Agent party condemns Philips Channel management to troubled multinational giants

The "It Times" reporter/Li Mei (from Beijing, Shanghai) has become increasingly important, but more and more companies are having problems with it. After Nokia, Philips agents began to reverse the water.　　They sent a letter to the manufacturer, the complaint seems to be "tears" was the industry's model, but now it has become a negative example, the situation of Philips let people lament! Recently, "it times" obtained reliable news: by Philips agent Beijing Ming Fai Weiye Trading Co., Ltd. (hereinafter referred to as "Ming Hui Albert") chairman of the "National Bai Jianhui Philips Agency Conference", will be held at Beijing Marriott Hotel on November 8, 2009. As of November 2, the number of registered agents has been dozens of people, and the trend is increasing.　　It is reported that the Philips agents are "injured" because of Philips Channel management is too confusing, seriously damaging their interests, and when the problem is reflected repeatedly evaded.　　At present, Philips just stressed that the party agents are not true, but also said the company is willing to negotiate with them to resolve contradictions. Philips's claim that it has no direct effect has angered more Philips dealers. A person familiar with the matter told our correspondent that things are deteriorating, many agents are already counting Philips brand products, ready to liquidate.　　At the same time, some of them have begun to gather evidence to prepare for a complaint against Philips. The latest survey shows that the impact of the incident, the domestic stores of Philips small household electrical appliances sales have been marked signs of decline.　　Market analysts believe that if Philips can not properly handle the "channel gate" incident, will not only affect product sales, but also damage the corporate image, resulting in a series of market disasters.　　The furious agent Ming Fai first erected a banner against Philips. According to Bai Jianhui, Ming Fai began to do in the beginning of 2007, Philips Beijing, a level of agents, agents are mainly razors, small rice pot and hair dryer and other household electrical appliances, responsible for the region's Gome, large and major department stores supply.　　According to him, as Gome and other channel operators required 21.8% of the split, plus 70% of the product costs, agents up to only 8% of gross profit, and all other costs must be deducted from this part of the gross margin. "If everyone is treated like this, the small profit margins will be good, but the situation is worse." Bai Jianhui to our correspondent that the management of the channel is entirely human-made and ignores the interests of the agents. The same Philips products, agents of the purchase price is higher than the channel business 8%-15%. If the market is a best-selling model for HQ7310 razors, Philips gave him the price of 520.87 yuan, some channel operators unexpectedly as long as 384.67 yuan can get, the difference of 30%.　　This leads to agents unable to ship downstream, its status is in a non-existent.　　This approach is interpreted by many Philips agents as: This is Philips's usual practice, in order to more yahuo, so as to maintain market growth. It is understood that Philips on the agentBusiness requirements are high, one of which is that inventory must be more than half a year. This means that the agent does not have tens of thousands of dollars of capital, simply do not represent the company's products.　　And Bai Jianhui a year although can complete more than 40 million yuan of sales, hoarding inventory at the end of last year has 13 million yuan! "We can only turn two or three times a year and it's hard to be bigger."　　Bai Jianhui said that the long turnaround time of the goods led to many products unsalable, and finally only a loss promotion. This March, the Philips Yahuo and Chaos management of the Ming FAI to terminate the agency cooperation. Bai Jianhui said Philips did not reply to him until May 15, saying he agreed to terminate the cooperation, but within 5 months, Philips has been slow to coordinate with the new agent inventory transfer. During this period, Philips also asked the Ming FAI first dozen money to maintain the supply of stores, in the latter July after the money and refused to ship.　　October 9, Philips unilaterally informed the store to stop sales Bai Jianhui agent of small household electrical appliances products, white value of 8.7 million yuan of goods were frozen, more than 2 million yuan receivables can not be recovered, more than 40 shopping guide personnel placement has become a problem.　　According to agents, Philips in order to pass labor costs, will be the company's sales agents are dispersed to the agency, the store's promoters are provided by agents, promotional staff pay benefits are also borne by agents. "More than half of the country's first-level agents do not want to do Philips products." "Bai Jianhui revealed that the early years of the Philips brand more loyal to the East China market, many agents have given up Philips.　　At present, in Philips long product line, small household electrical appliance channel Confusion is not a case, its big home appliances, speakers, batteries and other channels are full of ills. "Philips has a big problem with market regulation, and it can even be said to be laissez-faire." "A former Philips agent, who declined to be named, told The Economist the foreign-funded enterprises in China to implement a regional manager of the Marketing management model, in Beijing, Shanghai and other places with liaison offices, but these liaison offices just looking for agents, not responsible for market maintenance and services, the so-called regional manager has never been seen to do market research, Let alone understand the grievances of the agents. The agency thinks Philips's bureaucracy will only exacerbate the contradictions.　　And, when other enterprises because of the financial crisis and take out their resources to help agents tide over the difficulties, Philips agents are still running around for a huge inventory, and manufacturers are often "no rebate" to threaten the agents of reasonable treatment.　　Philips denies accusing agents of being "outraged", but Philips has something to say. Philips China Market spokesman Zhang China on October 26 clarified that the company indeed with the Ming FAI Albert to release the agency relationship, but things are not exactly like Bai Jianhui said. She said that Philips has more than once negotiated the cancellation with Albert Chan, but it is not going well.　　After completing the handover with the first agent, the Ming Fai has put forward many additional conditions, and after being refused, Ming Fai has ceased to transfer with other agents. As for the dealer's inventory problem, Zhang said that the agent after the purchase of goodsThe ownership of things, there is no way to be frozen by Philips. Philips is willing to transfer with other agents to help the former agents to solve the reasonable inventory, the former agents are also obliged to maintain the normal communication between the two sides, until the completion of the handover. She also stressed that Philips in China to cooperate with hundreds of agents, agents of some unreasonable behavior is difficult to be monitored.　　In addition, Zhang China claims that the company's regional managers are working nervously every day, and that it is commonplace to travel and investigate in a first-tier city.　　In response to these explanations, some Philips agents, including Bai Jianhui, are not buying it.　　Bai Jianhui pointed out that Zhang China intentionally overlooked two questions: first of all, Ming Fai and the first agent of the handover has not really completed; second, the company then "refused to handover", because Philips does not comply with the industry's handover rules, forcibly withdraw channels, inventory, fees and so on hold, can not negotiate. Others argue that Philips cannot shirk its responsibility to maintain the normalization of the market by "not having an agreement with a first-line distributor", which is precisely the key factor in the market of string goods and prices.　　In addition, Philips said that their managers work hard every day to actively investigate the market, why these things have never been the wrath of the initiative to mention, and not to appease the agents? How to end Philips said that it is not yet convenient to inform the channel strategy in China whether there is a new adjustment, and the dispute between the agents is only a general business issues, do not want to be overly concerned about the media.　　But how this channel crisis will end, but has affected people's eyes.　　From Bai Jianhui's attitude, it seems that he has made a decision-not only is he the initiator of the national conference of the injured Philips agents, and the company's delivery team of the car all sprayed on the "Philips bullying China Agents, Philips also my hard-earned money" and so on, and made no secret to say: The participating agents do not exclude the joint and the court. It's hard to tell which is right or not.　　But industry analysts predict that the storm will push manufacturers to readjust supply chains. In June this year, Nokia, a mobile phone giant, also suffered from dealers refusing to sell products. Dealers from all over the country gathered in Changsha, the collective condemnation of Nokia, caused widespread concern in the industry, but Nokia resolutely combat the behavior of a series of goods also won the unanimous applause. For Philips, there are so many agents complaining that their channel governance is more or less problematic. How to placate "injured agents" and avoid the same problems in the future is very important when the channel affects the market competition results more and more obvious today.