Hardware sales channel left or right in 2011

Under the inflationary environment, price hikes in the Chinese hardware industry in 2011 have been overwhelming, and the gains are far ahead. As the most crucial link in the hardware marketing chain, the sales channel has become polarized, and even the development trend and direction are retrograde, such as the restoration of the office and the re-emergence of circulation. Online shopping and group buying play an increasingly important role when prices rise.

In 2011, how is the marketing channel going? How should we respond to new changes?

When establishing a nationwide sales network, do agents or direct manufacturers need to establish directly-operated branches (or offices) or rely solely on agents? Both approaches have their own advantages and disadvantages. Relying solely on agents, manufacturers are subject to agents, and many corporate strategies cannot be fully implemented. Customers and channel resources are entirely in the hands of agents. The fate of this region is in the waistbands of others, and there are always many variables. If you completely build your own branch or office, the cost and risk of the manufacturer are too high and the resources are not enough. At present, many large and medium-sized enterprises have emerged a model of parallel development of branches and agents. The branch marketing team is mainly responsible for brand promotion and assists dealers to expand the local market. The agents are responsible for local channel construction, cargo distribution and financial settlement. This model can find a balance in the manufacturer's game, and can complement each other and expand the local market.

The cost of traditional or online traditional channels is getting higher and higher, and there has also been a homogenization of traditional channels, which has made the competition in the industry worse. With the increase in the number of netizens, the maturity of settlement methods and the rapid development of logistics, online shopping has become a new fashion. Online shopping has become a new channel for Chinese hardware and is rapidly developing. On the one hand, manufacturers can establish their own specialty stores on Taobao and other professional online shopping sites. On the other hand, they can look for professional online shopping agents.

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