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"Middlemen" May Disappear in the Future

2021-06-03

In the future, the "middleman" may disappear and be replaced by the service platform!

With the rapid development of manufacturing industry after the reform and opening up, the market of goods is gradually from lack to rich.

But at that time, the Internet and logistics were still in their infancy. If manufacturers wanted to sink into the market, they had to rely on wholesalers to do circulation.

Therefore, in the 1990s, there was a saying that "if you want to do wholesale, you can imagine that wholesale was very profitable at that time.

However, with the rise of Internet and logistics, as well as market overcapacity and serious homogenization, the whole market has been disintermediated.

Manufacturers can sell goods directly through e-commerce, live broadcasting, distribution, shopping and other direct selling modes. In this competitive situation, wholesalers (middlemen) want to survive, must do three changes!

1. Learn platform profit thinking

2. Turn circulation into service

3. Turn selling into empowerment

Every industry is eliminated by the market for a common reason, that is, their value is replaced by new species.

Now manufacturers and terminal operators want to cut off middlemen because today's wholesalers have no value.

Manufacturers can directly sell their products to consumers through e-commerce direct sales, and terminal retailers can also purchase goods through various e-commerce platforms.

Are wholesalers (middlemen) just waiting to die? Of course not. In the future, we can turn wholesale profit margin into platform profit thinking!

This kind of platform thinking is not to build a 2B e-commerce platform like Alibaba, but to have the ability of upstream and downstream integration to help both achieve profits.

For example, in the traditional business model, when wholesalers purchase 50 yuan products from manufacturers, they will directly increase the price by 20 yuan and wholesale them to end customers at the price of 70 yuan.

But in the thinking of platform management, what we need to do is to connect the upstream and downstream. Instead of making profits by price difference, we need to make profits by deduction and service.

We can change the price of 50 yuan from the manufacturer to 60 yuan, so that the manufacturer can earn 10 yuan more. At the same time, we can wholesale the products to the terminal business at the price of 60 yuan, so that the terminal business can spend 10 yuan less.

So where do we make money? For each product sold, 5% - 10% of the manufacturer's deduction will be charged as service fee and storage and transportation fee.

Of course, turning wholesale into a platform is only the first step. The purpose is to accumulate a large number of end customers for more upstream resources.

Then, after accumulating a large number of customers, we should not only help the terminal business preferential supply chain, but also reduce the purchase price. What's more important is to empower terminal business, help them improve their marketing ability and make Internet transformation.

This is because most of the terminal operators will face a serious survival dilemma after the epidemic.

If there is no passenger flow, unable to improve performance, do not know how to do online transformation, this will lead to a large number of terminal business failures.

Therefore, if wholesalers want to survive, they need to turn selling goods into services to help terminal businesses improve their business capabilities.

Under the normalization of the epidemic situation, first of all, it is necessary to enable the offline physical retail stores through the Internet to create online and offline models.

After improving the entity's customer flow through the local service platform (group purchase) and offline customers, new customers can be activated through member marketing, festival marketing, new product activities and tail goods promotion.

At the same time, we can also import the customers who have already made a deal into the community, so as to precipitate the old customers. We can provide benefits (red envelopes, product discounts) and services (new lifestyles, demand solutions) for old customers through the community.

It is to help the terminal turn the seller into an operator, bring vitality to the terminal and enhance the vitality of wholesalers.

In this way, not only the terminal business can't do without dealers (wholesalers), but also the manufacturers can't do without dealers.

Some friends may say that manufacturers can directly skip dealers and terminal operators and sell goods through live broadcast and e-commerce!

In fact, the real e-commerce manufacturers all know that after the traffic bonus sales, most of them are losing money because of the high promotion cost.

It's the same with live broadcasting. Cooperating with KOL (big V), not only the pit fees and deduction points are too high, but also a large number of returns and losses will eventually be caused. Therefore, manufacturers with long-term planning are willing to cooperate with traditional distributors.

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Alston Chen

Mr. Alston Chen

Tel:86-769-18902616250

Fax:86-769-88285668

Mobile Phone:+8618902616250Contact me with Whatsapp

Email:sales02@chuanghuisew.com

Address:26-28 Zhenglu south, chuancha village, Machong Town, Dongguan City, Guangdong Province., Dongguan, Guangdong

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