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British Internet users showed growth spurt in recent years , to the end of 2012 reached 564 million people , ranking first in the world . Benefit from the growing number of consumers using the Internet and mobile devices to shop online , the rapid growth of the UK online sales . It is predicted that in 2020 the size of the UK online shopping more than one trillion U.S. dollars , surpassing all other countries in the world.
Internet marketing has become a marketing trend of our times , network marketing is an important channel for enterprises an indispensable business imperative to develop net sales channels , who ignored the network channels , it could lose its competitive edge in the future. And while many companies to introduce electric provider channel distribution system , the biggest concern is the issue under the next worried about the impact of online sales and prices that online sales channels and wire -line channel conflict . Analysis of the reasons for which we need to channel conflict and coping http://www.ukassignment.org/essayfw/20810.html strategies such form as to promote the healthy development of the enterprise distribution channels.
The reason the network of distribution channels and traditional channels of conflict
When e-commerce companies , online distribution channels with traditional channels reason for the conflict is ultimately the main reason for online and offline customer overlap with the price of the issue of conflict :
Online and offline resources to compete for customers . Channels and customer base online and offline channels for overlap , this is where the origin of conflict , and this is difficult to avoid overlap , unless the lower end consumer products sold online and offline channels to sell products is the system completely separates , otherwise this conflict must exist .
Distribution of the traditional distribution network price shocks . Determines the characteristics of the Internet distribution network is bound to bring traditional distribution price shocks , which bypasses the traditional middlemen links, greatly reducing costs. Eventually leading to the sale price of the same product cheaper online than offline retail to a lot. Data from Taobao shows online shop and compared to the traditional model , the owner can save 60% to 30% of transport costs and transit time , marketing costs than the traditional line shops reduced to 55% , distribution costs can be reduced by 47% . Taking these cost factors to consider, on the same goods online and offline channels to the presence of 20% to 30 % of the price difference is completely normal. But inevitably seriously affect the sales of traditional intermediaries , leading to strong resistance , causing unrest original distribution channels.
Strategies network channels and traditional channels of conflict
Focus on network marketing , do not build traditional distribution channels. For example Eslite , Masamasuo e-commerce "Light Company ", using B2C network of direct sales model, does not establish the traditional distribution channels , a real low-cost operation . By modern e-commerce and traditional retail model for innovative integration , network platform as the core , the integration of upstream and downstream in the supply chain , providing customers with high quality products and services , has made remarkable achievements and become the miracle of the industry. Eslite now only be able to sell more than 10 million pieces of clothing a day, while clothing companies Youngor this listing of all stores nationwide to achieve total sales of over a million pieces a day of record are required almost 10 years of sedimentation .
But not all companies can adopt this model , which has at least two premises : First, they must be no traditional channels burden of traveling light of the new enterprise . Second, the goal of the enterprise network customers consistent with mainstream groups , which carry out targeted direct marketing network .
Differences through online and offline channels , to achieve both collaborative development.
For most traditional businesses, online and offline , " walking on two legs " is an inevitable choice to abandon traditional channels of vacuum might cause existing market share to competitors to divide , to give up the network channels means that the future business prospects bleak . Use differentiation strategy can effectively resolve channel conflict for such enterprises .
Online and offline brand differentiation . Online shopping mall for consumers, for the original product naming , packaging and other new design , to ensure that all of its online store through direct sales and network sales channel distribution approach . As Belle to worry about under the influence of line , some of the shoes a little improvement, and establish a brand specifically for online sales "Innet", thus avoiding the impact of the next line . In addition SHUAIKANG launch a network dedicated sales Connor , Carolina textile brand launched LOVO networks are using this strategy.
Online and offline product differentiation. Product differentiation has several operating practices , one offers different product lines to traditional channels and network channels, such as Procter & Gamble does not sell traditional beauty products in the network channels, and sales of new products , these products do not offer traditional shops to sell . Second, in the network marketing sales channel only entire product line section
Products , in order to avoid channel conflict with its distributors . Taking into account the sale of the company such as Gibson Guitar conflict with the dealer on the network , so only sell parts such as guitar strings and accessories to consumers. Third, the network channels targeted at online stores and other price sensitive for the next group of sales inventory, and offline channels with the image does not conflict with the price , most clothing companies and fast fashion industry will digest inventory network channels as channels . Also before you can launch new products , the first group of test marketing in the online fashion market reflects good , then go to the next line of large-scale promotion, online sales price of new channels and limited commodity-based and so on.
Differences in market oriented . Enterprises can be broken down into several sub- target market market , for different customer groups with different sales channels . Xerox, for example through online channels to SOHO market ( small or home office ) and individual users selling copiers, copier sales through traditional channels to industry and enterprise users. Through market differentiation strategy , the manufacturer will network channels and traditional channels separated to avoid direct conflict with the channel.
Channel sharing network marketing benefits and lower lines, to achieve a win-win . Online and offline channels and channels are fused to form the common interests of the body , take the goods online and through traditional channels to provide services throughout the form win-win situation . As franchisee bears the nearest city or distribution , consumers in the site after the order , no longer need , such as many days in order to get sent over the product from the headquarters , but distribution of the product through the system to its website local franchisees through city logistics on the way to easily get the product . This shortens the waiting time for consumers , but also to save from the headquarters for the delivery of logistics costs, which is part of the logistics cost savings , as the manufacturers of the franchisee 's profit distribution . Ethan Allen furniture manufacturer 's approach has a certain significance : When a retailer offers delivery and installation services to consumers via the Internet directly to the purchase of furniture , Ethan Allen, the company provides sales to retailer 25% of revenue. Alternatively, the Ethan Allen to consumers located in the residence nearest retailer with 10 % of sales , after-sales services to allow retailers to consumers .
Network communication channels mainly to fulfill promotional function. To promote brands, products and promotional activities through low-cost, high coverage of network communication , boosting sales of traditional offline channels . At present, some companies such as Philips LED lighting, Jeanswest , Bosideng currently in place , such as online and offline consistent policy of commodity prices , compared to the line under the huge sales , online sales channels negligible electricity supplier direct business development is very limited. its network marketing and promotional products play a major brand and increase customer loyalty through a network marketing tools role .
Enterprises in the introduction , the construction of the network channels , should be fully aware of the possible impact on existing channels , a comprehensive analysis based on aspects of industry characteristics, market structure, product features, customer psychology , and actively choose to develop the most appropriate conflict management strategy.
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