Thursday, July 22, 2010

FMCG distributors and how the difficulties faced by self-improvement

"Increasingly slim profit margins, manufacturers have become the senior porter," "ultra-large-scale commercial growing barriers to entry, increasing costs, settlement more difficult," "cash flow growing slower cash flow to do more The smaller "has become more and more dealers from the past. With the market developing in depth, many manufacturers directly involved in and control the distribution channels, control terminals, flat trend channel, large companies make the rapid rise of super-store dealers more awkward position. Positive changes in the depth of distribution channels, the direction of the development of modern logistics and distribution, dealer, or glory that will be divided into bleak. Dealers past glory of China, today the development of feelings of embarrassment with more dealers how to get rid of the plight of business development, how to enhance the development of the marketing industry and distributors of friends point at issue, the author quickly in 10 years Consumer goods sales, has been contacted numerous dealers, experience, and marketing products industry witnessed the rapid rise and fall of many dealers, this phenomenon has in-depth thinking, the problems in this respect are put forward their own point of view, for engaging in marketing and Where's Friends reference.

What factors contribute to the status of the Chinese dealers?

Economic restructuring and environmental characteristics of China's market economy created a Chinese distributor: the vast region, inadequate commercial circulation model, China's unique relationship marketing enables manufacturers to market coverage, depth distribution, product promotion, market management and other important link has to be more familiar with the local consumers with local marketing resources, dealers, distributors and consumers in the product plays an important role. At the same time dealers with their own resources and unique position, by product flow spread and manufacturers support the completion of the primitive accumulation, is also growing rapidly.

Manufacturers on their own networking, promotion of the high cost of the product: the early market economy, by economic, cultural, commercial structures, and other factors into time, Chinese consumers are not mature enough reason, brand loyalty is not high, susceptible to the phenomenon of speculation of - what's hot in the market (actually what businesses sell popular) I'll buy! This line of "Old Master" understand, like a product-market success, it is necessary to quickly form a distribution rate of visual shock effect - to create an atmosphere of popular; The second is to maintain this distribution rate to maintain the trend . However, in China, road transport costs are high, a vast, real spending power of consumers is not centralized, large-scale supermarkets, hypermarkets and other stores are just born with a big sales from the tens of millions of small retailers. By the power of manufacturers to sell on so many points distribution in place and maintain logistics, will "lose die." There is no active participation at all levels of wholesalers, manufacturers can create popular, to maintain popular! Factory based on the market to be the product through distributors, wholesalers, distributors, and expand the product coverage, the effectiveness of cooperation in the pathway to mobilize all levels of distributors, wholesalers, enthusiasm, largely determine whether the enterprise Survival - In China, the wholesale channel of power is unavoidable, irresistible, can not be replaced!

Because of this demand manufacturers have laid a wholesaler, distributor and commercial value of basic survival.

What factors limit the dealer's sustainable development?

Market environment and industry structure changes in circulation, making powerful enemies before dealer (manufacturer's intensive Direct distribution policy), someone is chasing behind (sudden emergence of the supermarket channel): one, 80 years, manufacturers distributors Only three requirements: to accept the goods back to the Rules of the goods distributed to a large number of downstream users. With the maturity of the market economy, in particular, is an internationally renowned "pursuit" of marketing reform. Agent system from the earliest to the later distribution system, to help sell the system and then to intensive distribution, based Jingxiao Hu, and finally set up an office and factory direct sales offices, the more stretched the manufacturer's hands longer the monopoly of distribution dealers getting smaller and smaller areas, the advantages of monopoly distribution less and less dense distribution of ideas factory robbed dealers way of getting money! Second, the distribution industry structure has changed over the years, the Chinese market, the main distribution channel is the wholesale market, large commercial and retail outlets. The wholesale distribution channels in the upstream, major commercial buildings, where the terminal point of getting goods on sale, consumers plan to consumption - is here to buy FCL achieved. Wholesale merchandise variety, low prices, but the credibility of the poor, poor service, environment is poor, products business of entering into a high level of market competition means, manufacturers have begun Jiangdiaozhongduan sales-intensive distribution Ye became Taijiazhiliang no protection. Large commercial buildings of quality assurance, environmental good, service is relatively high, but incomplete varieties, prices high, the counter salespersons neglect and endless enthusiasm as annoying. Supermarket is the consumer of such a love-hate emotions born. Both a good shopping environment, service and quality assurance, but also low prices and variety of features, and commodity price codes, open-shelf sales, easy choice. Is sometimes the product of the cis.

Fire up a shopping mall, retail outlets miles radius of the boss were hurt: "It's priced cheaper than our purchase price, but also open-shelf sales, my business, it all has been robbed." So more than a dozen square meters of shop also "Catch a Fire", bang doors unloading windows, buy optional shelf, extending opening hours - convenience stores springing up, spontaneous growth. By high commodity prices, variety incomplete, counter sales and other disadvantages by the limit, 98 years, the country's collapse of major cities in large commercial buildings are no longer news, transformed into large commercial building supermarket seems to be the direction of reform. Optional style supermarkets to provide adequate low-cost goods and services, 24-hour convenience stores to provide further residential living facilities, a combination of both dominate the retail world has become an irresistible trend. Rapid growth of supermarkets, hypermarkets, wholesalers have become another competitor!

Inadequate grasp of the industry changes and business decision-making errors caused by outdated business practices of many dealers can not meet market competition: I contacted a lot of Jingxiao Shang Zhi Shi care and attention to immediate interests and select products, set up business team is only short-term are more very few to study the development of the industry, competition, trends, let alone to improve their own business ideas and management level, resulting in the onset of changes in industry conditions, business decisions, racking our brains constantly mistakes, constantly in trouble themselves. Some have seen in Jiangxi do little department store distribution customer account management, receipt of all the debt receipts are stored in the portable briefcase, briefcase unthinkable that, if accidentally lost, What did he go and billing customers. There are a dealer friend of several major supermarket chains are mainly long-term supply, because usually there is no serious effort to analyze and manage an operating loss in a supermarket close down, in which hundreds of thousands of their own money into bubbles, in his own saying, "gave a few years back to the operating profit." In the absence of a sound customer management system and financial analysis system, standardized and robust credit growth measures which dealers receivables, bad debts, dead accounts beyond the normal standards of business, causing cash flow problems.

Select partners or product failures, causing financial difficulties: Since most are private or partnership distribution, and management in the family, management or emotional decision-making by the primary stage, select the brand marketing by feelings, emotions, racking our brains to make a choice, distribution of failure and poor sales of the brand may be greatly increased, each chosen for their own mistakes will cause unimaginable economic losses and overall national strength; I do know a department store distribution, Shandong friends, as early supply and serve on the state-owned department store station Branch, the department has accumulated rich experience and marketing resources to stop the disintegration of state-owned department stores after the dealers do their business, simply by P & G, Big Treasure, DING Jia-yi, Suofu Te selling cosmetics and other well-known rapid increase in turnover, a few years accumulated a wealth of resources and network resources, once a department store industry is the leading distributor of Shandong, but in recent years, constantly introduce a few did not promote the success of the brand, resulting in a lot of inventory backlog, cash flow quickly slow down, business has also emerged great difficulties, not shrinking scope of business; several exchanges are very frustrating, "must be careful to introduce the brand, I introduced three brands of failure, each of them for me cause a loss of nearly 1 million, and now there are millions of warehouse The inventory should I keep the burden of waste storage costs. "

Dealer how to overcome difficulties, create a core competitive advantage and enhance sustainable development capacity

Clear development ideas, to develop the system viable development strategy: "There is no target ship will never reach the other side of success," "no clear goal like a tramp, like can not find my way home", dealers, too, should be careful study and analysis of industry trends, market competition, combined with the characteristics of their own resource assessment, to establish a clear development goals and Xiangxi development planning, Yingzao their core competitive advantages, making operating decisions Jianshao mistakes. If a department store in Zhongshan, Guangdong dealer earlier recognition of the next competition is the competition end, their future is how the core strengths and products for the factory's marketing services, under the guidance of this policy, to intervene earlier terminal stores management, control terminal and upgrade the capacity of extension services for the factory, through the years of development, completely avoid the difficulties faced by Da Duoshu dealers, continuously upgrade their operational capabilities, is now Jing Ying Bai Huo 鍗?numerous renowned brands, billion in annual sales on the world-renowned dealer, the key to his success with their own words is "a good grasp our earlier development of the industry, and to clear its own position, and the firm's core strengths to create their own";

Walk the road of enterprise management, building system specifications to meet the operating platform for the management of market competition to improve their management capability: standardized process management system is the implementation of capacity development and upgrading of dealer protection, even the best idea to rely on the implementation of , while the ideas and the implementation of the interface relies on a sound business model system, such as the rational management structure, standardize work processes, effective implementation of incentive measures and a strong team and so on. "I deal first with the manufacturer to do business, and second, learning with others, learning how people open up the market, how, people, and yes, how goods, yes, how much," "I've started the operation of the enterprise," "I have a library tube, there are financial, there are sales managers, each of the sound system, reporting system closely, hehe! are slowly learning. an annual sales in the Japanese Jige Yi enterprise, operating more than 10 international brands, with strong Terminal bargaining power, even more proud of that for many years, business is good, cash-flow average 15 days / times. possesses always made 鐢?his own words, the door is: "We do Guojipinpai 涓嶄粎 brought us in money, more importantly, we introduce and learn advanced business management, our management practices can and world-class enterprise integration. "

Hunhunee live, take a step by step, not work. Merry sat Reminiscence of the Past full of bitterness, complaining is useless. Rules of the game changes, the development trend of the market who can stop, can escape. Want something to eat, want to do great, like development, the crucial point is that you can really accept the concept of enterprise management and put into action.

Integration of upstream and downstream market resources, to build their core strengths: As a dealer households faced a changing environment, we must have clear development ideas and enterprise management platform, but also grasp the opportunity to create their own from the following aspects core strengths.

1, the terminal building: intensive distribution market, the manufacturers have become a must to compete, the performance will be the end product manufacturers focus of future long-term competitiveness. Manufacturers will no longer need big area wholesalers agents, but hopes more widely established in the Jing Xiaohu, intensive distribution, enhanced device management, end-market competition for space (Distribution Issues, display) direction. Wholesalers by monopoly, go big, to eat the difference in the way of life has become history, while the direct control of the ability of end markets, dealers and manufacturers will be essential negotiation chip. Dealers For tomorrow's market maker is not abandoned, not peer out their own network of sales terminal building is the only route.

Terminal building, from development to management to the formation of the network requires a lot of fixed inputs and long of Shi Jian, the process may Jingjixiaoyi in poor, but yes right Qiyeweilai He Xin Competitiveness of one kind of investment, is a Biran through the process, this process requires courage, need perseverance and determination is even more reason - because this is the development of the market environment, can not be avoided.

2, face surrounding the development of the market: wholesalers can not be confined own city, can not be understood to expand around the market looking to do a few large downline. The factory is to pursue the depth distribution policy, but to fully Broader market, in all 23 cities, rural markets are the implementation of the depth distribution, wide open Jing Xiaohu, and even set up direct offices, branch offices of enterprises are not in more than most manufacturers or distributors to cover the needs of the rural market. The difference is that manufacturers are now required to have not only sold more of a terminal performance!

3, the competitiveness of the supermarket channel: supermarket retail formats will become an important foreign markets and the developed cities in China have verified this law. Can stability in the supermarket channel has its own strong client network, good customer relations and strong business intelligence unit sales growth for wholesalers in the future will have far-reaching implications.

4, before and after the development of the development: prior to development: take Langjiu, Goldlion brands such as roads, dealers create their own brand (OEM) diluted downgraded the manufacturer's capabilities to production and processing plant. (Note: It must be noted that there are certain investment risks and the strength required, no light is not fully grasp.)

After the development: the establishment of their terminal sales stores (such as: milk and dairy products distributor located stand, selling milk booths; consumer Taipishangkai supermarkets) is a good idea, but This will surely spread your attention, and will bring new management difficulties, the implementation of the main points are the first to put right the Deputy relationship with China and do have spare capacity in their implementation of the case.

Among the market storm rainy day, the timely adjustment of the direction to follow the market trend of competition in the square for the winner in the circulation to become actively adapt to market changes, innovation, continuous improvement of the "moving company", "moving company", when the new generation of distribution As the market positioning! Strengthen the terminal network, expand sales coverage, and enhance their own channel in the core competitiveness of the supermarket, consider the possibility of before / after development, when the living environment for the next generation wholesale changes in the strategic focus of development time!


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