Trends in distribution methods and management models for industrial products

First, the distribution channel is diversified development trend

From a global perspective, with the rise of e-commerce, the flattening of vendor channel management, contractual relationship diversification and professional development of distribution services, making the traditional distribution model has undergone major changes, the traditional distribution of industrial products in the flow of funds, information flow and logistics conversion relationship is no longer unified, professional logistics and distribution services, professional market information business providers in the rise, the distribution sector In the past, the single flow of funds has been diversified, and the role of distribution services and profit distribution has been gradually increased, i.e., the diversification of distribution channel members. The business model of intermediary product distributors is also developing in an innovative way, and the single product distribution in the past has been broken down into diversified changes such as license distribution, brand distribution, channel distribution, value-added distribution and even virtual production. Distribution link has not only limited to play the role of product circulation transmission, and to value-added creation link derivatives.

Currently China's industrial distribution channels, has changed from the traditional three procurement and vertical supply channels into a diversified development of network channels, and this trend will continue to develop. Such as the traditional direct channels and indirect channels to distinguish between direct sales to employees, B-B network direct sales, telemarketing, information mail and enterprises set up their own distribution agencies and offices, such as direct sales are constantly innovating the trend of development, through the intermediate distributor sales of indirect channels are also divided into wholesalers, agents, retailers, dealers, import and export traders in international trade, and so on. A variety of channels by the intersection of each other, coupled with different modes of operation, such as chain, franchise, etc., resulting in the development of distribution channels and the trend of derivation of more and more complex. This is also due to the law of market economy, all manufacturers, intermediaries are constantly innovating, seeking and tapping new channels. Therefore, the market mechanism-oriented and diversified development of distribution channels make manufacturers and distributors to choose what kind of distribution model has become one of the core issues, because the effectiveness of the channel ultimately comes down to the embodiment of the model.

Second, the rise of the Internet

The rapid development and popularization of the Internet, the transmission capacity and speed of information and the use of information has undergone a revolutionary change. People through the computer telecommunication network for trade has become possible, a network as a platform for the new trade era has come. Global online trade turnover, only 2.3 billion U.S. dollars in 1996, to 1999 only B2B transactions reached 43 billion U.S. dollars or so, see its development speed is very fast.

Compared with the traditional way of trade, the network trade has the following several obvious characteristics, (1) information is more “full”, between enterprises and enterprises with the increase in cooperation opportunities between users; (2) the trend of virtualization of commodity trading to enhance; (3) the transaction of low-cost; (4) the transaction of fast.

We can be sure that the information technology-based network trade will lead to revolutionary changes in traditional trade. Traditional enterprises engaged in the distribution of industrial products must face up to this change, change or expand the content of the provision of distribution services, enhance the enterprise's business management, set up a new distribution services concept - that is, the innovative use of new distribution model. In the specific choice of distribution model, the need to establish information technology management platform, expand the Internet-based e-commerce distribution channels, is the product distribution more quickly, faster, lower cost, in the distribution model to gain a competitive advantage.

For channel intermediaries, the continuous development of network technology means that the B-B network of direct sales on its living space has formed an unprecedented impact. Producers to take this way because: (1) the cost of the manufacturer's own sales than the cost of selling products through intermediaries. For example, the manufacturer's customers in the region is concentrated, or the existence of a large number of customers to buy, manufacturers generally tend to direct sales; on the contrary, may consider the channel intermediary distribution. (2) producers out of control of the sales side of the enterprise, to master the initiative to consider. Some manufacturers, there is no good channel intermediaries into a strategic collaborative partnership, or due to the specificity of the product needs to take control of the enterprise sales, generally tend to take their own sales offices, manufacturers of direct sales. (3) There is no suitable intermediary to provide services. For some industrial production enterprises, due to geographical isolation, the production of industrial products have special characteristics, products need to be customized, or customers of the product in the installation, use and operation of special requirements and other aspects of the reasons, so that manufacturers can not find suitable intermediaries to provide distribution services, then such enterprises will have to build their own direct sales network. This shift to the new trend of network marketing changes in the original channel intermediaries is undoubtedly a major challenge.