How Does The Traditional Brand Construct The Electricity Supplier Channel?

Painful choice

The Internet has changed people's way of life and changed their traditions.

The way of sales.

In the network

In the era of rapid development, a strong traditional brand under the offline sales channels, after a painful decision, touches the net.

The traditional brands in these industries have the following commonalities: production standardization, product striving for scale effect, perfect sales channels under the line, a large number of offline sales terminals, and a large sales staff and management team under the line.

In the era of electronic commerce, these traditional brands are facing many puzzles:

How to coordinate or retail prices on the line and offline? How can we achieve the incremental sales effect of online and offline >2 instead of a simple online substitution of offline demand? How can Internet sales increase sales volume and expand brand influence? How can we maximize profits under the premise of network sales?

There is no network sales channel mode to fully meet the traditional brand in price control, incremental sales, strengthening brand, profit maximization and other aspects of the goal.

Different network sales channel construction modes have their own advantages and disadvantages. The key to the trade-off lies in the accumulation of network sales ability of traditional brand enterprises and the core objectives of decision-makers.

Three big business channel construction mode

1. network distribution system

The traditional brand is signed with the network wholesale / retailer, and the relationship between the enterprise and the network wholesaler / retailer is a simple commodity trading relationship, which is not essentially different from that of the dealer under the line, and the network sales channel is only a supplement to offline channels.

Network distribution system is divided into two kinds of distribution and exclusive distribution, the stronger the brand, the more inclined to adopt a number of distribution system, otherwise the exclusive distribution system.

2. network generation operation support control

The traditional brand and the online retail platform (including Taobao Tmall mall, Jingdong mall, etc.) sign the online flagship store agreement, and entrust the network flagship store operation (including shop decoration, customer service orders, warehouse delivery, etc.) outsourcing to the professional electricity supplier trusteeship company.

The electricity supplier trustee company obtains the monthly trusteeship service fee and the sales commission, and the sales commission is usually extracted from the proportion of 5% to 10% of the retail sales volume.

3. direct retail business

Traditional brands set up network sales department (business unit or Independent E-commerce subsidiary form), directly cooperate with Tmall, Jingdong and other major network retail platforms, set up direct flagship stores, independently undertake daily operation work of decoration, pricing, customer service, after-sale, promotion and promotion of flagship stores.

Part of the radical and braggy big traditional brand enterprises directly build vertical B2C retail stores (such as Haier electric / BELLE shoes industry) and adopt the omnidirectional online retail business system.

Advantages and disadvantages

1. network distribution system

For traditional brands, this is the simplest and convenient way of network channel construction.

Traditional brand sales channels (wholesale marketing channels, business super channels, etc.) have rich experience in construction and management, and the essence of network channel sales is consistent with traditional offline channels.

With the network distribution system, enterprises can learn from their management experience.

However, because of the low operating cost and the boundless sales area, the price war is a common means for the network dealers to obtain sales volume. Its sales volume mainly comes from the pfer of the stock demand under the line, which is very easy to stimulate the contradiction between the online and offline channels, and also easily lead to the contradiction between the network dealers and the enterprises.

Internet distribution system, the traditional brand is difficult to control online retail prices, can not play the advantage of network short channel sales control, can not get profits from online retail value chain, but also can not play the role of traditional brand in the network brand dissemination and maintenance.

2. network generation operation support control

Along with the development of electronic commerce, business operators in China have sprung up like mushrooms everywhere. There are hundreds of home appliance business operators in Hangzhou, where Taobao is located.

The traditional brand adopts network operation instead of operation control. The essence is to borrow the chicken and lay eggs, outsource the "customer service, retail storage, delivery" and other rough work, control the ownership of the flagship store, control the core resources such as brand, price, promotion and so on, and get most of the profits in the retail value chain.

The disadvantage is that the electricity supplier hosting company is mixed up. There are not many excellent and powerful companies. It is difficult to find suitable electric business hosting companies. Once the escrow contract is signed (usually 1~2 years), the sales of traditional brands will be controlled by people in the trusteeship period, and they must pay a lot of electricity providers for hosting Commission.

3. direct retail business

Just like setting up a direct line store or exclusive store, the establishment of a flagship store on the sales platform of Taobao Tmall / Jingdong will help to control the retail value chain in a comprehensive way. There is a strong price control force and a real advantage in the short distance channels of online retailing. It can take account of the relationship between brand building and sales volume.

The disadvantages are: the management of traditional brand is not familiar with the operation of e-commerce, and the lack of loyal network operators can hardly solve the conflict between the operation culture and traditional management culture.

The direct model of the traditional brand's own construction station sales, because the cost of drainage is huge, the cost of maintaining the independent website is too high, the pros and cons far outweigh the benefit and should not be advocated.

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Advance and retreat

1., the first line of traditional brands of clothing, shoes, bags, daily chemicals, home textiles and household appliances should be built on the basis of strategic development. We should spare no effort to establish a network sales department, adopt a direct retail business system with the power of channel control and maximize retail profits, but do not have to build an independent website for sale. We should try our best to break through the bottleneck of network operation talents, culture and mechanism, and perseverance and advance with difficulty. Because today, we will not have the way of electric business, but tomorrow we will have no way to go.

If there is a shortage of talents in the operation of the electricity supplier, we dare not rush to adopt the direct retail business system. The expedient plan can be controlled by the generation operation. Once the time is ripe, we must adopt the channel mode of the network retail direct business system and the trust and distribution as the supplement.

Occupy the advantage of heaven, earth, and human resources, online Hangzhou has already established a perfect channel for the famous traditional brand of women's clothing, such as "blue sentiment", "autumn water people", "Jiangnan cloth dress", "beautiful clothes and beautiful shadows" and so on.

2. focusing on core business and being accustomed to outsourcing foreign brands without core business, the network shop should be the first choice for operation control.

Foreign brand enterprises have strict management level and regular operation mechanism. They are not easy to set up an e-commerce sub company and do not easily break the work process. They are highly paid, efficient and streamlined, and are good at focusing on product development, brand building and other core competencies.

Foreign brands are accustomed to outsourcing such non core functions as "market research, wholesale and retail, warehousing, distribution and sales services", especially non knowledge intensive activities. Online retailing is also defined as non knowledge intensive activities, and the hosting of online shops is inevitable.

The average annual salary of ordinary employees in foreign-funded enterprises is hundreds of thousands of yuan, and the rule of doing not work overtime on the night of 9 to 5 evenings and not receiving work calls at weekends is becoming a common practice. This contrasts sharply with the phenomenon of tens of thousands of salaries, day and night work of customer service, design, logistics personnel in e-commerce companies.

Different management mechanisms, workflow, corporate culture and employee structure decide that foreign brand enterprises (including some large domestic brands) are hard to implement direct retail business.

In fact, most of the famous foreign brands such as P & G, Unilever, PHILPS, HP and other famous brands such as American, Lenovo and other famous brands sell mostly by outsourcing.

For some domestic two or three line traditional brands, because of the lack of brand building ability of enterprises, the operators of electronic business are scarce, and the best way to use online marketing is to integrate the business operation and hosting system of electronic business.

We must fully believe that the professional operation capability of the hosting company is better than itself.

If the flagship store hosted by e-commerce is expected to succeed, the small and medium brands can terminate outsourcing trusteeship and independently operate the flagship store of online brand under the premise that the introduction and operation mechanism of e-commerce operators are ready.

3., for some traditional brands like fresh drinks and beverages, it is easy to use the Internet distribution system.

Clothing, shoes, daily necessities, home textiles, household appliances and other industries, e-commerce is the subversion of traditional offline channels, and should be dominated by direct retail business.

But now or in the future, the network channel is only a supplement to the broad channels under the traditional brand line of drinks and fresh products, because the price of beverage is cheap, the weight is heavy, the customers are instant consumption, the fresh shelf life is short, the long-distance retail distribution cost is high, and the quality is difficult to guarantee.

The booming development of Tmall supermarket and Jingdong supermarket is closely related to the online distribution mode of traditional brands of beverage and food.

Some of the stock / seasonal products of clothing shoes and daily textile brands can also be packaged by Internet distribution system to sell to network distributors.

In the era of Internet wave sweeping, traditional brands should not hesitate to wait and see. They should take the initiative to actively enter e-commerce. They should systematically and systematically build e-commerce sales channels.

For the vast majority of Chinese traditional brands, the network distribution system and even the operation control should be expedient. It should set up an electronic business department or a subsidiary company, introduce and train business managers, and formulate management rules and assessment system suitable for the electricity supplier industry. The ultimate strategic target should be the online retail direct system with both brand and sales volume and profits.