Potential rules for channeling goods in the paint market

Industry self-exposure: paint market "channeling" has become a hidden rule

According to industry insiders, channeling goods has become an unspoken rule in the huge market of the paint industry, and it is difficult for manufacturers to find effective countermeasures. However, coating products are of a special nature, and channeling goods not only damages the interests of manufacturers, but also causes great harm to the interests of consumers everywhere. According to the author of HC, the reasons for the serious channeling in the paint market are still well documented. The main reasons are as follows:

1. Imperfect price system: The entire price system is composed of first-level wholesalers, second-level wholesalers, and retailers. The existing pricing method is that different regions have different prices, and the rebate rates of dealers of different sizes are also different. Profits also drive dealers to risk cross-regional sales.

Second, the channel incentive policy is inappropriate: the profit brought by sales is the eternal motive force that enables dealers to sell products for enterprises. In response to this, companies generally have formulated sales-linked year-end rebates, special incentives and other policies to expand market share and increase sales. However, when an enterprise increases its sales target, it is also easy to induce dealers to embark on the road of channeling goods. Some distributors will also channel goods to other regions in order to complete their tasks in excess.

Third, loopholes in channel management: while some dealers are operating other products, the scope of their purchases and sales of products is different from that of the company. In order to reduce transportation costs, goods may also be channeled. In addition, out of the need for competitiveness, the distributors who have been channeled will also channel goods to other territories, and finally the market price will be chaotic, which may cause the company to withdraw from the local market. Therefore, when planning the scope of distribution, the areas that should not be divided are too close.

Fourth, coating product packaging defects "help" channeling goods: a paint manufacturer's production manager said that the production of paint products needs to add different special formulas according to different regions. The author did a test and took out several products to this professional. It is also difficult for him to distinguish the region he is targeting from the packaging.

Stubborn illness is hard to get rid of the industry "unsponsored rebate rules" intensified

The paint industry naturally cannot escape the palm of the unspoken rules. The unspoken unspoken rules of eating rebates and taking back points when selling paint products have become the whole-> a stubborn illness in the decoration industry that has been disrupting the normal operation of the paint market. Don't think that only painters can get "rebates" when they bring the owners to the store. From some renovated owners and industry insiders, as the wind of rebates intensifies, the decoration owners have increased their vigilance and all kinds of more concealed The rebate method has also come out. Take the rebate based on the appearance of the product, deliberately use more paint during decoration, or simply take the paint out while the owner is not paying attention, etc. I do n’t know how many owners are "black" without knowing it. "Yes.

"Pong famous brand" affects the benign development of the coating industry

As an indispensable material for home decoration, people have increasingly higher quality requirements. Baohuan coatings in the coatings market have been widely recognized by consumers, and such as Nippon, China Resources, Dulux Paint brands have long been popular. Consumers also know that as the leader in the paint industry, the quality and environmental protection of Nippon, China Resources, Dulux and other brand products can be more guaranteed. It is also because of these reasons that many informal paint companies have Products enter the market faster, and often play some tricks to wipe the ball. Using the brand effect of these famous paints to improve their sales performance, they have spawned products such as "China Resources New Generation", "Nippon Beauty Home Furnishing", and "Haier". "Phantom paint" such as Pong brand-name products.

Up to now, the phenomenon of "Pongming Brand" in the paint industry has become very common. The more well-known the brand, the higher the probability of being "Pongming Brand". What makes the company headache is that this kind of enterprise that survives on "Pongming Brand" It is more than cure. As China is the second largest paint production and consumption country, the reason why the paint industry has been large and not strong is mainly because the Chinese paint market is not standardized, and there are few large-scale paint companies that are truly capable of independent R & D and production. Among the more than 7000 domestic paint companies, small and medium-sized enterprises account for the vast majority, so that although China has a huge paint production capacity, it still cannot match the paint powers like the United States.

As a major resource country in the world, China has always been committed to comprehensively improving the production and sales of industrial products. As an important part of the coatings industry, its benign development issues are also increasingly valued by the national government departments. However, the industries that exist in the coatings market The unspoken rules phenomenon has already caused a certain impact on the development of the paint industry. If it continues to develop with this, the threshold of the paint power might not be exceeded and it will be farther and farther away from us.

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