FMCG retail industry price war

From your description, you can get a glimpse of the fact that the other party has an advantage over you (dare to fight** means strength).

The other party's advantages may be in the following:

2. There are many profit support points, reasons: there are many products, and the same product purchase channels are different (cross-shipment);

3. The financial strength is stronger than yours, the reason: the store has a long history of operation and a certain amount of capital accumulation.

If you don't want to hurt the enemy by 1,000 and damage 800, I suggest:

a. You don't do the brand he operates: there is no comparison of customers. It is impossible for the other party to complete all the brands on the market.

This is not to admit defeat or softness, in business, being able to make money is the last word, and you can't be angry (although this matter is extremely angry, but this fact is a common thing in business).

b. Asking for only one business for you, I judge that it is unlikely. You can mention this matter to the merchant, and I guess the merchantist is only using delaying tactics or suppressing sales to you. It is best to place the products of ** merchants on the counter, and the actual sales sell the liquid goods (string goods, reverse goods - the purchase price is very low).

It is necessary to pay attention to the flow of goods, don't let the ** business grasp the current OK. It can hit the arrogance of the other party to a certain extent (if it is me, the business focus is still on A and C).

c. Strengthen service quality and expand service differentiation (increase service content, enhance customer viscosity and loyalty). Careful management can always come up with the service that is sincerely accepted by customers.

After adjusting the product, observe the other party's actions, if the other party no longer follows up on the product you made, you have to start vigorously promoting it! ~

If you have any other questions, you can ask me directly!

1. Like him, improve the quality of service, as I personally like to go to the store that makes me comfortable, the waiter's smile, attitude, decoration, etc.

2. Differentiation. Do something different from him, tell the customer that this is new, you are constantly changing, I don't believe he can be faster than you.

3. Get the supplier, within how many meters, only ** you one, don't say no, you believe that this can be can.

4. The multi-faceted integration of membership cards and marketing strategies, this may cost some money, in fact, it is good to buy books and learn by yourself. No one knows reality better than you.

Hope mine is helpful to you.

First of all, let's analyze, why can he insist on fighting ** with you, and can press ** lower? According to what you said, "FMCG products are inherently very low", why can he sell them even lower? It stands to reason that he will definitely not be able to hold on to the price reduction like him before you.

Have you observed his sales methods well, just by lowering the price is not a long-term solution. Compare your endurance with him. According to what you said, you have a large number of customers to lose now, you might as well buy less goods in the future, press the ** lower, and see which of you can persist more.

He has a lot of customers, and if it's too low, it will definitely be unbearable. And at the same time, you'll win back some customers. Remember, the war is not a long-term solution.

If he has a tendency to rise, you must not rush, a little slower than him, a little slower and a little slower, and at the same time do not forget about your preferential strategy. If that doesn't work, then work on the product, for example, by adding some product variety. In short, everything still depends on your own, na, send you a sentence "know each other and know your friend and will not be defeated in a hundred battles".

Nowadays, with the continuous invasion of foreign brands and the development of some domestic enterprises, the FMCG industry in China has gradually moved towards a mature period: the industry's leading brands and brand levels are clear, the product lines of each brand are rich and greatly cover the market, the brand awareness is high, and consumers have also formed a high degree of awareness and brand loyalty. The right choice of niche market in the future business trend is bound to pursue personalization, the needs of the crowd are becoming more and more diverse and enriched, the pattern of one or two brands occupying most of the market in the past is gone, the biggest market opportunity is to find and accurately position in a certain market segment, for this niche market to carry out deep cultivation, to maximize the satisfaction of their needs, and to create a distinctive brand image, and the target customer group is in tune, so as to attract their eyes, In the end, the double harvest of the brand and the enterprise will be realized.

For example, the good doll brand positioned in the children's drug market has successfully avoided the fierce competition in the pharmaceutical industry and has become a big brand in the children's drug industry from a small brand. And compared with large enterprises are unwilling and difficult to choose niche markets, small enterprises have incomparable advantages: strong innovation, flexibility, concentration of resources, and no pressure from the market and profits, so that small enterprises can be more comfortable in niche markets, cut in from the perspective of the market, and break through the encirclement.

Make full use of word-of-mouth marketing when large enterprises do brand promotion planning, often take the form of advertising, spend a lot of money to invite spokespersons to advertise in various places, and the advantage of sufficient funds will also bring the consequences of creativity being wiped out, do not go or do not know to formulate other promotion plans. When small enterprises plan to enter a mature market, they can adopt word-of-mouth marketing or other creative promotion planning methods to achieve the maximum marketing effect with the minimum capital. For example, in the cosmetics industry, many domestic products do not have the financial advantages and brand advantages of foreign brands, but with the help of network marketing methods, through the creation of topics or advertorials, a good perception is formed in the hearts of consumers, and the use of word-of-mouth marketing and network platforms to quickly promote the brand, which has also created a high brand awareness and brand reputation of some domestic products in the cosmetics industry.

This kind of promotion planning can achieve the huge benefits of obtaining the maximum output with the smallest input. Forming a good interaction with consumersConsumers have gradually shifted from passively receiving corporate information in the past to two-way communication, enterprises should not only pass information to consumers, but also actively listen to consumers' information, understand their deep-seated needs and experience of using products, and improve more dynamically and flexibly to meet the psychological needs of target consumers.

A company is one of the world's largest consumer goods companies and a Fortune 500 company, with nearly 100,000 employees, involving products including cosmetics, personal cleaning, personal care, facial care, baby care, household cleaning and many other categories. Many years ago, the company set up an R&D center in China, focusing on the domestic market. Today, it has established a number of branches in Beijing, Shanghai, Tianjin and other places, with a total of nearly 10,000 employees.

With the increasingly fierce competition environment in the domestic FMCG market, the company is also facing greater growth pressure, and at the same time, how to better manage the huge sales team has also become an urgent problem for the company to solve.

Business pain points

In order to achieve monthly, quarterly, and annual sales targets, it is necessary to understand the overall business operation in real time, find out the reasons for growth or decline, and make effective responses in a timely manner.

The sales team is huge, and we want to keep abreast of each sales executive's sales completion, visit completion, store time and other indicators;

There are many business systems, such as DMS dealer system, CRM sales management system, WMS system, financial system, etc., and the data structure of each system is not unified.

First, the interface is chaotic, unified analysis cannot be carried out, and the problem of data silos is serious.

Existing practices

For a long time, the company has been managing the sales team in the form of morning meetings, but often every morning meeting is like going through the motions, and the sales ranking on the blackboard lacks timely and effective data support, making it difficult to analyze from people to the store and then to the product, and many decisions are still decided by "patting the head".

Set up a reporting team to be responsible for the data reporting work of each business system. Since the report products are basically based on "week" and "month", the management cannot grasp the sales situation in time. At the same time, in the face of increasingly complex data and system pressures, the reporting team has gradually become a bottleneck in management.

In the face of declining sales growth rates, the company often finds consulting firms to make strategic adjustments to product structure, brand strategy, and business layout starting from consumer analysis to seek ways to grow. However, this method is too costly, and there are often many constraints in actual implementation.

Solution

Based on the DH Data Connector Framework, it integrates several major business systems such as DMS and CRM to build a system.

1. Real-time data analysis platform;

Establish a global business dashboard, grasp key indicators such as overall sales, profit, cost, and inventory in real time, and drill down through full-dimensional data to analyze sales trends and explore sales growth points;

Establish a morning meeting kanban to deliver various key data to sales staff at all levels in a timely manner, including sales data such as sales completion this month, sales target completion rate, store distribution, as well as behavior data such as store time and number of visits, to support the daily work of sales and management personnel;

According to the company's management and sales team organizational structure, set up authority allocation to meet the needs of personnel at all levels to view and analyze data.

The above is compiled by DataHunter, a business data visualization and analysis platform.

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In China, the fast-moving consumer goods industry is the earliest and most market-oriented industry, with the characteristics of large market demand, low entry threshold, high degree of product homogeneity, and fierce competition in the market. Due to the large population base of Chinese, the economy has maintained high-speed and stable growth, and the per capita disposable income has increased year by year, making China's FMCG industry show a steady growth trend.

With the severe global economic situation and fierce international competition, many problems in China's FMCG industry have gradually emerged. Throughout the development process of the entire Lushan industry, Chinese FMCG companies generally lack their own clear positioning and long-term planning. The main manifestations are:

1. Blindly pursue scale and promote seedlings. 2. Cast a net in an all-round way, and the market coverage should be large and complete but not deep. 3. The backward management level leads to a lack of stamina.

4. Neglect of brand building and lack of innovative spirit.

Specifically, the announcement shows that the sales of FMCG e-commerce channels accounted for the total sales of all retail channels in 2018, which continued to increase compared with 2017. However, from the perspective of growth rate, the sales growth rate of e-commerce channels in 2018 declined for the first time. In fact, from 2014 to 2018, the average growth rate of sales of e-commerce channels was.

First of all, the growth momentum of the e-commerce channel is the import of products and products. The data shows that the online sales of imported and ** products remained stable, accounting for the majority of e-commerce sales.

According to the report, some companies are using e-commerce channels to drive sales of high-end products, for example, the average selling price of toothbrushes** is 89% higher than the average selling price of the category. On the other hand, some categories that rely on e-commerce channels for bulk packaging and combo deals**, such as toilet paper and milk, have an average selling price about 12% lower online than offline, as the online rate** is as high as 50%.

As for the first decline in the growth rate of e-commerce channels, the report explained that the penetration rate of e-commerce and the frequency of e-commerce shopping in first-tier cities have reached a stable level. According to the data, the penetration rate of e-commerce in first-tier cities has stabilized at about 80%, and the rate of shopping frequency is 20 times a year, which is the same as that of hypermarkets.

With the decline in the growth rate of e-commerce channels, FMCG sales have now entered a new retail era. According to the announcement, after the era of "Internet shopping", online no longer means pure e-commerce, and the boundary between online and offline is becoming increasingly blurred.

According to reports, the new retail format realizes the seamless integration of Muhu's online and offline shopping experience by building a retail ecosystem, mainly catering to young and high-income shoppers, with participants including Hema and Yonghui Super Species.

Against this backdrop, how can retailers win? The report shows that offline retailers need to constantly adapt to new environments. First, it is necessary to redesign the store mix under the new retail format; The second is to use new technologies such as AR VR to make the in-store experience more engaging; The third is to carry out digital operations, provide consumers with a seamless online and offline shopping experience, and start to monetize consumer data to better cooperate with brands.

Yu Jian, General Manager of Kantar Worldpanel Greater China, said that the new retail era does not mean that traditional brick-and-mortar stores have no opportunities, but that they should play more roles, not only to complete sales, but also to achieve a good customer experience, and to better meet consumers by adjusting business formats.