Lining Distributors Confession: The Rise Of The Electricity Supplier To The Terminal Pains

one person

This article confides the real pain of the store after the rise of the electric business.

From 1 stores to 7 stores at its peak, from 08 to the lowest.

Online and offline contradictions, the rise of electricity providers why the pain caused by the terminal.

The questions and solutions in this article deserve further study.

Read the distributor's confession:

How does the electricity supplier affect my business?

I am Lining, a distributor of county-level cities, at the very end of Lining's sales system.

At the same time, I am also a "lemon". In the 05 years when I met Lining's opportunity, I did not hesitate to give up my studies to take up this career.

Since joining Lining, from 1 stores to the most prosperous 7 stores, from sales less than a million to brilliant sales of tens of millions of sales, from the peak of 08 years to the current low.

Although it has been more than 7 years to join Lining, it has gone through the company's splendor and the current recession.

But I believe that Mr. Lining and the new team will soon take Lining out of the valley and look forward to Lining's Phoenix pan nirvana.

Recently, there have been many comments on Lining on the Internet, some from Lining's distributors, some from Li Ning Co staff, and some from the industry.

These evaluations also reflect Lining's problems and some wrong directions before.

I will not repeat it here, because Li Ning Co is reforming these problems. As distributors, we have indeed received the information and practical actions of these reforms.

But there is one thing I most worry about is that the title of this article seems to be very rare, but this worry is very serious among distributors.

Here, I would like to elaborate on my point of view. My academic background is limited. Maybe some places are not so clear. I hope you can see that this article and people who care about Lining can give objective evaluation and guidance.

When it comes to electricity providers, we can not fail to mention Taobao.

Since its establishment in 2003, Taobao has increased its sales volume to 10000 billion yuan per year, and its registered members have been over 100 million.

Since I registered Taobao in 05 years, I have spent more than 250 thousand RMB on Taobao and Tmall. As a post-80s generation, online shopping has entered my life deeply.

When I first started contacting online shopping, I first picked it up from a physical store and then went home to buy it online.

Up to now, with the judgement of their online shopping experience, they have been able to choose products that satisfy their customers in many Taobao market sellers and Tmall merchants, and do not want to compare them to the physical stores.

My online shopping experience is also experienced by most online shoppers.

For online shopping, I love and hate, love is for my life to provide convenience and low quality products, these are physical shops can not be compared.

Hate is that this business mode has also really affected my own business.

In 2006, a small number of people had already taken the number and style of the product after trying it out in the shop, and some customers would also directly explain that they would buy it online.

In the past 10 years, this phenomenon has become more and more serious. With the development of technology and the application of mobile phone network and function, many people come to the store to compare their prices directly with their mobile phones.

Shopping guide often asks me why the price of the Internet is so cheap. I can't answer this question, sometimes I tell you that the online shopping guide is generally fakes and no quality guarantee.

As a boss of these shops, as a senior online shopper, I can not make myself comfortable with this statement.

Because I know very clearly that although there are some fake products on Taobao, most of them are genuine products, and even have the authorization of Li Ning Co, such as the ancient star Lining who sold very well before.

At the beginning, I didn't understand it. I didn't understand why the price of Taobao was lower than that of my purchase price. Finally, I got to know the reasons through the understanding of these channels. Almost all the sellers in the market did not stock up, they were sold by superior agents, and these superior agents were TOP dealers. They had large quantities of goods and lower purchasing prices.

It is precisely because these prices are lower than our distributors' purchasing price, which also brings about the chaos of the channel. Some distributors take the risk of finding goods through Taobao, and go from the certification store to the "black shop" to ensure that their stores can make profits when all kinds of costs rise.

These phenomena not only bring management difficulties to the original dealers, but also because of the long-term absence of all kinds of resources in the company, the store condition and the Japanese drama have brought bad effects to the brand, reducing the reputation of the brand in the local market, and being replaced by more Jinjiang brand.

{page_break}

The impact of the electricity supplier is not just that. In 2011, Taobao's multi rounds of promotional activities also seriously affected the business of physical shops, coupled with the enthusiasm for online shopping after 80 to 90 years and the influence of their elders from 50 to 60.

For example, Taobao's "double eleven" and "double 12" big promotion, the whole 5 fold.

Although there is no change in price than before, the promotion of this promotion is unprecedented, so that more people know about online shopping.

After these promotions, it is obvious that sales of physical stores are falling rapidly.

Here, it is undeniable that the electricity supplier has not been able to replace the entity shop so far, but this effect will cause many physical shops to close down, thus affecting the physical sale.

For example, there is almost no bookstore in the two or three tier cities. Even in my city, even Xinhua bookstore has faded from the best location of the business circle and rented out the facade.

This is the industry that first came out in the physical shops under the influence of online shopping.

Lining may not be so miserable, but he also needs to be vigilant.

For example, a Lining store can win a deficit balance of 100 thousand monthly sales, and it can sell 130 thousand when there is no online shopping impact. The shop effect gradually decreases under the influence of online shopping, and all kinds of expenses are increasing with the development of society.

Perhaps the owner of the shop can engage in other industries, but in the end Lining lost a shop that could sell millions of products a year.

It is natural to see who lost much of it. Without this channel, Lining electricity supplier will not necessarily increase its share. It may be replaced by other brands, or Jinjiang department or Amoy brand.

At the time of my brightest 7 stores closed 2 or more for that reason.

The reduction of Lining futures orders is not without this reason.

What happened in September 19th this year can not help us disappointed with the attitude of the Li Ning Co to the electricity supplier. On the same day, the word "welcome view Lining official mall" and its website were publicized for the shopping mall in the Lining sales system EPOS of our store on the same day, and there was also a link in the promotion link of Baidu.

But these are enough to disappoint us. When we landed on the website, we were shocked by its membership system, spending 980 yuan, shopping again 45% off, including many 2012Q3 products, such as Ning arc.

45% off, which is in line with my quarterly purchase discount, or even lower than most of the sales discounts of the distributors. What does this make us distribute? When I communicate with customer service as a customer, I ask why it is lower than the price of the entity shops, and the other side tells me that they are factory direct suppliers, and the entity shops are bought by them, which makes us feel cold.

I mentioned the campus agency business on the link of the front page of the official mall. When I consulted with our local students, the discount was 45% off. Later, maybe there were some rebates according to the sales.

When I learned this information, my approval and confidence in Lining's reform were reduced by more than a half. When I submitted the 2013Q2 order time, I placed a very conservative amount. Because I can't see the future form clearly, I can't see how much the future online shopping can affect the entity. Can't I see if Li Ning Co will make changes in the electricity supplier? When we sell the Taobao market, we can also explain to customers that it is fake. When we get to the official mall, what kind of explanation should we make?

How to balance the balance between online and offline?

Speaking of this, you may have doubts. Is it only Lining? Other brands and industries? Through my research, we find that sports brands are affected by more or less online shopping. All brands are afraid of losing such a market, and have established their flagship stores and network distribution channels.

Online shopping is almost impossible to survive without a low price, and there is no volume at low prices. This is a fact acknowledged for online shopping, but this mode is too great a blow to the line, and it may not be anyone but its own brand and channel.

Or cancel the wholesale mode to retail mode, so that the market can be controlled as a whole.

This might be the best way to balance the interests of the offline business.

Is there no way to balance online and offline? The answer is negative, that is, the O2O model.

Here I have a personal experience that can be shared. In the 11 years of decorating the wedding room, when I bought the building materials, I met Taobao 51 sales promotion, bought the solid wood composite flooring of the sacred elephant, the price below the line was around 400, and the line was less than 200. When I photographed the customer service of the flagship store, I told them that I would send it to the local dealer office, the local dealer's door-to-door installation and after sale service.

After the goods were sent to the local distributor, the local dealer told me by phone that the installation time and accessories should be chosen.

After I met with the dealer, I talked for a long time about online shopping. The dealer boss told me that they were the first customers to buy online. I asked if they had any influence on them. The boss said that the company had installation and sale rebates, and accessories must also choose them, so they could earn excipients and installation fees.

Profits are not much worse than before.

I think this model should be drawn from all kinds of brands, online purchase and offline service.

In fact, Taobao is not the only icon, so many brands are the same.

For example, TATA wooden doors, Optima cabinets and so on, these are some of the better O2O brands I discovered when I was decorating the wedding room.

This has stabilized the original sales channels, and has also attracted more customers online. It has brought more sales and profits to the brand and dealers, and kill two birds with one stone.

I think now under such a developed supply chain management and logistics, it is not difficult for Lining to implement this model! {page_break}

For this mode, there is a preliminary direction in my mind for reference: 1. The offline order mode follows the existing mode, which is divided into general order and A+ production.

2, online new pricing is lower than 15% to 30% below the line, which not only satisfies the low price mentality of online shoppers, but also maintains good offline prices.

3, integrate network sales channels, only keep Lining's official store, improve the management level of goods code, track to distributors, and privately participate in this mode after the discovery of online sales.

4, establish a nationwide online sales line service platform, and all distributors and capable distributors are willing to participate in the establishment of their own offline service department.

Online sales are sold directly to consumers according to the regional express, and the local dealers or distributors are rebate according to the receipt address.

The offline service department mainly follows up and repairs after-sales service to stabilize the customer base.

Enhance brand reputation.

5, all involved in this model store to establish a consumer experience area, experience Lining's latest technology and sports technology platform to enhance brand professionalism.

We not only want to see Lining's changes to the signing resources, the change of the order form, the change of products, but also the control of inventory.

I hope Lining can make a better change in the electricity supplier.

For a "lemon" that loves Lining, for a boss who still owns 5 stores, and for a son who worships Lining from his parents, he looks forward to it.

Change is like Phoenix, Nirvana!