Confessions of a Li Ning Distributor: The rise of electricity dealers caused terminal pains

How the electrical business affected my business

I am Li Ningyi County County Distributor, at the end of the grade of the Li Ning sales system. At the same time, I was also a "lemon", when I met the opportunity to join Li Ning in 05, I did not hesitate to give up my studies to engage in this career. Since joining Li Ning, from 1 stores to the peak of the 7 stores, from the annual sales of less than million to brilliant tens of millions of sales, from the peak of 08 to the current trough. Although joined Li Ning only 7 years, but experienced the company's brilliance and the current recession. But I'm sure Mr. Li Ning and the new team will soon take Li Ning out of the trough and look forward to Li Ning's Phoenix Nirvana.

On the Internet recently there are many of the evaluation of Li Ning, some from Li Ning's distributors, some from the Li Ning Company's departure, some from the industry and so on. These evaluations also reflect the problems that Li Ning is facing now and the direction of the previous mistakes. I am not going to repeat them here because Li Ning is reforming these issues, and as distributors we do receive information and practical action on these reforms. But one thing I'm most worried about is the topic of this article, it seems very few people have proposed, but among the distributors, this concern is already very serious. Here, I would like to elaborate on my own point of view, I have limited academic qualifications, may be seen in some places is not so clear, but also hope that you see this article and the people concerned about Li Ning can give objective evaluation and guidance.

When it comes to electric dealers, you cannot fail to mention Taobao. Since its inception in 2003, sales have increased by 1 trillion yuan a year, and registered members have been over billion. I registered since 05 Taobao, has been in Taobao and cat on the consumption of more than 250,000 yuan, as I, the net shopping has been deeply into my life. When I first started the catenary shopping, I was selected from the physical store and then went home to purchase the order online. Up to now, with their own online purchase experience judgment, has been able to Taobao market in many sellers and day cat merchants to choose their own satisfaction with the goods, also unwilling to go to the physical store comparison. 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-cost high-quality products, these are physical stores can not be compared. Hate is that this business model has indeed affected my own business. In the 2006, a few people have been in the shop after the test after the Nieder number and style to walk away, and some customers will directly explain to buy online. Since 10, this phenomenon has become more and more serious, with the development of technology and mobile phone network and the application of functions, many people to the shop directly out of the mobile phone to compare prices, shopping guide hard service, in exchange for the customer's walk away. The shopping guide often asks me, why the on-line price is so cheap? In the face of this problem, I can not answer, sometimes against the internet shopping guide is generally fake, there is no quality assurance. As the owner of these shops, as a senior Internet buyers, I can not make myself feel at peace. Because I am very clear that Taobao although there are some fakes, but most of them are authentic, even with the company's authorization, such as in the previous sale of the ancient star Li Ning.

Why is the price sold on Taobao lower than my bid?

At the beginning, I do not understand, I do not understand why Taobao sales price is lower than my bid? Finally through their own understanding of these channels, understand the reasons, almost all market sellers have no inventory, are through the superior agent for sales, and these superior agents are some top-level distributors, they have a large number of goods and lower purchase price. It is also because these are sold at a lower price than our distributors buy, also brought the chaos of the channel, some distributors desperate to find a way through Taobao channel goods, from the certification shop to "shops", is in order to rise in all costs to ensure that their stores can also be profitable. These phenomena not only brought the original dealer management difficulties, but also because the long-term in the absence of various resources of the company under the circumstances of the store and Japanese to the brand brought a bad impact, reduce the brand in the local reputation, and by more Jinjiang brand replaced.

The impact of the electricity business is not only so, in 2011, Taobao's many rounds of promotional activities also really affected the real store business, combined with 80 to 90 after the online shopping enthusiasm and affect their 50 to 60 after the elders. For example, Taobao's "Double 11", "double 12" big promotion, the whole audience 50 percent. Although the previous price has not changed, but the promotion of this promotional is unprecedented, so that more people know the online shopping. These promotional activities, can be clearly found in the real store sales decline rapidly. Here, there is no denying that the electrical business has so far not replaced the physical stores, but this effect will cause many physical stores closed to affect the physical sales. For example, now in the two or three-line city can hardly see the existence of bookstores in my city, and even the Xinhua bookstore has been out of the best position in the business district, and the façade rented out. This is the first business in the physical stores under the influence of online shopping. Li Ning may not be so miserable, but also need to be vigilant. For example, a Li Ning shop month shop effect 100,000 can win the deficit balance, in the absence of net purchase effect, can sell 130,000, under the influence of the net shop effect gradually reduced, and all kinds of expenses along with the social development increasing day by day, in sales can not guarantee losses, the boss began to close. Perhaps the owner of the store could be in other industries, but in the end, Li Ning lost a store that could ship millions of dollars a year. This is who is the loss of a lot of natural can see, without this channel Li-Ning electric business does not necessarily increase the number of shares, may be replaced by other brands, or Jinjiang department or Amoy brand. My most brilliant 7 stores closed down 2 more or less for this reason. The decline of Li Ning futures orders is not without this reason.

The events of September 19 this year can not help but let us be disappointed with the attitude of Li Ning Company to the electric business. The day in our shop in the Li Ning sales system Epos for customers to play the shopping ticket on the "Welcome to the official Mall of Li Ning" and its Web site for the mall propaganda, and Baidu's promotion link also has the link of the website. But these are not enough let us disappointed, when we landed on the site by its membership system to shock, consumption of 980 yuan, again shopping 55 percent, which contains a lot of 2012q3 best-selling products, such as Ning Arc. 55 percent is consistent with the discount I bought as a Tice, or even less than most distributors ' purchase discounts, which gives us a good distribution? When I was a consumer and customer service to ask why less than the real store price, the other side told me because they are factory direct, physical stores are through their procurement, this argument has to let us chilling. In the official home page of the link on the campus agent business, I have our local students in the identity of the consultation when the discount is also 55 percent, the latter may be based on sales and return points. When I learned the information, I half the recognition and confidence of Li Ning's reform, when the time of 2013Q2 order submission, I ordered a very conservative amount, because I can not see the future form, see the future of online shopping to the entity can affect how much? Can you see whether Li Ning will make changes in the electricity business? We can also explain to our customers that they are fakes when they are sold at the Taobao market, what explanations should we make when they rise to the official mall?

How to balance online and offline balance

Speaking of which, you may have questions. Is it just Li Ning? Other brands and industries? Through my research found that sports brands are almost all affected by more or less online shopping, the brands are afraid of losing such a market, have set up their own flagship store and network distribution channels. Online shopping can hardly survive without low prices, there is no low price there is no turnover, this is the fact that the net purchase, but this model to the line under the blow is too big, the ultimate destruction may not be others, but their own brand and channel. or the abolition of the wholesale mode into retail mode, so that the market as a whole can be controlled. This might be the best model if you can't balance the benefits of the line.

Is there no way to balance online and offline? The answer is no, it is often said that the O2O mode. Here I have a personal experience to share, 11 years decoration wedding room to buy building materials, just met Taobao 51 promotions, buy the Holy Elephant's parquet, the line price to be around 400, online less than 200, when I took the payment after the San Elephant flagship store customer service told me to send to the local distributor, By local dealers door-to-door installation and after-sale service. After the goods to the local Distributor, the local distributor Tel told me after the appointment of door-to-door installation time and accessories to choose. I chatted with the dealer about the internet shopping for a long time, distributor boss told me is their first online customers, I asked if they have an impact, the boss said the Holy Elephant Company has installed and after-sale rebate and accessories must also choose their, they can earn accessories and installation fees. The profit has nothing to lose before. This model I think should be a variety of brands should be used for reference, online purchase, offline services, to achieve the combination of both. In fact, Taobao is not only the Holy elephant is so, many brands are also this mode. For example, Tata wooden doors, European-style cabinets, and so on, these are my wedding room when I found some of the O2O model to do a better brand. This has stabilized the original sales channels, but also online to recruit more customers for the brand and dealers to bring more sales and profits, kill the birds. I think now in such a well-developed supply chain management and logistics, Li Ning implementation of this model is not difficult!

For this mode, in my mind there is a preliminary direction for reference: 1, the line order mode to follow the existing model, divided into ordinary paragraph of an order and A + multiple production to stabilize the line under the sale of water. 2, the new online pricing is lower than 15% to 30% below the line, both to meet the online buyers of the low price mentality and can maintain a good line price. 3, the integration of network sales channels, only to retain the official store Li Ning, improve string code management level, tracking to distributors, privately in the online sales found after the cancellation of participation in this mode. 4, the establishment of the national online sales line service platform, all distributors and have the ability to be willing to participate in the quality level distributor to establish their own offline service department. Online sales directly in accordance with the regional courier to the hands of customers, in accordance with the delivery address to local distributors or distributors rebate. Below-line service department mainly carries on the Post-sale service follow-up and the maintenance, to stabilize the customer base. Improve the reputation of the brand. 5, all participate in this mode shop to establish consumer experience area, experience Li Ning the latest technology and sports technology platform to enhance the brand professionalism.

We hope to see not only the change of the contract resources, the change of the ordering mode, the change of the product and the control of the stock. Also hope that Li Ning in the electric business can have a better change.

For a love of Li Ning's "Lemon", for a business owner of 5 stores, for a young parents influenced the worship of Mr. Li Ning, look forward to the change of Li Ning, such as Phoenix Nirvana, Bath Fire Rebirth!