Paint Dealers: The days of making money from information asymmetries are over

China Coatings Network
News: With the continuous progress of the industry, the price of
coatings
products continue to decline, close to the sweet spot of the market, the 2014 paint industry is known as the "channel war" the most intense year. "Channels get the world", in order to compete for channel resources, enterprises can be described as "eight cents across the sea to show the gods", especially in the competition for control of the end-market dealer resources, but also at the expense of the use of brand, capital, contacts, preferential policies, publicity and promotion and other aspects of the advantages, launched a dealer battle, dealers have thus become the paint industry's sought-after "scent."
as a traditional and backbone force in the Chinese market, distributors play an important role in the market from the enterprise to the end retailer's sales channel chain, and grasp and guide the needs of consumers. It's not hard to see why companies value reseller resources so much.
A long time in the past,
coating enterprises
have an absolute market voice, the choice of dealers have many conditions, such as the delivery of the corresponding deposit, monthly pressure inventory, dealers become large brands of "vassals." And with the development of the market, this situation is being rewritten. Because of the fierce competition in the market, the most important thing for coating enterprises is to seize the market, as long as dealers can complete the performance, inventory, deposit and other conditions are negligible. But in the face of brand vacancy, uneven quality, price "slide", "monk more porridge less" and other bad situation, the dealer's voice surge, paint enterprises "one world" situation has ceased to exist.
from the end of last year, the paint industry dealers recognition conference, china Merchants Conference, in order to promote new paint products, expand the dealer team to pave the way, the enterprise 18-like martial arts together. Global
Coatings Network
learned that some enterprises in order to attract dealers, to participate in major exhibitions, at great expense in major television stations to advertise to create brand effect, and some enterprises to increase preferential policies, no deposit, decoration subsidies, do not press inventory, and even some small and medium-sized enterprises post money to attract business. Only some well-known paint companies, for dealers still have some hard selection criteria. However, according to the author in the market visit found that the current paint enterprises difficult to form an absolute voice for dealers.
in a variety of exhibitions, conferences and publicity offensive, some enterprises are still ideal investment effect, some enterprises can not make ends meet, gradually appear polarizing effect. Do companies want to take advantage of traditional channels and understand the real needs of dealers? What do dealers care about, do you really know?
the dealer's concerns, enterprises can list a list: capital, quality, brand, price, subsidies, sales, publicity ... It is true that dealers will weigh the advantages of all aspects of the paint enterprise, comprehensive consideration of the problem, but the starting point of all the problems is how to do their business well. Paint enterprises can buy and sell products to dealers, to complete the sales tasks of enterprises. But how do resellers develop and maintain customers? It's something that a lot of paint companies don't think about and don't have the ability to help. Global Coatings Network understands that dealers are not most concerned about the company's policies, management and other factors, but whether they can through cooperation with paint companies to obtain profits. In the commercial society, only the two sides win-win situation, cooperation can be long-term.
the advent of e-commerce, dealers have suffered an unprecedented blow, relying on information asymmetry to make money era is long gone. And the wave of channel flattening and the impact of the new channel force, so that dealers have to think more calmly about survival and development issues, change the trend, in the development strategy to make corresponding adjustments. The author has found in the market research, dealers began to comb their core advantages. In terms of management, the introduction of advanced management systems to ensure the consistency and systematic implementation; In terms of product portfolio, dealers maximize access to superior product resources to share operating costs and operational risks; In terms of brand selection, think more rationally about the market value and rising space of the brand; In terms of business, "walking on multiple legs", engineering, retail, wholesale, e-commerce have begun to wade. All kinds of changes, nothing but want to seize the opportunity in the chaos, rewrite the current paint dealer pattern map.
simply put, dealers want to make money, paint companies can let dealers make money, this is the paint dealers most concerned about the issue, but also the enterprise must clear up the problem. Many paint companies think about various methods, issued a variety of documents, intended to effectively manage dealers. But for dealers, "management" alone is not enough. Enterprises for dealers to focus on the work of guidance, assistance, communication, control four aspects, we must consider how to pull up from the terminal, guide dealers to operate products, assist dealers to establish distribution channels, ensure smooth communication, control dealer operation behavior and other ways, hand in hand to achieve win-win situation.