Can Samsung borrow Nokia model to save the downturn?

Text/Statement recently, Samsung mobile phone in the Chinese market, the channel strategy of sudden decline: gradually reduce the carrier channel share, increase social channel expansion, reduce with the state and even some provincial agents to cooperate, in all provinces to introduce, develop FD platform business, strengthen the control of 三、四级 customers. The core of this channel change is: to the carrier, to the country generation. The FD model in the new strategy is the channel innovation that Nokia was proud of in the year, and it is also the important factor that Nokia defeated Waterloo. This strategy changes in the industry, but not in the newspaper, on the network can be rough to understand, and only Samsung Recruitment FD Manager, FD business director. How is the channel change a move? Will it save Samsung's decline in the Chinese market? First, the new policy to promote more flat Samsung mobile phone sales channels have been, Samsung mobile phones in the Chinese market, operators and open channels to pay equal attention to the electric business channel almost no improvement. 2010 ago, the open channel to the main state-oriented, that is, according to the product model by different State agents, the state agent to the provinces, the city layer distribution, each layer to get a certain profit space. At the end of 2010, Samsung promoted the flat change of the channel, began to introduce the provincial generation business, as well as direct for retail channels (such as Gome, Suning, Di-Tong, music language and stores, etc.), three channel models coexist for a long time. The change, Samsung will cut or even end the cooperation with the State/province, the introduction of FD platform, which is Samsung in the open channel to further flatten the important move. FD is the abbreviation of fullfillment distribute, namely Provincial direct control distributor. FD model is the product of the compromise between the provincial agency system and the direct supply model. In this mode, Samsung and FD signed a sales agreement, including sales volume, market share and market promotion and after-sales service indicators. FD Offline 三、四级 customers are mainly Samsung development. The biggest difference with the province is that FD only undertakes to build the provincial level of capital and logistics platform responsibility, do not assume other distributors need to bear the Yahuo, sales, marketing and other functions, rely on the amount of money to return profits. The FD model makes Samsung's management of terminals strengthened and the price of products controlled. The FD channel model was pioneered by Nokia in 2003 and is a great innovation in mobile phone sales channels, with more than 60% of Nokia's handset sales in China, which has been hailed as the most perfect and efficient mobile phone channel model in the industry. However, the decline of Nokia in the domestic market also has a great relationship with FD. Beginning in 2009, due to a variety of reasons such as the fine, the Nokia channel system, the interests of the dispute, refused to sell accusations, the disaster. From the end of 2011, Nokia successively abolished the Fd province, in China for 8 years, proud of the FD channel model became history. Second, the Samsung channel system must not be unchanged in the product homogeneity of serious, cost-effective equivalent, the channel system determines the sales scale. From the channel system to start, Samsung to restore the decline of one of the important measures, whether the success of the moment not to talk about. 3G era, operators control the voice of the mobile phone industry chain,Mainly reflected in the resource pry move. Since entering the 4G era, the pressure drop of three operators ' marketing cost has slowed down the channel sales of operators, and manufacturers have turned to the traditional open channels and the electric business channels, both of which gradually become the main channel of terminal sales. Compared with the electric business channel, the traditional open channel intermediate link occupies higher cost. Overseas manufacturers in the domestic development of electricity business is not easy, Apple, HTC and so on in this respect are no improvement, mainly depends on the power of the channel business. Samsung in the electric business channel experience less, almost zero, so, in the face of the overall trend of the channel changes, Samsung first consider the open channel to work hard. The channel flattening is an effective measure to compress the intermediate cost, in this process we should balance the relationship between the capacity and the scale of the channel coverage. Cutting off national and provincial producers can reduce this part of the cost space. Comprehensive direct supply, in logistics and capital and other aspects, Samsung itself unbearable, so the introduction of FD as a capital logistics platform. The advantage is that Samsung can further control the peripheral channels, more timely and effective understanding of market sales, control inventory turnover. Another important reason is that Samsung is competing with the big channels for the right to speak. In the face of the internet to mediate the tide, the state's agents are also in succession to reduce intermediate links, increase direct power. such as audio, mobile terminal Company, Unicom Huasheng Company, Tianyi Terminal Company, through business-to-business platform or direct supply system, vigorously expand small and medium-sized customers, intended to bring customers to make manufacturers. To seize the right to speak, in order to maintain flexibility in the sales strategy, the development of FD, Samsung and the large channel of the power of the Battle of discourse. Third, the channel changes, Samsung will face the challenges of the success of the FD model is the key: the product must have a certain brand premium, can give the channel to bring real benefits, the product shipped on a large scale, to meet the supply of channel vendors sufficient. For the current Samsung, these two points are still to do, it is worth worrying that in the minds of consumers, Samsung's brand value is gradually weakening. Channel change can bring benefits to Samsung, but also make Samsung face from three aspects of the challenge: 1, the Internet channel more flat impact. In the low-end price segment, such as 1000 yuan below, within 2000 yuan market, Samsung will be affected by the impact of Internet brand products, Internet brand products operating channels more flat, low-cost intermediate, cost-effective, and after the transformation of Samsung, in the cost of still have advantages. 2, with the open source of manufacturers to hand-to-hand combat. In FD mode, Samsung to three or four line customer control strength strengthens, will with Oppo, VIVO, step by step higher open channel of the manufacturer to hand-to-hand combat. Samsung's rush into each other's main market is a huge challenge for both parties. 3. The challenge in the channel control. Nokia's failure is a cautionary tale, carrier channels, the development of electric business channels, so that price control, channeling goods more serious, if the control of Samsung is not good, will cause channel disputes, light impact inventory turnover, heavy may be the road to the Nokia. At the same time, it should be noted that the relationship breaks down in the channel changeChannel, may also become the resistance of Samsung sales. Four, some of Samsung's proposed reform measures can help Samsung pull through, more difficult to pre-judgment. To be sure, the reform must involve a redistribution of interests that touches the interests of some people, and Samsung has to weigh in. In this respect, I have three suggestions: 1, not xiemoshalv, to promote the core channel partners in the transformation of Samsung in the Chinese market status, can not be separated from the state-generation business, the power of the province. Although commercially, free trade is what it is. But also should think about, when the new product is listed, who is helping you to complete the goods, when the tail goods piled up, who is for you Xianchan processing. Channel of trust and loyalty, it takes a long time to cultivate, but lost may be overnight. Xiemoshalv, lack of trust in the trading logic, the same is not conducive to the promotion of late FD model. The resources and capabilities of the state-made and provincial-generation companies in each province are often not inferior to that of FD, which can be considered as a catalyst for the transformation of the state and the province. 2, the electric business channel more flat, should pay more attention to the power of the electric business channel can maximize the omitted links, save costs. Millet by virtue of electrical business sales have made amazing performance, at the same time, millet network has become the industry's third largest electric business platform. Chinese Cool Alliance and other traditional mobile phone manufacturers have launched the Internet brand, increase the power of the platform cooperation. At the end of this year, domestic electricity market share will reach 20%. Although Samsung has its own electric platform, but also on other electric platform to sell products, but the force is still weak, the direct contribution to Samsung is very small. We should increase the input of the electric business Channel as soon as possible and further promote the flat and sales localization of the channel. 3, further strengthen the fan system to build fan marketing is an important way to enhance the brand premium, Apple products is a clear-cut example, the domestic mobile phone in the lead of millet, but also in succession to the fan system construction, fruit powder, rice noodles, pollen, hammer powder and so on appear. In June this year, Samsung also set up a Star member club, has developed a membership of hundreds of thousands of, only in the volume of propaganda, or relatively small. How to cultivate the loyalty of fans, with the help of fan power Word-of-mouth marketing, Samsung needs to focus on the subject.