Home Appliance Chain'S "Vitere'S Troubles"

After the end of the network layout of the first tier cities in the mainstream home appliance chain enterprises, new and bigger growing pains are emerging.

Is it really trying to manage the existing network, and doing everything we can to accelerate expansion?

The expansion speed and the profits of enterprises began to be contradictory. The opening up of stores and mergers and acquisitions needed a new balance. The price war between chain enterprises after the collapse of the traditional department stores was painful for the chain enterprises.

These four contradictions have become the "vitere troubles" that the chain enterprises have just begun to face in their prime of life.

Annoyance needs to be solved scientifically and sober.

The two concepts of "doing big first" and "doing first" are not right or wrong, or good or bad. What kind of strategy is used by an enterprise depends solely on its own resources.

For example, in the whole chain market, what is most scarce now is a nationwide chain network. Whoever owns the national big network first, then the chain enterprise can take the lead in getting the largest manufacturer's resources, so that it can completely change its position in the national chain industry.

However, the resource consumption caused by excessive expansion is huge. It is a test for all chain enterprises to have the resources needed for expansion, such as property resources, talent resources and so on, in accordance with the speed of market expansion.

If an enterprise's ability to raise resources can keep pace with expansion, it is a good thing and vice versa.

Paying attention to the profit of a single store can not be static. The author thinks that if the rapid expansion of individual enterprises has a huge network as soon as possible, these stores will be able to make profits as long as they do not lose money.

It is right for chain enterprises to pay attention to the profit of a single store, but at the beginning of the market is the early expansion of the market, which is stable from one point of view and conservative and inappropriate from another point of view.

In the process of pformation of China's household electrical appliances channels, the non chain enterprises are coming out of the stage of history. The household appliance manufacturing industry needs the nationwide chain retail network to replace the distribution system with higher operating costs. Therefore, for the distribution market, the nationwide chain zero sale network is extremely scarce. This is a historical opportunity, and all Chinese chain enterprises have not yet built a truly national chain network. The expansion is the result of the shortage of the network, which is the real cause of the expansion of the channel.

The author thinks that this kind of expansion is very beneficial to the chain industry or the manufacturing industry as well as the consumers and the country. Careful chain network is beneficial to finding the real potential demand and can optimize the manufacturing structure. It can reduce the storage of the whole household electrical appliance industry and reduce the occupation of social invalid funds. It can scientifically turn the appliance manufacturing industry from the microscopic perspective, which is beneficial to the stable development of the industry, and it can strengthen the reputation of the products sold to consumers and help consumers to consume healthfully and economically.

Of course, the expansion of the network will be accompanied by a large number of distorted commercial corruption. This is also the reason why many home appliance manufacturing enterprises are crying hard. Because the chain format is new to the manufacturing industry and regulators, a process of demand is needed to make different links run in so as to explore a new regulatory mode, which is conducive to the healthy development of the whole industry.

Frequent acquisitions have become the focus of attention and doubt after the crazy shop.

In fact, opening stores and mergers and acquisitions are different ways of chain development. There is no difference between advantages and disadvantages. Only enterprises have good or bad effects on these two ways.

In China, the chain has just developed.

Chain store expansion is the main mode in the past few years. Chain is actually a combination of different geographical businesses in the spatial form of business, so this kind of shop is the foundation for the development of chain enterprises.

From the view of the current Chinese chain enterprises, no enterprise is a chain enterprise at the beginning, and is also developing in the exploration. Therefore, opening a shop is actually the only way to train these circulation enterprises' chain capabilities. After they open their own stores, chain enterprises can generate their own chain management mode.

After having a mature chain management experience suitable for the Chinese market, M & A has become a shortcut for rapid expansion, because these enterprises can use their invisible advantages to operate other brand stores in the society, so M & A is a inevitable stage for China's chain development, and it should be said that it is a good thing.

Holding the trumpet everywhere shouting low price chain enterprises have not yet created their own chain of circulation system that can create low prices.

Because our chain enterprises have not yet formed a real chain, and there is no substantial progress in the field of logistics such as reducing costs. The low price of chain enterprises is not a manifestation of their own advantages, but a price war of their own, and then let manufacturers pay the bill. If a company has formed a chain of real economic faces (capital, information and logistics), it can come up with its own low price mode, and now the low price mode is a kind of non moral, pseudo low price advantage, which is a chain enterprise playing a popular role.

At present, the profits of chain enterprises will not be greatly affected, because the loss of price cuts has been passed on to manufacturers.

To maintain a narrow profit margin, we must rely on a large, self-contained chain network.

The profit of chain enterprises should not be limited to the price difference of products. From this point of view, their profit margins are very small, but their occupation of manufacturing level should be regarded as their own profits, because these funds are taken by many chain enterprises as real estate projects, so in this sense, home appliance chains should be regarded as profiteering industries.

This price war will always exist. High level price competition should be chain enterprises holding their own resources to fight price war. The consequence of price war is the beginning of high level competition when it is borne by itself. It is also the time when our chain enterprises really build up their own low price chain system.