The second round of fighting (7) | the redistribution of industrial chain profits: sensitive ex-factory prices and channel policies

"Reasonable" distribution of profits

At the scene of the 8th China Baby and Child Industry Conference 2021 hosted by Zhongtong Media, Chen Gang, general manager of Zhisheng Trading, said, "At present, we will consider two points in the selection of products, the first is whether the brand can maintain long-term stable and reasonable profit distribution in all aspects. ”

The question is, what is a reasonable distribution of profits?

In the past two years of the milk powder market, it seems to be more difficult to be "reasonable", otherwise the children's media research team will not hear all complaints in the process of visiting.

With the development process of the industry, the market share of milk powder has always been concentrated to the head brand, but the epidemic is a demarcation point, and since then, the first round of fighting in the milk powder market has officially opened.

In the process of visiting the market in 2021, many of the channel providers we encountered are complaining that the more the manufacturer's task is more and more fierce, from 30%, 50%, to 100%, 300%.

The pressed goods are the fuse, and the inventory that has nowhere to release it begins to flow across the country. The market has set off an unprecedented serious wind of price chaos, and the ultra-high-end large items of the past once fell to about 200 yuan, and some regions fell to 190.

Yes, some channels also have to paste a few dollars upside down, in order to attract traffic, in order to survive.

The terminal transaction price of the entire milk powder market is decreasing, but at the same time, the factory price of the manufacturer is untouched, and even some manufacturers have raised the factory price, which is squeezed by the profits of the channel providers.

Will this distribution of benefits continue?

Obviously, unless the manufacturer has been a strong consumer brand, the channel has to pinch the nose to sell, otherwise the manufacturer must deal with the rebound of the channel provider.

Indeed, after two years of chaos, the first round of fighting is also nearing the end, and there are already channels in resistance, which also opens the prelude to the opening of the second round of fighting.

From soft resistance to active interviews

"I really can't stand it, I don't force it, the brand said to cut my market, very welcome, come on." In the middle of the year, when the children's media research team visited, an agent said so.

This may be a kind of soft resistance, but it is a helpless move. The attitude of another wave of agents is difficult to say that it is not the most direct rebound for brand pressure.

Because, this is resistance from one hegemon.

It is understood that recently a leading agent in a certain region directly found a first-line milk powder brand that has cooperated for many years to talk about, requiring a reduction in the amount of tasks. You know, this has never been the case in the past, the two have been complementary to each other for many years, and once such a relationship changes, it is a huge loss to both parties.

This may be just a micro case, but the business logic of the agent determines that they will eventually take the same action. The direct rebellion of channel providers has been staged across the country, especially for agents of the upper scale.

The current milk powder market, no brand dares to say that it has risen to a consumer brand, even if it is as strong as a flying crane, they are still emphasizing that they are channel brands, which means that the bundle of brands and channels cannot be loosened, especially in order to cope with the second round of fighting, brands must be deeply tied with high-quality channel providers to be able to stabilize their position and win the market.

Therefore, the redistribution of industrial chain profits is imperative.