The last hurdle for the traditional enterprise

October 8, a certain brand of county and city dealers published online "How the electric business is affecting my business" confession, the public expression of an electric business strategy led to their own closure of the entity stores dissatisfaction, causing a large number of traditional business dealers resonance, have forwarded and spit their own bad situation.

The dissatisfaction of the distributor is still the confusion of the traditional enterprises ' entering into the electric business policy and the problem of not dealing with the benefit distribution under the line. How to coordinate the interests of online distributors, has been a hot topic. Before, such as Uniqlo, Hundred Li and other electric business enterprises, because the use of proprietary mode, line online sales do not exist contradictions. Most of the problems are the traditional enterprises with a large distribution system.

Is there really no solution to this problem? Like the aforementioned dealers mentioned in the confession in a O2O way, and "China Operating newspaper (blog, micro-BO)" Reporter in this year's Network business Assembly interview, a number of experts and business leaders have said that the current technology has been able to solve the problem of distributors and online channels, the difficulties only exist in the enterprise how to redistribute benefits, And how to resolutely implement your own "total network fragmentation Sales" strategy issue.

Full Web Fragmentation Sales

85% of Goods sold online by traditional brands come from various forms of offline distribution. Therefore, the separation for enterprises, is only a stopgap, not the fundamental solution to the problem.

Distributor and the distribution of electricity channel sales contradictions, mainly enterprises and distributors in their own perspective to consider the problem.

Enterprises to sales as the goal, as long as the promotion of sales, channels will pay attention to. Therefore, many enterprises have stressed that the line under the strict product compartment. This strategy is considered to be just a way to reassure dealers, as to whether strict enforcement, look at the market situation will know. Shanghai Commercial Network Technology Co., Ltd. (hereinafter referred to as a commercial group) survey found that the traditional brand of goods sold online 85% from various forms of offline distribution channels. Therefore, the separation for enterprises, is only a stopgap, not the fundamental solution to the problem.

Network Strategy Consulting CEO Xudati suggested that the traditional enterprises to expand the channel of electricity, life is the line of the next two sets of distribution system planning. The two market products do a good job of separating, weakening the conflict, the control line for the supply of goods, all by the manufacturers generation, to avoid the dealer jump to the goods, with the entity dealers signed a prohibition clause, to circumvent the internet malicious dumping;

And now the development of the electric business, has made the traditional enterprise sales model has undergone great changes, from the single shop direct to the multi-channel mode change, from the face of the consumer model to face the channel business change, from the focus to the management of distributors, price control, consumer data management, marketing resources distribution, inventory depth of the focus of change From the single to the integration of ecological circle and its own line of resources under the model transformation. Shangpai, deputy general manager in charge of fine operations, said Liu Jinguang sales are now entering the entire network of fragmented sales phase, which also makes the traditional enterprises to the offline distributors and online sales integration to provide the possibility.

If the former system is backward, unable to meet the needs of this integration, and now the emergence of cloud business, from the technical support. Alibaba Group chief of staff, Zeng, wrote in the article "Big creation of cloud business", the data quantity soaring, brought the fundamental change of business operation logic. When business activities revolve around a small amount of important data, enterprise management and collaboration between enterprises are one-way and linear. And when the data is all-round, real-time generation, enterprise management and collaboration between enterprises more and more like the Internet, the requirements of network, concurrency, real-time synergy. And all of this is the Technology foundation of Enterprise integration.

What are the benefits of integration? Liu Jinguang cited an example, for the need for door-to-door installation and after-sales service category, such as furniture building materials, due to limited service radius, Beijing's distributors if the net sales, you can only face the customers in Beijing area. But the internet sales are geared to the whole country, if a consumer in Chengdu would like to buy goods in Beijing dealers can not be achieved. And now, through the back-end of the order Processing system, Beijing dealers can send this single shopping demand through the system to the company headquarters, designated by the headquarters of Chengdu Distributors to sell and service, and finally by the headquarters to complete the consumer to see the background settlement and profit distribution. Naturally, Beijing's distributors have reason to share the profits. Thus, a sales closed loop involving the participation of all parties and sharing profits is completed.

Shanghai Mercury Electronic Commerce Co., Ltd. is solely responsible for mercury home textile business, its director Wangyanbing will tell the "China Business newspaper" reporter, Mercury Home Textile is also in accordance with the line under the full integration of the way to develop systems, transformation process to meet the new phase of E-commerce competition. He believes that the greatest advantage of integration is that even online orders can play the role of distributor "cistern". For example, "11.11" (Taobao every November 11 big promotion) Sales of large orders, all by the head office out of the warehouse delivery will face great pressure, if it affected the customer experience, but also may push consumers to competitors. And if the integration is successful, through the system deployment of inventory and orders, consumers can close to their nearest dealer stores to take goods. Using a large number of distributors scattered around the store, you can quickly deal with massive orders. Wang Yanhui said Next, the mercury plan to mobilize online dealers to open shop, expand the network to buy contact surface, but also encourage online distributors to open the entity shop, at the same time in the physical store to increase touch screen, expand the scale of commodity display and promote the brand, will also invite network dealers also participate in the fair, and will be Face all online consumers with an image. By the end of all these goals, mercury will solve the conflict problem on line.

Distribution of benefits is the key

The current conflict is still the most serious price, but in the long run, online operations must be profitable, otherwise it will not provide consumers with value-added services.

Since for the enterprise, the whole network of fragmented sales and online integration is the general trend, then the enterprise to achieve what are the difficulties?

The first is to look at the service provider level. The service provider in the electric business enterprise brings the management ability promotion, also suffers from the enterprise in the profit excessively squeezes, the survival condition can be described as "starving", even cannot train the talented person and promotes the service level. At the same time, there are also from the business does not cooperate, because considering the commercial security, the seller is wary of the service providers everywhere, "flying single incident" frequently staged, some service providers for self-preservation, forced to become other brand dealers even to the competitors. Thus, the lack of trust and cooperation mechanism between the service providers and sellers is the crux of restricting the upgrade of the service industry, and it is also one of the factors that affect the integration of enterprises.

The second is to see the firm's commitment to the implementation of the strategy. Traditional enterprises in the financial strength, brand and supply chain has innate advantages, but there is a lack of e-commerce talent, the absence of electric operators and brand promotion experience and so on, although there are nine Yang, Raleigh and other successful enterprises, but also have the United States Granville, Xidan shopping, patriots and other failed enterprises. On the one hand, the strength of the traditional enterprises mostly completed the information, and many use is Ufida, gold disc so has been the service of traditional enterprise software, and most of the electric business with Shangpai, Wuzhou such a service provider, the integration of the use of what kind of system, the cost of investment and time costs to consider how to deal with the risks, how to resolve, Will test the wisdom of managers; On the other hand, some traditional enterprises are listed companies, such as Fuannacompany (002327, shares bar), Raleigh, dream cleaning, such as home textile enterprises, its performance depends mainly on the line of a huge distribution system, so the online sales are very cautious, afraid of affecting the company's fundamental. In this way, the electric business can only be reduced to ancillary business.

Finally, the company's ability to mobilize dealers to participate in the electricity business. Dealers and distributors are important resources of traditional enterprises. Some enterprises have developed for several decades, most dealers and enterprises have been together for many years, has entered a stable period, the lack of access to the new field of power. At the same time, some operators are too old to adapt to the electric business. In fact, the integration is more to let the offline distribution team into the electricity dealers and complete some online orders processing business, if unable to mobilize these people, integration can be successful inevitable doubt. Nine Shepherd Kitchen and Bathroom Co., Ltd. Marketing President Bin Way is to mobilize the second generation of dealers to do electricity quotient, Lao Tze is responsible for the line, son responsible for the network, complement each other. And wangyanbing will be the way to let online dealers to open shop, so you can directly cultivate a dual-line to do the super dealers.

The above three problems solved, all rely on the distribution system of traditional enterprises have the basic conditions to enter the electricity business, and the last hurdle is the distribution of benefits. However, the hardest hurdle is actually the simplest, because the problem is to return to the essence of business. Nine Yang shares (002242, shares bar) general manager of E-commerce Center Rohong that the current conflict is still the most powerful price, but in the long run, online operations must be profitable, otherwise it will not be able to provide value-added services to consumers. Therefore, the nine-Yang will be the distributor into the electricity business channel after the first thing is the overall line down the price to a more reasonable prices, through improved service to pull high consumer price expectations. Because the price increases, the line flow will have a significant decline, so the nine Yang then did a series of large-scale promotions, the original loss of traffic and sales pulled back. With interest, the next issue is distribution. As long as all parties involved have interests, the distribution system can be maintained, integration will be successful.