subject: Chinese Home Appliance Chain Behind The Madness "within The Virtual" - Chains, Marketing, [print this page] The reason why impunity Crazy Home appliance chain enterprises to expand lung power crazy what? Crazy expansion of retail enterprises to upstream suppliers they bring? This can not fail to mention these enterprises profitable.
RebateNow more and more people already know, home appliance chain enterprises profit model is quite simple. In fact, these companies do not expect people directly make money, they buy goods from suppliers often sell directly to the bid price, even lower than the bid price sales, book little profit or even losses. That profit come from? Mainly by supplier "rebate." Usually increase the rebate amount was ladder, the more sales, the higher the rebate. Natural than the chain's sales of single detached family businesses high. This is the home appliance chain enterprises dare to low sales reasons. The large-scale comprehensive shopping malls and small-scale distributors are not limited to its price war, so only close down or switch, which led to the rapid sales of home appliances to chain aggregation, which is all home appliance chain profit secret.
ChargesThen, rent, utilities, operating costs are not home appliance chain is "indispensable" the cost of expenses? May not. Because the supplier must pay, such as: into the store fees, Dianqing fees, marketing costs, site costs of using the fees of various sorts. For example, a brand of small household electrical appliances if you want to store in a certain medium and large sales, one year of site use fees at least 5,000 yuan, major appliances are at least 10,000 yuan. This is just the basic cost of a shop for one year, such costs can not guarantee that the brand can get better product placement. Moreover, if a particular brand of products ranked by sales volume after three consecutive months, then home appliance chain enterprises will be mercilessly shelves. Furthermore, the management chain itself very few suppliers to send all Purchasing Guide. Even so, they will be ordered to pay management fees, personnel expenses. It can be said that the cost of home appliance chain enterprises have basically expenditure borne by the supplier.
PaymentHome appliance chain enterprises look to the supplier pay for the goods way. Since 2003, the supplier the amount of the monthly return over one hundred thousand yuan, a Beijing home appliance chain all the way to acceptance bills to pay. That is, they should have closed the end of the money is now guaranteed by the bank, suppliers have to wait 3-6 months to get our hands on, but the money often becomes the supplier of liquidity. Of course, acceptances can honor the month, but that suppliers must pay the cost discount. More seriously, the home appliance chain enterprises often can not even accepted in full payment, a large manufacturer of retail loans owed more than 10 million of the things that occur.
Rebate plus fees, plus money demanding payment, is clearly home appliance chain enterprises dare to low sales prices of capital, but also a few home appliance retail giant is almost unique among the competing tool. However, suppliers have been overwhelmed, "We are retailers workers. Can stand as far as possible put up, I can not stand, only the resistance." Some international brands have been because the money is not in place to stop the supply to the appliance chain.
Moreover, a well-known veterans home appliance manufacturer is a publicly listed chain of "Seven." In addition to these three aspects are talking about, it also includes: do not abide by business rules, set a bad business climate, benefit does not work, indirectly helped the resurgence and prosperity of foreign appliances and so on. While the CEOs in the domestic industry form the most of the pack, but repeated requests of the media in reporting the Disappearance of the name, for fear of incurring retaliation.
Another supplier to the press summary: All phenomena are derived from the retailer's unilateral ideas for contract negotiations between zero entirely retailers have the final say. Either agree to contract; or, withdraw units leave. Retailers can not compromise, because the large number of small dealers have closed down, chain has been formed in fact a monopoly on distribution channels, except a very few international brands, a compromise can only be suppliers.
"Unilateralism" can never win.
Border and ending Analysts are very concerned about two issues: whether such a profitable long-term? Even long-term, it will bring to the appliance industry?
Nature, this high-pressure pattern will bring major brands to re-shuffle, there is no strong enterprises, if not discarded by consumers, retailers will be discarded in advance. However, the resulting profits fall by the manufacturer (eg: Annual Report of the first half of appliance manufacturers reported losses almost across the board, appliance manufacturers often bitter that more than half of retailers here, "credit"), it eventually will affect the technology investment in innovation and product quality improved.
