What is the traditional business model?

The traditional business model is manufacturer-agent-retailer-customer.

It is characterized by purchasing goods from superiors at all levels, buying out the ownership of goods from superiors and earning the difference. The number of brands sold by agents is limited, and the supply channels are relatively stable.

The traditional commercial sales model focuses on channel construction, personnel promotion and commodity display. Use advertising marketing activities to expand brand and business visibility; Pay attention to the certification of products by authoritative organizations, but not enough attention to the quality of products in actual consumption and the pre-sale, in-sale and after-sale service levels of manufacturers and merchants. More importantly, there is no comparison, comprehensive and objective comparison of quality and service level.

The weakness of traditional commercial sales model

First, manufacturers build their own sales channels, and terminals are frequently replaced. The sales cost of the manufacturer has increased.

Second, manufacturers invest a lot in advertising, which affects the core competitiveness of products (technological innovation and product price).

Third, all manufacturers attach great importance to the certification of authoritative organizations, and various certificates and honors are flying all over the sky. Therefore, the role of product promotion and sales is gradually shrinking.

Fourth, various promotional activities compete with each other, increasing the sales cost of manufacturers.

5. Retailers or chain home appliance manufacturers use channel terminal control to raise the price of products and sell less. Price changes are less flexible for smaller markets (the sales range of merchants is limited), and merchants are of course willing to accept smaller sales changes and higher profits.

Sixth, because merchants buy out product ownership, they must "sell melons", which will affect the integrity of merchants.

Seven, merchants engage in promotional activities, marketing costs increase.

Eight, manufacturers and merchants focus on product display and personnel promotion, so booth layout, personnel commission, and electricity consumption in the marketing environment also increase marketing costs.

Nine, the authoritative certification of goods can not fully represent the functional quality of products, consumers can not intuitively understand, and more importantly, most of them are sampling inspection reports before use. Ten, most brands do not work hard on the core quality of products, but cater to the appetite of merchants, adding so-called selling points and highlights, such as appearance, style, color, and unnecessary functional combinations, in order to cooperate with merchants to monopolize the market, increase the difficulty of customers' choice, and avoid competition between quality and price.

Eleven, because after-sales information manufacturers only know their own situation, businesses only know their own brands, without detailed statistics (systems, technical means, staffing), it is difficult for manufacturers to find out their own gaps to improve product quality and improve after-sales service level, so there is no competitive pressure.

12. It is difficult for ordinary people to know the overall quality and after-sales service level of a brand, let alone the comparative information of many brands. They can only choose shopping by advertisements, introductions from acquaintances, as well as the atmosphere and shopping guides. The core evaluation of durable consumer goods (especially household appliances) should be the functional quality of the product, or the cost performance of the product, that is, the service life value of the normal use function of the product. When durable consumer goods are regarded as works of art, fashion products are definitely a minority.

13. Due to various reasons, fake and shoddy products flooded the market. Good products have high prices and no sales. Sometimes, the function and appearance of good products and inferior products seem to be similar, but the quality is extremely unstable, which makes customers very angry. However, merchants will not admit that this is a common phenomenon and will not tell customers. Poor information between customers increases this possibility.