Traditional Culture Encyclopedia - Traditional stories - What are the advantages and disadvantages of the dispute between distribution and direct sales channels?
What are the advantages and disadvantages of the dispute between distribution and direct sales channels?
The choice of channel should be considered in the specific product environment, and at the same time, it should be combined with other 3P factors of 4P. A channel model suitable for other enterprises may not be suitable for your channel. Take the clothing industry as an example: Zara clothing fast fashion brand has opened sales channels in official website and a treasure flagship store in recent years. Zara opened the first physical store in China in Shanghai in 2006, but how many people can come to Shanghai to shop? So Zara began to use infiltration strategy crazily and spread to other cities. Brand awareness has been played out, but the penetration rate in second-and third-tier cities is still limited. With the frequent purchase of Zara on a treasure, Zara chose to open a flagship store in Taobao. At this point, Zara has completed the extension from offline to online channels according to the process of brand awareness diffusion and the speed of penetration. At present, due to the fierce competition in the clothing industry, Zara is gradually closing down or reducing the opening intensity of offline stores to reduce costs and maintain operations. This is just a brand of clothing industry, and its channel decision is also made according to product characteristics and customer response. Another example is Huawei mobile phone. Walking casually on the streets of a city, XX mobile phone stores, Huawei customer experience stores, Huawei mobile phone stores, Suning Mall and even supermarkets are selling Huawei mobile phones. Why? It is not enough to have brand awareness, but also to penetrate the market and brainwash consumers in this way. Even if the cost is high, it is still needed. When people mentioned that the first reaction of mobile phones was Huawei, Huawei no longer needed so many means of distribution. Therefore, the way enterprises choose distribution is more to pave the market and expand the popularity of products and brands, which is a process that every brand and product has to go through. For those industries that are not sensitive to brand but sensitive to price, such as daily necessities and fresh food, it may be more effective to control costs by shortening channels.
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