Internet Distribution: Innovative Matching With Traditional Channels

For traditional enterprises, the key to network distribution is to find a suitable distribution control strategy.

In the past 2009, China's online retail market ushered in blowout growth. In addition to the most famous Taobao network, Jingdong mall recently raised $60 million, Amazon quickly implemented department stores, and all kinds of vertical B2C websites mushroomed and grew up.

The reality shows that Internet channels have become a new channel for traditional enterprises to evade, and Internet brands that are bigger on the Internet are also facing multiple choices of distribution or self-management.

All these, network distribution will become a proposition that enterprises need to face in 2010.

Choice of network channels for traditional enterprises

In 2009, Taobao mall ushered in two big brands, one is Japanese clothing giant UNIQLO, another is JACK&JONES under Lingzhi fashion.

They are located in Taobao mall, which is a huge flow of Taobao network and a hot trend of domestic online shopping market.

However, the difficulties of network distribution to the two major clothing brands are different.

UNIQLO's online products are exactly the same as those under the line, but online channels are more favorable than offline channels, with a range of about 20%.

The JACK&JONES online discount products are mainly based on inventory products, and the new products listed on the line are in line with the price below the line.

The online layout of the two garment giants is only a tiny gap, but it is due to the differences between the two traditional channels.

All the stores under the UNIQLO line are straight battalions, and all online and offline can take different price strategies.

And nearly 60% of JACK&JONES's franchised stores are operated by agents. In order to maintain the unification of channels, the price of JACK&JONES online products is extremely cautious.

Similar to JACK&JONES, many traditional enterprises in China are cautious about online distribution, considering the interests of offline agents and brand image.

For those companies with better channels, Internet channel distribution should take into account multi stakeholder factors.

The low price of online will affect the interests of offline agents, which will lead to protests from traditional channels. The same price on line can not reflect the low cost advantages of network channels.

But the reality is, when the traditional brand enterprises are still in the choice of online channel construction strategy, the online low price brand product has been crazy sales.

The above problems arise from the special incentive mechanism of traditional channels.

In the incentive mechanism of many traditional enterprises, dealers can enjoy the company's incentive rebates at the end of the year according to the volume of the year's purchases.

This incentive mechanism has led many dealers to turn the Internet into their own low price running routes, and objectively make the brand enterprises fall into price confusion and channel swamps.

At present, most enterprises in China are faced with the problem of how to manage online distribution channels.

In fact, it is not just the Taobao platform. For traditional enterprises, excellence, Dangdang and other B2C platforms are traditional online distribution channels that traditional enterprises can choose.

As long as the online channels are integrated into the whole enterprise channel management system and formulate corresponding strategies, online and offline channel conflicts can be thoroughly solved.

Network distribution control means

For traditional enterprises, network distribution is not a difficult problem. The key is to find a suitable distribution control strategy, among which Li Ning Co is more successful.

Lining has his own independent online shopping mall, and the flagship store that he owns on the wire.

Lining's way is very simple, that is, the product line separated by different channels: the sale of the stores under the online price is mainly based on the new price, while the selling products are mainly in special discount stores.

The function of Lining's independent online shopping mall is mainly based on the recommendation and limited products of the new price, including the signature products of the stars, which aim at a few consumers.

And the shops on Taobao mall sell goods mainly.

In this way, the products of different prices will go all the way, and all channels will benefit.

In fact, for traditional enterprises, the target consumers of online shops and offline stores are not the same. As long as they are moderately or completely separated from different consumers on line and line, each distribution channel can achieve harmony and unity and complement each other.

Roley home textiles takes the form of completely separated goods, and develops a sub brand specially designed for network channels.

The core of product segmentation strategy, which is very effective in market verification, is integrated into the unified channel management of enterprises.

In line with the current situation of offline dealers' rush to run goods on line, brand operators should encourage offline dealers to carry out online sales rather than sitting in troubled cities.

Research has found that as long as the price of the online price exceeds 75% of the price, there will be no great impact on the offline industry.

New landscape of online distribution

Many enterprises believe that online marketing is the direct selling of enterprises to consumers.

Whether for traditional enterprises or online brands, online distribution is a future trend of Internet sales.

Online distribution should consider not only the segregation and combination of products on different online channels, but also how to achieve multi point sales on a platform.

The way to achieve online distribution needs to study users' online shopping habits.

Take Taobao platform as an example, there are mainly three ways for users to enter online stores: online advertising, keyword search and word of mouth guidance.

For single store sales, the probability of user search is far less than that of multi store distribution.

An example is net branded botanical language.

Yu Qiming, general manager of botanical language, originally planned to create a brand when he planned to sell it nationwide.

Later, he found that every shop on the Internet is equivalent to a product counter and an advertisement entrance.

Single store sales can not produce scale effect at all.

So Yu Kai Ming gave up the straight camp and focused on the development of the online distribution.

Yu Qiming posted on Taobao forum. Anyone who can follow suit can get trial wear of botanical language. If recommended, sales can share a certain percentage of royalty.

This powerful interaction has led to the eruption of sub sales.

In half a year, the network distribution team of botanical language reached 500, of which 200 were sold at one level, and 5 million yuan in short time.

Another distribution strategy is the delivery mode.

Plush toys, fluttering dragon and immick are all adopting this strategy.

The method is to distribute the virtual shop on the Internet, use the picture of the brand store, and the selling price is also consistent with the brand store.

After placing orders, the order is pferred to the flagship store and shipped by the brand store.

Distributors earn a discount price of 15 to 20%.

The advantage of this distribution mode is that distributors do not have stock pressure, and brands are easy to control channel prices.