"There is heaven above and Suzhou and Hangzhou below." The prosperous Jiangnan area and East China area have always been filled with merchants. A battleground. Shopping malls are like battlefields. Foshan's large number of powerful ceramic tile brand manufacturers have launched a rampage mode to seize the market in recent years: a large number of old and powerful enterprises have gone from low-key operations and silent fortune-making in the past to blockbusters and eastern expeditions. In the West, they not only carry out advertising and propaganda, but also conduct conquests and siege cities and territories all over the world. As the capital city of Jiangsu Province, Nanjing naturally has a strategic fortress status in the eyes of almost all Foshan brand manufacturers. Everyone is determined to win this market and has high hopes.
"The greater the hope, the greater the disappointment." In recent years, the Nanjing market has been "incomprehensible" and The "uncertainty" has shown considerable "unfriendliness" to many new second-tier brands and a large number of powerful enterprises that have initially successfully transformed. For a time, a large number of Foshan's old powerful enterprises were defeated, which really made Foshan manufacturers towards them. Love and hate it.
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So, why is this situation happening? What can be done to resolve this situation?
With the confusion and high expectations of Foshan Dabo Enterprises, China Ceramics Network's "channel fission"The terminal research team of "Market First" conducted an in-depth visit to Nanjing. After interviewing about 15 ceramic tile distribution channel vendors, they came to the following thoughts.
First , let’s take a look at why the Foshan brand, which clearly has considerable economic strength, cannot do well in Nanjing?
NO.1: Nanjing only gives opportunities to two types of ceramic tiles, either first-line brands or super cost-effective
In fact, the market's polarization trend of "either first-tier brands or super cost-effective" is not unique to the Nanjing market. Some characteristics are actually a clear manifestation of the nature of the current or future market. They are caused by the consumption grading that emerges after full competition. However, in a highly competitive city like Nanjing, its performance is more direct and urgent than in the mainland or even the northwest region, and feedback comes out earlier.
It is not difficult to find the reasons behind this: on the one hand, Nanjing’s brand operation costs have remained high all year round (see this article Online articles about the Nanjing market), rents, warehousing, transportation, labor, channel development, etc. are all higher than other similar cities, and even store rents are close to Shanghai. The investment of an agent in operating a second- or third-tier brand is no less than that of operating a mature first-tier brand; on the other hand, a large number of first-tier brands in Nanjing are dimensionally reduced to seize the market share of second- and third-tier brands; and second-tier brands Third-tier brands are at a disadvantage compared to first-tier brands in terms of brand recognition and brand potential. To sum up, anysane agent is unlikely to invest heavily in operating a second- and third-tier brand - despite the fact that its manufacturerIt has strong capabilities and its products are of excellent quality.
NO.2 The relationship between manufacturers is tense and conflicts are increasingly intensifying
There are easy conflicts between Nanjing agents and brand manufacturers, which seems to have led to many Foshan brands directly selling in the Nanjing market One of the reasons for not having an agent.
First of all, Nanjing was once one of the largest ceramic wholesale markets in northern Jiangsu. Ten years ago, the annual throughput of ceramic tiles in the current Yuhuatai Banqiao Hongyang Building Materials City reached 6 billion. At that time, the brand concept had not yet fully emerged, and ceramic tiles were mainly wholesale. At that time, the Nanjing wholesale market covered a radius of almost 500 kilometers, which was huge.
Nowadays, with the convenience of logistics, the wholesale function of Nanjing market is decreasing day by day,but it has started from the wholesale market A large number of practitioners and even bosses who came over have become the main force of current ceramic tile brand agents. Its channel model still has some reservations. For example, the distribution model still accounts for a large proportion of various current channels. Distribution models account for a large proportion and many are still using relatively traditional distribution models, which are quite different from the models required by many brands today. It is normal for it to be difficult to adjust for a while.
Some Foshan brands are eager to conquer the city and sink channels, directly bypassing agents and connecting with distributors , resulting in a certain impact on the distribution channels of agents and becoming a source of conflict between Nanjing agents and manufacturers.One of the root causes is the deterioration of manufacturer relations.
Secondly, the investment in Nanjing’s brand operations is huge and the output is not necessarily proportional. Due to various pressures, the agents’ Investments are becoming increasingly cautious; however, due to strategic deployment needs and brand promotion needs, manufacturers require agents to increase investment, thus causing conflicts between the two parties.
Third, some representatives or salesmen dispatched by Foshan brand manufacturers have limited comprehensive quality and communication skills.Tough attitude towards agentsAs a result, the conflicts between agents and manufacturers eventually intensified until the relationship broke down.
NO.3 Nanjing ceramic tile agents look like one person, but they are actually a group
In Nanjing, most of the people engaged in ceramic tile agent sales are Fujian and Wenzhou people, out of regional culture Characteristically, most of these Wenzhou people or Fujian people have a "village head and village tail" relationship with each other, like fellow villagers, relatives and friends. Their information exchange is very fast and convenient, and the trust between people in the same area is extremely high. Therefore, for brand manufacturers, the agent you see may be one person, but in fact they are often a group! Once there is negativity between manufacturers, leading to the failure of the final successful cooperation between the brand and the agent, it is very likely that the brand manufacturer will have a negative impact among this group of people - this is why some brands lose an agent After that, it was very difficult to find other agents, and some brands eventually disappeared in Nanjing. Of course, if there is a good relationship, the positive feedback will also be chain-linked.
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NO.4 The current ceramic tile categories are too rich in colors, and warehousing has become a big cost< /strong>
In the view of many Foshan manufacturers, a rich variety of designs and colors can give the market more choices, but when it comes to agency From the perspective of merchants, the excessive variety of designs and colors has become a burden for them: If you don’t carry all the products, there seems to be no competitive advantage - if others have what you don’t have, there will always be something wrong; if you sell all the designs, inventory will become a big problem. After all, Not every product sells well, and it is very likely that all the profits will end up being turned into inventory - the risk is much greater.
Second , let’s see how good brands solve it?
NO.1 Consider dimensionality reduction to suppress the next-level market
StraightThen reposition your brand accurately and decide whether to go the high-end brand or first-line brand route or the cost-effective route. It is very important not to sway easily after making a decision. It determines whether you will truly survive in the market in the future.
For agents, it is very important if the brand has a clear route, a clear strategy and is unswerving. It is also an important basis of confidence for his choice of cooperation.
InNanjing, there is a certain agent with particularly strong distribution and wholesale channels who said that if there is a If a second-tier or third-tier brand is willing to lower its psychological expectations and learn from the first-tier brands to reduce dimensions in the same way that second-tier brands seize the market, to seize the low-end and cost-effective market, they will definitely be willing to cooperate.
NO2. Reorganize and standardize distributor channels and operate distribution channels in a branded manner
There are many brands in Nanjing that have adopted this model and achieved success, such as General and Samit. They applied modern brand operation concepts to their distributor channels, requiring distributors to unify their store image, unify their activities, etc. In the end, they optimized their distributor channels without directly cutting off distributors, and finally completed Smooth transformation and upgrade.
NO.3 Handle manufacturer relationships seriously and never give up on dealers< /strong>
For dealers in Nanjing, try to have more understanding and help, be more patient and invest in the Nanjing market, and ultimately This return can be sustained and long-lasting.
Due to the fierce competition in the Nanjing market itself, coupled with the complexity and particularity of the market, if brand manufacturers If you really value it, you should go to the market to face and bear the pressure with dealers. Only by supporting each other can we ultimately achieve subsequent growth. In particular, don’t give up easily. After all, it’s easy to give up but hard to persevere.
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NO.4 The branch company system may become a suitable development model
Based on the strategic significance of the Nanjing market for brand manufacturers, as well as the high operating cost pressure of the Nanjing market and the current consolidation In the current situation of the diversion of centralized procurement of finely decorated houses, the branch system may be a better model for development in Nanjing.
But the best model among branches may be that manufacturers and agents join forces and work independently. The division of labor is clear, and on the basis of balancing the interests of both parties, each can give full play to its strengths, ultimately maximizing the advantages of cooperation.
For example, the branch is responsible for the development of strategic centralized procurement channels, responsible for corporate operation management, responsible for the introduction of advanced concepts and Assistance and training; dealers are responsible for sales and distributor channels that they are originally good at, etc. At present, there are not a few brands adopting this model.
NO.5 The manufacturer directly sets up a central warehouse to share the increasing warehousing pressure for dealers
The model of setting up a central warehouse has been tried by many Foshan brand manufacturers in Nanjing, and some of them are currently operating smoothly. benign. The central warehouse can also radiate to the northern Jiangsu and Anhui areas to the maximum extent, radiating the distribution channels of county-level cities in place.
In short, the methods must be more difficult than the difficulties. For the aspiring brand factories in Foshan, if they really want the Nanjing market If you are determined to win, then have firm belief and let go. Maybe after a few rounds of shuffling, you will become the new overlord of Nanjing!
Author: Pan Chunhua
