China's paint market channel strategy highlights the drawbacks

The development of China's paint market in recent years can be described as rapid progress, singing all the way, the market's competition has intensified the deepening of the channel. The strong consumption momentum demonstrated by the third-tier market also made many second-tier brands like Garbo, Sankeshu, Bardez, and Tuxedo flock to one another.

In China's tertiary and tertiary markets, consumer spending is an important measure of the level of economic development in the market. According to the latest data, consumers from the first-tier and second-tier markets tend to be more rational about the purchase of products, and consumers are more sensible to the third-tier market. In other words, when a consumer purchases a product, it is easy to generate buying impulses for a brand's advertising, the image of the terminal store, the packaging of the product, and the guidance of the shopping guide. With the rising living standards of the people, the spending power of the third-tier market will become more and more powerful. In the rapid development of the paint industry in the past two years, ethnic paints have grown rapidly by building their own marketing ideas and sales teams, taking regional underwriting, and cutting in from the third-tier market.

The sinking of channels has focused on the strategic tactics of all ethnic paint companies in the 3rd and 4th cities as the main market for the second and third tier markets. In the case of Dulux and Nippon and other foreign brands occupying the first-tier and second-tier markets and becoming saturated, excellent ethnic paint companies such as Tuushi, Bardez, and Three Trees have achieved “basic” marketing in the “rural” market. Significant results. Dabao lacquer also made arrangements for channels at the beginning of the year, vigorously developed townships and flat channels, and combined its own advantages with business representatives as the core. Actively develop the three-tier market and achieved remarkable results.

It can be seen that the flattening of channels is a big trend in the future.

The "channel sinking" strategy was copied in a fierce competition. The paint companies adopted an in-depth marketing strategy in the rural market. Those paint companies still in the middle and the third line had to think about the very low channel and gave it to them. More people come from the channel to break into the opportunity. We all know that China has a rural market of 800 million RMB. When the company allocates rural channels, it should choose local distributors who have a wide range of influence and innovative spirit, so that there is potential for development. In order to make the market bigger, Dabao can stand invincible. For the current Dabao lacquer, choosing a good dealer is tantamount to opening a successful door for Da Bao lacquer in the local area.

Channel innovation is the key to development. In the tertiary market, the market capacity is very limited and it is not suitable for many dealers to coexist. If you overestimate the market capacity and blindly increase the number of dealers, you may increase the number of dealers, the market may indeed have a little increase, but after rising to a higher value, perhaps the sales curve will take a line Or go down the trend, which is contrary to the original intention of the addition of dealers, and the most terrible malicious price may be uncontrollable spread. This also runs counter to the vendor's view of "cultivating the market".

The person-in-charge of the company made detailed plans for the tertiary market, setting up only one point in each city (third-tier market), and treating all dealers equally. Many channel resources, such as package moving prices and event support, are also shared by everyone. And introduced various preferential policies, for the sake of dealers everywhere. Responsible for the interests of dealers, leaving profit margins dealers, so that the market will have power.

Most of the paint products are mainly digested through the dealer channel, and only a small part of the direct shipment from the manufacturer to the retail terminal. The paint sales channel model is still based on agents, and agents play a vital role in the future development of the paint factory. In the face of an increasingly harsh environment, the industry is stepping up its efforts to keep up with dealers and remain invincible in the fierce competition.