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Are wholesalers suitable for direct sales?

The traditional sales model is a secondary channel: manufacturer-wholesaler-retailer-consumer, and this channel is currently the most widely used channel, and with the development of e-commerce, many wholesalers are developing into a direct sales model, the direct sales model is that the wholesaler directly faces consumers, so is the wholesaler suitable for this model?
First of all, direct sales means that direct sales are actually an ancient marketing method. The products produced by early handicraftsmen were mostly sold directly to local consumers. In modern times, this sales model is also applicable to small and medium-sized enterprises. However, many wholesalers have found a series of problems after using this model. , There is no profit or even loss, so from which aspects should we judge whether the wholesaler is suitable for the direct sales model? The following will provide you with references from several aspects.

  1. For channels
    The core of direct sales is mainly manifested in three aspects: firstly,consumers are willing to buy products at low prices, secondly,the product technology is more complicated, and intermediaries cannot provide related services. Only manufacturers and wholesalers can provide Related products and services for them; thirdly, wholesalers would like to link more consumers’ needs, thereby gaining consumer loyalty, and ultimately in exchange for continued consumer purchases. In other words, if wholesalers do not consider these three aspects To consider, then the effect of direct sales may not be so ideal.
  1. For promotion:
    In wholesalers opinion, direct sales are a kind of promotional design, because direct sales are pursuing to make consumers believe that wholesalers or manufacturers can directly obtain the best quality products at the lowest price. If this effect is not achieved, direct sales to wholesalers will not achieve good results and are not attractive, then the effect will not be good. The highest level of direct sales should be to win the loyalty of consumers by providing consumers with multiple values (unique products, low prices, super-value services and other multiple benefits), so that consumers can continue to buy.
  1. For product :
    At present, there are many industries that adopt direct sales, and almost every type of product adopts the direct sales model, but why do most consumers prefer to go to the mall to buy directly when buying goods? There are many reasons for this, one of the most important points is that the direct-selling products are not the best, and the choice is relatively small. In other words, if wholesalers want to achieve good direct-selling effects, they must diversify their products. And advanced. As a gift packaging category, LaRibbons has done a good job in product quality and category diversification. The purpose of laribbons is to provide customers with diversified and high-quality products, so that wholesalers can lead in their industry and give wholesale The company provides strong backing. In this regard, you can absolutely believe that this company has such strength. LaRibbons has certifications such as iso 9001:2015, oeko-Tex standard 100. We are the audited factory of nestle, Macy’s, l’oreal, pandora and Disney.One more reference and comparison, you will find one more choice, why not?

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3.For price

Many companies that adopt direct marketing methods have a wrong idea that they believe that direct sales can sell their products at a high price. This is an important reason why direct sales cannot achieve ideal performance. As mentioned earlier, if the price of a product directly purchased by a consumer from a manufacturer is higher than the price of a product obtained from an intermediate channel, why should the consumer buy from the manufacturer? The manufacturer may have a reason that the cost of direct sales is high . In fact, the cost of direct sales is affected by two relationships:One is the relationship between the sales price and the scale of demand, that is, if the sales price of a product decreases, the scale of demand and consumer purchases may increase, thereby reducing direct sales. The second is the relationship between product categories and consumer demand, that is, if the company’s supplies can meet the diverse needs of consumers, the company can reduce costs and increase profit opportunities due to the multiple purchases of consumers. In short, directly-sold products should not be priced at high prices. Enterprises that adopt direct marketing methods should obtain profits from consumers’ multiple purchases and continuous purchases, and must not pursue high gross profit per unit of product.

There will be two development trends for direct sales. -A trend is that as the current intermediate channel sales methods gradually become ineffective, more and more companies will try to sell directly. This momentum has been very obvious in recent years. For example, more and more companies are trying brand monopoly, and many companies are already trying to use Amway and Avon-style direct sales methods for marketing. The foreseeable situation is that if one or more companies in an industry have achieved significant results by using the joint sales method, then this industry will have many companies imitating their behavior and adopting direct sales.

The second trend is that the direct sales strategy combination will be constantly innovated in the application process of many companies. Generally speaking, imitators will always do better than their imitating objects. They will generally add some elements that are more suitable for the environment and suitable for themselves on the basis of the strategy combination of imitating objects, such as one for the imitating object. For these deficiencies or weaknesses, take some new marketing measures. At the same time, when the imitated knows that its marketing strategy portfolio is being imitated, if the imitator is more powerful or adopts a more challenging strategy, the imitated will be less able to make marketing strategies for it because of fear of being surpassed. Peak combination to innovate. Under the interaction of these two forces, direct sales methods will continue to develop.

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