More and more companies have found that with the intensified trend of "homogenization" of products, prices and even advertising, it is very difficult to win competition based on product advantages alone. In fact, in the context of product "homogenization", only through "channels" and "dissemination" can we truly create differentiated competitive advantages-Don Schultz's language.
After distributors have gone through fierce market competition, the real product price difference (that is, gross profit) that can be obtained by selling products is squeezed out by peer competition. Under the pressure of similar products in the market, the prices have to be sold lower and lower, and profits become very thin. Dealers will face the test of survival, and the growth space will become smaller and smaller. How can dealers break through the development bottleneck? How to transform and find a suitable space for development will become the focus of attention of dealers in the new environment! Let's first pay attention to the problems and survival status of dealers in different environments.
Strong and powerful distributors assist manufacturers in in-depth distribution. The sales area is gradually shrinking and retail outlets are decreasing. They rely on manufacturers for distribution, and their own distribution capabilities are poor, and they become distributors that bear capital and logistics; distributors of general brand manufacturers, master Low prices, relying on their own ability to develop the market, manufacturers have minimal investment, and no professional market operation capabilities, product sales are limited, and business risks are very high.
As a strong distributor and general distributors, both face a common problem, that is, market competition will become more and more fierce, while the competitiveness of distributors is gradually weakening, making it difficult to expand the scale of operations, severely declining profits, and increasing operational risks.
The current situation of dealers in urban areas, the stable sales network, assisting manufacturers in distribution, no sales staff, only responsible for collection and unloading, rarely visit the market and communicate with offline customers, typical "businessmen", their own competitiveness is weak, and they are separated It is difficult to survive if the brand is established; the current situation of the township dealers, relying on their own ability to develop the market, has a strong ability to control the market, but without professional market operations, product sales are limited, and can only be limited to local areas. The risk is very high. The common problems faced by urban and rural distributors are: intensified competition in the regional market and price wars are difficult to deal with; distribution costs have risen sharply, and overall performance is difficult to improve; profits have fallen severely, and operating risks have increased.
After investigating the status quo and survival of dealers, it is concluded that the challenges faced by dealers are as follows: Lost the dependence of the brand, the enterprise is facing a dilemma, and must have the assistance of the manufacturer to carry out the distribution work. Price war is the lifesaver of market competition. The market is shrinking, profits are declining, and business risks are gradually increasing.
The operating life of the dealership is often short. Two American scholars, Collins and Bochs, conducted a study. Of the 6000 dealers in the United States, 80% of dealers closed within 3 to 5 years, 10% closed within 5 to 15 years, and only about 3% remained inoperative. defeat. The two scholars selected 18 successful companies and studied these companies for six years and found that the main reason why these companies are so prosperous is that they are farsighted and actively change. Therefore, if dealers want to be invincible, they must be far-sighted and take the initiative to change.
In the new era, dealers are facing severe challenges. The current general headaches for distributors are: the competitiveness is gradually weakening, the scale of business is difficult to expand, profits are severely declining, and business risks are increasing. For a long time, distributors have been accustomed to working under the guidance of enterprises. If they lose their brand reliance, distributors will face difficulties. They must have the assistance of manufacturers before distributors can carry out distribution work. Nowadays, with the transformation of corporate marketing and changes in the market environment, dealers must undergo a comprehensive transformation to survive and develop.
Dealers face so many problems and challenges, how do they transform?
The transformation trend of future distributors
The future development trend of dealers has the following directions: 1. Have your own brand. Owning its own brand and independent intellectual property rights through buyout operations and other forms, and grasping the market initiative with strong marketing capabilities. 2. Build its own network, build its own network through chain restaurants or supermarket stores. 3. Transform into a distribution integration service provider. It owns warehouse, transportation, and distribution capabilities to fulfill the functions of a logistics center or undertake integrated services for a certain circulation link. 4. Dealers form a strategic alliance. Distributors form wholesaler alliances, retailer alliances, etc., to achieve benefit sharing and checks and balances on the sales environment. 5. Mixed mode. Combine the above four forms to handle various interest relationships flexibly.
Common characteristics of excellent distributors in business
Distributors have different roads to success, but after comparison, you will find that excellent distributors have common characteristics in their operations: 1. Distributors who actively explore the market have received good returns. The main methods of development include expanding distribution, maintaining a good reputation, strengthening terminals, and expanding the group buying market. 2. Compete tenaciously with opponents, get close to competitors, understand and obtain more adequate information, find the weaknesses of competitors to attack, and gain competitive advantage. 3. The performance of dealers in intensive cultivation channels and terminals has been steadily increasing. 4. Dealers who insist on promotion and promotion will make greater profits. In the absence of capital, personnel, and support from the production enterprise, dealers can often achieve good results if they insist on promotion and promotion.
