Today, we take online education as an example to dismantle how to build a channel distribution system to solve the problems that everyone can't understand, learn, or do about channel sales.
1. The essence of channel distribution
1) Channel is a channel choice for enterprises to quickly deliver products and services to end customers.
A value-added chain consisting of a number of independent and interdependent organizations, the value-added of products and services through the channel becomes more attractive, so that the end user can receive it satisfactorily.
2) Which is better between direct sales and channel distribution?
I know that many of our business owners and entrepreneurs have a particular problem when thinking about whether to establish a channel system: whether to build a channel or not, and what is the difference between a channel and direct sales?
What I want to emphasize is not to use channels for the sake of channels, but to choose a method that can attract more users, maximize cost and efficiency, and balance resources among different marketing strategies. In addition, when doing a channel, you need to figure out whether it is your main line or auxiliary line, and what position it occupies.
3) Let's learn about Zhou Hei Ya and Jue Wei Ya Neck together. Duck neck has changed from a local snack to a casual snack. Maybe you are a loyal duck neck lover like me. Even if you don’t like duck neck, I believe you are familiar with the two brands Juewei and Zhou Hei Ya.
I know that many project parties have always been skeptical about channel construction. They will feel that the operation method similar to the franchise chain is backward productivity. It is difficult to generalize the operation of the business model. What enterprises need to do is to find the best solution in business. , taking into account both growth and efficiency.
Juewei and Zhou Heiya have chosen completely different business models because of the differences in the founders' personalities, personalities, abilities and preferences. Zhou Hei Ya also did the franchise model a long time ago, but because they were all relatives in the family, there were some problems, so they gave up this model later. It was difficult to do franchise well, so they chose direct sales. Gather in first- and second-tier cities.
Juewei clarified the idea of franchising early on. The central factory produces production and the cold chain is distributed in a unified manner. Marketing is highly promoted. Storefronts are spread all over the third- and fourth-tier cities. The cheap price is enough to attract consumers. The road that surrounds the city.
By the end of 2019, the number of Juewei’s stores exceeded 11,000, and 90% of them were franchises, while the number of Juewei’s stores was only about 1/12. According to Zhou Heiya’s 2019 annual report, the company’s revenue was 3.186 billion yuan, and its net profit attributable to its mother was 407 million yuan. Yuan, a year-on-year decrease of 0.79% and 24.56% respectively. Zhou Hei Ya's performance has dropped for two consecutive years, but Juewei has been making steady progress.
The data shows that more than half of Juewei's orders come from online. Duck necks are casual snacks. Users take out their mobile phones while watching TV shows and movies at home. There are consumption scenarios for placing orders on Ele.me and Meituan. Under normal circumstances The delivery distance for takeaway is about 3 kilometers, which highlights the advantage telemarketing list of Juewei in the number of offline stores.
The scale itself will further create advantages. According to the analysis of Ping An Securities, Juewei has acquired more than 30% of the duck necks in the country, and has the largest market share in China. This gives it full bargaining power in purchasing, and the cost of raw materials is only 82% of Zhou Hei Ya.
As early as 2013, Juewei has reached out to the upstream of the industry chain, and has taken 28% of the equity of Saifeia, a company listed on the New Third Board and a large-scale meat duck industry chain enterprise. Juewei supports the entire channel sales network through the control of the entire industry chain and standardized operation methods.
At the beginning of 2020, Zhou Heiya, who was in Wuhan, temporarily closed 1,000 stores due to the new crown epidemic. At the same time, Juewei's stores will need to expand to 22,000 to achieve saturation. In other words, Juewei may grow by another 100%. On the other hand, Zhou Hei Ya only had 13 net new stores in 2019, which is close to the limit.