Home >

How Does A Channel Kill A Brand?

2013/10/18 18:51:00 27

Channel P is playing a very complicated role: the channel business is an important partner of the brand manufacturer, on the other hand, it is also the biggest enemy that the brand can not see in the development process.

but it is these terminal giants who are holding an invisible edge, eroding many brands of light, especially in the huge damage to the brand price system.

nowadays, the products of various industries are over produced, and the possession of channels means that they have the market. Therefore, the status of channels is becoming more and more prominent, and even a little bit of a smash.

store bullies, customers bully shops.

Nowadays, the strength of many industry channel providers has caught up with or exceeded the manufacturers of brands. Manufacturers often have to see the eyes of channel merchants.

If the momentum of disparity is further increased, it is expected that the market situation will become more complicated.

Today, with the increasing homogenization of market products, the effect of sales promotion and recommendation from channels has even exceeded the selling point of brand products, especially in the competition between rival rivals. The attitude of the channel directly determines who wins.

Today's channel business has already been very aware of the principle of multiparty checks and balances, and does not want some other manufacturers to be too strong. Rather, it hopes that some of the strength of the manufacturers will restrict each other, so that in cooperation, channels will be in a better position.

home appliance industry is a mature industry of domestic brands, but without Gome and Suning's price cuts, many home appliances will not be as cheap as they are today.

Everyone knows that price is the killer of brands, but a similar strong channel has already been able to control prices.

In order to make a brand, you must have a higher profit to support the cost of brand building.

With the edge of the channel price, the lower the price and the thinner the profit, the less the advertising investment of the appliance manufacturer is.

Galanz, for example, is recognized as a "price butcher" and has established a leading position through price war and has achieved success.

But Galanz also adopts the channel mode of agency sales, which has a relatively large dependence on channels.

If one day, its strong channel also takes the initiative to force it to depreciate, where will Galanz, which has already been small profits, go and look for profits?

In the past two years, the price of Procter & Gamble products, which has always been on the high side, is also gradually decreasing. 200ML's soft products have fallen below 10 yuan in many places.

Procter & Gamble also launched a series of green floats for the low-end market.

On the one hand, because competitors use price strategies to seize the market, and on the other hand, they also come from the pressure of channels. The terminal stores indirectly play the role of price killer. They usually resort to some holiday opportunities to force some small and medium-sized brands to reduce sales promotion, and then pull some mainstream brands to launch. After several main competitors have followed up, P & G still dare to remain aloof from it?

It is already an inevitable trend that P companies will launch or are about to launch their own brand products to seize the market of their brand products and become the direct competitors of the brand.

Moreover, they know more about brand manufacturers' products and their advantages and disadvantages, and are more likely to target and seize the market.

The emergence of strong terminals such as WAL-MART and Carrefour has gradually begun to change the impact of brands on consumers. Strong channels have gradually become a symbol of quality and credibility. For many products, the impact of brands may be at a secondary location, such as cooking oil, such as rice, such as paper towels and so on. Even if these products are not famous, they can sell well in strong channels if they are of high quality. P

Because consumers have fully trusted in the psychological channel sales products.

Moreover, the products produced by ordinary manufacturers can be produced by the way of OEM and sold by themselves.

Because of its channels, it has an absolute advantage in retail prices, and can easily get a good display position. The products of channel OEM are virtually a strong opponent of brand manufacturers.

{page_break}

WAL-MART, for example, its sales of its own brand products have reached about 40% abroad, and will be higher in the future. A large number of Chinese made products are labeled by WAL-MART and Sam George target= "_blank" href= "//www.sjfzxm.com/", "dress /a" and so on, which are sold in WAL-MART.

At the same time, some of its original brand suppliers have gradually become their processors.

With this model going on, after a few years, what should we do with our edible oil brand Lu Hua and vigorously promote the "1+1+1" golden dragon fish? What do we do for the Tatsu paper? It is said that WAL-MART is preparing to launch its own brand notebook computer next year, and even the giant head of IBM and DELL are all a little nervous.

Suppose that one day, our Gome also introduced the "Gome" color TV with the best quality and low price, and the same color TV with the same appearance and same function and the same material could sell it cheaper.

Why? Because he doesn't need to advertise, he doesn't need to build a channel to generate expenses, and the cost can be controlled very low.

At that time, how would our TCL, Changhong and Konka respond?

there are more than 3000 convenience stores in Taiwan, and when all of the 7-11 convenience stores compete with each other, all 7-11 convenience stores do not sell Kangshifu instant noodles.

As a result, Kangshifu lost at least 10% or even higher turnover in Taiwan a year.

7-11 the ambition of expansion is also expanding. It is said that many private brand products will be launched.

although there are no super carriers such as WAL-MART and Carrefour in China's retail channels, but in another 20 years, such as Guangzhou's intra island price, Shenzhen's Wanjia, Shanghai's hualian and Lianhua, Jiangsu's Suguo supermarket, all of them already have the strength of the male side. They will definitely have to expand and expand next, or if they have strong capital to tie them together, they will not be able to sit tall.

channel merchants often make unreasonable demands on brand manufacturers, and may even directly damage the brand image. But many times, in order to maintain sales volume, brands have to swallow their voices.

Manufacturers of P usually rely on channels. Generally, manufacturers can not spend huge manpower, material resources and financial resources directly to form their own single channel.

Now and in the future, it will be a time of serious excess production.

You can't enter a href= "//www.sjfzxm.com/news/index_c.asp" > WAL-MART < /a > Yes, a lot of competitors are lining up in the rear.

, you can understand why a purchasing manager of a large scale store in Guangzhou can speak out: "apart from P & G, what brand of our store is willing to repair."

Because Procter & Gamble is still in the absolute leading position in the washing industry, and no competitor's products can be completely replaced. Consumers are still designated to buy, and the shopkeeper dare not withdraw.

However, the store had a fierce conflict with a famous coke company, because the coke company did not agree with the promotional conditions put forward by the hypermarket.

As a result, all the chain stores in the store removed the Cola products and replaced them with products such as Wahaha's very cola and other competitors.

Considering the huge sales ability of the chain store and the consequences of its withdrawal, the top executives of the coke company could only end up making concessions by concession.

In fact, the presentation is at the expense of brand compromise, because the conditions put forward by the hypermarket will inevitably cause some damage to the brand image.

in addition, the channel makes the brand image of the enterprise more and more blurred, which is weakening the image communication effect of the brand, and the image of the channel business itself is becoming more and more outstanding.

strong channels have their own CI, have unified containers, staff work clothes, services and culture.

In the store, the most eye-catching presentation to consumers is undoubtedly the channel's own identity.

In this way, consumers are more likely to feel the impact of the channel rather than the brand image of their products.

I am afraid that VI can only be exposed in advertisements. If VI image can not be effectively combined with terminals, the effect of communication will be greatly reduced.

Shanghai as the largest bra trade company in China, it has grown by acting as a famous brand of brassiere in China. Until later it launched its own branded bra, "ancient and modern", but its sales volume has been at the forefront of its brand.

Which brands sell more than ten brands in its storefront, which brand can give people the impression that they are more than the ancient and modern brands?

in many cases, brands often become victims of channel profits.

{page_break}

no matter it is agent, middleman, or chain terminal enterprise, they usually operate not only a "a href=" http://pop.sjfzxm.com/popimg/fz/index.aspx "brand" /a ".

Among many brands, channel merchants often choose to pursue profits with some brands, while others attract customers by means of image or low price promotion, which often leads some brands to become victims.

some channel merchants in order not to let some brand products fall into the hands of competitors, they do everything possible to get the agency right, and then put the brand on the shelf.

They believe that these brands fall into their own hands, they can control them, and have no impact on their existing markets.

For example, the bottled way of the daily chemical industry often makes the manufacturers throw in the taboo, worry about ending the cooperation, the channel chamber of Commerce throws the goods to disturb the market, and thus enters the dilemma.

This selfish means often leads to the collapse of many brands in some areas.

"P > big brands suffer from such a situation, not to mention small and medium-sized brands. Small and medium-sized brands want to expand rapidly, and generally prefer to choose strong channel partners. However, they are often subject to channel factors because of their strength reasons, leaving behind many unstable factors.

Small and medium-sized enterprises and strong channel cooperation, the final result is mostly broke up, a careless may lead to the whole lose, many small and medium-sized brands were accidentally killed in the cradle.

in the era of over production and serious homogenization of products, the law of market development is like this: if you are a brand, if you do not have a good channel, your product will not sell.

you don't make brand, but if you have good channels, your products may be sold.

Remind hardworking brand builders, be careful to deal with the impact from the channel, and watch the brand become the victim of the channel.