The Present Situation Of Shoe Industry Distribution Mode In China

At present, the development of the sales channel of China's footwear industry has taken the stage of pformation from the factory leading stage, the distributor leading stage to the consumer centered, diversified marketing channel and the benefit oriented direction.

According to statistics, in order to expand the brand market, reduce costs and shorten the front line, more than 90% of the sales channels of large and medium-sized footwear enterprises adopt "self marketing + distribution".

As the main distributor of distribution, the majority of distributors are responsible for distribution.

In 90s, the supply and demand relationship of the market was still oversupplied, the products were relatively scarce, the market competition was relatively low, the profit space was relatively high and stable, and the dealer's pronoun was almost equivalent to the high profit.

However, with the coming of the "meager profit era", the shortage of distributors in efficiency, cost and controllability is becoming increasingly prominent. The channel efficiency and channel status are disjointed with enterprises.

The development trend of traditional dealers is not optimistic.

Since 1990s, the vast number of distributors has become the main force in China's shoe market. However, with the intensification of market competition, the decline of unit sales profits and the continuous expansion of sales network, the traditional distribution mode is also facing unprecedented pressure.

1, reduce profit margins and increase operating risks.

Many agents complain that the market is becoming more and more difficult to do now, and the hard work has found that the value of the actual profit is far from the expectation.

This leads to the change of agents' investment and operation, at the same time carrying out different types of product agents, such as dealers at the same time acting on different types of products for multi-directional operation, footwear, health care products, clothing and toys, and so on. The idea of increasing interest rates through multiple product lines is often done by a large number of salesmen, but the profitability is very low. Many dealers are heavily indebted, resulting in a vicious circle that can neither increase the interest rate nor make the market share of the principal agent brand regional decline sharply.

2, the distribution system is incomplete and the sales channels are lengthy.

Slow market reaction ability, low loyalty and low credit; there are different levels of speculative, utilitarian and short term; the quality and ability of their own management and management are uneven, the quality of marketing network varies greatly, and there is a lack of unified layout; sales channels are complex; there are channels for shopping malls distribution, chain monopolization, regional general agents, and wholesale of two levels, but there is a lack of organic links among various channels, and the market maintenance ability is weak.

3, manufacturers lack trust, and the contradiction between development and controllability intensifies.

The starting point of market operation of traditional distributors is to pursue short-term profits and maximize profits and achieve more profits in the shortest possible time; and the starting point of the company's operation is to pursue long-term benefits and brand sustainable development, so as to maximize the social benefits of the brand and devalue the brand value.

The big difference between the different starting points is the main gap that affects the cooperation of manufacturers. If the connection is not proper, it will cause the dealer's resistance to the company's decision-making and the arbitrariness of the execution process. The complaints about the company's products, logistics and policies are increasing day by day, and the trust degree of the company and the brand will also weaken.

At the same time, some dealers are eager to have new market expansion space and redevelopment platform after a period of operation. This is a new contradiction with the controllability of the network, which is also an important reason for many dealers to turn to investment.

4, the organization structure is single, and the marketing concept is lagging behind.

Traditional agents take the source organization and logistics links as the primary responsibility, and reflect more functions of product organization and distribution in function.

Pay more attention to the competitiveness of competitors and products, and rarely understand the real needs of the target customers.

Dealers are separated from the essence of their existence (the function of the market). In the form of expression, many dealers with large operating space often fail to establish effective human resource allocation and system organization structure according to the characteristics of market diversification, differentiation and functionalization. The traditional organizational structure mode is agent management + shop manager execution + distribution of purchasing agents.

This extensive management mode has been very difficult to stand out in the management of the homogenized competitive market. The biggest drawback is that agents can not take account of many links such as "finance, logistics, market research, maintenance, information collection, collation, promotion" and so on. Integrated marketing is very weak, and at the end, it is exhausted physically and mentally, but the market efficiency can not be improved rapidly, and the operating space is shrinking.

5, the market positioning of enterprises is fuzzy, and subsequent support is not enough.

At the same time, many shoemaking enterprises have been carrying out the banner of "brand", especially the high-end brands. In the target market of brand positioning, they have found that the market threshold is constantly increasing and the pressure of competition is expanding rapidly. In order to relieve pressure and maintain the steady growth of profit point, many brands have adopted the "roundabout tactic" - the two tier and three tier market of the army, and carry out deep distribution, with the depth distribution of the brand's market positioning dislocation and the extension of management front, and then bring a series of problems: product line is too long, consumer groups are decentralized, management difficulty is increased, management difficulty is increased, and logistics efficiency is reduced. As we all know, the shoemaking industry is a labor-intensive industry. Facing the mass consumption as the main consumption feature, the consumption market has both breadth and breadth.

Among them, because the management front is too long, the subsequent support for agents is significantly reduced. In the market guidance, product organization, store construction, management standardization, business training, regional market promotion planning, market planning, and other aspects, agents can not fully support, and two or three agents can not support the operation for a long time.

At the same time, the enthusiasm of the first class dealers will be greatly dampened.