How Can Dealers Avoid Being Eliminated By Changing Brand Channels?

< p > < a > href= > //www.sjfzxm.com/news/index_q.asp > brand > /a > the demand for channel change and the continuous upgrading of the consumer market make the dealers between brands and retailers facing more difficult situation.

In the whole history of the emergence and development of distributors, the fate of dealers always seems to be in the hands of others.

For a long time, dealers are more controlled by brands.

Distributors' products, distribution areas, < a href= "//www.sjfzxm.com/pioneer/" > business mode < /a >, service customers, inventory costs, fund utilization and so on are almost under the guidance and control of manufacturers. Of course, these factors directly controlled by the manufacturers directly affect the profits of distributors. In fact, it is obvious that dealers' business lifeline has always been in the hands of manufacturers.

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< p > as in the past few years, Procter & Gamble implemented the channel pformation in China, they forced the reduction of the number of dealers, and persuaded the remaining "a href=" //www.sjfzxm.com/news/index_cj.asp "distributor" /a "to expand the scope of distribution. We will not discuss whether Procter & Gamble's practice is conducive to the efficiency improvement of the entire supply chain, and whether it protects and promotes the interests of dealers. However, from their behavior, we can clearly see the passive position of distributors in the supply chain.

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< p > besides, the operation characteristics and development trend of modern retailing also make the future of traditional dealers more dim.

Retailers are constantly compressing the profit margins of dealers in cooperation. What is more serious is that retailers eventually lose their traditional functions.

As retailers generally adopt chain operation, they set up their own purchasing centers, collect the rights of the stores, set up distribution centers, and raise the threshold for entering shops, which makes the dealer's functions constantly being squeezed.

In the market dominated by modern retailing, brand dealers only need to negotiate with the purchasing department of several large chain retailers to distribute products to the retail terminals of various regional markets without having to negotiate with the independent stores one by one through the distributor as before, so dealers have lost the traditional distribution function.

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< p > in addition, with the continuous rise of consumer prices in recent years, multi-storey agent system has also become one of the most important factors that have been widely criticized for pulling up prices.

Therefore, the flattening of channels is a major trend, which inevitably requires brand operators to minimize intermediate links.

Dealers should avoid facing the embarrassment of "marry for others". On the one hand, they should improve their specialization and diversified operation mode. On the other hand, the industry alliance or need can become an exploration direction.

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