Why Terminal Alienation

On the one hand, terminal.

There is a famous strategy or slogan in the appliance marketing field, that is, "winning the terminal". We all think the terminal is the solution.

Why do terminals alienate?

Why does terminal investment become a marketing burden?

In my view, the fundamental reason lies in the special operation mode of Chinese household electrical appliances channels under the excessive competition of brands. It is the shopping malls operation mode with Chinese characteristics that makes terminals alienated.

The so-called shopping malls management mode refers to the business self built or long-term lease of a business site, cutting, renovation, pformation, divided into smaller business units, and then through attracting a lot of brands, each brand operates its own business, businesses sit on the ground to collect rent (site fees), and return profits (points).

Under such a mode, merchants collect receipts, are responsible for security, water and electricity, sanitation, and businesses only do shopping promotion, shopping malls promotion, shopping malls management and shopping malls investment. Brand manufacturers are responsible for their products, including terminal decoration, prototype display, inventory management, shopping guide management and so on.

It is this kind of shopping malls management mode that makes manufacturers have to snatch the good terminal location and have to invest a lot of resources in the terminal, so that they are totally different from the shopping mall with unified operation of commodities, making our country's home appliance stores seem very chaotic, shops are branded, brand stands, there are more shopping guides than customers, and consumers enter shopping malls like mazes.

Terminal is not to allow products to speak, but to allow other factors of the terminal to speak. Once consumers enter the shopping mall, they are being snatched away by the purchasing agents. The brands are slandered each other and consumers are at a loss. Shopping is a pleasant experience but a painful experience.

The competition among brand manufacturers is not more than products, but is better than pleasing businesses, more than location, investment, gift, sales promotion, microwave oven purchase more than microwave oven, more value, typical promotions too much, and the main character of the terminal - products are becoming more and more ignored.

In this way, manufacturers do not concentrate their efforts on products, but put them on the terminal. The larger the terminal investment, the smaller the R & D investment of the products, the more homogeneous the products become. Only the cost competition, the price competition and the cost competition result in the decline of the quality of the products. The so-called "Shanzhai machine", "three cyanamide milk powder" and "dyeing buns" are also strange.

Manufacturers and businesses have become game relations. Businesses are changing the way to get money from manufacturers, and manufacturers are trying to make less money. The corruption between manufacturers is inevitable. More importantly, no one cares about products and cares about consumers. The game becomes a zero sum game.

In this way, consumers can only vote with their feet instead of shopping malls. The fewer consumers are, the more intense the competition will be for the terminal consumers who come to the shopping mall. The result will further affect consumers' entry into the shopping mall, resulting in a further reduction in single store sales and a worse "rice effect".

Of course, the terminal will become more and more alienated and become the burden of manufacturers.

It can be seen that the result of terminal alienation is actually a zero sum game, which is a losing situation.

Can alienated terminals continue?

Or how long will it take to take a step back?

When the terminal of alienation becomes the burden of the manufacturer, it can not be maintained for a long time.

First of all, when the factory is awake, it will escape the terminal of alienation. GREE's store is a typical example. Since 2010, manufacturers have significantly increased the construction of terminal stores, such as the beauty stores in the urban and rural areas, the Haier stores and so on.

Secondly, the terminal of alienation is mainly maintained by huge investment, but this kind of investment is now facing enormous pressure in the manufacturers. With the dramatic increase in labor resources prices and the sharp rise in material costs, manufacturers are obviously unable to continue.

Thirdly, with the acceleration of urbanization and the development of Internet technology, consumers are increasingly fleeing from the alienated terminals, choosing shopping more convenient, more honest and more pleasant terminals, and manufacturers are more concerned about this new type of more effective terminals, such as community stores, e-commerce, database sales and so on.

Finally, businesses also have to think about the harm of alienation terminals, rethink the correct way of commodity management, thus changing the business models of shopping malls to a certain extent, such as the trial buying buyout mode of Gome and Suning, as well as the community life shops run by Gome and Suning.

In short, the alienation of terminals shows that the marketing mode of home appliances must be changed, which needs the efforts of manufacturers and the efforts of businesses.