear. I have repeatedly stressed that B2B has advantages, but we must not think that it is omnipotent, otherwise there are only enemies and no friends. Admit that you have disadvantages, and then cooperate with the superior party, you will have friends

4. Gather core functions

the general trend of the world is vast. If you follow it, you will prosper, and if you go against it, you will die. As a channel integrator, B2B dealers have stripped off non core functions, which is the progress of Chinese channels. Even if there is no Internet, China will come to this step, but not so fast. Don't think that the current form of dealers is normal, but it is abnormal. In the future, dealers will give better play to their advantages by stripping warehouse allocation and focusing on core functions. In the current dealer organization structure, the proportion of warehouse allocation personnel is too large, the daily work is routine, and the core functions are often forgotten. In the future, dealers will be light loaded, without warehouses and vehicles, and drivers, warehouse keepers and even internal staff will be greatly reduced

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