Function Changes Of Distributors
This is a fate: manufacturers will always fight Yi, no end. As the saying goes, there is only an eternal interest without an eternal enemy. There is no permanent cooperation between manufacturers. It depends on the interests of both sides. This interest has a long term and a short term. Both sides will care about the short-term benefits and the balance of sustainable development. It is very common for manufacturers to get a relatively stable development of their brands if they want to find a suitable dealer. Similarly, dealers will also seek suitable manufacturers for cooperation. When the small and medium-sized distributors have completed the original capital accumulation, they are no longer the smaller distributors, they will develop towards branding, diversification and capital operation. Because of the deep-rooted reluctance to dress for people, dealers feel that others' children are not always their children, so most dealers will operate their own products and brands so as to complete the pformation from corporatization to corporatization. This process is also a process of continuous improvement of dealers.
A small retail wholesaler, whose boss is a fellow, Porter, accountant and so on, can only play a simple function of retail and distribution. With the expansion of the scale, the functional departments are also gradually established and perfected, and the management is also complicated, and the division of labor will be further refined. With the increase of business items, new and higher requirements for the management level and talent structure of dealers will be gradually replaced by professional management teams. Dealers even set up brand planning department to carry out category management and brand management, providing more thoughtful services for upstream manufacturers and downstream customers, providing consumers with better products and services, and the functions of dealers are becoming stronger and stronger.
As the product import period is getting longer and longer, the investment return rate of the terminal is getting lower and lower. The operation concept of the manufacturer is constantly updated, and the competition of the dealer is further upgraded. The standardized management and terminal execution of the company can no longer guarantee the continuous leading of the distributor. The management idea, management system and human resources have become the basic elements of the dealer's development. Therefore, enterprise management has become a new topic for the development of dealers.
"Irreplaceable is valuable," and dealers may never be able to do that, but efforts to increase their bargaining chip will be crucial in negotiations.
For the substitutability of distributor function, the attitude of strong brand and disadvantaged brand is different. Of course, it depends on the interests of manufacturers and the strength of dealers. In some core strategic markets, with the acceleration of channel flattening process, manufacturers have gone through the distributors directly to make terminals, and have the core channel resources for themselves. The function of dealers has been weakened. In some non strategic markets, manufacturers and distributors have a speculative mentality. The requirements of both sides are not high, and long-term planning is made according to the specific market situation, which is more and more adopted by new brands.
Many manufacturers with strong brands will eventually operate on distributors. Unlike other vulnerable Brand Company, they will cut off many distributors and set up fewer large dealers, while in other companies, they often remove large dealers and reduce the level of channels.
It is often at the expense of a portion of sales to make radical efforts to rectify the channel. Similar to the dynastic operation of the canal system by the margin system, it is praised by the wine industry, but this method can not be achieved by all manufacturers.
For dealers shuffling, on the one hand is the market factor, on the other hand is the development factors of manufacturers and dealers themselves. A strong brand often raises higher requirements for liquidity through raising the amount of margin, and puts forward the requirement of "dedicated concentration". The reason is that the original dealers are increasingly unable to keep pace with the manufacturers, and the cooperation with the manufacturers is out of step. Among them, the most can not allow manufacturers to tolerate the dealer's corruption market fees, or even "set out" the manufacturer's market fees to run competitive products, so as to seek personal gain. The implementation of the channel is not enough, and it is understandable to cut off the dishonest dealers.
Dealers in the value chain, some have lost the ability of value added, in the long run, not only do not have equal right to dialogue, when the economic law of price return to function, how can dealers make money? In fact, the low profits of some famous liquor brands are also well-known in the industry. According to this logic, the same capital can not enjoy the same return. How can dealers feel good?
The lack of channel power for some famous liquor is the crux of the problem. For a long time, the marketing of famous liquor is the market pull or the brand pull marketing mode. The typical characteristic of this model is to concentrate the main resources to mold the brand, to guide, stimulate and stimulate consumers through brand influence. With the strong demand of the consumers, the construction of the channel will come true, even if the profit is low, but the risk is small, and it can also bring goods. Dealers will be happy to accept it.
A recent survey shows that, with the increasing number of single products available at the terminal, high advertising input and other traditional marketing tools are not enough to promote consumer loyalty to the brand. The importance of terminal marketing is becoming increasingly prominent, and is becoming the focus of marketers.
This conclusion is precisely the fatal injury of some famous liquor brands, that is to say, the marginal benefit of the brand pull mode of famous liquor is accelerating and decreasing. It is hard to sustain the growth of its market. From the point of view of channel power, strengthening the channel impetus is the urgent matter to break through the bottleneck of the growth of traditional liquor. To increase the channel's thrust and to seize the advantage channel resources is the basic way to obtain channel competitiveness. If dealers can have the advantage of channel resources and improve their own functions, they will surely gain more room for development.
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