Township outlets and regional appliance stores are the mainstay

Township outlets and regional appliance stores are the mainstay

With the popularization of the Internet, the impact of e-commerce, and the elimination of logistics bottlenecks, the growth of color TV network purchase channels has been accelerated, and the growth of physical channels has been weak. Under the trend of O2O, the home appliance channel faces transformation and changes. With the saturation of the color TV market and the gradual release of rural market potential, the rural market has broad prospects for color TV companies. It is the main direction for maintaining high-speed development in the future and has the right to speak in the industry. Companies are also actively robbing rural markets. Enhance the construction of channels. The mastery of the overall characteristics of the rural TV channel market has implications for the layout of the rural market.

1. From the perspective of channel scale, township outlets and regional appliance stores are the mainstay

According to AVC data, among the rural market channels, the number of channels for township outlets and regional appliance stores accounted for 86% and 12.5% ​​of the total amount of channels, respectively, which is the main body of rural color TV channels. The proportion of large chains and department stores is not high, which is 0.7% and 0.9% respectively. With the development of e-commerce channels and the continuous sinking of chain channels, as well as the survival of the inferior and the fittest of township outlets, the scale of future rural market channels will be greatly changed.

Second, from the perspective of channel regional distribution, the ratio of channels in the southwest, south central and east China regions is significant.

From the perspective of the proportion of channels in the rural market, the number of channels in the Southwest, South China, and East China accounts for about 70% of the total national channels, with the number of channels in the southwest accounting for the largest proportion, accounting for 23.9%, followed by Central South and East China. , respectively 23.2% and 21.9%. The underdeveloped northwestern and northeastern regions have the lowest share of channels, accounting for 11.1% and 6.7% of the overall channel.

Third, from the channel sales sales point of view, the largest share of regional home appliance stores

According to AVC, rural market channels have the largest sales volume in terms of sales volume, accounting for 64.6% of total sales in the rural market, followed by township outlets, accounting for 16.1%, relative sales volume in department stores and large chain channels. Less, accounting for 9.2% and 10.1, respectively, of the total sales. Rural market channels, from the sales point of view, the overall trend is the same as sales.

However, it is not difficult to find that by comparing the proportion of sales and sales, the average price of department stores, supermarkets, and large chains is higher than that of regional appliance stores and township outlets.

Fourth, from the perspective of channel sales force, the strongest single chain store sales force

Judging from the sales force of the rural market channels, the big chain has the strongest one-store sales force of 3,418 sets a year, department store supermarkets 2,344 sets, and has a high sales capacity. The sales force of the regional home appliance stores is 1139 sets. Although there are a large number of township outlets, they are geographically remote and geographically dispersed. The coverage of the area is not concentrated and the overall sales force is low, about 41 units. However, with the saturation of the urban market, the channels of brand dealers sink, and township terminal outlets are still different in the future. Brands compete for key markets.

With the rapid increase in the consumption capacity of the rural market, large chain and regional chain channels have been sinking deeper, brand owners have developed online and offline simultaneously, competition in the rural TV market has intensified, and the trend of channel integration, branding, and chaining has intensified, impacting on the township network. Great. Township outlets, as the traditional basic channels, face the competitive pattern of elimination of weakers in the color TV market, and urgently need to strengthen the terminal store service capabilities and improve the functional structure to meet the diversification of customer experience and demand and enhance competitiveness.

Ovid Consulting (AVC) analysis is based on the particularity that the rural market has residents' inconvenience and low information transparency, and the color TV channel also has the following characteristics:

First, the operating costs of chain channels in the rural market are high: home appliance chain companies have been arranging rural markets one after another in recent years. However, whether it is a large chain like Gome Suning or a local regional chain, it currently sinks only to the county and does not continue to cover . This phenomenon is due to the fact that channel sinking requires a process on one hand and is still in its initial stage. On the other hand, it is due to the high operating costs of chain channels sinking, low returns, and heavy pressure to sink.

Second, multi-brand and multi-category management is the way to survive: Unlike ordinary agents and specialty stores, agents and specialty stores in the rural market are not only multi-category but also multi-brand management, which also becomes an industry. consensus. Single-brand dealers are difficult to survive in rural markets, and multi-brand and multi-category products have become the mainstream features of rural market channels.

Third, the human content is high, and the consumers re-word of mouth: As far as the relationship chain of color TV sales channels in the rural market is concerned, whether it is between manufacturers and distributors or between distributors and end customers, there is a lot of choices and transactions. Human relations. Due to the serious information asymmetry, the rural consumers' understanding of the brand in addition to using television and other mass media advertising, more from the word of mouth effect, most people will buy products based on the recommendations of friends and relatives.

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