Tuesday, July 20, 2010

Reluctance of a retail survival


Crowded retail space
You need to purchase an air conditioner, so that you approached the door of a nearby chain store. So, from a clerk moment to chat with you counting to the final air-conditioning installation in place, make you comfortable couch and watch the World Cup so far that day. I can tell you: You have experienced a unique shopping experience with Chinese characteristics, and the process was complicated than you imagine. If the insight into the whole, do you even have reason to believe: according to your left in front of the air conditioners, and you do very nice ring!

I tell you step by step:

You walk into air counter, and say hello is the first manufacturer promoters may be (or not); you fancy a model, so fabricated that the same model could be reduced by another store 200, then came circumstantial evidence " impossible "that guy is the Market's staff; count your relentless, grinding for a long time, and finally you get double extra gift, one factory, one for shopping centers; time you find help you receive gifts, is just in the hands of the stairs to your plug-page ad girl, she is the temporary factory promoters; you pay the section, and fill in what this card that one (this is the mall to fill in some form, Some are manufacturers); also take the initiative to help you wipe the gifts, she and the counters of the promoters to form a "mutual aid" and asked you do not need to look at the air humidifier; You take your gifts home , if I thought for a long busy as gifts, and now just waiting for delivery right; you certainly do not care who it is delivery, the fact is, in the mall to buy, delivery may be the mall, it may be manufacturers, but also may be manufacturers operating in the same local accent your local dealer, there may be a pure third-party distribution company; use the time to wait for delivery, you can imagine this process of information transfer among, and perhaps also to understand more than the agreed time goods not seen you play a card in the store to get on the phone, the other 涓?棶涓変笉鐭?the real reason; Well, finally sent freight, installation, etc. also need to dial another person, as the city specific to your you the stores, which allocated specific, you see wearing overalls to install master know, unless you find upper and lower body work clothes are two Logo.

Well, air-conditioning finally press OK. However, within a week, you have to pay a return visit to pick 2-3 phone few days ago, and all your dealings with people are likely to ask you allocate almost the same problem.

This is what you can not see the space, the crowded retail space.

Of course, if you only customer, what happens inside these spaces and the starting point for you as is happening in another city social news, that does not know does not matter; can if you are a manufacturer, not the same. In a crowded retail space, what is your key to resources, what is the other key needs that competitive strategy will determine the size of your site.

The manufacturer's retail Survival

These form the habit, there is the phenomenon that is reasonable, not only in our small lives, also exist in the big trade. Take the manufacturer and retailer of division of work, the surface, the industry division of labor has been fine enough, in fact, manufacturers do, at least half of the retailer's part of the fall; and retailers do, At least half of the independent and improve their supply chain. Not willing, they will not give up, and the more competitive industries and the more this phenomenon more distinct, such as electrical appliances, mobile communications, medicine, retail and so on.

Of course, everyone knows that there is a return on the next end: retailers do things retailers, manufacturers do things the manufacturer, different advantages, duties, each received a benefit. The problem is, as a manufacturer, you must now live in an escape of retail space, and slightly better but also live longer than competitive products. Therefore, the question in the channel in the present than the future of an important insight.

Monopoly power and super-brand, of course, competition, magic weapon, but you are not rich kids, those you do not. So, what can really help you to expand the retail real space?

飦?A, the formation of the relative dominance of a category. Counter or shelf a few big names will never be divided, professional brand is more than comprehensive brand marketing pull and the more professional brand, the more easily identify the type form sales. Examples of positive contact as contact melon, Red Bull energy drink, 9 Yang brand soybean milk, Moen sink, fan, etc. Airmate; negative examples as a matter content up to appliances, home apparel sea false charge.

飦?B, enlarge your absolute space. In the end, the customer is certainly not visible to the procurement division, most of the time was not put a price store has a sign advertising that does not turn a blind eye is close to the joint promotion. More like a running meters out, more a series of display, is always the focus of the exchange of resources; if little money, that is the only focus. Remember, space is rented to retailers to spend money, and customers love the relationship between the true embodiment of that he gave you more than the competitive products of some of the display space. To some extent, retailers, real estate agency that is, the manufacturer is the owner, location, area, size, orientation, will always be the focus of your hunt. Therefore, only a second choice for oil bread, bread-for-oil is the best.

飦?C, the efficiency-oriented retail. We often hear manufacturers complain, the operation of this channel loss, entered the store without interest. Analyze the reasons, it is clear to the point deduction and pay fees, the actual operations of fuzzy is a single product turnover rate, single-product market share, family share, family turnover ratio, the kind of effectiveness and relevance, promoters tend to error value of sales, as well as improved display of each increase the efficiency of the quantitative analysis. Vivid metaphor, a store of all the products the same category, like a stock market where shares of the same plate, and different sales staff as a different master manipulators behind profit always see a different portfolio, choice and action . Fixed retail space is counter / shelf of the number of small, flexible space mainly by the specific store's product mix and efficiency of personnel decisions.

飦?D, see the nature of the retail industry. At least for now, retailers are not the enemy out of manufacturers, retailers imaginary enemy is always another one retailer. The retailers shuffle, manufacturers out, shuffle the manufacturer, retailer, like stranded in fact, is not an end result. Retailers, manufacturers instinctively more concerned than the customer needs, but also face market pressure. The most effective way to keep the transmission or amplification by customer demand, to require manufacturers to lower prices, more specialty products, faster service response consistent with the retail rate, to ensure that its operating profit and market share. This results in the retail industry characteristics, the most profitable for falling down, the maximum cost control in the upstream. Therefore, the retailer's end never to nurture the manufacturer's brand and presence, but also several of the ATM will not be exclusive. Shuffle is not in the retail end of the terminal is not always provided for the retailer closed circus. Here, no nurseries and nursing homes.

Manufacturer of a retail survival, not from large retailers to force good as wild, even if not the existence of retail oligopoly, manufacturers will be to the survival of a retail store or scattered around the form of franchise stores there. Simply because the emergence of large retailers, such retail-based survival become so immediate and urgent. Fortunately, a growing number of product areas, the number of mainstream brands have been rapidly concentrated from triple digits to double digits scattered, some even into the 10 days. This reluctance retail manufacturer of existence, will return to its starting place, making it the best at something.






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