In the past few years when the industry situation has changed greatly, in order to adapt to the market, the FMCG dealers are beginning to look for future development directions. As a member of the county-level dealers, they also hope to seize this round of changes. New development opportunities. In this case, they must clarify the changing laws of the market and find the essentials for development.
Recognize the reality and accelerate the pace of change
First of all, as long as there is a certain amount of consumption in a certain industry, the dealers used as intermediate channels have opportunities for survival and development. Of course, the premise is that the dealer’s business model must keep up with the changes in the market environment. At present, some dealers claim that the business is difficult to do. When it comes to the roots, it is not without business, but the dealer’s own ability is relatively degraded. , no longer matches the current market environment, and is in a state of homogenization and competition with peers. This business is of course difficult to do. Seriously, the dealers who are eager to do business every day are actually mourning before death.
In the face of the current situation, we must first consider the issue of survival; if we look at the future, we must consider the issue of development. When it comes to survival, some dealers believe that their business has been done so much. The local sales network has been built, the customer base is also stable, the company is also strong, and the industry status is also there. A few are stronger than me, do I still have to consider the survival problem now?
Of course, the business is doing a lot bigger, and it’s just that the ship is a little bigger and won’t turn into land. The bigger ships have the possibility of sinking, let alone a lot of ships that look huge, just empty shelves. Moreover, as long as the business is still in operation, as long as the business is still operating, it is not necessarily your money, except for the money that has already been spent, or the money that has been spent after the business has been completely shut down. It is your own. It is not uncommon for dealers to go bankrupt overnight. Therefore, no matter how big the current business is, it is necessary to tighten the sense of survival. This string cannot be loose, and the awareness of crisis prevention must always be there.
Let me talk about the development of county-level dealers. Although for more than a decade, there have been people who are singing the future of dealers, and constantly emphasize the decline of dealers, such as the flattening of manufacturers’ channels, the direct sales of manufacturers themselves, the direct operation of manufacturers and terminals, and professional logistics providers. The emergence of electricity, and even the e-commerce in recent years. Indeed, each of these will have a huge impact on dealers. However, as long as it can be strained, there is still room for survival and even development. Sticking to the same, when faced with changes and shocks, it can only be a dead end.
In general, the future does not need so many dealers. In the next 5 to 10 years, the dealer group will definitely be eliminated, as will be the county-level dealers. Moreover, from the perspective of government management, it has always been the direction of “maintaining big and letting small.” After all, large dealers are more labor-intensive in terms of commodity safety, regulatory costs, taxes, etc. than managing many small retail investors.
No one wants to leave the market, but the speed of bankruptcy of small and medium-sized dealers is inevitable. In the past, even if the company collapsed, it would have to drag on for a year or two; now, if the capital chain breaks or encounters an industrial accident, the company that has been in business for more than 10 years can collapse in ten days and a half.
How to develop?
Now that we understand the current state of the market, how do county-level dealers need to operate to ensure that dealers have enough room for survival and development in the future?
Discover your own market guiding ability
Although most of the dealers are locals, they are doing local business, and they have been operating for many years, but the reality is that many dealers do not have much guidance on the local market, either the manufacturer is actively guiding or passively following. To put it worse, it’s just a porter’s role.
Why is there no market guidance capability? This is because dealers lack awareness in this regard, and feel that the market launch should be a matter for manufacturers. Manufacturers should start the market start-up work, the terminal has a pull, and then follow up. Therefore, dealers rarely have established a market guidance system, and few have established a marketing department (the establishment is often ineffective). There is no in-depth and continuous research on the local market and consumer situation, and there is no corresponding new product promotion system. There is no professional marketing team.
For manufacturers, it is not difficult to develop a new distributor in the local area. It is not difficult to change a distributor. However, if the local distributor has the initiative to guide the market and can target the downstream distribution of retail customers and even consumers, with new product promotion capabilities, then the value of this dealer can not be an ordinary distributor, but the operator. .
Therefore, dealers must go out of the traditional mode of distributors, upgrade themselves to market operators, set up professional departments, and build a corresponding market guidance system to enable them to have consumer trends and product promotion capabilities in the local market. . To put it another way, since the dealer can launch a certain manufacturer’s products locally, it can also kill this product locally.
Establish a company brand
In terms of brand, the traditional recognition of dealers is to help manufacturers to promote the brand of products, but to the dealer company’s own brand, but did not care. In fact, no matter the manufacturer’s brand or the manufacturer’s product brand, these ownerships are not in the hands of the dealers. They are raised to the next level. They are all other children’s children. They are rented to the dealers for temporary use. They may be manufacturers at any time. Recover or sublease to other dealers.
Therefore, dealers must establish their own company brand in the local market. To realize the influence of this company’s brand, it must exceed the manufacturer’s brand and product brand in the downstream customer group, at least it must be equal. Of course, this must first rely on the product brands of upstream manufacturers to build their own company brand. Then form a brand structure based on the dealer company brand and supplemented by product brands.
The ability of upstream manufacturers to kill in the local area
The dealers can’t do without the cooperation with the manufacturers. However, while maintaining positive cooperation, they must also have the ability to kill the manufacturers in the local market. They must have “a big stick in their hands and a good voice.” After all, the upstream manufacturers are commercial organizations, and they must definitely consider their own interests. The interests of county-level dealers must be placed in a secondary position, or even sacrificed.
In order to prevent the tragedy of being played or abandoned by manufacturers, dealers need to establish the ability to kill the manufacturers in the local market in advance, through the use of local social relations, channel control, market guidance, local media cooperation, local The relationship between the government’s functional departments, the company’s brand, and the enhanced cooperation of similar manufacturers can achieve the elimination of a certain manufacturer in the local market in the short term, reduce sales to zero, and reduce the brand influence to a negative number. No one dares to take over.
Management ability to downstream customers
Strictly speaking, all dealers rely on downstream customers to eat, and the downstream customer group is the basis for truly supporting dealers. However, more than 50% of dealers’ management of downstream customers is out of control. The boss has no energy management. The company does not have a special customer management system. It is often simply distributed to the management staff for decentralized management. Customer resources are even business. The personnel used control. This has also made it difficult for distributors to distribute goods, difficult to sell, and difficult to settle.
For downstream customers, dealers must first re-establish a customer-focused customer management system, rebuild customer data, and establish a direct interface between the company and its customers. The daily communication, information feedback, historical issues, customer sentiment, value-added services, etc., will be directly connected to the company. And the separation of new customer development, new product promotion, and customer routine maintenance can reduce the work content between business personnel and customers to a certain extent. This also prevents business people from starting a business or migrating themselves after forming a complete chain of operations for their customers.
In the innovation of customer management, it is necessary to normalize value-added services until a two-line cooperation relationship is formed. The so-called two-line cooperation relationship is to add a value-added service line on the basis of regular product sales. Through technical training, assisting problem solving, cost control, efficiency improvement and other technical counseling work, we will help the overall development of downstream customers, and the output benefits in this area, and the benefits brought by product sales, will generate profits.
In terms of customer types, it is no longer limited to traditional distributors and fragmented merchants, but extends further down to the consumer family unit or even the consumer individual unit.
Strengthen internal management of the company
The external business capabilities of the company are determined by internal management capabilities. The future development direction of the internal management of the dealer company must be enterprise-oriented. The so-called enterprise, in general terms, is semi-automated, and the specific embodiment of semi-automation is the following 12 aspects:
1. The company has a clear 3 to 5 year development plan and market positioning;
2. The organizational structure is clear;
3. The job responsibilities are clear and there is a complete job description;
4. All kinds of work, there are corresponding work instructions, including relevant methods, processes, standards;
5. Regular work transactions have corresponding processing procedures;
6. Ordinary accidents, there are pre-treatment and post-treatment plans;
7. The internal and external personnel reserve is in place, and all employees can basically resume operation within one month after sudden departure.
8. Each important position has a corresponding reserve to replace the employee;
9. New employees can achieve rapid copy training in the short term;
10. Within the company, realize the controllable rotation of major positions;
11. The entire company’s operating status is transparent;
12. Regular self-inspection and continuous upgrade of the company’s operating system.
For local counterparts, dealers must achieve a transcendence of differentiated competitive landscape in their competitive strategies. They cannot be at the same level. They can consider the overall acquisition or shareholding of some of their peers. In addition, they can also indirectly through third-party logistics. Integrate peers.
Vendor relationship improvement
The number of dealers in most manufacturers is hundreds. If you only do one of these hundreds of dealers, you will not have much way out, and it will be difficult to get more resources. Therefore, in this respect, county-level dealers must improve and break through, and must achieve two “must”.
1. Be sure to become a special distributor in the minds of each cooperative manufacturer: either superior in scale, advanced in market operation, or close cooperation with manufacturers, or a model of dealer operation that manufacturers hope. All in all, you can’t be an ordinary county-level dealer, you must become a special dealer in the minds of each cooperative manufacturer.
2. Be sure to step out of the regional restrictions of the local market, take the initiative to undertake the market of other manufacturers in the market, achieve the overall output of the operating system, and enlarge their own market operation areas.