How Does The Factory Do Direct Selling Of Electric Business So As Not To Hurt The Interests Of Distribution Channels?

< p > today, with the flourishing development of e-commerce, no one will deny its potential for future development. However, when many businesses embrace e-commerce, many manufacturers are reluctant to venture into the online retail business. Many manufacturers are worried that if they are doing online retail, they will probably hurt the traditional partners such as agents, < a href= "http:// www.91se91.com/news/index_c.asp", "distribution /a", and retail channels, and finally get into a thankless situation. < /p >
< p > however, there are more and more direct selling channels and retail outlets in consumer electric appliances, clothing and personal skin care products. That is to say, the manufacturers themselves do business channel, sell goods directly to terminal consumers, and also allow distributors and retailers to sell their products. The two will not be a direct conflict, because the price of factory direct selling will not be lower than that of distribution retailers, and some may even be more expensive. But manufacturers have many advantages in e-commerce direct selling, such as the complete variety of products, the fast speed of new products listing, and the higher level of consumer protection. < /p >
< p > however, how should manufacturers make direct selling channels without direct damage to traditional distribution channels, and how to make reasonable pricing of commodities? < /p >
< p > < strong > the advantage of direct selling goods through the electricity supplier channel is less than /strong > /p >
< p > recently published articles about manufacturers' a href= "http:// www.91se91.com/news/index_c.asp" > electricity supplier direct marketing < /a >, this article explains in detail the advantages of direct selling by manufacturers, as well as the pricing method of manufacturers: < /p >
< p > as early as 1984, CompuServe launched its online shopping mall Electronic Mall, which is the earliest online shopping platform in history. Thirty years later, online shopping has flourished. However, many manufacturers (manufacturing enterprises) are still cautious about entering the field of e-commerce. Why do they not enter the E-business on a large scale? < /p >
No doubt, P is not due to lack of opportunities. The proportion of American online a href= "http:// www.91se91.com/news/index_c.asp" > retail shopping < /a > is increasing. Forrester's research report says that by 2017, 60% of retail transactions in the US will be completed on the Internet, and the annual transactions will reach US $370 billion. In addition, PwC's survey shows that 52% of American online shoppers will bypass middlemen and go directly to various brands and manufacturers' websites to buy things, mainly because they have a high degree of brand loyalty to these manufacturers, and at the same time, they have rich product selection in the manufacturer's website. < /p >
There is no denying the broad prospects of P e-commerce. For manufacturers, selling goods directly to consumers (direct-to-consumer) has great advantages, because many online buyers like to log on to the manufacturer's website when they study information. Under such circumstances, what reason do manufacturers have to avoid catching these customers? < /p >
< p > to increase the shopping function of your website (online store) and sell products directly to consumers, which is of great benefit to the manufacturers. Manufacturers can get first-hand market experience and information, such as "what customers like to buy" and "Why buy such products" will become clear; in the process of contacting with terminal customers, you can learn business intelligence such as market consumption trends, shopping preferences and product positioning of people in different regions, such information can be internally digested, or can be shared with your distributors, so as to jointly strengthen the entire sales channel. < /p >
< p > although the e-commerce market has many advantages, many manufacturers still do not want to enter the e-commerce market in a big way, because they are worried that they will offend the retail partners in traditional distribution channels. If you have direct marketing on the Internet, will there be a retailer or agent to distribute its own goods? This is a typical idea for most manufacturers. < /p >
< p > however, the truth is that entering e-commerce will not hurt the interests of the traditional channel partners, because consumers will only buy things from the channels that meet their needs and interests. As long as they provide shopping convenience and benefits, everyone will have the chance, so the manufacturer's e-commerce channel and traditional distribution and retail channels can be Co located. < /p >
< p > in fact, the so-called "channel conflict" often occurs within the sales organization, rather than between the manufacturer and the retailer. Like consumer electronics, clothing and other industries, the phenomenon of direct selling and retail sales co-exist many years ago. Nowadays, toys, personal care products, sports goods and other industries are beginning to do so. < /p >
< p > manufacturers have to build an e-commerce website to aggregate all kinds of resources. When you take your website, you must take a clear-cut stand to establish your brand identity and search engine optimization. At the same time, you should pay attention to the interaction between social media and customers, and establish effective supply chain and logistics services. < /p >
< p > < strong > How do manufacturers price their online direct products? < /strong > < /p >
< p > after setting up their own direct selling channel, pricing becomes a major problem. Many manufacturers believe that the price should be in line with the manufacturer's suggested retail price (MSRP) so that they can protect their channel partners so as not to exclude them in the market and eventually lead to the breakdown of the partnership. < /p >
< p > however, if manufacturers take this strategy with great risk, they may eventually destroy their brand image. Yes, there are many reasons why consumers enter the factory website to buy things. For example, some people want to know the latest product information, while others want to buy it directly from the factory. They feel that this will be more secure, and some people are willing to pay more extra for it. But if the price of your website is maintained at the manufacturer's suggested retail price, and your distribution retailer is selling the same product at a lower price than the price on your website, your customers will feel insulted at 20%-40%. < /p >
< p > if you are lucky enough, these customers may leave your website and buy them from your retail partners, but they may completely abandon your products and finally go to your competitors to buy them. Think about this problem: your e-commerce website is a direct manifestation of your brand. If you let consumers feel bad shopping experience, your brand image is likely to be corrupted. < /p >
< p > conversely, if your price is equal or slightly higher than the average retail price, the consumer can choose freely. He may buy directly from your website or run to your retail agent to place orders. In short, they will choose the most convenient and cost-effective place to place orders, which is in support of your entire channel ecosystem. < /p >
< p > manufacturers have unique advantages in attracting customers. Take advantage of these opportunities to provide customers with shopping experience that retailers can not provide, such as offering goods of all kinds to choose from, or providing information about latest products, unique product suits, etc. This is very good for promoting the rapid development of their brands. < /p >
< p > in a word, direct selling to customers will become the mainstream. Through this way, manufacturers can create closer customer relationships, understand the internal needs of consumers, increase channel revenue and maintain brand enrichment. < /p >