Is The Dealer A Porter?

Examining the sales expenses of domestic manufacturers, we will find that the annual promotion cost of the enterprise (purchase reward, price discount, rebate, etc.) is much higher than that of the enterprise, so how can we ensure the price order of the products and make the owners at all levels earn money? As long as every channel boss is willing to sell my products, the sales volume will rise steadily.

A world's leading beverage company has entered China in the early years. In accordance with past marketing experience, it has skipped the main channel of domestic distribution market wholesale market at a large cost of marketing, and quickly launched huge sums of money to form a direct selling team, distributing products directly from manufacturers to retail outlets and selling places, and intends to implement the marketing idea of "flat access and increased market power". The market has educated these foreign experts. After years of losses, the company has to adjust its marketing direction and concentrate its efforts on the wholesale market. Through the extensive establishment of distribution points to expand the coverage of products, and finally achieved success. As for the direct selling team of the factory, it is still set up. However, the task of this team is no longer to sell products as the leading factor, but to improve the distribution rate and enhance the terminal display and vivid performance of the products as the main objective. According to statistics, in the peak season of beverage sales, the products sold by the factory direct selling team, which were built by the company, accounted for 5% of the total sales of the enterprise. The construction of distribution and wholesale links increased the sales volume of the company by 95%.

Why is China's wholesale access so important?

Due to the constraints of economic, cultural and commercial mechanisms, China's consumers are not mature enough to be rational, and their brand loyalty is not high enough to be affected by speculation. What is popular in the market (actually what is popular in business), I will buy anything! Visual shock effect The rate of distribution is to create an atmosphere of popularity, and the two is to maintain this rate of distribution and maintain the trend of popularity.

But, in China The road transportation cost is high, the area is vast, the consumer groups that really have the ability to consume are not concentrated, supermarkets and other large stores have just been born, and a large volume of sales comes from tens of millions of small retail stores. Relying on the strength of manufacturers to sell goods at such a large number of outlets, and maintain logistics, will surely "die". Without the active participation of wholesalers at all levels, it is impossible for manufacturers to create popularity and maintain popularity.

This is the characteristics of the domestic market, especially the consumer goods market.

1, consumers are not rational enough to buy what is popular in the market.

2, selling points scattered, not relying on the strength of wholesale links, can not cover the main source of sales, tens of millions of terminal outlets, but can not create popularity to guide consumers. If manufacturers want to be based on the market, they must distribute products through distributors and wholesalers, expand the coverage of products, effectively mobilize the enthusiasm of distributors and wholesalers at all levels, and decide the survival of enterprises to a large extent. In China, the power of wholesale channels can not be evaded, unstoppable and irreplaceable.

It is precisely because of the manufacturer's demand that the wholesalers and distributors' survival foundation and commercial value are laid down.

Wholesalers value In fact, it is not sales. Products move from factory warehouse to wholesaler warehouse and move to terminal sale warehouse. In fact, it is just a transfer of inventory, and has not formed actual sales. The duty of wholesalers is to expand the logistics and achieve the distribution and diversion process of the terminal outlets.

Some wholesalers complained about the low profit margins of the distributors. They said, "we are all cattle and horses. We earn a lot of money. What we earn is a porter's job, and we earn a little bit of a porter."

Unfortunately, from the perspective of social division of labor, wholesalers are also the porters in commercial circulation. The value lies in the diversion rather than the sale. The so-called distribution is the purpose and the marketing is the form.