Merchant Select the golden partner.doc

 PAGE \* MERGEFORMAT 8 Merchant Select the ‘golden partner’ Dealers select new products, in addition to considering whether there is a selling point of the product, we must also think of their own product mix issues. Distribution of several products, which products are ‘profit’, which products are ‘weapons’. Three different features of the brand The level of gross profit under the distribution, fast moving consumer goods can be roughly divided into three categories, we might call first-line brands, respectively, second-tier brands and third-line brands. First-line brands include a number of international-class brands such as Coca-Cola, Pepsi, Unilever, Nestle, Dove, etc.; also includes some domestic well-known brands such as Wahaha, uniform, Master and so on. In general, the first-line brand, return on investment is not high, commonly ‘6 1 ‘or ‘7 a’ profit model, that 6% to 7% of the distribution margin, 1% of the annual rebate, the highest gross margin in general distribution at 11% or less, and usually on the non-return policies. Deducting the cost of storage and distribution, staff salaries, costs, losses and taxes, the net profit depleted. However, the first-line brand has many advantages: first-line brand has a strong brand support, product sold, the factory also provides maintenance of the huge ranks of end markets, dealers operate such brand comparison worry; dealers from the downstream distributors a shorter period of access to accounts and even cash settlement conditions, cash flow quickly, and basically no business risks; business was large, regional market annual turnover ranging from several million to hundreds of millions. Usually first-line brand channels ‘non-selling can not be’, dealers can make use of it quickly established sales network, but also the store to get preferential terms of trade. Second-tier brands usually refers to the high product quality, there is no large-scale brand operation, the provision of the initiative, skilled marke