Shilin Wood Industry: Pattern Change of Distribution Relationship under New Retail

More than 20 years ago, when Alibaba stirred up a pool of spring water in China's commercial retail with e-commerce, some people exclaimed that the "behemoth" that defeated physical stores appeared. But 20 years later, e-commerce giants, mainly Ali, Suning and JD.COM, rushed to the beach and laid out physical stores from cities to rural areas. Some brand dealerships are caught in fierce market competition and are in jeopardy, while others are thriving and blooming everywhere. When online shopping occupies the mainstream of commercial retail, how to re-evaluate the value of traditional home dealers? How to let home dealers carry out the whole process reengineering?

Lin's Wood Industry, a head home brand that started with the online Internet, gave a textbook-style answer. Since the opening of the first offline flagship store on 20 18, the new comprehensive retail format of "finished products+customization+household items" has penetrated all cities in China. Up to now, the online and offline revenue ratio of Lin's wood industry has reached 1: 1, and more than 75% of those dealers who have been in business for more than one year are in a profitable state.

Ma Canxing, known as "President Ma", once worked as a university teacher, then entered the forest wood industry as an executive, graduated from the forest wood industry ten years later and joined the forest wood industry dealer system. President Ma, who has opened three offline stores of Lin's wood industry in two years, obviously has more say in the relationship between Lin's wood industry and dealers.

Since entering the forest industry in 2009, President Ma and the forest industry have always had an inseparable fate. What attracts President Ma is Lin's business model of wood industry, and his commitment to win-win with partners as an Internet company.

In the traditional home distribution system, some enterprises earn money from dealers in various ways, regardless of the real terminal sales situation of dealers, and forcibly purchase goods to suppress inventory. Lin Wood uses digital language to help dealers find and create demand. Lin's wood industry does not earn joining fees or money from dealers, but really helps dealers make money in the market and achieve a win-win situation for both parties.

This is almost the * * * knowledge and deepest experience achieved by all dealers who cooperate with forest and wood industry. In just a few years, the forest and wood industry has broken the traditional thinking of distribution relationship and set up a strong distribution team from 0 to 1, which has brought about a change in the thinking pattern for the traditional distribution system of the industry.

The first change: the advantage of Linshi Wood Industry lies in generating data from users and markets, and turning big data into a sales tool for dealers, thus changing the passive sales model of dealers "waiting for" users.

"Lin Wood is a typical Internet enterprise. What they are good at is not manufacturing, but generating data from users and markets. These data can be truly shared with dealers, thus guiding dealers to formulate correct sales strategies. Some enterprises enjoy data * * *, staying at a shallow level, and will not * * * enjoy core data, but trees will not do so. They really want to make the dealers bigger and stronger, and hope to win * * * growth with the dealers. " President Ma has a deep understanding of this.

Traditional home dealers are basically "waiting" in the terminal sales link, relying on social networks of acquaintances or good geographical location, service and price to attract users. This traditional home dealer is actually a part that has been eliminated by e-commerce.

It's not that there are no opportunities in physical stores, but that the marketing method of waiting for the rabbit is too old-fashioned, unable to understand young consumers, unable to obtain data, and unable to convert data into sales.

The innovation of Lin's wood industry is reflected in the front-end market analysis, product design, supplier production, logistics, sales and after-sales service, all of which are completed through digitalization. Each participant must dynamically understand the whole process.

For example, Lin's wood industry can gain insight into the market demand through data, and then make quick decisions, so that new products can be mass-produced and listed within 30 days at the earliest. Through the self-built data center, online and offline data are opened, and user samples or potential people are screened out through portraits of users at different levels. This kind of detailed report can help dealers to transform their business, thus changing the passive "waiting" sales model in the past.

The second change: online and offline prices are unified, effectively and accurately diverting online users to physical stores. Dealers simultaneously participate in various marketing activities organized by the headquarters to expand the popularity and influence of brand terminals face to face.

Whether consumers buy Lin's wood products online or in physical stores, the price is the same. The cooperation between Shilin Wood and all dealers is based on unified standards, and the online and offline prices are unified. This advantage is reflected in the fact that consumers will have a unified understanding of products and brands whether they buy online or in physical stores, and will not affect users' purchase decisions because of price differences.

For example, in the large-scale e-commerce promotion activities such as 6 18, double 1 1 and so on, the headquarters of forest and wood industry penetrated all the distribution stores in China by formulating unified sales policies and accurate traffic delivery, so as to realize accurate offline drainage, guide online users to spend in physical stores and detonate sales transactions. This practice makes dealers pay more attention to customer experience and service, effectively enhance the brand's popularity and transaction rate in the local area, and help the forest wood industry to establish a greater competitive advantage in the local area.

The data shows that the total number of omni-channel fans of Lin's wood industry has reached more than 20 million, and the value generated by these fans into offline channels is incomparable to traditional home furnishing enterprises and traditional dealers.

The relationship between Lin's wood industry and channels is based on * * * growth and data empowerment. In fact, the zero supply-demand relationship under the Internet is more complicated than before. On the one hand, because online sales and offline sales cannot be unified, it will affect the standard price system; On the other hand, due to the different regional economies, it has caused the dilemma of the same sales brand but different dealer policies.

"Other home furnishing brands in the market implement the joining strategy, the price system is chaotic, and there may even be some hidden rules that are inclined to individual dealers. But Lin's wood industry will never have such hidden rules. Consumers all over the country buy forest wood products at the same price. At the same time, Linwood has a thorough study of consumer behavior. Their target customers are young people aged 25-35. The crowd is very accurate, and the design style and marketing methods are more easily accepted by these groups. " President Ma said.

Lin Wood began to drain off-line dealers several years ago. At that time, in order to help channel diversion, Lintou grabbed the entrance through online diversion and enhanced the scene experience mode offline, which greatly improved the conversion rate after diversion.

The conversion rate of online diversion is high, the brand of Lin's wood industry grows rapidly, and the dealers and Lin's wood industry win together. Today, physical stores in all walks of life are generally difficult to survive, and Lin's offline experience store is rapidly infiltrating into the world. At present, the forest wood industry has opened 5 17 stores in 2 12 cities in 29 provinces across China.

The third change: the dealers of Linshi Wood can change as needed, which comes from the accurate dynamic data analysis of Linshi Wood. Dealers can quickly adapt to market changes, which is based on fast dynamic data feedback. Data is the core advantage of dealers, all of which are empowered by the forest industry.

"The reason why every product of Lin's wood industry can become an explosion as soon as it is put on the market is the analytical basis made by careful market research and building a data model. From user browsing to consultation, analyzing and forecasting these data and feeding them back to partners is the core competitiveness of forest wood industry. Dealers who need to deal with users in the front line for a long time actually need timely market data feedback, which can help dealers solve the problem of people and goods yards and effectively turn the scene experience into value. " President Ma said.

In some traditional home distribution stores, which products are easy to sell, which are explosive, and what color should be chosen for new products are more based on the product research and development plan of the headquarters and the data retained manually. On a monthly basis, the wood industry with 1000+SKU relies on the accurate judgment made by big data to select the most suitable categories and commodities for local stores from those exceeding 1000+. According to the preferences of local consumers, the commodity layout of new retail stores in the big data environment can predict the most popular forest and wood products in the local user market, and even refine the proportion of goods with profit and flow in local stores, as well as specific commodity styles, colors, colors, sizes and functions.

This process is dynamic. The data analysis of Lin's wood industry, just like the doctor's diagnosis, can find the problems of physical stores at any time and help dealers make changes quickly.

Recalling the opening of his first forest and timber shop in 2020, President Ma still remembers it vividly. "I was struggling when I opened my first store. I don't know how big to drive. According to the consumption capacity around the store, the development volume of new buildings, the living population and the development trend of the business circle, the forest trees gave me the most reasonable suggestions. Finally, the area of the first store reached 800 square meters. Up to now, I have opened three flagship stores. " President Ma said.

From the analysis of site selection, store design, sales category and surrounding consumption power, the wood industry will analyze each dealer with a perfect data system and give the best suggestions.

The fourth change: Lin's wood industry serves a dealer's team, with more people than the dealer's own team. The "upside down" of this service model is a booster to protect the interests of dealers.

Dealers who cooperate with Lin's wood industry will basically not have the situation of pressing goods. The reason is that the forest wood industry helps dealers to choose products according to local consumption through dynamic big data analysis, and gives specific purchase suggestions in the most objective data way. What's more, no matter how much you buy, the price is the same, and the cost will not rise because of the small purchase, which is one of the most recognized links of many dealers.

The commercial value of forest wood industry lies in giving full play to the advantages of enterprises, empowering dealers and making both sides win. Therefore, the assessment of investment promotion personnel by forest and wood industry is not linked to the number of stores opened and the delivery, but to the profits of the dealers it is responsible for. Everything is oriented to service terminal dealers, helping their teams grow and operate results. Take President Ma's dealership as an example. One of the stores has seven employees, and Linwood provides services for the headquarters team of President Ma's store. From daily operation supervision, data analysis, product sampling, receiving terminal training, and the number of personnel 17, President Ma was very moved and recognized.

Efficient, pragmatic and service "upside down" helps dealers to speed up and increase efficiency. Through big data, every dealer can clearly understand every business link of forest wood industry, and at the same time, it truly empowers the terminal distribution system, so that partners can deeply participate and feel the same. Driven by the value of mutual benefit and win-win, dealers and brands grow together to achieve a real win-win situation.