The development of the food industry is very strange, on the one hand, the sales of food brands are growing, the whole industry is constantly expanding, and on the other hand, the life of distributors is getting more and more difficult, and making less and less money.
Business is difficult, sales pressure is high, and making less and less money...... Who is pushing the dealers to this point?
Who shares the dealer's profits?
In fact, no matter what kind of problem it is, it is a problem for dealers, that is, they make less money and make lower profits. Who is robbing the dealer for money?
First of all, manufacturers continue to reduce profits and goods, so that dealers' operating costs continue to rise. In addition, in order to complete the task, continuous investment in manpower, material resources, and funds, profits naturally decline.
Secondly, e-commerce platforms. In recent years, the phenomenon of online and offline price inversion has become more and more serious. The promotion efforts given by manufacturers online far exceed the support given to dealers offline, and the final result is that offline sales continue to decline.
Third, peers. The cake is divided by more people, and the competition between peers becomes more direct and more brutal. The direct collision of prices, profits, services and other levels, if you are not careful, the business will be directly robbed.
Fourth, channels. New channels, old channels have become very unfriendly to dealers. Most of the new channels directly cross the dealers and directly compete with the dealers for sales. The old channel, which is half-dead by itself, has to pull the dealers and add a burden to the dealers.
Under the pressure of all aspects, dealers are constantly changing the status quo through various methods. In the past ten years, various reform methods have been continuously implemented by dealers, but few are really effective. And, all the patterns and methods, in the final analysis, are actually one word: volume!
Dealers are heading for involution!
On the road to making money, dealers are gradually moving towards involution. Moreover, the involution of dealers does not start from now, more than ten years ago, dealers have begun to involution.
Dealers are pressed goods, is the involution of dealer competition, through continuous pressure goods, want to further squeeze their own potential, squeeze the development of the market. The increasing pressure on the goods, and finally gradually became a tool for the manufacturer, trapping themselves in it and unable to extricate themselves.
Credit sales are also the dealer's involution. In order to retain customers, in order to spread out the products, in order to let the products enter the market, in order to compete with competitors, credit sales came into being. I don't want money, I'll give the goods first, you can't compete with me. However, as a result, credit sales have become the norm for dealers, and in the continuous involution, all dealers are deeply involved.
The involution of dealers has begun when they are competitive, but under the continuous changes in the market and the passage of time, these involutions have become the norm. After the original involution behavior has no effect, a new round of involution is gradually beginning.
The involution of promotion makes it more and more difficult to promote, from not promoting and not selling to promoting and not selling, and the result is that sales are becoming more and more difficult to do.
The involution of the distribution, the distribution of hundreds of terminals at once, the cards are large and the investment is large, so that competitors do not have any chance. As a result, the more you shop, the faster you die, and the more you lose.
On the road of involution, dealers are going farther and farther, but the living space left for them is decreasing. In the final analysis, the reason is that the dealer's involution is constantly compressing its own profits, constantly compressing its own operating space, and gradually becoming a puppet at the mercy of others.
In a word, dealers should deal with it carefully. In a word, dealers should also be busy and deal with it carefully. Why, the involution is so powerful, but still I haven't made any money?
An involution without direction!
The dealer's involution is a directionless involution. The purpose is very clear, it is to make better money, but there is no direction in the process of moving forward.
Whether it is the involution of distribution, promotion, and pressure of goods, or the involution of various systems and business model reforms, most dealers are just following the trend. For a period of time, dealers are constantly trying new models, various lectures, various software applications, management model changes, and even some have invested millions, but how many have really succeeded in reforming?
Most of them started out with a bang, but they were gradually assimilated by the inherent patterns and returned to the original track. For dealers, the result of not changing is death, and change is full of unknowns.
However, no matter what kind of reform and what kind of involution, in fact, there are only two things that are most important to dealers. One is the product and the other is the end customer. In the process of involution, how many dealers are involuted in the selection of products. After more than 10 years in the industry, is it really not a little new to the selection of products? The choice is yes, but it is still seduced by policies and profits, and it is hot-headed.
Similarly, what is the deeper understanding of the end customer in addition to credit sales, distribution, and geographical location?
If you can't keep improving in product selection, you can't match your own customer consumer groups and channels, and no matter how much you roll in, you still can't change the situation.
The dealer itself is the link between the product and the channel, in the category of more and more segmented market, the matching degree of the product and the channel, and the matching degree of the consumer group, will directly affect the sales of the product, affect the profit of the dealer.