Dealers growing quagmire and the transformation of the Road.docVIP

 PAGE \* MERGEFORMAT 16 Dealers growing quagmire and the transformation of the Road Double clip force, distributors, highlights the plight of the three major From a macro point of view to examine, distributors of this group are basically at a major structural change process, generated a lot of polarization, a group of gradually withdrawing from, a group of rapid growth. This change also reflects the entire distribution industry, especially the plight of dealer groups, this dilemma is not only to survive in nature, but also fundamental problems, the industry is differentiated external manifestation of this dilemma. Specifically, the plight of dealers manifested in three areas: First, the upstream industry consolidation led to inadequate water supply. Channel upstream sector enterprises are in the event of industry consolidation, fewer and fewer are available brand agent, now that the brand dealer robbed of this phenomenon is the cause. With the integration of the upstream ‘gates of fire, adverse impacts to fish’, some also being squeezed out of the corresponding circulation, almost every manufacturer has a large number of dealers, when tragedies suffered. The upper reaches of the manufacturer is like water, water will inevitably lead to downstream distributors to reduce the re-shuffle. Second, the whole industry have taken place in lower margins. This feature of our domestic market as a whole has a relationship: First, each area has a large number of suppliers, manufacturers were squeezed in a small market space, the overall market oversupply. The Chinese companies lack core technology, do not have a competitive advantage power, their basic forms of competition can only be taken by the scale of price competition. While many industries in this price war, the situation appears, it reduces the margins of manufacturers will inevitably lead to its dealers to be pressed. Second, the gross margin decline in retail sales, another reason is the rise of oligarchs. Re