The growth of China's underwear has been very rapid in recent years with an annual growth rate of 20%. Last year, the national sales surpassed 100 billion yuan. However, judging from the current situation of China's underwear market, there are two strange phenomena that are affecting the rapid and healthy development of China's underwear industry.
Two strange phenomenon
The first big strange phenomenon is why the thermal underwear brand every year for customers, but the dealer is looking for the brand every year? Underwear production technology threshold is not very high, manufacturers into the industry, usually using a warm product + a warm concept + an image of the spokesperson + a bombing of ads + a crazy discount and promotions " Marketing model, rapid gold rush. This predatory chicken oocyte almost predatory marketing hype, hurt the vast number of consumers and retailers, eventually deeply hurt the manufacturer.
The second big strange phenomenon is that why the dealer is not satisfied with the "small prosperous," but bigger and stronger and so difficult? Most underwear dealers are currently at or nearing the end of the primitive capital accumulation period. Most of them are self-employed and seldom have higher education in related fields. Although some registered trade companies nowadays, they are virtually independent from self-employed businesses The difference is entirely family-style management, restricting team building. Without a good team, marketing network and terminal management can not talk about it. Teams, networks and terminals have become the three major bottlenecks that restrict distributors from becoming bigger and stronger.
The evolution of the relationship between manufacturers
What kind of business relationship should be established in the end, how dealers can upgrade it? We may wish to take a look at the evolution of the relationship between China's underwear industry manufacturers.
The traditional relationship between manufacturers: hierarchical, long channels, which is a extensive relationship between manufacturers, originated in the era of planned economy, from the provincial textile company to the prefecture-level department stores, have a single supply of goods, formed a Up and down the planned supply network, more levels, longer channels. The advantage is that manufacturers can set up provincial or even regional distribution, the use of existing networks to quickly expand the market. However, there are also obvious shortcomings: First, with the establishment of a market economy, the advantages of network coverage formed in the era of planned economy are gradually diminished. Second, the instability of manufacturers' relationships easily leads to the instability of the multi-level distribution relationship under the total distribution. Thirdly, Manufacturers of goods through multiple levels of fare increase, the terminal customer profit margins, and the total dealer is getting huge profits, and ultimately affect the enthusiasm of end customers; Fourth, the total dealer has complete control of the distribution network and terminals, manufacturers and many distribution Businesses and their markets formed a barrier to information, and manufacturers actually became "blind" and "deaf."
Now the relationship between manufacturers: flat type, short channels This is the past two years thermal underwear manufacturers a widely used mode. They think that with the expansion of the market size, the provincial total distribution does not have sufficient economic strength and operational capacity to support it, and the general distributors are worried that the huge profits will affect distributors' enthusiasm. Therefore, when market performance is not good, they often take The total dealer to scapegoat, have canceled the provincial total distribution, but directly with the prefectural and county customers.
Many problems on the commercial chain
Compared with the traditional manufacturer relationship, on the one hand, prefectural and county-level customers have less previous level fare increase, more profit margins and more attractiveness; on the other hand, manufacturers can easily grasp the market first hand information, Integrate market resources. However, this model from the day it occurred there is a congenitally inadequate, first, the market performance is not good, the manufacturers blame the distributor, replace the general dealer. Second, cancel the total distribution, will also be followed by three major problems: thermal underwear sales concentrated in the peak season, that is, autumn and winter, the goods can arrive in time a direct impact on the dealer's revenue. There is no provincial total distribution, prefectural and county-level dealers are often unable to get the goods from the manufacturers there, which is the logistics and distribution issues; profit margins, it is easy to FALSIFYING phenomenon, and manufacturers far away, beyond the reach of the moon, this is Market management issues; prefectural and county-level dealers sweeping their homes in front of the snow, provincial-level media advertising, the promotion of a unified regional activities difficult to start, which is the issue of resource integration and configuration.
Strengthen the role of operators
Manufacturers, provincial operators, prefectural and county distributors form a close multi-dimensional ecological relationship based on common values. No one needs anyone else's support and assistance. In this new type of vendor relationship, operators play a very important role: First, logistics and distribution centers in the regional market for distributors to provide goods distribution services; Second, the resource integration center, the regional market funds, goods, advertising, Promotion and other resources for effective integration and configuration, to tap the market potential; Third, the market management center, standardize the regional market brand building, to prevent FALSIFYING, to ensure the healthy development of the regional market; Fourth, the scale of profit centers, operators are not Producing profits through price increases, but by expanding market share and provide good market services, access to additional manufacturers to pay market management fees, is a pure profit scale.