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What Are the Reasons for the Poor Tire Distribution Channels?

If a tyre dealer wants to become bigger and stronger, he must first learn to be strong (leverage efficiency), learn to divide labor (aggregate development), learn to control (reduce risks) and learn to compromise (seize opportunities). Only by learning these four points can tyre dealers achieve better development under the attack of enterprises and terminals.

Specifically, what tyre manufacturers should do are as follows: efficiency creates vitality, value chain aggregation, risk control, good grasp of hidden sales, dealer logistics, warehouse management trends, and database marketing.

1. The efficiency of tyre dealers creates vitality

For tyre dealers, efficiency is life. The size of the capital turnover rate determines whether a dealer can become bigger. As a distributor in the fast-moving consumer goods industry, only if the capital turnover rate is greater than or equal to 10 times per year, can it be guaranteed to be profitable in the daily business process.

This requires tyre dealers to shorten the turnover cycle as much as possible, improve the capital turnover rate, and win their own best interests by increasing the number of capital turnover.

2. The aggregated value chain of tyres

The core idea of the converged value chain is to improve the efficiency of the system. Improve the efficiency of the company's system through tyre distribution and channel efficiency.

Tyre distribution is actually the process of completing sales with the help of external resources, and the management of tyre distribution is to solve the problem of efficiency. Establishing proper distribution channels can effectively reduce the risk of hoarding sales.

Improving efficiency through channels is hard to do. For a long time, channel development has remained the main feature of the FMCG industry.

To ensure equal treatment of distributors as far as possible. Quantity is the guarantee of sales. Only by guaranteeing the number of tyre distributors can the sales of products be guaranteed.

3. Tyre dealers should control risk

The first is to control tyre inventory. For products with high market share, the dealer's inventory should be less than or equal to 1 times the monthly sales volume, and the second batch of merchants and retail terminals should be less than or equal to 1.5 times the monthly sales volume;

For products that have just been launched and have high growth potential, the tyre inventory of dealers should be less than or equal to 1.5 times the monthly sales volume, and the second batch of dealers and tyre retail terminals should be less than or equal to 2.5 times the monthly sales volume.

Secondly, in the process of changing tyre market conditions, dealers must master some skills to face changes in the market. When the dealer's inventory is too large and the distributor's inventory is insufficient, appropriate channel promotion policies should be adopted to divert the inventory.

In addition to the above two methods, tyre dealers can also take the method of sub-brand aggregation to control risks. To integrate several distribution channels, even the products of the same tyre manufacturer should consider the establishment of categories and introduce as many tyre distributors as possible.

Reflect value through integration, upgrade management advantages, monopolize local competition, and concentrate on building the strongest local market in the shortest time.

4. Tyre dealers should be good at hidden sales

In the daily business process, tyre dealers put their main energy on traditional channels such as supermarkets and circulation. However, with the increasingly fierce competition in this part of the channel, dealers must be good at hidden sales in order to open up new channels.

5. Logistics for tyre dealers

With the continuous development of the transportation industry, the way of tyre logistics has undergone a revolutionary change. At present, the logistics cost in my country accounts for 18% of the cost of goods. Therefore, how to do a good job in logistics is an important factor for dealers to control costs. "Using aggregate growth to avoid going it alone; operating under different brands and establishing multiple distribution networks; making good use of factory vehicles for direct delivery."

6. The trend of tyre warehouse management

Warehouse management reflects three characteristics of high efficiency, accuracy and low intensity. In the process of change, the functions of dealers have also changed. Distributors are becoming more and more logistics-oriented, and the distribution-oriented division of labor among tyre distributors is becoming more and more obvious.

The advent of the era of online sales calls for distribution units, but the organizational process is relatively more important. Another new trend is the emergence of database marketing.

7. Marketing of tyre database

The emergence of tyre database marketing is to control tyre terminals by controlling tyre channels, and ultimately achieve the purpose of controlling tyre consumers.

The main feature of tyre database marketing is precise dynamic management of tyre products, establishment of terminal database and consumer database.

The establishment of the terminal database can strengthen the management of promotional items, the management of sales levels and the management of marketable products. And the management of the consumer database is to lock in consumers and to have full control over market dynamics.

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Third Floor of North Anhua Mansion,NO.8 Yinghua West St., Chaoyang Dist.,Beijing,China P.C. 100029
Third Floor of North Anhua Mansion,NO.8 Yinghua West St., Chaoyang Dist.,Beijing,China P.C. 100029