Electric quotient "dual-track" of household building materials production enterprises

In the previous article, we talked about the household building materials industry, electric business enterprises (often the electric business platform) and the traditional distribution channels under the network how to work through the O2O model to solve the problems encountered in the development of the electric business. Their O2O modes are different: online electric business enterprises try to "ground" to solve the household building materials industry in the process of electronic business of the five major difficulties, while the traditional enterprises under the line hope that the rapid "electric shock" to complete the docking with the line, to catch up with the wave of electronic business.

This paper discusses how the production enterprises in the industry are made by the "dual-track", and how the "dual-track" has influenced the development of the electric business of the production enterprises.

1. Conflict of Channel Systems

The first thing to be clear is that we are talking about the production enterprise is the original online under a more complete distributor system of production enterprises. For that kind of a simple online business to do big and want to go online under the development of enterprises, we will have a special article to discuss.

A production enterprise already has a more complete offline distributor system, and now want to do electricity business, it encountered the first question is what?

If you are familiar with the distribution system of home building materials industry, you will know this question is: if the online to do electricity, the original dealer system how to deal with?

We will carefully analyze the production enterprises to do after the dealers and the original distributor system which conflict:

1. Regional conflicts. The internet is not divided into boundaries. Online shopping is bound to break the original layer of dealers divided into the situation;

2 Price system. Online shopping with low prices as the main characteristics (at least the current situation has not changed), and the price system of the offline Distributor is much more complicated, not only may be much higher than the price of the line, but also opaque! For the electric business, the price is not transparent is the most fatal! You do not price price, how consumers click to buy payment?

For almost all manufacturers, it is absolutely impossible to abandon the original dealer system in order to be an electric dealer. First, the electric business is far from the road, the future is uncertain; the second is the existing distributor system is the pillar of enterprise development, if the online sales are not up to a considerable amount, offline sales is still the focus of the market development of enterprises; third, do not forget that even online sales, or the need to line up the existing dealer system to support after-sales service installation or something.

Then home building materials industry manufacturers How to do it?

2. Line below the dual track

Let's analyze what the manufacturing enterprise will do or should do:

The first thing is to separate the line production for the online purchase of the product series; (Of course, go further along this road is another line for brand-specific, but this in a way to become a new enterprise online operation, not in this article of the list.) ）

The second is based on the characteristics of online shopping to be lower than the line below the price of a lot of on-line sales. As a result, online operations, although no need for the high cost of the offline shopping malls rent, but the gross margin is much lower than the line below;

Again is the need to reach an agreement with the existing distributor system: Online sales of goods after-sales service installation, by the offline distributor to complete, the production enterprises to the distributor a certain proportion of service charges.

At this point, a perfect electric business dual-track seems to be completed: line under the common development of online. Offline brand for online sales to support, online to line down with flow. Online sales also bring additional revenue to the original dealer. That's a lot. In fact most of the home building materials industry manufacturers involved in the electrical business is to do so.

Maybe some people can't help asking: Is there a problem with this?

3. Game under dual-track

There must be a problem. Just the benevolent, the beholder.

First look at the conflict of the product line. Think about how the enterprise will come up with what products to sell online? Indeed, many companies will be the first to sell the inventory of products to the line up to the low price inventory. This is the first motivation for many business net, short term behavior, not our analysis.

Before deciding on business decisions, let's take a moment to study the psychology of the owner of the production business. The game between dealers (or bargaining) has become one of the day-to-day work of a business owner. Although the enterprise and its dealers often you come to me, cup staggered, brother, established the interdependence of the relationship, but the Liangzi also had already secretly knot. And the dealer's gross profit ratio, the production company's gross margin can be said to be poor (in addition to those well-known brands outside), usually also by some large dealers bullying, but also to bear more than dealers greater risk. Now finally have the opportunity to get rid of these gnyd dealers! If you are the boss, you will explain what products you choose to sell online? If you are the boss under the specific responsibility for online shopping, you will recommend to your boss what kind of online shopping products?

Coincide！ Of course, the company sells the best and the highest gross margin of the product. (Of course we need to add a restrictive condition, that is, this product is also suitable for online shopping sales.) But sell a good profit and high products, but also offline dealer's sweet cakes. You got the line to sell, what do I do under the line?

Perhaps the enterprise replied that it doesn't matter. Let's change the model for a different color pattern. Online under the line to sell the different products, the problem is not solved?

It is a way of putting the customer on the same day even when the dealer is naïve. The first is that customers are naïve enough to recognize the product model, do not have the ability to identify the similarity of products. The second is to think that the dealer more naïve to think that as long as the white cat dyed black consumers naively do not know this is the cat, and the price of black Cats is only white cat two-thirds dealers do not care. In fact, the different models only show that the competition between products is not 100%, and does not mean that there is no competition.

The second is the conflict of commodity prices. We all know, offline shopping malls home building materials products are priced high. Consumers are basically not silly to the store does not ask prices directly according to the price of the merchant to pay, shopping malls dealers are also looking forward to the consumer with a machete axe to the shop in the fierce chop. Therefore, the offline businesses and consumers on the price of goods have reached a tacit understanding. However, the online sales of related goods broke the tacit understanding.

The first is that online sales must be marked. Offline does not use a price tag, in fact, there is no place: home building materials prices are not uniform, different regions of the commodity price gap may be very large, this is home building materials industry distribution system is an important part. Well now, the price of the goods on the line to the public. Although this is a line with a different type of goods, but the public price this matter, will cause dealers enough resistance.

The second is that the price of the line is much cheaper than the price of the related goods, this is simply to the life of the dealer. Imagine if a customer had shopped in your shop a few times and asked repeatedly about a particular product, and you had no trouble answering it, hoping to make it. Finally, he was told that he bought an identical brand on the Internet only slightly different in style, but the price is much cheaper than the special offer. What do you think?

Even if the original dealer and production company's relationship is good, this time has begun to create estrangement. To speak more seriously, the seeds of hatred have been planted!

What's even more amusing is that at this point the manufacturer also wants you to help it complete the after-sale installation of this product. This is just selling you and letting you help count the money!

The key is that the production enterprise must also let you help to do the "sell you also want you to count money" thing. This is the third conflict of the "dual track". From the point of view of the enterprise, it gives the dealer a certain amount of sales commission as the return of after-sale installation Services, the heart also think that this does not I bring you more income, you should be satisfied with it. As the dealers do this special after-sales service, the mood is very complex: because the production enterprise in the move his cheese!

The rest of the world is done, but it is not easy to do the things that move others ' cheeses. Therefore, the "two-track" in the production of enterprises and distributors of the conflict, in the final analysis is "who moved the cheese" conflict. Although the production enterprise said I bring the flow under the line, also said that I give the dealer additional commission to let him do after service, this is obviously only to stand in the enterprise angle to look at this problem. If you think about the dealer's cheese, the problem is completely different.

Imagine you let a person dig a pit, you according to each shovel to him calculate wages, also let people send to use tools. You think this person should be happy to dig this hole. It may just be your idea. The truth is, if the man was thinking that the pit was dug up, it might be used to bury himself, would he dig the pit?

The game between the production enterprise and its distributor on the "two-track" system is a game between the marketing system of the electric business and the traditional one. Judging from this altitude, it may be easier to understand the contradictions between producers and distributors.

4. The problem of dual-track

How to deal with the "dual-track" of the electrical business is the home building materials industry each production enterprises and their distributors are facing a major problem.

Objectively speaking, home building materials industry production enterprises to use the "dual-track" to operate the electricity business, is helpless. "Two-track" Operation effect is good or bad, and the relationship between production enterprises and distributors and in the "two-track" operation of how to continuously explore, define and deal with this relationship is closely related. Although the production enterprise and its distributor system have common interests in essence, they also have inevitable contradictions between them. The development and solution of this contradiction determine the future of the "dual track".

The "two-track" of the electric quotient of the production enterprises has seriously influenced the process of the traditional distribution channel merchants ' Electronic business. Just imagine: a production enterprise online to "dual-track" operating the electric business, and now came to a traditional distribution channel business (such as the Red Star of the United States Kai-lung or incredibly the home), it also want to do electrical business. At this point it faces the challenge of defining the relationship between the production company and its online distributors in the traditional marketplace on its website.

Production enterprises of the "dual-track", is the line under the separate double run. However, in the traditional distribution channel to build the electric business platform, the production enterprises and their distributors will be highlighted contradictions, because they directly online face-to-face encounter.

When the dealer of the shopping mall also boarded the platform of the electric quotient, the original two trains on the different track independent traveling inevitably collided!

Because the traditional distribution channel business has not yet fully launched its electric business, so the problem has not been in the reality of the electric business performance. But one day we will have this problem. The solution to this problem may directly affect the Electronic business era home building materials industry distribution system structure.

We will do an in-depth study of this issue in due course.

(This article is the original, only representative of the personal point of view.) All rights reserved, reproduced or quoted please indicate the source. Thank you! ）