Auto Parts Dealers Recognize These 7 Points So That They Are Not Easily Eliminated!
2023-03-31
Information dissemination allows everyone, our competitors, and our customers to keep pace with the speed at which they master information. If we rely on information asymmetry to "eat" again, it may be very difficult for us.
Many dealers started operating more than ten years ago, twenty years ago, and even thirty years ago, in the late 1980s. At that time, the operating environment was no longer comparable to the current operating environment. Nowadays, the business environment faced by dealers has undergone tremendous changes. To be realistic, the current situation of dealers is very difficult, even more difficult than that of manufacturers.
"Polarization" under fierce competition
"Polarization" under fierce competition. Let's think about it. How is the development of the so-called "relatively good" local dealers today? In the past, Niu's dealers, like the big merchants and provincial agents of the past, have a look at their level today?
Many dealers will definitely walk out of the path of polarization: some will rely on the power of the platform and do very well because they have a team; If some of them are still simple delivery and credit sales, they will soon degenerate if they go down.
The reason why they will take two different paths is also because these dealers have two different characteristics:
Part of it is that they have their own business ideas, even have deep cooperation with manufacturers, and have the advantage of a team. If they grasp this point well and make a rapid transformation, they can do a good job; The other part is the traditional delivery of goods, which involves several vehicles and several people, constantly circling the market every ten and a half days and months. The so-called "salesperson" is simply a delivery clerk who has no ability to do business. The business is done by the boss. Continuing this practice, even if the customer continues to sell on credit, they will have to pull back a few large vehicles when they ask for accounts at the end of the year. If the dealer continues this approach, it will soon fail. This is also the situation faced by traditional distributors now.
Information Symmetry and Asymmetry
The pressure we face now as terminals is information symmetry. Small terminals are constantly decreasing; When medium-sized or large terminals grow, we don't know how to deal with them.
Several stages of the development of Chinese distributors. The first stage relies on courage and seizing opportunities. If others dare not go to sea, I will go to sea; "If others dare not do anything, I will do it, and the result will be.". The second stage relies on information asymmetry.
The emergence of the Internet has basically completely eliminated information asymmetry. People who used to make money from information asymmetry will find it difficult to move forward. You will find that the speed of information dissemination on the Internet is extraordinary. I said that the Internet did not spread much knowledge, but it spread a lot of information. Information dissemination allows everyone, our competitors, and our customers to keep pace with the speed at which they master information. If we rely on information asymmetry to "eat" again, it may be very difficult for us.
But everyone should remember that although the Internet can eliminate information asymmetry, it cannot eliminate knowledge asymmetry. In the past, "eating" depended on information, while in the future, "eating" depended on knowledge. Some people say, "It's never too old to learn." I tell everyone that only when you learn, can you live forever. The renewal of knowledge is the source of our life. Without the updating of knowledge, although we are still alive, we are actually dead and cannot keep up with the development of the times.
Channel sinking
The third point is very important: the channel sinks. I can realistically say that most dealers are experiencing a stage of "making things harder and harder" because the channels have become shorter. "Channels are becoming shorter, which is a trend that none of us can stop.". Today's small stores are likely to bypass distributors and cooperate directly with manufacturers.
Service improvement
Fourth, service improvement. The service is becoming increasingly difficult, and it really needs to be improved. The difficulty of service is whether the service level we provide when facing terminal stores is higher than that of internet e-commerce platforms? Whether the service level can be high is the difficulty we are facing.
Reduced profits
The current operating environment is characterized by lower profits. There is no doubt that the more fierce the competition in all industries, the more mature the industry, the lower the profits. We can no longer buy a product for three yuan and sell it for ten yuan, as we did 30 years ago; Now, it's likely that they bought it for ten yuan and sold it for eleven or two. As for the extreme degree of profit competition, it is not that the product itself has no profit, but that the business model has undergone significant changes.
Enrichment effect
Some good employees run for good companies, good distributors follow good companies, and poor distributors follow poor companies. This is called the enrichment effect, which means that the good is getting better and better.
Demand differentiation
Attention everyone, the most important manifestation of demand differentiation is: some only need the cheapest products, and other manufacturers do not care about anything. I (the dealer) can do everything, and you (the manufacturer) can provide me with the cheapest products; Some people are dismissive of their products. Your (manufacturer) service level is good, and I (dealer) deal with you, but my service level is not good, so I don't deal with them. The differentiation of demand has gradually begun to take place, so our business also needs to face different customers and take different measures.
Many dealers started operating more than ten years ago, twenty years ago, and even thirty years ago, in the late 1980s. At that time, the operating environment was no longer comparable to the current operating environment. Nowadays, the business environment faced by dealers has undergone tremendous changes. To be realistic, the current situation of dealers is very difficult, even more difficult than that of manufacturers.
"Polarization" under fierce competition
"Polarization" under fierce competition. Let's think about it. How is the development of the so-called "relatively good" local dealers today? In the past, Niu's dealers, like the big merchants and provincial agents of the past, have a look at their level today?
Many dealers will definitely walk out of the path of polarization: some will rely on the power of the platform and do very well because they have a team; If some of them are still simple delivery and credit sales, they will soon degenerate if they go down.
The reason why they will take two different paths is also because these dealers have two different characteristics:
Part of it is that they have their own business ideas, even have deep cooperation with manufacturers, and have the advantage of a team. If they grasp this point well and make a rapid transformation, they can do a good job; The other part is the traditional delivery of goods, which involves several vehicles and several people, constantly circling the market every ten and a half days and months. The so-called "salesperson" is simply a delivery clerk who has no ability to do business. The business is done by the boss. Continuing this practice, even if the customer continues to sell on credit, they will have to pull back a few large vehicles when they ask for accounts at the end of the year. If the dealer continues this approach, it will soon fail. This is also the situation faced by traditional distributors now.
Information Symmetry and Asymmetry
The pressure we face now as terminals is information symmetry. Small terminals are constantly decreasing; When medium-sized or large terminals grow, we don't know how to deal with them.
Several stages of the development of Chinese distributors. The first stage relies on courage and seizing opportunities. If others dare not go to sea, I will go to sea; "If others dare not do anything, I will do it, and the result will be.". The second stage relies on information asymmetry.
The emergence of the Internet has basically completely eliminated information asymmetry. People who used to make money from information asymmetry will find it difficult to move forward. You will find that the speed of information dissemination on the Internet is extraordinary. I said that the Internet did not spread much knowledge, but it spread a lot of information. Information dissemination allows everyone, our competitors, and our customers to keep pace with the speed at which they master information. If we rely on information asymmetry to "eat" again, it may be very difficult for us.
But everyone should remember that although the Internet can eliminate information asymmetry, it cannot eliminate knowledge asymmetry. In the past, "eating" depended on information, while in the future, "eating" depended on knowledge. Some people say, "It's never too old to learn." I tell everyone that only when you learn, can you live forever. The renewal of knowledge is the source of our life. Without the updating of knowledge, although we are still alive, we are actually dead and cannot keep up with the development of the times.
Channel sinking
The third point is very important: the channel sinks. I can realistically say that most dealers are experiencing a stage of "making things harder and harder" because the channels have become shorter. "Channels are becoming shorter, which is a trend that none of us can stop.". Today's small stores are likely to bypass distributors and cooperate directly with manufacturers.
Service improvement
Fourth, service improvement. The service is becoming increasingly difficult, and it really needs to be improved. The difficulty of service is whether the service level we provide when facing terminal stores is higher than that of internet e-commerce platforms? Whether the service level can be high is the difficulty we are facing.
Reduced profits
The current operating environment is characterized by lower profits. There is no doubt that the more fierce the competition in all industries, the more mature the industry, the lower the profits. We can no longer buy a product for three yuan and sell it for ten yuan, as we did 30 years ago; Now, it's likely that they bought it for ten yuan and sold it for eleven or two. As for the extreme degree of profit competition, it is not that the product itself has no profit, but that the business model has undergone significant changes.
Enrichment effect
Some good employees run for good companies, good distributors follow good companies, and poor distributors follow poor companies. This is called the enrichment effect, which means that the good is getting better and better.
Demand differentiation
Attention everyone, the most important manifestation of demand differentiation is: some only need the cheapest products, and other manufacturers do not care about anything. I (the dealer) can do everything, and you (the manufacturer) can provide me with the cheapest products; Some people are dismissive of their products. Your (manufacturer) service level is good, and I (dealer) deal with you, but my service level is not good, so I don't deal with them. The differentiation of demand has gradually begun to take place, so our business also needs to face different customers and take different measures.
Previous:No News
