The prevalence of JD.com and Taobao has made the concept of platforms follow the market trend, even becoming wildly popular. I have met several distributors with sales in the tens of millions who talk about platforms and trends constantly. When asked about their plans, they offer nothing but vague ambitions to grow bigger and stronger. When we are still a pig, we should not pretend to be a tiger; no matter how big the pig is, the bigger it is, the more dangerous it becomes. Distributors should especially take this as a warning! What is a platform? Generally speaking, a platform builds channels between merchants and users, merchants and merchants, and users and users, and this channel has the trait of positive incentives: the more transactions on one side, the more it stimulates rapid growth on the other side. Just like the "telephone effect": the more people use telephones, the stronger the incentive for others to join. More importantly, this efficient self-replication adds almost negligible cost to the platform, which is exactly the charm of platforms. So what is a platform for the distribution model? To put it bluntly, it is to build a connection platform similar to that between manufacturers and consumers, manufacturers and manufacturers, and consumers and consumers, and this platform must have the following two traits:

  1. (Regional) uniqueness or absolute advantage;
  2. Costs do not increase with the number of transactions, or increase very little. Obviously, if this can truly be achieved, consumers will definitely come to this platform first when buying things, and manufacturers entering this regional market would face near-certain failure without leveraging this force. It is a living prototype of an upgraded portal distributor, which is also what countless distributors dream of. Those distributor platforms that fell Cruelly, more distributors have fallen on the second trait that platforms need: costs do not increase with the number of transactions, or increase very little. Expanding a physical platform without increasing costs seems to be a counterintuitive way of thinking. So some distributors choose to imitate Taobao and Tmall, setting up websites and making software. There was a distributor in Fujian who, having made some money early on, spent a large sum on a store information navigation system software without understanding anything, but lacked the ability to promote it, and had to give up halfway. A distributor in Nanjing developed a store product display and demonstration software and provided tablets as purchase incentives to equip their network outlets with the software. However, because they could not solve the new problems arising from later maintenance and updates, the software also ended hastily. Outsiders doing insider work, platforms that rush in often end in a rush out. So, for distributors, does a platform for the distribution model simply not exist? I want to emphasize that a physical platform cannot be achieved overnight by imitating virtual economy platforms; the physical economy has its own operating rules and characteristics. In the information age, instead of blindly pursuing growth and strength, it is better to subdivide the distribution link, focus on areas where information is most easily distorted and services are not fully satisfied, persist, form barriers and advantages, and create a unique platform for the distribution model. Three major directions for distributor platforms We will only make tentative introductions from three aspects: after-sales service, warehousing, and sales. If you position yourself as an after-sales service platform, you need to consider whether your stores can become a platform providing supporting services for various products, and whether your subordinate outlets can become service tentacles? For example, for home appliance installation or repair services, can you provide similar services for brands you do not distribute? Can you extend to installation-related products like lighting? How will the linked services of subordinate outlets be supported and settled? When you position yourself as a service platform, you must become a gathering platform for regional electricians and plumbers, a collection platform for other similar products' online orders, and a contracting platform for after-sales services. You need to use existing technological means to connect them, not invest money in software development. If you position yourself as a warehousing platform, you need to think about what capabilities you have to become a warehousing platform. Is my rental cost advantageous? Is my warehouse management the most efficient? Is my warehouse management personnel the younger brother brought from my hometown, or an externally hired professional? Is my ratio of in-transit and in-stock goods optimal? Are my warehouse shipments and receivables reasonable? Your money now should not be spent on hiring professional store guides or excellent salespeople, or building the most beautiful stores, but on professional warehouse management talent. You need to study how to make more manufacturers willing to "rent" a small space in your warehouse, with you radiating to the region; how to make more subordinate outlets find you first when they need brands; and how to arrange and place goods to accommodate more brands in your warehouse? Trust me, the warehouse is the root of all evil for distributors, but gold can also be swept out of the warehouse. Of course, the premise is that you need to find people to learn how to efficiently use certain professional software. If you position yourself as a sales platform, you must be willing to spend heavily on expanding sales outlets, rather than waiting for manufacturers to help you open up territory; you must work to turn these outlets, and even the outlets behind the outlets (many industries and outlets are connected by relatives), into your loyal fans; you must think about whether every consumer entering the store should be recorded in a customer file or added to your consumer group via WeChat; you must think about whether consumers trust a professional, well-trained distributor personnel more than a delivery guy mixing rice and air conditioners; you must think about how to display more products in your store, and how physical and virtual products can coexist harmoniously? To do these well, you may need to use mature external software or manufacturers' store software, rather than developing your own. For distributors, wanting to build a platform like JD.com or Taobao that yields huge profits with minimal investment, or a physical platform like Gome or Suning, actually steps out of the distributor's path of making money through price differences; it is another business model. This model has two irreconcilable internal conflicts with the distributor system: First, distributors are based on regional distribution, forming profitability through regional protection or differentiated operations; platforms, on the other hand, need borderless sales expansion, with profitability based on marginal costs decreasing or even becoming negligible. Second, distributor profits must come from consumers, while platform profit models are mostly paid by third parties, sharing the seller's interests and compressing seller space. This is a very dangerous signal, and it is also where e-commerce built on virtual platform models is often criticized and debated. Gome and Suning took the lead, JD.com and Taobao took it to the extreme, and later comers surpassed them. This fear may destroy physical platforms and may even hollow out virtual platforms. When everyone is greedy, learn to fear; when everyone is fearful, begin to be greedy. This investment quote from Buffett is also quite suitable for distributors' platform thinking in positioning. -END- Content Selection Reply with the following keywords to categorize and read related articles: Sales Supervisor, Second-Tier Management, Regional Manager, Distributor Management, New Channels, City Manager, Competition, 2015, Manufacturer-Dealer Game, Product Stagnation, Terminal Visit Management, Route Management, Deep Distribution, Internal Management, Sales Skills, Profit Improvement, Recruitment, Distribution, Daily Management, Team Motivation, Trade Promotion, Sales Misconceptions, New Product Launch, Township Market, New Product Pricing, Sales Target Achievement, Closing Orders, Market Visit Inspection, Baijiu, Beer, Sales Increase, Agency Products, Cross-Region Sales, KA, Terminal Merchandising, New Market, Market Operation, Learning, Book Recommendations, Inventory Management, New Salespeople, Consumer Promotion, Execution, Old Products, Expired Product Handling, Model Market, Investment Attraction, New Media, Distributor Development, Performance Appraisal, Assessment, Annual Planning, Shopping Guide, Morning Meeting, Display, Transformation, Pressure Stock, Holidays, Distributor Cost Control, Channel Operation, Marketing Theory and Laws, Brand Truth, Order Meeting, Team Management, Training, Debriefing, Debriefing Report.