Footwear Brand Enterprise "Distribution Management" Vs "Business Control"

"Everyone talks about marketing, and every family plays the brand" - this is the most vivid description of the footwear industry in Jinjiang.

If we look at the operation and management process of a single shoe brand enterprise, we can divide it into four strategic stages: the first stage focuses on "brand creativity and construction", the second stage focuses on "marketing planning", the third stage focuses on "distribution management", and the fourth stage focuses on "financial analysis".

It is not difficult to see that the first, second stage is the investment stage. In other words, "buying the market with money", the third, fourth stage is the stage of output and return, with emphasis on "profit making is the absolute principle", "everyone talks about marketing, and every family plays the brand" -- this is the most vivid description of the footwear industry in Jinjiang.

If we look at the operation and management process of a single shoe brand enterprise, we can divide it into four strategic stages: the first stage focuses on "brand creativity and construction", the second stage focuses on "marketing planning", the third stage focuses on "distribution management", and the fourth stage focuses on "financial analysis".

It is not difficult to see that the first, second stage is the input stage. The white one is "buying the market with money". The third, fourth stage is the stage of output and return, with emphasis on "profit is the absolute principle".

Let's not talk about the theme of the article. As a manager or manager of a shoe brand, do you notice the following data?

There are about 50% of the advertising investment, which is invalid, accounting for 5% of the total income. 70% of the product development cost is invalid, accounting for more than 2% of the income. The discount or gift in the retail promotion war accounts for more than 10% of the income; the loss of product inventory backlog (three class inventory) is more than 10%; the cost of internal management failure (production and marketing link) accounts for more than 10% of the income;

Total: accounting for more than 40% of sales revenue!

I wonder if it's a surprise.

From the point of view of the actual profitability of enterprises, I do not include your capital cost (financial cost) and management cost as well as the credit shrink part of the above data.

Seeing here, you may be able to console yourself: "my competitors may also have similar situations".

So, from the current stage, what is the problem of most shoe brand enterprises?

I think it can be seen in the following aspects: cash flow, vs product flow, vs information flow, serious asymmetry.

Second, headquarters vs distributor vs retailers - paction is not standardized!

Third, the boss vs Marketing Manager vs sales planner. The authorization is not clear.

Fourth, marketing department vs finance department vs production department to cooperate is not in place!

Order quantity vs should be stored vs real stock.

Sales volume, vs amount, vs Inventory, analysis is not comprehensive!

Product structure vs code structure vs pricing structure > information opaque!

......

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Please note that the essence of the above problems is nothing more than the issue of "distribution management" and "business control".

The simple explanation of "distribution management" is the specific behavior of the whole process management of product sales business under the premise of established channel mode. "Business management and control" can also be understood as "sales financial management", which is the capital management and cost control behavior aimed at maximizing sales profits.

"Distribution management" emphasizes the effectiveness of sales revenue. "Business control" emphasizes the effectiveness of sales profits. Although the two themes complement each other, they still focus on each other.

Now it is not difficult to conclude that the pursuit of maximum sales has proved to be a mistaken sense of management.

For example, the two manufacturers also sell 1 million pairs of shoes, because prices, inventory, accounts receivable and other factors, will produce two extreme operating results: a factory can earn millions of yuan, the second factory does not earn or even lose millions of dollars, prove this is the reason!

In recent years, I have learned that a few leading brand enterprises are carrying out drastic internal corrective actions to strengthen "distribution management" and "business control". They usually seek help from management software suppliers to realize scientific process structure and normalization of tool application.

However, after all, the whole work process is not as simple as we imagine, and at the same time, it should not be too complicated to cater for the software function.

To put it more clearly, the various ERP, CRM and industry version of Invoicing management software currently used in the industry can not solve the unique packaging and distribution structure of the footwear industry in Jinjiang.

No wonder when some software agents face the target customers, no matter how they explain, just try the function of the distribution group, and immediately go back to their homes.

We should know that in Jinjiang, apart from individual enterprises using single code packaging, the vast majority of enterprises still insist on packaging and "remain calm". This is, after all, the choice of market demand and the choice of distribution management habits.

The following are my programmatic suggestions on building "distribution management" and strengthening "business control" for Jinjiang shoe brand enterprises, hoping to get the recognition of the industry: first, our business owners must understand the simple truth of "management = philosophy + mathematics".

The so-called "philosophy" argument is that management behavior is inseparable from the study, mastery and full use of all social relations resources, in the final analysis is the relationship between people.

"The goal determines the way of thinking, the way of thinking decides the way out", and the establishment of the marketing organization system and the establishment of the channel cooperation mode all belong to the philosophical premise. The so-called "mathematical" argument is that management can not be separated from data, and it is more convincing than quantitative analysis by quantitative analysis. The profit contribution of the product, the contribution of the customer's performance and the value contribution of the brand can be measured and proved by the data analysis model.

Secondly, we should set management or control objectives around efficiency and efficiency.

The design of distribution management organization system and business control process needs to focus on this goal.

The "simplicity" and "speed" of efficiency, quick reflection and fast implementation are the management characteristics of the links of "logistics distribution" and "capital turnover". The "efficiency principle" of information release, information feedback and information processing is the precondition for the realization of management objectives. "Efficiency" is the ultimate goal of distribution management and business control.

Finally, "three level distribution management" and "three level business control" are not difficult to achieve.

Distribution management and business control are divided into three levels, which can be divided into three steps: the first step is to integrate the distribution management system of the company's brand management headquarters, and the second step is to build the management platform between the headquarters and the regional market distributors. The third step is to realize the construction of management platform between headquarters or distributors and local franchisees and self operated stores.

In short, we must believe that having a healthy organizational system, a loyal business backbone and customers, an ideal distribution management tool can always turn a good desire into a beautiful reality.

Or the old saying: you finally have to find ways to sell your product for more than one yuan, that's your absolute profit.

The need to remind is: when your product sales increased by 20%, the average unit price reduced by 5%, profits did not increase, and at all levels of inventory risk will eat more than 10% of your profits!