Materials channel- take K - A or do the traditional.doc

 PAGE \* MERGEFORMAT 6 Materials channel: take K / A or do the traditional G is a global multinational company has a long history, is the production of construction materials within the partition series of professional manufacturer in the world has more than 100 factories. Among them, investment in factories in China, sold mainly through the following channels: ① traditional channels: the wholesale and retail-based network of distributors (mostly in the traditional building materials market) and to direct the project-based dealer; ② K / A channels: warehouse building materials supermarkets. Let’s take a look at some of G’s 2003 sales data: G’s turnover in 2003 as a whole than in 2002, an increase of 30%, while K / A channels, an increase of up to 58%; 2003 K / A channels, the figure was operating the amount of less than 5%, but the unit cost of sales K / A channels are 3.5 times the traditional channels. This figure allow the company overseas colleagues perplexed and frustrated to know that in the West, G Company K / A channels, the figure was the proportion of turnover exceeding 60%. Why do the same K / A channels, in China and the West, the proportion of turnover would make such a big difference? What building materials should be chosen K / A channels, or traditional channels? Choice based on what is it? K / A channel of more building materials is to meet a large number of individual consumer demand. Warehouse-type building materials supermarkets originated in Western countries, largely to meet the Westerners ‘DIY - it-yourself’ way of life brought about by the demand. In the past three years, more than 20 million Germans to re-transform their homes, 40 million people in 2004 and plan to modify their own homes, of which 70% of the person intends to yourself. Civil and domestic building materials market demand is enormous. In fact, the building and furnishing materials in the West has become a personal consumer products, building materials, free lectures