With the arrival of the new retail era, how should dealers choose the brand of cooperative manufacturers?

The new retail era is characterized by maximizing the distance between products and consumers. It is also a new business model that breaks the traditional channels. The biggest influence of this model is the dealer. Then, in this case, how should dealers choose cooperative manufacturers? We give the following suggestions for reference only.

0 1

What impact does the new retail era have on dealers?

Strictly speaking, the new retail era has replaced the role of dealers. Therefore, this business model has the greatest impact on dealers. The main impacts are as follows:

1. The channel is disrupted and fragmented.

Dealer's products of a certain brand, whether purchased from dealers or directly supplied from supply chain manufacturers. Before the new retail era, the channels were closed. In other words, the distribution area is protected by the manufacturer. When consumers buy a brand, most of them go to brand stores to buy it.

In the new retail era, the sales channels have been completely diversified and fragmented. E-commerce platform, social e-commerce platform, new media communication platform, consumers can buy ideal products. It is no longer limited to the store purchase of offline dealers.

2. The profit is reduced, showing meager profit.

Before the new retail era, the pricing power of all products distributed by dealers was mostly based on their sales in the region. Or the guiding pricing given by upstream suppliers. In this case, the profit from selling products is relatively high. Especially for some differentiated products, there will be some huge profits.

In the new retail era, consumers can compare product prices on multiple e-commerce platforms due to the diversification of channels we analyzed above. That is to say, whoever has a low price will choose the products of which merchant. In this way, as a distributor's product pricing, it is impossible to price according to the profit you want. But pricing according to the market.

Under the impact of new retail, the pricing power is not in the dealer, which leads to a serious decline in profits, mostly in the era of low profit.

3. The space is overstocked and undergoing transformation.

The dealer era has lasted for many years. From the initial self-employed era, it gradually entered the development period and climax period. Until the emergence of new retail, the dealer era began to enter a recession. The advantage of smaller and smaller living space is already very obvious. This is the direct result of the development of Internet e-commerce platform and the rapid rise of new retail.

02

Why do some dealers still exist in the new retail era?

The essence of new retail is to replace dealers and directly face consumers. But why do some dealers still exist for many years in the new retail era? Our analysis is mainly due to the following reasons:

1. The physical store mode determines the existence of dealers.

The model of physical store, although facing the dilemma of operation at present, has also been impacted by new retail. But the physical store model is impossible to disappear. In addition to the physical store itself has its own experience advantages. Most importantly, physical stores involve a large number of people's employment and other issues. Therefore, this model will not disappear in physical stores at present or even in the future.

The physical store model determines the existence of dealers, because the main supply channel of physical stores is upstream dealers. There are relatively few products purchased directly from manufacturers. Of course, some physical stores have joined the e-commerce platform and placed orders from the e-commerce platform.

2. The existence of second-and third-tier brand manufacturers determines the existence of dealers.

The new retail model is not suitable for all brands at present. At present, the brands operating the new retail model mainly have the following characteristics: First, the brands are well-known and recognized by consumers. Second, brand manufacturers have a certain strength, that is, the ability to invest in new retail models. Brands with these two characteristics are mostly first-line brands in some industries.

There are few first-line brands in every industry. Most brands belong to second-and third-tier brands. The brand awareness is not high, and the scale and strength are relatively small. Such brands rely on the new retail sales model, which is very difficult. Therefore, most of these brands still use the local channel advantages of dealers to promote their own brands.

Therefore, at present, physical stores and second-and third-tier brand manufacturers determine the existence value of dealers.

03

In the new retail era, how should dealers choose cooperative manufacturers?

Through the analysis of the above two angles, it can be seen that the manufacturers that dealers can cooperate with at present are mainly manufacturers of second-and third-line brands. There is little cooperation with first-line brands. Then, how should dealers choose the right manufacturers to cooperate? We think it can be considered from the following angles:

1. Are there reasonable plans for online and offline products?

In the new retail era, there will inevitably be competition online and offline. This is also the biggest problem facing physical stores at present. Some consumers enter the physical store, and the metropolis takes out the price comparison of mobile phones. The main reason is that many brands are almost synchronized online and offline.

Therefore, at present, when dealers choose manufacturers, they must first look at the layout of online and offline product lines. Is there any price protection for offline stores? Only in this way can the dealers operate relatively smoothly.

2. Whether there is regional protection is the main selection criterion.

For some second-and third-tier brands, there is no new retail model. Mainly rely on offline traditional channel operators. The value of cooperation with such brands is channel protection. If such manufacturers do not have regional protection in their own areas, there is no cooperation value for dealers.

3. Is there a reasonable profit rate?

At present, the living space of dealers is squeezed, mainly because the profits of the products sold are meager. Operating costs are relatively high. Therefore, at present, when dealers choose cooperative manufacturers, they should analyze their products according to the market situation and whether the manufacturers have given dealers and retailers reasonable profit margins. Only when there is a reasonable profit margin can there be the value of cooperation.

Summary:

We analyzed the influence of the new retail era on dealers from several aspects. And why dealers exist now. Suggestions on how dealers choose manufacturers are given in the following three aspects: whether there are reasonable plans for online and offline products. Whether there is regional protection is the main selection criterion. Is there a reasonable profit margin?

(End)

Be sure to choose manufacturers and products with profound cultural heritage. The future retail competition is no longer the competition of a single product, but must have a complete industrial chain.

Your question: How do new retailers choose brands?

First of all, choose brands according to their own fitness and matching.

Second: the selected brand must be a legal enterprise, and the inspection certificate stipulated by the state must be available. To put it bluntly, it can't be three no products.

Third: the brand should have a stable product supply and stable quality.

Fourth, brands should have systematic training, such as how to support new retail agents and how to train new agents. ...

Fifth: the brand should have a good model, which is very important for new retail. A good model will split quickly and will not cause the rapid loss of agents.

The sixth brand should have humanized and timely after-sales service to ensure no worries.

There is no so-called new retail, but there are more channels and ways, which are essentially unchanged.

At present, national brands are far better than local brands. With the convenience of information and logistics, the rise of new brands has become particularly difficult. At the same time, local brands will also be eroded by the market. A large part of the new product industry will be targeted by e-commerce, and it will become a foundry in a short time.