Traditional Culture Encyclopedia - Traditional virtues - Channel distribution generally use what mode

Channel distribution generally use what mode

Currently the common types of channel distribution are: direct sales, regional agency system, brand franchise system, network distribution methods, manufacturers of channels to build their own type. Direct sales: manufacturers directly to consumers. Regional agency system - in accordance with the geographical, regional set of agents at all levels, such as regional agents (South China, North China) → provincial agents → municipal agents → county / town-level agents.

Brand Franchise System: According to the regional and local economic development, the company's headquarters in accordance with the brand's operational development needs of the development of franchisees, there will be part of the headquarters directly under the operation of the directly-managed stores. For example, KFC, McDonald's and so on.

Network distribution: the use of network platforms, a wide range of audience and rapid dissemination of the ability of manufacturers directly or through distributors and end users to establish business relationships. For example, we often talk about B2B, B2C, C2C is the use of the network to establish a distribution model.

Manufacturer channel self-built: by the manufacturer in the main large and medium-sized cities to establish their own distribution channels, channel staff under the factory headquarters, and even including the establishment of a network of all directly-managed stores.

Solution:

The business model of channel distribution is mostly distributed in the field of bulk manufacturing of home appliances, building materials, pharmaceuticals, food, clothing and so on. With the expansion of business scale and channel expansion, the distribution channel not only contains the traditional form of branches, independent stores, specialty stores, shop-in-shop, etc., but also includes group purchasing, online shopping malls and other emerging channels.

The depth of the channel has also gradually expanded from first- and second-tier cities to third- and fourth-tier cities. With the increase in the coverage of distribution channels, the sales range and overall sales are gradually improving, bringing considerable economic benefits for the enterprise, but also brings a lot of management challenges.

A distribution channel is a certain goods or services from the producer to the consumer when the movement of such goods or services to obtain the ownership of such goods or services, or to help transfer their ownership of all enterprises and individuals.

A distribution channel thus includes primarily merchant intermediaries (because they acquire ownership) and agent intermediaries (because they help transfer ownership). In addition, it includes producers and consumers who are the starting and ending points of the distribution channel, however, it does not include suppliers, auxiliaries, etc.

Reference for the above: Baidu Encyclopedia- ? Channel Distribution