Small Michae Entity Store the future has become the inevitable reality

Apple exerting the retail end, the millet regression line, claiming no physical store

1. Apple builds flat channel sale system, retail end status rise

Apple China's channel system is unique in Apple's global, in addition to its official website, the entity channels include direct channels, direct channels and distribution channels. Direct marketing channels, by the company's own operation, direct shop general construction in the first-line city of the core business circle. Direct supply channels, directly supplied by Apple products, generally refers to the quality of Apple dealers, direct store coverage of the one or two-line city. Distribution channel, refers to the Apple authorized Distributor, nationwide distribution. These include the audio, Eschde, the three traditional state of the Chinese postal agent, as well as three operators of terminal companies.

Now Apple China is in the process of a channel system revolution, to make a big adjustment, to the European and American countries to implement the direct camp model closer. Cancellation of the state, the original state-run business functions by the audio, Eschde, Shenzhou Digital, China-mail Protec, etc. 12 are directly oriented to retail/industry customers authorized distributors. Continue to strengthen efforts to support high-quality distributors, offline direct store, such as vertical channels. Distributor's distribution rights are gradually weakened, priority to supply Direct store, Apple store electric business platform, offline retail channels, such as retail end.

It is reported that at present, Apple has established a more flat in the country's huge sales network: As of the end of 2014, Apple opened 20 direct stores nationwide, while supporting the 41 education channel Distributors, 12 authorized dealers, 49 quality distributors, 13 Industry customer dealers and 125 Campus experience shop. And the action is still in progress.

2. Millet center of gravity back to the line to increase strength, but did not increase the direct shop system construction

According to the publicly released data of the company and its senior executives, millet online sales accounted for: 2012-66%, 2013-58%, June 2014-40%, September 2014 became, 2014 year--57%. Through the data we found that from the millet mobile phone started on the line, through the line channel and operator channels to achieve a scale breakthrough, the industry is familiar with the line of 37, 46 percentage. In June 2014, millet again increased online sales, so that the 2014 annual statistics back to 2013 years of proportion.

Millet never taboo to learn apple practices, but millet has not been under the line of Direct shop construction (note: Millet home and so more assume the functions of after-sales service, etc.), and even Lei shouted: "Millet mobile phone no physical store." Why is that? Does millet really need a physical store? Mobile phone manufacturers how to Layout line offline channel system? This article will be combined with the line of online development and change glimpse.

The change drive of the channel, and the impact of line on the offline channel

On the whole, the current driving force for channel change comes from two aspects:

1, the industry intrinsic development stage factor

The rapid development of the mobile phone industry has been the end of the golden decade, specifically see the winter, the mobile phone market is also the golden decade is coming to an end? "Market capacity will maintain low or negative growth, product homogeneity, innovation slowed down, margin decline tends to be meager." When the market at this stage, integration, elimination, transformation is the industry's new normal. Of course, the channel level is no exception.

2. Impact of external Internet power

Internet power has brought new changes to the traditional handset manufacturing industry. From the channel level, mainly reflected in three points:

Transparency of information and transparency of product information and price

The change of consumer behavior, especially the process of user purchase decision and the way of transaction

The rise of online electric business channels and the diversion of offline sales

Next, this article focuses on the second factor.

On the line has been from cock Silk to three points the world has one. According to Saino public reports, 2014 domestic market share of about 20%, more than 80 million departments. 2015 Domestic market overall sales volume growth rate will be less than 5%, according to the online market share will be expected to reach 25% up and down, the total amount of 100 million. From the perspective of development trends, operators channels, offline open channels, online channels = 3:4:3 pattern, the three-point world has one.

Online impact on the offline channel can be summed up as two points: accelerate the distribution of flat, the advantages of the sales category narrowed

1, the rise of the scale of the line and price advantage, is the original offline channel flat accelerator

In the Internet-style, cost-effective PK continuous consumer education, the cost of mobile phone terminals, prices and other media, for the "smart" consumer is transparent. Online compared to the price advantage under the line has become a consumer consensus.

Price advantage is the main advantage on line compared with line. Statistics show that on average, the same phone line price is at least 10% higher than the offline price, and some even up to 20%-30%. This ratio is attractive enough for consumers. In order to keep the product at the bottom of the retail end of the line and the price of the goods in the consumer's acceptable range, the compression level is the inevitable choice of the entity channel.

Over the years has been advocating the development of the flat channel is the compression of intermediate links, that is, the distribution link, the state package-> province-> package. In the cell phone profit, the product is difficult to support multi-level channels of demand for the low-end products, especially. And the compression intermediate, Peer-to-peer directly to the end consumers, has always been the Internet mode of innovation in traditional industries begotten.

From the role of distribution channels, mainly the distribution of goods and funds platform. When the third party Express has already covered to enter County township level, what the manufacturer really needs is not the distribution channel, but a fund platform.

2, online rise, accelerate the retail terminal under the promotion and trading functions weakened, standardized product sales met with cold

The terminal is king, the traditional retail store rival machine manufacturer has three main functions: propaganda, trade and service:

When a brand, a product reputation has started, the user of the brand, product has generated a sense of trust, at this time the brand image of retail stores to promote the role of weakening.

The internet has changed the user purchase decision-making process, the user enters the shop before the decision proportion promotion. When the user has already done the homework through the line before entering the shop, has selected the target product, the offline channel promotion influence greatly reduces.

When the user has adapted/trusted the online transaction, the retail store's face-to-face trading function will be weakened. At the same time, there is a phenomenon that buyers and consumers are separated, many people who do not know how to deal with online transactions through others to help purchase, this phenomenon in many middle-aged and older groups more common.

Customer service is currently online can not be replaced, but still through express and other means, as a line of service offline, is also a kind of O2O.

Due to the lack of practical hands-on experience, online more suitable for standardized products and best-selling goods sales, the two types of products for hands-on experience low demand. Compared to online, there is no advantage on the line, from the point of view, the online best-selling goods are offline sales of the restricted area (under the supply line is willing to increase the explosive products except).

Of course, we also see that consumers are more than 3000+ high value products, personalized/customized products, such as more willing to go through the offline channel to experience after consumption, this is the real store opportunities.

Future: Grasping both ends and establishing controllable flat proprietary channel system is the trend

Then, the future of the manufacturer's own channel construction, how to layout it? In my opinion, in cooperation with the traditional distribution channels, the center of gravity should be to seize the official website and proprietary shop poles, the establishment of a controllable flat-owned channel system.

1, increase its own line under the direct store construction and transformation, operating from mobile phone products to the gradual transition to a diversified intelligent life experience, business mode from a one-time product transaction to the user Circle service-oriented transformation

Offline Retail direct shop compared to online business more need for high profit product support. Only with high profit margin products can support the retail store to survive, manufacturers to retail outlets have the control of the power/voice. Retail stores have only one purpose: to make money, not loyalty, in the enterprise trend to good profits enough to support, the rush, on the contrary, scattered escape. If manufacturers are still relying on access to the retail store, they will face great risks.

From the profit model, the current entity retail outlets can still rely on fare increase to earn profits, but this model will become increasingly difficult, IPhone6, Mate 7 and other products can be met. The rise of smart wearable and smart hardware is an opportunity for offline retailing, as mobile-phone products are increasingly struggling. Whether it is intelligent wearable, smart home, intelligent hardware, are all hardware and services in one, essentially sell not only the product is a service, the user needs to see the online experience, and is also a need for long-term experience to produce sticky services.

From the radiant effect of retail stores, future manufacturers of franchised retail stores in addition to bear the normal brand publicity, product trading functions, more important is the manufacturer of the region/circle users operating the landing, the last kilometer after the O2O: including user/fan maintenance activities, product experience, after-sales service and other comprehensive functions.

From this point of view, Huawei, Millet and other dedicated to the construction of intelligent Ecological Circle manufacturers will have to establish a controlled direct retail store system, which is the mobile phone manufacturers intelligent ecological landing of the key link. It is reported that Apple is building a more in line with the jewelry industry experience Shop,

2, rival machine manufacturers, if the Beijing-east/day cat and other electronic trading platform is Cash ox Channel, the line of the net operation of the carrier is the future.

At present, Beijing-east, the cat and other mobile phone manufacturers are the main online channels, compared with the official website, similar to a franchise stores and supermarkets. Third-party electric business platform for mobile phone manufacturers, the most important is the role of brand building and flow guidance.

We see that almost all of the companies trying to internet operators are very attached to the official website mall propaganda, construction and management, Millet Mall, Huawei Vmall and so on. The biggest trading volume on the Millet line comes from the Millet official website, not the third party electric business platform.

For the mainstream brand, the construction of their own official website mall is inevitable, officials network mall in the visibility, trading system, logistics, etc. on the right track, drainage to the proprietary online channel (website, micro-letter mall, etc.) is self-evident behavior (at least save channel cooperation costs). When the user before the purchase has been determined to buy a brand, buy products, basically is straight to the theme, the next single transaction, then the line of the last officer net more protection, especially the quality level can make users feel a sense of trust. The consumer to Taobao and other electric business platform exists the impression that the counterfeit trade with the administrative control strength strengthens and strengthened, this is the opportunity for the manufacturer official website.

Another important driving force from operators, 2015 operators will increase the subsidy to the channel, whether it is the line of the last officer net or offline direct shop sales of mobile phones will get the operator's Channel Commission subsidy, which for the increasingly meager handset manufacturers, is an irresistible temptation.

In conclusion, we find that:

1. Millet Retail layout judgment: The past is not necessary, there is no condition; now or already on the road, the future is bound

From the product level, millet 1999￥ below the product is very suitable for online internet channel sales; from the channel level, the Millet official website has become the first choice of rice noodles, this choice will be with the Millet brand awareness and after 00 become the main purchase after the trend intensified. Even if the layout of the shop under the line, compared to the line also has no advantage can be said, temporarily do not see the direct layout line under the need to shop directly.

Only have a high brand premium product support only the line under the direct system, this is precisely the lack of millet, so the expansion of the retail store road, the temporary will continue to serve as the main function. Millet note especially top version of the launch, for Millet is to high-end market is a must sprint, for the channel, the current stage, the target group of 3000+ products are more willing to accept offline channels, which for Millet is a new challenge, it is likely to mean that the channel of millet self-management channels will accelerate the progress.

At the same time, the rapid development of millet in the mobile phone market is about to face the ceiling effect, smart home and other emerging areas of the landing demand is increasingly strong, experience-type intelligent service sales will bring to the line of the expansion of proprietary channels demand. With the continuous impact of millet to the high-end and millet intelligent ecological maturity, you can assert that the future of millet in the retail end of the layout is not far away, or even said already on the road.

2. Future mobile phone manufacturers own channel system trend: to speed up the layout line of the end of the net and the line of direct shop at both ends

At the channel layout level, Apple is once again in front of the industry, which is determined by the uniqueness of the iphone, but at the same time we have to see that this is the trend! For a leading brand, the final channel layout is the Multi-redundancy system: line last officer net and line of the direct Camp group.

Online: For standardized products, trading, direct shop group: Intelligent Ecological Landing, service and experience. These two fingers are mobile phone manufacturers to compete for market foothold.