Traditional Brand Enterprises Should Continuously Improve Their Network Sales Ability.

In the era of e-commerce, these traditional brands' network sales are faced with many puzzles: how to coordinate or retail prices under the same line, how to achieve the incremental sales effect of online and offline >2, rather than the simple replacement of online and offline demand? How can network sales increase sales volume and expand brand influence? How can the profit maximization be achieved under the premise of network sales volume?

There is no network sales channel mode to fully meet the traditional brand in price control, incremental sales, strengthening brand, profit maximization and other aspects of the goal.

Different network sales

Patterns have their own advantages and disadvantages. The key to their trade-off lies in the accumulation of network sales ability of traditional brand enterprises and the core objectives of decision-makers.

The traditional brand is signed with the network wholesale / retailer, and the relationship between the enterprise and the network wholesaler / retailer is a simple commodity trading relationship, which is not essentially different from that of the dealer under the line, and the network sales channel is only a supplement to offline channels.

Network distribution system is divided into two kinds of distribution and exclusive distribution, the stronger the brand, the more inclined to adopt a number of distribution system, otherwise the exclusive distribution system.

The traditional brand and the online retail platform (including Taobao Tmall mall, Jingdong mall, etc.) sign the online flagship store agreement, and entrust the network flagship store operation (including shop decoration, customer service orders, warehouse delivery, etc.) outsourcing to the professional electricity supplier trusteeship company.

The electricity supplier trustee company obtains the monthly trusteeship service fee and the sales commission, and the sales commission is usually extracted from the proportion of 5% to 10% of the retail sales volume.

Traditional brands set up network sales department (business unit or Independent E-commerce subsidiary form), directly cooperate with Tmall, Jingdong and other major network retail platforms, set up direct flagship stores, independently undertake daily operation work of decoration, pricing, customer service, after-sale, promotion and promotion of flagship stores.

Part of the radical and braggy big traditional brand enterprises directly build vertical B2C retail stores (such as Haier electric / BELLE shoes industry) and adopt the omnidirectional online retail business system.

Yes

This is the simplest and most convenient way to build a network channel.

Traditional brand sales channels (wholesale marketing channels, business super channels, etc.) have rich experience in construction and management, and the essence of network channel sales is consistent with traditional offline channels.

With the network distribution system, enterprises can learn from their management experience.

However, because of the low operating cost and the boundless sales area, the price war is a common means for the network dealers to obtain sales volume. Its sales volume mainly comes from the pfer of the stock demand under the line, which is very easy to stimulate the contradiction between the online and offline channels, and also easily lead to the contradiction between the network dealers and the enterprises.

Internet distribution system, traditional brands are difficult to control online retail prices, can not play the advantage of short selling channels, and can not get profits from online retail value chain, and it is even more difficult to play the traditional brand on the Internet.

And maintenance.

Along with the development of electronic commerce, business operators in China have sprung up like mushrooms everywhere. There are hundreds of home appliance business operators in Hangzhou, where Taobao is located.

The traditional brand adopts network operation instead of operation. The essence is to borrow the chicken and lay eggs, outsource the "customer service, retail storage, delivery" and other rough work, control the flagship store ownership, control the core resources such as brand, price, promotion and so on, and get the most benefits in the retail value chain.

The disadvantage is that the electricity supplier hosting company is mixed up. There are not many excellent and powerful companies. It is difficult to find suitable electric business hosting companies. Once the escrow contract is signed (usually 1~2 years), the sales of traditional brands will be controlled by people in the trusteeship period, and they must pay a lot of electricity providers for hosting Commission.

Just like setting up a direct line store or exclusive store, the establishment of a flagship store on the sales platform of Taobao Tmall / Jingdong will help to control the retail value chain in a comprehensive way. There is a strong price control force and a real advantage in the short distance channels of online retailing. It can take account of the relationship between brand building and sales volume.

The disadvantages are: the management of traditional brand is not familiar with the operation of e-commerce, and the lack of loyal network operators can hardly solve the conflict between the operation culture and traditional management culture.

The traditional brand's direct selling mode of its own station sales is expensive because of its huge drainage cost and high cost of independent website maintenance.