How to build a coordinated line of composite channels

In the development situation of electronic commerce and traditional retailing, the combination channel of traditional channel and network channel has become the consensus of retailing industry. This paper firstly summarizes the main mode of the retail enterprise construction compound channel, and analyzes it with the help of case, and further analyzes the strategy of constructing the compound channel.

With the development of Internet technology and the growth of online shopping market, electronic commerce shows more and more strong development momentum. The stark contrast is the sagging posture of traditional retailing. Limited by the rising cost and consumption escalation, traditional businesses are generally in a low growth situation, net become the industry consensus. However, most enterprises in the online business is not optimistic, E-commerce impact on the store serious phenomenon. Under this kind of background, how to construct the coordinated line and the compound channel, becomes the question which makes the attention and the ponder.

Introduction of compound channel model

Compound channel mode refers to the enterprise through two or more distribution channels to achieve product and service sales. The above distribution channels include physical stores, Internet, catalogues, TV direct sales, telemarketing, sales representatives, and so on. Compared with the single channel, the compound channel has obvious advantages, not only caters to the network shopping trend, but also expands the market coverage of the enterprise, and makes the enterprise gain the advantage in the competition. For composite channels, the common misconception is that it is equivalent to channel diversification. In fact, the compound channel is not a simple superposition of many channels, but has a richer connotation. Essentially, this channel mode is to consumer-centric multi-channel design, therefore, its key is to study consumer demand and enterprise goals, on this basis, channel positioning, matching channels and sales tasks, so that the distribution channels organically combined to form a low-cost efficient operation of the channel system.

Channel combination and coordination is the key link of enterprise construction compound channel. Although the compound channel has the incomparable superiority to the single channel, but its channel structure, the channel relation and the channel flow is more complex, the channel management difficulty also increases. Therefore, the coordination of multi-channel business is the key and difficult point of compound channel construction. If the compound channel can integrate effectively, it will produce the whole effect, conversely, it will lead to the channel conflict, and affect the realization of the enterprise goal.

Second, the main mode of the construction of the retail enterprise compound channel

In the retail industry, the composite channel model focuses on the two-channel combination of physical store and e-business. To sum up, there are four kinds of success: Channel partition, channel intersection, Channel linkage and channel envelope.

(i) channel partition

The partition is the demarcation line between the channel and the traditional channel clearly. Enterprises to build independent brands for online channels, the design of new product lines, or on-line sales of products to develop different names, models, colors, etc., so that the traditional channels and network channels in the brand and product positioning differentiation, to avoid consumers to price, quality and characteristics of the comparison, so as to ensure that the line offline from conflict. When the enterprise's product is in the customer's heart image and its price close, the ductility is weak, the channel partition pattern is constructs the compound channel the ideal pattern.

Case analysis: Hundred Li is the first brand of Chinese women's shoes, starting from 2008 to run E-commerce, formed by the entity shop, its own company's official website (Amoy Show Network) and Third-party platform composed of composite channels. In order to avoid the line under the brand and price conflict, hundred Li a change in the traditional electric dealers put inventory online discount promotion ideas, the line under the product area. In-depth investigation of customer consumption characteristics and demand, hundred Li with the original development team, online best-selling models and classic models on the basis of two development, designed to innet named Network for the series, the formation of online products 80% proprietary development, 20%-line combination of the pattern. At the same time, because the cost of e-commerce is generally lower than the traditional channel 20%, hundred Li's online style is cheaper than offline 10%-20%. In this way, hundred Li Link the line of the online conflict of interest, but also to meet the online consumer demand for rapid changes in characteristics.

(ii) channel cross

Cross refers to the line and line under the existence of a partial overlap of goods, while each also sell independent goods. For some early development, commodity structure and consumers close to the daily life of the retail enterprises, its offline channels there are some not suitable for online sales of goods, at the same time its online customers have new consumer demand, at this time, channel crossover is an ideal compound channel model. On the one hand, the enterprise according to the line under the customer's characteristics, to find the demand for cross goods, and to promote to the Internet; On the other hand, the enterprise combined with the specific needs of online consumers, the introduction of new product lines or services online.

Case study: As the vanguard of China's retail industry, Lianhua in 2000 opened the online supermarket "Lian Hua OK Net", and made a good result. Lianhua commodity system, there are many bulk weighing dry and quality of fresh goods, such goods in the specifications, packaging and quality of non-standard features, not suitable for online sales, and therefore excluded in the joint China OK net commodity system. Additional consumer demand for online customer groups, Lian Hua OK network launched three types of extension business: First, the operation of household appliances and electronic products, by the joint Chinese E-commerce Company to suppliers procurement; second, with China Merchants Bank, ICBC and CCB cooperation, sales recharge cards, game cards and other digital products; third, cooperation with brand stores, Provide ordering service for cakes, flowers, piano and table. For line under the intersection of General daily necessities, Lian Hua is the establishment of two channels of mutual aid distribution system, from 80 stores as the distribution point of the network, the customer in the online order, the system generated orders and uploaded to customers near the store, stores from the inventory and distribution.

(iii) Channel linkage

Linkage is the complementary positioning on line and offline, establishing linkage mechanism to realize cooperative operation. Enterprises to the online goods and offline counterparts, so that online and offline channels into the same sales process, and matching different tasks. Among them, the line is the front of the line, consumers through the online shop screening products, online booking and settlement, offline channels for the experience of the platform, consumers in the physical store to view goods, or accept online booking services, and related after-sales service also by the entity store. In this way, the enterprise realized the line under the perfect combination of resources. The channel linkage mode is the first choice for the retail enterprise to build the compound channel when the product experience requirement is very high, or the service demand to the store.

Case study: Furniture industry is a very experienced industry, so the traditional view that the industry is not suitable for the development of electronic commerce, and the song Mei Furniture has broken the idea of practice. As the earliest development of the traditional furniture brand, Trimebutine's core strategy is to integrate the online resources, so that two channels to form Interactive. Through the online mall, Trimebutine provides consumers with detailed furniture drawings and text materials for customers to understand information online, view products, place orders. The terminal entity Shop provides the consumer with the view furniture entity, the inspection color texture service, and is responsible for the distribution, the installment service and the related Post-sale service. In order to unify the price system, Trimebutine compressed the display area of the offline channel, as the online channel of the experience shop, the resulting cost savings to the offline distributors, supplemented by logistics subsidies to obtain their support, the final line of the product line to achieve the national price unification, lower than the original price reduction of 20%-25%. Through the line of coordinated operation, trimebutine in the brand promotion and performance improvement have made good achievements.

(iv) Channel envelope

Envelope is the line below the channel in which the business scope of one side is greater than the other. This model can be divided into two kinds of line envelope line and line envelope.

1. Under the line envelope

Enterprises to break the line under the category restrictions, online expansion of products. This model is often a strategy for enterprises to transform or develop their business. Compared with traditional channels, the cost of the trial and error of electronic commerce is lower, which is also the reason why the traditional enterprises take e-commerce platform as the pioneer of transformation. Through the line to increase the type of business, to seize market share, and then the new business slowly to the offline transfer, so as to achieve business transformation purposes. This model is common in retail companies that are facing bottlenecks or are planning to expand their business.

Case analysis: In the face of the market potential of shrinking home appliances market, Suning started to go to the electrical strategy, and suning easy to buy is its diversified transformation of the front desk. Around the "Wal-Mart + Amazon" direction of development, Suning easy to buy up to the group level Strategic Business unit, towards the whole category of the goal of the pace of expansion of the product line: from books, virtual goods, daily necessities, department stores to travel, liquor, financial services. At the same time, in order to ensure the achievement of all category goals, Su Ning took a series of measures: first, the original marketing headquarters split into an independent procurement headquarters and operating headquarters, procurement links were mentioned important position; second, the establishment of Suning open platform for the settled suppliers to cover procurement, sales, inventory, warehousing logistics and after-sale services Three is to increase the investment in logistics construction, increase the number of Logistics Base and distribution center. Tesco and the opening of the Expo Super Store, that Suning has been in the line to expand the new business offline, its electrical, transformation department store strategy is gradually becoming a reality.

2. On line Envelope

Enterprises to the line of a part of the goods to promote online. In this mode, e-commerce platform is positioned as a supplement to the traditional channel, or used to promote the brand, or to reduce the inventory pressure under the line. As a brand promotion platform, enterprises suitable for online sales of some of the new or classic to put online channels, when the function of the online product publicity, profit purposes as a supplement; as a platform for processing store inventory, the enterprise put the offline futures and dealers inventory recovery, through the online channel sales. For the retail enterprises which have just started or the stock pressure is larger, the mode of the line envelope line is more applicable.

Case study: As with other apparel enterprises in China, seven wolves also have a high inventory of the troubled. The difference is that seven wolves have successfully alleviated the problem by using a combination channel on line. In order to deal with the offline inventory, seven wolves in Taobao, Beijing-east, Tencent, Bowser, shop 1th and other platforms opened 5 flagship stores, and according to the characteristics of the platform customers to match the difference. For example, Taobao customers like to have the characteristics of things, but price-sensitive, therefore, the Seven wolves in Taobao sales inventory supplemented by a number of new starters, and provide discounts; Jingdong customers are enthusiastic about the sale of self reward, so the seven wolves are more involved in the East Jingdong voucher and integration activities; Shop number 1th is low, Therefore, the Seven wolves mainly sell polo shirts and cotton products and other basic styles on the platform. In order to eliminate fakes, fleeing goods problems, seven wolves to negotiate and authorize the way, by the sales of the larger 7 distributors lead the integration of all distributors into the network channel system, so as to reach the line under the coordinated combat effect. In this way, the seven wolves not only effectively solve the inventory pressure, but also to avoid the offline channel brand and price impact.

Three, the strategy of the retail enterprise compound channel construction

Summing up the composite channel model of the above-mentioned enterprises, it can be found that the retail enterprises should make three points: positioning, differentiation and resource integration, in order to establish a coordinated line of composite channels.

(a) To line down the channel to clear positioning

The main link of compound channel construction is matching channel and sales task. Enterprises must be clear, how the composite channel will serve its own development strategy, in the entire channel system, line offline channels should occupy what kind of position, play what role. At present, the traditional enterprise of wading e-commerce is mainly the line channel positioning as a supplement to the offline channel, but, along with the further development of E-commerce, line of the next channel in the future will continue to integrate.

(ii) Implementation of differentiation strategy on line

1. Product differentiation. Enterprises can be online on the introduction of special funds, sales line of the classic style of the complex engraved products, processing line under the channel inventory, in order to avoid line online under the product similar to conflict.

2. Price differentiation. The low price advantage of online channel is an important factor to attract customers, so the enterprise should still guarantee the price difference of the channel under line, but we should take full account of the consumers ' willingness to accept and the sale of the products, so as to avoid damaging the enthusiasm of the customers ' shopping under the line.

(iii) Integration of resources under line

Although there are a lot of differences in the channels under line, the two can still share information platform, logistics distribution, management resources, brand reputation and even customer resources. On the one hand, enterprises should make full use of the established brand and customer resources under the line to expand the impact of E-commerce platform; On the other hand, enterprises should take the initiative to integrate resources, the traditional channels and network channels into the enterprise's resource system, really do the line under the coordinated operation.

The pattern of compound channel is the development direction of the traditional retailing industry, the pattern of "no business, no shop, no shop" is the future industry trend of the retail industry. Therefore, enterprises should actively explore the development direction of compound channels, according to their own strategic planning, the selection of a reasonable compound channel model, and to clear the location of the channel, clear development strategy, and effective integration of online resources under the line to play a composite channel to reduce costs, expand the role of sales.

Original address: http://www.xdsyzzs.com Modern Commercial magazine reprint please keep the link address, thank A5 platform.