The business model is crucial to the development of the company. With the continuous growth of individual dealers, the terminal market has gradually emerged many business models such as factory direct stores, branch companies, building materials distributors, husband and wife stores + company systems. The choice of which mode to use to operate is in the hands of dealers or manufacturers, but the key to testing the success or failure of a business model is always the terminal market.
Management and management
In recent years, due to the weakness of the industry market, many dealers complained that manufacturers disregarded the market sales situation, blindly asked the dealers for delivery requirements, and increased dealer sales pressure. Some dealers have mastered a large number of customer resources, conspiring to replace the agent brand, etc., and various events have been superimposed. For a time, the relationship between manufacturers and dealers has been pushed to the forefront.
Existing cabinet companies have seen the defects of the brand agency system, so they gradually began to establish brand-operated stores and lay out the market. Immediately, well-known brands in the industry have developed brand-operated stores or branches in various cities. However, a series of problems with the manufacturers have followed: how can manufacturers who have not directly docked the terminal market grasp the ever-changing terminals and do business well; how to grasp the cost of storefront, logistics, manpower, etc., how to manage the channels; , cooperation with channel providers, etc.
As a pioneer in the direct sales store in the home building materials industry, after the "May 1" this year, a well-known brand evacuated nearly 300 square meters of stores in Kunming's home, causing an uproar in the industry. As a big brand in the industry for many years, it is difficult for people to associate it with “demolitionâ€. Some insiders said that the reasons for the evacuation are various. In addition to the brand's own reasons, it is also related to the store's business strategy and market environment.
In addition to independent factory-operated stores, the terminal market also has a combination of direct-operated stores and individual dealers, that is, manufacturers provide products and operating costs such as storefronts and rents, and have absolute sovereignty over brand operations. Individual dealers follow the factory. The order is responsible for the day-to-day operations of store personnel management and operations, and the final sales proceeds are divided according to a certain percentage. The most important thing for a manufacturer to become a partner is that once the opinions between the vendors are not uniform, the contradictions will become deeper and deeper. A well-known cabinet brand Kunming store belongs to the "manufacturer partnership" mode. Because the store sales in a certain store is in a downturn, the dealer thinks that it is a waste of cost and wants to evacuate. However, after the factory and the store coordinate, it is decided to continue to hold on, and the dealer can only obey. For such a "partnership model", many dealers have expressed doubts: some dealers have long been engaged in management operations, and after obtaining rich customer resources, they have collectively quit, so the manufacturers must be in a very disadvantageous position, just like a company manager, to the enterprise Without loyalty, the factory has to bear huge risks.
Direct store price advantage is obvious
Price is the key to product sales, and consumers, distributors and manufacturers are very sensitive to it. The most important thing for a direct store is to have absolute control over the price. Some relevant people expressed their views on the direct control of the sovereignty of such manufacturers. "Factory direct sales can directly control the terminal sales price of products, which is very big for our dealers, especially the second and third-line brands. The more links that pass through the factory to the dealer, the higher the product cost, so the factory-operated stores have a great price advantage."
In the reporter's investigation and interview, most of the cabinet dealers and clerk said that the most chaotic market is the product price, and the price is fierce. Especially between the direct store and the individual dealer, in the same market, consumers only need one comparison, which is very intuitive, which is the price competition. "In addition, many well-known brands in the industry rely on accumulated popularity, activities, and promotions. This is very unfavorable to other individual dealers, and it also reduces the image of the brand they represent."
Faced with the many investment and operation problems that will be created in the establishment of brand-operated stores, and the contradiction between the “partnership model†of manufacturers, choosing a new business model or consolidating the original dealer model, this is already a business has to be serious Thinking about the problem.
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