Dell Sales System "infighting" channel business network Marketing blocked

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

Dell, which has always been a direct selling source, has started distribution in China. The two-wheeled drive "should have given more impetus to Dell's sales, but a Dell channel source said to the daily economic news reporter that Dell's channel distribution and direct marketing has not been coordinated, and that its" right and left " Has affected Dell's normal sales in China.

Recently, a number of Dell channel business people contacted the Daily economic news reporter, said that their ads on Baidu and keyword display by the Dell Direct Sales department of "blocked", to this, "Daily economic news" reporter yesterday interviewed Baidu company, but Baidu did not comment on this. Dell, as of press, did not comment on the possibility that Dell's channel business was "intent on blocking channel advertising for the benefit of the department".

The troubles of Dell's channel business

Dell's first flagship store for the consumer market opened in Shanghai, and Dell's global vice-president and Greater China President Min Yida also said that "channels will be allowed to sell Dell commercial computers directly", meaning that the importance of channel sales has been given unprecedented attention by Dell.

In this context, Wang Wei, a Dell channel worker, is hard to understand what has happened recently. Wang Wei found that when Baidu entered the keyword "Dell" to search, his formal Dell Channel Company was unable to be found in the search results, even if the company had "bought this keyword on its own display."

In addition to Wang Wei, a number of Dell channel business people recently told the Daily Economic news reporter, in the past two months, their companies have encountered the same trouble as Wang Wei: in Baidu search for "Dell" keyword, the search results do not have their company's relevant web page display. They told reporters that they were Dell's regular distributor channels, and that the company's collaboration with Dell was the SME market (SMB) and the first-level Dell distribution (1DD). These Dell Channel business people believe that their company can not be searched through the "Dell" keyword search, because "Baidu Company is required to disable (channel) Dell keyword, do not allow (channel) to use the Dell keyword promotion." ”

Wang Wei told the Daily Economic news reporter, after discovering that his company was excluded from the "Dell" keyword display, he once contacted Baidu customer service staff, but was told that "is the Dell company requested not to allow (Dell) agents for such promotion." So, exactly what department of Dell made such a decision? Wang Wei and several other channels for this are dedicated and Dell SMB departments and 1DD departments to negotiate, but the other side told them did not come forward to ask Baidu to shut down these channel business keyword display.

"Well, it's just the Dell Direct Sales department," Wang Wei speculates, "All the time, all kinds of web ads are Dell's direct sales department, since the Dell's channel business has been booming, the channels have started their own money advertising (keyword display). Now the Dell Direct Sales department may feel that (the Channel keyword display) threatens its departmental interests, affecting their sales performance and commission, so they asked to ban our ads and keyword display. ”

As of press, Dell did not comment on Wang Wei's speculation. In this reporter to Baidu interview, Baidu also did not comment.

The entanglement of direct selling and distribution

The reporter learned that, from the development process, Dell can achieve today's achievements, its unique direct sales model has played an indispensable role.

The significance of the Dell Direct marketing model is that all of its computer sales do not go through any intermediary dealers, but rather direct and end user transactions. Customers through the network and direct sales telephone and Dell's business representatives to establish contact with their own configuration requirements, Dell will be able to generate orders according to customer requirements, and then arrange the factory to order production.

Through this model, Dell can achieve the "zero inventory" of the perfect process, both reduce costs, but also to meet the personalized needs of customers. It is by way of direct marketing that Dell has grown from a personal company to a listed company with annual sales of more than 30 billion dollars.

But by the year 2006, the direct sales model, which brought the glory of Dell to the past, faced a test of performance. In the third quarter of 2006, Dell's 16.1% per cent market share was overtaken by HP by 0.2%, losing the position of a 3-Year-old PC boss, with sales growth lagging behind the overall market level. At the same time, many of Dell's key market executives have joined rivals in the unrest, making the industry feel that Dell is on the brink.

In 2007, under pressure from the performance, Dell founder Michael Dell restarted and began experimenting with more sales models to replace the direct marketing model. In the second quarter of this year, Dell's consumer market share was 9.3%, up 4.3% from the same period last year, IDC data showed. Yang, Dell Global vice-president and general manager of Greater China's consumer business, admits that this growth is directly related to Dell's recent channel adjustment actions.

As you can see, Dell is beginning to agree that the channel distribution model has become an important part of the Dell Sales model.

Last March, Dell's global vice-president and Greater China President Min Yida made clear that Dell would allow direct sales of Dell's business computers, meaning that Dell's slow-start distribution strategy since 2007 had been extended from the consumer market to the corporate business market since last year.

Over the past two years, Dell has tried a variety of ways in distribution mode. Dell's Channel sales system is not exactly the same as the traditional it channel distribution system, but it is somewhat similar to its biggest rival, HP's Channel model: only FA (fulfilmentagent, distribution execution) and Ka (keyagent, core dealers) Level two architecture. Most of them have retail outlets that can sell Dell products directly to end users. Dell also has a third-tier channel vendor, Ka-s, in a regional market where Ka is not covered.

According to the introduction, Dell is currently the four major agents of digital China, Hanlin Hui, Changhong Jia, the responsibility is not the traditional sense of the distributor, Dell to their positioning is the FA, only responsible for providing logistics and cash flow for Dell. But in practice, Dell does not have much human resources to manage hundreds of core channels from the FA downstream, so FA is also working with Dell on some of the sales functions.

In terms of product services, Dell is also beginning to gradually part of the product after-sales service to the distributor of the channel, the original Dell onsite repair service model to form a useful supplement. Currently, the successful implementation of channel sales model in the Chinese market has become a model for Dell worldwide. In the Dell China market distribution channel Min Yida, it seems that direct marketing is Dell's innovation in the industry, but not to cling to, customer demand is Dell's company to develop the direction of the basis.

Related news

Dell intends to transform IT services

Recently, Dell announced its acquisition of about 3.9 billion U.S. dollars IT service provider Perotsystems. According to reports, Perotsystems specializes in business processes and technology advisory services, employs about 23,000 people, is the world's largest hospital IT service providers, half of the revenue from the health care sector, and One-fourth from government services. Paul Rorrigue, a Forrester analyst, says Dell's services are often related to hardware support, and the company has struggled to get into the "managed services" sector, so the acquisition should yield revenue.

It is not enough to change the business model in the traditional position of PCs, but to learn from IBM and Dell's biggest rival, Hewlett-Packard, to transform higher-margin IT services. Prior to the deal, Dell, the world's second-largest PC maker, had about 60% of its revenue coming from the PC market, while service offerings accounted for only about 10% per cent, significantly behind IBM and HP.

Kaufmanbros analyst Show Wu believes that Dell's takeover action has finally begun to take action against its weaknesses, but the effect of the deal remains to be seen. Since the merger, its overall service product business is still far smaller than its competitors. It is reported that Dell in the PC market's biggest rival HP is currently ranked second in IT services, after IBM. Dell revealed that the future will be spent 4 billion U.S. dollars with Perotsystems to carry out related business integration.

Analysts point out that, after Dell's transition IT services, its traditional direct marketing model is still alive, if it vendors can more understand the needs of business users, have enough information in the relevant market, they can provide more competitive products, and the product is not necessarily limited to the PC.