Dongguan tool distribution difficulties and solutions
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When talking about the issue of honesty, Huang Jianqing told the reporter very sincerely, "German Walter has 100 pieces of knives, then a box is one thousand. Walter knives produced by Wuxi, dealers take a piece of 40-50 yuan, if Mixing 3 pieces of Wuxi Walter's three knives into Walter, Germany, you can earn more than 100 pieces in one box. But what kind of goods we usually sell will not be adulterated. If adulterated, the customer will It is easy to lose.†Guaranteeing product quality is undoubtedly the basic requirement of consumers for businesses. It is the best way for enterprise managers to maintain customers and spread their reputation by restraining the temptation of immediate interests and maintaining their own reputation and image. Case 2: Dongguan Jingtian Precision Hardware Tools Co., Ltd. is a comprehensive enterprise that acts as both an agent and a manufacturer in Jinming Hardware City. By mid-September, it has completed 80% of the annual target. Jingtian Company mainly deals with thread cutting tools. At the same time as Taiwan's TOSG, Japan YAMAWA and OSG three well-known tap brands, there are also factories producing extrusion wire attack and various special non-standard wire attacks. The products are mainly used in the electronics industry. From a small business with a registered capital of only 500,000 in 2009, in just over two years, this year's turnover has reached more than 8 million yuan, which is a rapid development. Curious, we asked the secret recipe of Ida. Sales engineer Huang Yuewen told reporters, "Our products are more specific, and the main sales staff know more about the application technology of the products. The old customers are very happy that we help them solve some simple technical problems and introduce some new customers to us. After-sales service is the key to the customer's extra points. Selling knives must understand the knife. If you help the factory solve some tool application technical problems, they will trust you and bring you new customers. At the same time, the sales staff has mastered more application technologies in the service practice for customers. In the harsh market environment, companies that are still well-versed are often those with application technology. Large enterprises with a certain reputation have already established training mechanisms for relevant talents. Sumitomo and Yujie's first-level agents said that the head office will have 4-5 agent technical trainings per year; Taiwan's Zhengheyuan, which sells 200 million yuan a year, also said that every employee of Zhengheyuan has systematic technology before taking up the post. Training. Case 3: Wenxiang CNC Tool Company is one of the well-known dealer brands in Dongguan. It mainly deals with domestic and foreign brands such as AIA, MJ, GDK, STK, Sumitomo and Swiss “Lininaâ€. Wenxiang, who has always been "the best tool supplier in China", has a good reputation in the industry. In addition, Wenxiang is also investing in the Dongguan area, and is working hard to own the brand. General Manager Zeng Yusheng told reporters that the company's annual sales last year was 28 million yuan, and this year's sales target was 46 million. By the middle of September, it had completed 36 million, accounting for 80% of the annual target. In addition to Wenxiang, other well-known dealer brands in Dongguan, Shangjia, Guangfu, Guanglong, etc., also received good returns due to their own brand effects. In retrospect, the longest remaining in the market is always a branded company, not an anonymous manufacturing company. Even with the same quality and the same price, customers are more willing to choose a branded company. In the eyes of customers, the brand is a guarantee of quality and a symbol of high added value. However, behind the achievement of the brand, these companies have also worked hard. When talking with Zeng Zong, the reporter learned that Wenxiang’s corporate culture, management mechanism, employee training, and even dozens of direct-operated stores are not testing the wisdom and persistence of corporate managers. The above-mentioned successful distribution cases have given constructive experience in three aspects of quality, application technology and brand building, respectively, compared with the dilemma of the distribution companies mentioned above. However, the fundamental problem of dealers in Dongguan still exists. Why are foreign brand tools more popular? Why is the sales of domestic products blocked? As a window of the tool industry, Dongguan dealers have responded to the market with many problems in Chinese tool manufacturers. In order to explore the essence of this phenomenon, the reporter interviewed Shen Zhuangxing, honorary chairman of the Tool Tool Branch of China Machine Tool Association. During the interview, we learned an equally astonishing fact. The member companies of the China Machine Tool & Tool Industry Association Tool Branch have a clear overall situation this year, with orders increasing by about 25% year-on-year. According to Shen Lao, most of the member companies here are domestic large-scale tool enterprises, such as Zhun Drilling, Shanggong, Haliang, Chengliang, Arnold, Shaanxi Hard and other brand enterprises, as well as a small number of relatively small and medium-sized enterprises. Moreover, such large enterprises as Sandvik and Iskar have not felt the fluctuation of the market until now, and have not felt the order reduction. Faced with this phenomenon, Shen Lao stressed that “the survival of the fittest is the fundamental law in today's market economy, and our tool industry is in need of advocating this rule.†The means of defeating competitors with low cost advantage is no longer to survive. The mainstream of development. Tool companies that continue to take the low-end route often cannot withstand a big market shock. Under the market environment of rising raw materials prices, RMB appreciation, and credit crunch this year, these enterprises first became targets. To adapt to changes in market development and gain a foothold in the economic turmoil, these tool companies must learn to explore the market trends and new consumer demands. From the foreign tool sales, we seem to see a little bit of a sign. According to statistics, in the composition ratio of China's tool market, the share of high-end products has increased from about 10% a decade ago to about 40% at present, and the growth rate is very fast. As the development continues, high-end tools will soon Become the mainstream and new competition point of China's tool market. In this regard, Shen Lao repeatedly pointed out in the conversation that “the structural transformation of domestically produced tools is our most worrying issue.†It is worth pointing out that there are still a large number of tool companies in China that are slow to respond to changes in this market structure and are satisfied with the current situation. The domestic medium and low-end tools still have a certain market space, and have not taken necessary measures to adapt to the new situation of market development. The emergence of the difficulties in the distribution of Dongguan may make some enterprises wake up: the business strategy of restoring the status quo and stopping the production of low-end products will undoubtedly greatly increase the risk of enterprise development. How is the right strategic deployment of the market? 1. Domestic key tool enterprises and qualified tool enterprises should regard modern high-efficiency tools as the main direction of the “Twelfth Five-Year Plan†strategy, and catch up with the development needs. Otherwise, they will lose their dominance over the domestic tool market, and the consequences will be very serious. . Shen Lao said that at present, large state-owned enterprises are in the process of transformation. Due to various factors, transformation is a relatively slow process. The transformation is based on innovation. The research and development of advanced technologies and the cultivation of professional talents are worthy of serious attention from these tool companies. 2. By combining national conditions and comparative advantage analysis, the production of traditional general-purpose knives in China still has a large market share. However, there are many enterprises competing for this cake. Under the premise of strictly controlling the total amount, these enterprises can enrich their varieties and improve their products. Quality and intensified services make a fuss about it. In the process of production and application, we gradually move closer to modern and efficient tools. At the same time, we must also pay attention to the construction of the brand, establish market reputation, and enhance the corporate image. In this way, it can maintain the domestic market share, but also gradually enter the middle and high-end market. It is worth mentioning here that Dongguan Harmony Cutting Tools Co., Ltd. is a comprehensive trade and production compatible enterprise. The original wholesale distribution model can't make the company grow in the bad low-price competition market, but resolutely turn To do terminal, service, and plan. Harmony general manager Wen Jianmeng deeply felt, "If you want to be a brand, you still have to go to the terminal. The terminal is to use the customer, and his series of requirements for you will make your product better." 60% of Harmony's products are self-produced and are moving at a new product every year. In the past two months, some of Hamoni's old customers have reduced their demand. However, because of the wide range of markets, the impact is small. Looking forward to the tool market during the “Twelfth Five-Year Plan†period, the global trend is growing at a rate of 3%-5%, while China is expected to be faster and faster than the global average growth rate of three times (ie 10%-15%). development of. In the face of this rare and promising development opportunity, we must not look at foreign enterprises and large-scale enterprises. China's vast number of small and medium-sized enterprises should also take part in it and adopt various strategies to actively compete for this cake. I hope that in the near future, we can see the prosperity of Chinese tool companies, especially small and medium-sized enterprises, from the window of Dongguan.