What channel conflicts will traditional enterprises encounter when they transform to the Internet?

It will affect the product price and sales volume of channel 1, and the online sales of the price do not need to pay the rent for offline sales, so the sales cost is low;

Online sales have more profit margins;

Under the same profit conditions, the sales price can be lower;

There are many ways for users to get online prices, and the way to get them is convenient.

2. The market capacity of regional products represented by sales channels is limited;

The total market volume is the sum of online and offline sales;

Online sales reduce sales in offline channels.

Conclusion: The profit of offline channels is declining, and the cooperative relationship with enterprises may evolve into a confrontational relationship.

Countermeasures 1, unify online and offline sales prices and formulate price protection policies;

We can use the logistics anti-smuggling system to track the flow of products and find sales units that violate the price mechanism;

Severely punish illegal sales units and protect the interests of online and offline sellers.

2. Increase the profit of offline channels, re-distinguish products sold online and offline, and ensure the sales volume and price of offline channels without direct competition;

Drain online orders to offline completion, and increase sales and profits of offline channels;

Diversion of services to offline channels and increase revenue of offline channels.

Summary: Traditional enterprises will inevitably encounter difficulties and conflicts when they transform to the Internet. As long as they plan ahead and make a good response plan, they can avoid conflicts and successfully transform.