The traditional enterprise enters the network sale distribution more wins directly constructs the vertical company website

For traditional enterprises, network distribution is not a problem, the key is to find a suitable distribution control strategy. Because online shop and offline entity store target consumer group is not the same, as long as the line under the different consumer groups, on the goods on a moderate or even complete partition, can make each distribution channel to achieve harmony and unity, complement each other.

In the past 2009, China's network retail market ushered in a blowout growth, only the Taobao platform of the turnover of 200 billion yuan has no suspense. In addition, Jingdong Mall recently financing 60 million U.S. dollars, excellent Amazon fast implementation of the department store routes, all kinds of vertical web sites such as springing up and growing, well-known brands have net at home and abroad ...

Reality shows that the network channel has become a traditional enterprise can not be avoided a new channel, and the internet has grown up on the network brand is also facing the distribution or proprietary choice problem. All these, network distribution will become the proposition that enterprises need to face in the 2010.

The choice of network channel in traditional enterprises

2009 Taobao Mall ushered in two world-class brands, one is Uniqlo, the other one on the Ling Jack Jones fashion. The former is Japan's clothing giant, the latter is the European dress big 锷. They settled Taobao Mall is a large influx of Taobao and the huge flow of domestic online shopping market growth trend.

However, the network distribution brought to the two major clothing brand difficulties are different. Uniqlo online products and the launch of the line is completely consistent, but the on-line channel can be more favorable than the offline channel price, the range is about 20%. and Jack Jones online preferential products on the main inventory products, new listings and offline prices to maintain consistent.

Two clothing giants online layout Although only a small gap, but due to the differences between the traditional channels. Uniqlo line stores are all straight camp, line online can take a different price strategy, the end is into the "home pocket." And Jack Jones has nearly 60% of the stores are operated by agents, in order to maintain the unity of channels, Jack Jones online products on the price taken is extremely cautious attitude.

Similar to the Jack Jones, because of the offline agent's interests and brand image, and many other factors, the domestic traditional enterprises for online distribution is also a cautious attitude.

For the offline channel more perfect Enterprise, the Internet channel distribution to consider the interests of many factors. Online prices are too low will affect the interests of the offline agents, attracting traditional channels to protest, online prices and the same line, but can not reflect the advantages of low-cost network channels.

But the reality is, when the traditional brand enterprises are still in the online channel to build the strategy of choice, online Low-cost brand products in the wild sales.

The problem arises from the special incentive mechanism of traditional channels. In many traditional enterprises in the incentive mechanism, dealers can be based on the amount of stock at the end of the year to enjoy the company's reward rebate point. This incentive mechanism allows many dealers to turn the network into their own low-cost running goods, which objectively causes the brand enterprises to fall into the price chaos and the Channel Swamp.

At present, most enterprises in China are facing the problem of how to manage online distribution channels. In fact, not only Taobao platform, for the traditional enterprises, excellence, when the platform, red children, century electrical network, such as vertical consumer is the traditional enterprise can choose the online distribution channels. As long as the online channel into the entire enterprise channel management system, formulate corresponding strategies, online and offline channel conflict can be completely solved.

Network distribution control means

For traditional enterprises, network distribution is not a problem, the key is to find a suitable distribution control strategy, which has done more success is Li Ning Company. Li Ning has its own independent online mall, but also wired to open the flagship store dealers. Li Ning's way is very simple, that is, the different channels of the product line: Online under the sale of the stores to the main price of new products, and in the special discount stores in the sale of goods mainly inventory.

Li Ning Independent Online mall functions mainly in the positive price of new products recommended and limited goods mainly, including star-signed goods, these goods are aimed at a small number of consumers. Taobao Mall on the shop, whether the flagship store or C store, sales of the main inventory of goods. In this way, different prices of products, each channel can benefit.

In fact, for traditional enterprises, online shop and offline entity store target consumer group is not the same, as long as the line under the different consumer groups, on the goods to carry out a moderate or even complete partition, can make each distribution channel to achieve harmony and unity, complement each other.

Raleigh Home Textiles to take is a complete separation of goods in the way, developed a dedicated network channel brand. Lenovo has customized some of the models for online sales. This kind of market verification is quite effective product separation strategy, the core of which is to integrate into the enterprise's unified channel management.

For offline distributors to use online channel impulse to run the status quo, brand operators and their intends, rather than encourage offline dealers to carry out online sales, the traditional enterprise only in the system on the price control strategy can be. Research has found that, as long as online prices under the price of more than 75%, it will not have too much impact on the line. Lenovo has adopted a method of controlling the price limit, the price of its own flagship stores, including the sales of online agents, set a minimum floating limit of 3% of the ban, the effect is very good.

New View on line distribution

Many enterprises believe that online sales is the enterprise facing the direct marketing of consumers. and whether for traditional enterprises or for online brands, on-line distribution is the future of a network sales trend. On-line distribution should not only consider the different online channel product category of the partition and combination, but also consider how to achieve more on a platform for sales.

The way to achieve online distribution needs to study the user's online shopping habits. Taobao platform as an example, the user into the shop path has three main: network advertising, keyword search, word-of-mouth guidance. For a single shop sales, users are far less likely to search for the distribution of multiple stores.

A successful example is the Web product brand plant language. Plant language general manager Yu Qiming began to create a brand when the plan to sell a shop nationwide. He later found that each shop on the Internet was equivalent to a product counter and an advertising portal. Single shop sales simply cannot form a scale effect. So Yu Qiming abandoned Direct Battalion, the key development line distribution. Yu Qiming Taobao Forum on the post, where the thread can get the plant language trial installed, if the recommended sales can share a certain percentage of the Commission. This powerful interaction has led to a partial sales eruption. Half a year, the plant language network distribution team reached 500, one level distribution 200, a short period of time sales broke through 5 million yuan.

Another distribution strategy is on behalf of the shipping mode. Plush toy brand fluttering dragon, MI honey is to adopt this strategy. The method is the distributor in the online virtual open shop, the use of brand shop pictures, sales prices and brand stores in line. After the consumer in the distribution shop orders, the order to the brand flagship store, by the brand store unified delivery. And the distributor earns is the distribution discount price, the discount is generally 15%~20%. The advantage of this distribution model is that the distributor does not have stock pressure and the brand is easy to control the channel price.

July 2009, Taobao comply with this trend, launched the online distribution platform, by the end of 2009, already more than 3,000 brands have begun the construction of distribution channels. However, the industry pointed out that for Taobao platform, to promote the rapid development of distribution, must be linked to the offline logistics center. That is to say, the supplier will put the goods to Taobao Logistics Center, and then through the Taobao distribution system to recruit distributors, so as to truly let the distribution mode of rapid development, and become a technology mainstream retail form.

This digest is from China Business Network.