The transformation of paint distribution channels has never stopped over the years.
The channel is the territory, the "Causeway Bay" of Hong Kong, the place where soldiers must fight, and the foundation of every enterprise.
Why are foreign giants willing to spend billions to buy a paint sales channel?
It is because the channel is so important, with a mature and stable channel you can sell any brand of goods.
From a macro point of view, the channel is the transfer station of the uploaded and released products, which can reach those potential consumers on a large scale. From a micro point of view, the channel is the "capillary" composed of thousands of loyal dealers.
In recent years, in the field of paint retail, there have been an endless stream of participants at the front desk, from business giants to individual talents, and then to a huge live broadcast group.
However, no matter how the situation changes, paint companies, as the dominant ones behind them, have always adhered to one direction, that is, direct sales of coatings to users.
01
The logic of direct selling
The direct sale of paint here does not mean that the paint company directly provides one-stop services such as retail, delivery, and installation to users, so as to completely abandon the participation of third-party retail enterprises.
This is completely unrealistic. Most merchandise sales require an intermediary, whether it's a platform, a middleman, or a tool.
Direct sales refers to the process of coating products from the production line to the market, through an efficient and convenient platform, which can quickly reach users, and provide users with a full range of services including delivery, installation, etc.
This logic of "direct to users" reflects the deep insight of coating companies into the market and the accurate grasp of user needs.
By shortening the distance with users, enterprises can see and understand the needs and preferences of key users more clearly, so as to make more accurate decisions in product innovation, service optimization, etc. At the same time, it also provides a broader development space for enterprises, so that they can maintain a leading position in the fierce market competition.
In the observation of finishing business conditions, in the past five years, direct access to users has become the goal pursued by many leading coating companies.
This adjustment of strategic direction stems from two core motivations. First of all, as the coating industry matures, the profit margins of manufacturers are gradually narrowing, and the circulation channels have changed from the traditional wholesale distribution model to retail success, and direct sales to users have become an inevitable choice to cope with the decline in industry profits.
Secondly, with the improvement of the operating ability of coating enterprises, especially in the enhancement of financial strength, innovation level and the application of digital and intelligent means, the threshold of direct communication between enterprises and users is reduced, and the means are increased, and it is easier to stimulate the innovation vitality and development momentum of enterprises through user needs.
02
Two notable changes
At present, the distribution channels of the coatings industry will undergo two significant changes.
On the one hand, unlike Jingdong, Taobao and other e-commerce platforms focusing on retail, there are still a large number of enterprises in the current paint industry to adopt wholesale and restocking business models, which is a continuation of the traditional model, but in the context of the new era, this model is facing challenges. On the other hand, the commercial value of many online and offline distribution channel providers, whether they are giant merchants or individual talents, has gradually shifted from simple batch shipment and hoarding capabilities to more refined user management and retail service capabilities. This shift is intuitively reflected in the increase in the average customer value and repurchase rate of users, reflecting the new ability of retail channel providers to create value and build trust for users.
Behind the direct access of coating companies to users is a deep reflection and change of the traditional business model of "making the difference". In the face of problems such as declining product profit margins and channel homogeneity and involution, enterprises have to find new growth points and build a more diversified "retail service to make money" model by direct to users and direct sales to users.
In this process, many channel dealers have begun to realize the problem of intensified online and offline conflicts. In fact, this conflict does not stem from the strength of online e-commerce, but from the practical problems faced by offline physical stores, such as reduced customer flow and operational difficulties. The rise of online stores and live broadcast platforms has provided new shipping channels and user access methods for coating companies.
Reaching users is not achieved overnight, and requires enterprises to go through periodic exploration and trial and error. In this process, online e-commerce and live broadcast platforms have undoubtedly become important bridges and opportunities, which not only shorten the distance between enterprises and users, but also help enterprises quickly achieve large-scale shipments. Compared with the offline channel system, the online platform can provide a valuable consumer experience, activate market potential, and promote the comprehensive transformation of the circulation channels of the coating industry while having a wide range of user touchpoints.
Therefore, in recent years, many paint companies have watched online stores grow from small to large, from weak to strong, and finally occupy an important share in the retail end.
Finishing business believes that this is not accidental: there are not only changes in the lifestyle and consumption patterns of external users, but also the recognition and support of major internal coating companies for direct user channels.
03
Focus on two key points
Direct access to users is the ultimate goal of all companies in the coatings industry.
At present, Jingdong and Tmall, these strong channels are a strategic step for paint companies to reach users, and they will not be the final step, that is, through the "middleman" paint direct sales.
Therefore, it is conceivable that the paint distribution channels will continue to change, and it is not excluded that new retail platforms and merchants will appear.
But what "never changes" is the improvement of retail's capabilities and solving customer pain points.
The first is to focus on users.
Merchants should carry out a comprehensive reengineering of retail service capabilities. The next market focus of coating companies will no longer focus on solving the contradictions between online and offline operations, because Jingdong Tmall has opened up the dual-line channel merchants, but to focus on cultivating a group of high-quality, direct access to users of the business. However, the merchants of online stores, if they only stay at the low price of the scale and channel shipment, they will definitely not be able to meet the channel selection standards of paint companies.
The second is to focus on retail.
Whether it is a large business or a small online store, what has changed over the years is only the means, forms and carriers, such as efficiency improvement, rich goods, perfect service details, etc., what has not changed is the integrity culture and business adherence. Because, the core of paint retail has always been "efficient and high-quality service to users". Whether it is a coating company or a paint retailer, in essence, it is necessary to return to the origin of retail, that is, "focus on people, find people, and serve people", so in the future, if you want to truly become a retailer that paint companies cannot do without, you must master the system and ability to establish user management.
It is said that the worst times are often in the cycle that gives birth to the best times. Finishing business intelligence believes that the current online and offline conflicts, contradictions and contests between online and offline paint retail channels will also give birth to a new round of new paint business pattern in the next few years. It is not simply a business improvement and a rebound in consumption, but the improvement of the operating quality and the expansion of the operating capacity of the main channel providers.