How Can The Cosmetics Agents Break Through?

Agents are getting into trouble after the scenery is boundless.

Don't say that the wind and cloud are changing. When the time comes into 2003, the cosmetics enterprises represented by Guangzhou and Shanghai begin to sink, directly to the terminal, directly cooperate with the terminal retail stores, set up branch offices in the foreign market, set up offices, directly send business representatives to the market, advance to the terminal, leave the profits of the middlemen unreservations to the terminal retail stores, and throw many provincial and prefecture level agents aside.

Compared with the agents, the sales policies of the manufacturers are highly supportive and profitable. The retail stores naturally start to approach the manufacturers and are no longer willing to do business with the intermediate agents. Under the marketing pattern of direct cooperation with the retail outlets, the competitive advantage of the agents is getting smaller and smaller.

Seeking strategic pformation has become the way that agents must go and have to go.

Indeed, in the face of small profits and low profit margins, many agents are reduced to porters and deliveries, making sweat and hard money, turning their business premises into warehouses and pfer stations of the manufacturers, exchanging some "land money", logistics pfer fees, making small brands, manufacturers with little strength, insufficient support, strong brand competitiveness, and relying solely on their own strength to do the market.

When faced with the strong competitive advantage of competing products, many agents are angry but dare not speak and swallow up the unreasonable demands made by end customers.

Faced with the massive loss of customers, many agents began to realize that they did not proactively change, and they perished in passive change.

Please take a look at the following case:

The world's top 500 company, Samsung Electronics, has stagnated after 1997. When the new president took the lead in the first meeting, he said, "now we have to change everything except wife and children. This is the idea of flexibility and thinking and change, so that Samsung Electronics has developed from US $4 billion in 1998 to US $16 billion in 2006.

In Asia, Japan's Sony Corp has become the number one in Asia.

Market competition pattern and current situation and future development trend require agents to change and explore new development mode.

In order to avoid the tragic outcome which is eliminated by the market.

The cosmetics industry is no exception. Taking Shandong Province as an example, many agents made good use of agency business only five years ago. After 2003, with some manufacturers in Shanghai and Guangzhou directly selling their products to the exclusive stores, and the sales policies were favorable and supportive, the retail stores began to get close to the manufacturers, especially the manufacturers in Shanghai. The agents were under unprecedented pressure, the business became more and more difficult, and the development of many agents was slow, and the operation was challenged by many aspects.

Since then, agents have been considering the strategic pformation and widening the operating channels and expanding the living space, such as the new Qilu economic and trade company in Qingdao, Shandong. Since May, when the mode of agency and franchised store was started, by 2007, the size of the company has expanded several times, and the strength and competitive advantage of the company have increased rapidly. The regional agent has become the most influential agent and terminal retailer in the province. Similarly, three letters in Heze, Shandong, also processed their own brands from the agent + exclusive store, and then processed their own brands. The development of the brand has also been very good. The network has covered more than half of Shandong, and its brand has grown up after three years of growth and development, and has established a brand competitive advantage in the region.

The success of Shandong Weifang group is more representative and convincing. When department stores in the whole country have difficulty in running and turning around, the operation of Weifang department store has not been adversely affected by the overall downturn of the industry. The department store of a prefecture level city has achieved third of the status of the whole country in one fell swoop, and has created a business miracle in the change.

It is the way of agent + retail (department store + large supermarket + convenience store), which has made the Wei group more powerful, and later developed into production + agency distribution + retail (including retail department stores and supermarkets and convenience store mode). Now the Wei Group has already oversized the whole province, and the convenience store has covered the super large business group in Weifang.

This undoubtedly demonstrates the laws of nature. The survival of the fittest is only consistent with the constant change of law, so that our agents can survive and develop.

So, as our cosmetic agent, where is the breakthrough of change?