Strategy Of Upgrading Strategy For Large Wholesalers

In recent years, some survey data show that the dependence of the two ends of the distribution channel on the wholesalers is more and more obvious: first, the producers are right. Wholesaler With the increasing dependence, producers are willing to help distributors expand their sales through the wide and deep distribution network of wholesalers. Two, retailers are more and more willing to purchase wholesalers from all wholesalers to complete, cheap and high-quality varieties. This trend indicates that wholesalers are the needs of large production, large market and large circulation, and are needed for large-scale, modern and efficient circulation.

　 What is wholesaler?

The concept of wholesalers, formerly known as businessmen, is now gradually being phased out. As the name suggests, wholesale is a batch of incoming goods, and then a batch of land. It can be seen that there is no plan for such a business, but a concept of goods trading and less. management and control 。 So wholesalers, usually enterprises, use traders who do not have service terminal awareness.

　　 Characteristics of wholesalers

The most important sign that a wholesaler is different from a retailer is that one end links producers and the other ends with retailers. Compared with retailers, wholesalers are characterized by:

(1) having large quantities of goods

(2) only a large number of sales, not providing retail business.

(3) the price of the items sold will be higher than the bottom of the world.

　 Three pressures for wholesalers to survive

Entering the 1990s, Chinese consumers finally welcomed the commodity rich buyer's market. People not only feel the pleasure of free purchase, but also put forward new requirements for the hardware and software of operators such as commodities, prices, services, etc. The so-called "ex factory price", "special price", "no intermediate links" and other ways of operation have more catered to the customers' mentality of seeking cheap, and the rapid response to consumer demand (ECR) has become a magic weapon for businesses to base themselves on the market.

The retail business format has been innovated in all directions, and various warehouses, shopping centers, supermarkets, large supermarkets, specialized shops, franchised stores and convenience stores have rapidly separated the original retail market dominated by department stores. At the same time, the organizational form of retail business has also undergone changes. A group of powerful retail businesses, relying on numerous chain stores, have implemented wholesale and retail chains and chain operations. According to the management idea of goods to the source, they have unified purchase from the manufacturers and dispersed sales, thus gradually forming their own wholesale and retail network, while the chain operation headquarters has replaced the original wholesale market function.

Under the traditional system, the production enterprises are driven by the relatively large circulation profits, and have launched self marketing businesses. They not only engage in wholesale products, but also directly develop retail stores and on-site direct sales businesses. Especially in recent years, with the increasingly fierce market competition and the development of information and network technology, a number of powerful manufacturers have actively promoted the terminal strategy of distribution channels, directly established supply relationships with retail groups, and implemented zoning management, and gradually built up a new marketing network, thus forming their own commodity sales system.

The traditional wholesalers are excluded from the campaign in which the manufacturers and retailers build their own new networks. As a major part of the circulation system and market network center, the wholesale business has lost its inherent living space.

The entry of foreign business groups is exacerbated. Because wholesale business is related to the entire commodity circulation and even the control of the national economy, the government has restricted foreign investment in the wholesale sector for some time. But in fact, a number of international commercial groups have been able to get involved in China's wholesale business market by various means and means, and have achieved good market performance. Metro from Germany has established several chain store hypermarkets in Shanghai, Wuxi and Ningbo. Each store has an area of 16 thousand square meters, and now has about 100000 member system customers. 60%-70% is group buying and wholesale sales. Some multinational companies take brand as the management platform and establish a multi-level wholesale sales network throughout the country through the agent system. Such as Japan's DAE Rong, Itou Tada and other circulation groups, through investment in the construction of logistics centers or processing and distribution centers, think that supermarkets, convenience stores to provide distribution services face directly into wholesale business. It can be expected that with China's accession to the world trade organization, the wholesale business area as an important part of the distribution industry will gradually open up, and the intensity of opening will also increase. {page_break}

These three big mountains have caused a lot of difficulties in China's wholesale industry.

　 The reality of wholesalers

Survey data show that 90% of wholesalers are "traders", and they only do business on the spot. When purchasing, they are the producers who deliver the goods to the door, what the producers are selling, and what they want to buy. There is a less choice. When they sell, they sell their products according to the required goods plan. Such a thing can easily lead to good selling, and no purchase is brought in, resulting in a shortage of supply, resulting in a loss of customers. It is hard to sell and not sell, resulting in unsalable products and backlog of funds.

In the face of increasingly fierce channel competition, the role of wholesalers in the channel position is unquestionable. The question is whether independent wholesalers (individually and privately) really have the function of wholesalers since the disintegration of the main channel of state owned commercial wholesale? Before coming to conform to the trend of the times, a new generation of wholesalers is emerging. In the future, they will make the profit created by the circulation sector occupy an increasing share in the profit source.

　　 How about wholesalers? Strategic upgrading ?

1, consciousness upgrading

Often heard manufacturers say that an agent can not keep up with business consciousness or brand awareness is not strong enough. To become a brand name, we must constantly brainwash ourselves, learn new business ideas, at least keep pace with the development of the manufacturers, and timely implement the brand strategy of the manufacturers. So as not to be conscious of the problem of thinking, manufacturers were eliminated.

2, marketing upgrading

In terms of marketing, Mr. Tan Xiaofang's suggestion is to change traders into businessmen. In the past, wholesalers often sat at stalls and received money and shipped goods. And brand players need to set up a marketing team to visit customers in one area, and help customers in various activities such as site selection, opening, promotion and so on.

3, management upgrade

Brand management is more reflected. Management is a profound knowledge. Most wholesalers start from family management. When they enter the brand age, brand managers must introduce advanced management mode, abandon some traditional management mode and establish modern system standard.