The Shoe Retailer Has A Decline In Channel, And The Shoe Brand Is Looking For A Market For Him.

Discounts, promotions, enclosure, expansion and e-commerce seem to have become.

The main contents of retail.

With the gradual saturation of the second tier market and the strong entry of international brands, the price war is becoming more and more white hot. The intensity of discount sales has also risen, resulting in a decline in the sales performance of many brands and a decline in profitability.

At the same time, rising prices and insufficient consumption capacity have led to the phenomenon of no discount and no sales of brands.

For a domestic market with 9 million 600 thousand square kilometers and 1 billion 300 million consumers, discount sales should not become the main form of competition. However, this has become a fact and has made many brands difficult.

Facing the competitive pressure of a second tier market, why can't we sink in the channel and explore the blue ocean?

It is understood that the retail price of XF brand in Shenzhen is between 899-1099, and the selling price is about 50 percent off after the listing. In some inland markets, the retail price is 699-899, and the lowest paction price is no less than 20 percent off.

In contrast, the inland market is more profitable than Shenzhen's first-rate market.

Channel sinking is a strategy to avoid close combat. Rural encircling cities can also be successful. China has many undeveloped markets, and the potential consumption power can not be ignored.

In another way, we may be able to get out of a different way. Success is not imitation, but avoiding failure.

We can't sink in order to sink.

Channel sinking is a way of market segmentation and intensive farming. The core of the marketing promotion is the gradual strengthening of brand sales control.

Channel sinking requires enterprises to have good management mechanism, such as sales force, marketing system, financial system, storage and pportation system, customer service system, etc.

Channel subsidence is based on market segmentation. China has a vast territory. The county-level cities in the southeastern coastal areas may be more developed than the capital cities in the northwest. How to segment the market? There are great differences in local customs, market competition, channel structure and so on. How can we segment them? The market segmentation is not scientific. The sink of the channel must be a mistake.

In recent years, BELLE has paid more attention to channel sinking.

According to the 2011 financial report, in 2011, BELLE continued to maintain a relatively fast start shop schedule, and opened 1958 stores throughout the year, up 23.6% from 8312 at the end of 2010, more than expected at the beginning of the year.

The reason for BELLE's analysis is: the expansion and penetration speed of department stores is fast, expanding the three line city market as well as the suburban and community market of the central city.

It is understood that at present, nearly 20% of BELLE's shops are distributed in low-level cities.

"At present, the development of BELLE in the two or three tier cities is still at a stage of development. Compared with its strong position in the first tier cities, the gap between the two or three tier cities and their competitors is relatively small, which makes the competitive position of the competition facing a loss threat.

In addition, the purchasing power of the two or three tier cities is relatively weaker than that of the first tier cities, which will slow down their growth to a certain extent, but this will not affect the good development trend of BELLE in the future, and its development prospects can be expected.

Du Yanhong, a retail researcher at CIC, said.

In addition, the sinking of the channel will touch the nerves of the channel providers and intensify the contradiction between the manufacturers.

Channel mechanism is the power pmission belt of marketing, and scientific and reasonable design is suitable for its own channel pmission mechanism.

Channel sink, what thing?

It can be understood as the marketing behavior that the enterprise further penetrates the sales channel to the consumer terminal in order to expand the sales market.

It can include two routes: first, flat sales, cancel too many turnover links, directly close to the terminal; second, the sales network will be deepened, extending from the second tier cities to directly facing the three or four line cities and the vast rural areas.

It's not just channels that need to sink.

"Can the sales be good if the channel is paved?" the rapid development of the three or four tier market has made "channel sinking" a hot topic nowadays.

However, channel sinking can not turn the entire marketing system into a unilateral channel adjustment, and should also do well in marketing subsidence and product subsidence.

While the channel is sinking, we should adjust the management structure of the marketing system in time to adapt to the implementation of the targeted marketing plan in the regional market after the channel sink.

In addition, enterprises need to pay attention to SURVEY (feedback) of terminal personnel, advocate, encourage or require branch offices, agents, distributors and so on to undertake more market research work. Besides proposing marketing suggestions to enterprises, they should also participate in the work of product production.

The response to the market will be spread from short-term sales promotion, medium term marketing behavior to product production and even design.

Only in this way can we really go deep into the three or four tier market and create an excellent marketing system in the vast country of China.