Internet thinking is increasingly mentioned, but many people are unclear about what it truly means. What exactly is Internet thinking? Especially, what is Internet Plus for distributors (or channels)? The essence of Internet Plus channels has three aspects. First, eliminate intermediate links to save "link costs." Second, share traditional distributor resources; that is, share the warehouses, delivery vehicles, and personnel that traditional distributors have redundantly built, improving efficiency and reducing costs. Third, based on high-efficiency and low-cost operations, drive organizational changes in upstream manufacturer sales and downstream engineering contractor procurement, reducing operational costs. Eliminating links is because multi-tier distribution raises distribution costs, but there must be a node to undertake grassroots distribution tasks. A complex LED display project requires hundreds of components, a large supermarket has thousands or tens of thousands of products, and a small shop has dozens or hundreds. It is impossible for all products to be provided directly by manufacturers. There must be an intermediate link to meet this need, and that link is the distributor. Eliminating intermediate links does not mean there are no intermediate links; it just makes the links better. This logic must be clear. Distributors should boldly use their own resources to embrace the Internet, using it to merge with traditional e-commerce and become a new type of e-commerce. This statement should not be made too quickly, but the future era does not belong to Taobao or Alibaba, but rather to traditional distributors who will overturn the existing e-commerce model and create a new one. This model is the whole-network distribution platform or the full-industry-chain distributed e-commerce platform. The whole-network distribution platform is based on existing products and distribution networks. It is a distribution combination that centers on meeting demand, fully utilizing mobile internet and big data, and integrates "PC computers," "mobile apps," and "self-media WeChat/QQ" to initiate a new whole-network distribution model of PC + e-commerce. Simply put, there is a mall on the computer and a mall on the phone. Regardless of the business model, whether Internet-based or traditional, it consists of three basic components: product, market, and operations. Thus, around the three dimensions of market, customers, and operations, a cycle is formed: product procurement, product trading, customer promotion, customer purchase, logistics delivery, and repurchase after delivery. In this regard, e-commerce and offline entities are consistent. Many people ask: What is the difference between this distribution network and the distributors we currently know? First, the profit model has changed, from simply earning "purchase-sale price differences" to a compound profit model. The compound profit model includes earning price differences, platform usage fees, platform transaction commissions, platform advertising fees, and so on. Second, the fate of distributors has changed. In traditional business models, key transaction elements or behaviors are controlled by sales personnel or downstream distributors. Once entering the Internet e-commerce model, it becomes a two-way control of "system + team," shifting from dependence on people to dependence on systems. In traditional business models, developing a new customer from negotiation to contact, delivery, settlement, and after-sales is done by one salesperson. In the Internet e-commerce model, customers only need to register on the platform to browse products and place orders. After placing an order, customer service will follow up, and logistics personnel will deliver, without the involvement of a salesperson, thus reducing dependence on specific individuals. Third, operational costs have changed, from high-cost, low-efficiency traditional models to low-cost, high-efficiency digital mobile internet operational models. Traditional personnel visits and phone visits have remained high-cost and low-efficiency. In the mobile internet era, the cost of maintaining a customer may be just a few cents or even less. The whole-network distribution has the core competitiveness of "two highs and two lows": high product quality, low price, high service quality, and low cost. This is the fundamental guarantee for ensuring excellent customer experience and the healthy development of the distribution platform. So how should we build a whole-network distribution platform? The construction of a whole-network distribution platform is divided into five parts: 1. Construction of the trading system. The so-called trading system, or mall system, is the place where customers purchase products and the platform where target customers directly browse, buy, and pay. Common trading platforms include Tmall, JD.com, Meilishuo, Dangdang, etc. 2. Construction of the promotion system. Attracting consumers to your store is promotion. If you open an online store but have no traffic or customers, it is like a store on a back street. The promotion system is divided into offline promotion, online promotion, and social distribution systems. 3. Construction of the sales activation system. First, create hit products, optimize product mix, and improve conversion rates and average order value. Second, effectively carry out promotions, marketing, and member incentives. Third, use self-media to build a promotion and sales activation system. Finally, use social distribution systems to achieve automated marketing. 4. Construction of the supply system. As the name implies, the supply system is product procurement. The idea for building the supply system is to seize advantageous products with market capacity, form a product group with "existing products as the base and advantageous brands as the leader," and at the same time build a stable platform supply system, expanding product lines to increase operational scale and improve profit levels. 5. Construction of the storage and transportation system. The construction of the storage and transportation system must combine its own characteristics, integrating third-party logistics or other distributors' resources to build the system, rather than being completely self-reliant. Huatang e-commerce This platform will soon organize several experience-sharing salons titled "How Distributors Should Operate B2B ." We will invite domestic distributors who have actually operated for a period to share their experiences and discuss how they operate in their local markets. Interested distributors can long-press the QR code below to add the author's WeChat to participate in the sharing and exchange: When adding, please reply with the keyword: 操盘 - END- The best FMCG distributor learning platform in China Focusing on providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red numbers below to get corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operation | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet and brands | 016 Distributor B2B transformation | [Long press QR code to follow]
Dealer Operations · Management & Methods
How Distributors Can Embrace Internet Plus
Internet thinking is increasingly mentioned, but many people are unclear about what it truly means, especially in the context of Internet Plus for distributors or channels. The essence of Internet Plus channels involves three aspects: eliminating intermediate links to save costs, sharing traditional distributor resources to improve efficiency, and leveraging high-efficiency, low-cost operations to drive organizational changes upstream and downstream.
