Why Not Swallow Appliance Manufacturers To Businesses To Say "no"

Why Not Swallow Appliance Manufacturers To Businesses To Say "no"

 

Just entered 2005, the States United States on the burst of the differences between Samsung's cooperation, although the last country the United States and Samsung to resolve the issue amicably, but the event will undoubtedly once again sounded the warning bell to the home appliance industry. In addition to the country last year, Gree and open conflicts outside of the United States, Suning and manufacturers of contradictions have occurred, and last month, has begun to self-built channels CAV, Vantage and some other manufacturers have also begun to build their own stores. In 2005, home appliances and appliances stores between manufacturers will become a sensitive topic, if not handled properly, appliance manufacturers are likely to focus on the outbreak of the conflict.

Contradiction Key words: charging more

Cost profit is not enough pay Marketplace

Head of a household electrical appliance manufacturer said the new stores to open an appliance store slotting allowance charged to the manufacturers, can store two years to ensure that sellers can not remain without a loss, it can not make a lot of manufacturers will give vent Introduction. The responsible person for the first time into the store to pay 26,000 yuan slotting allowance, need two Purchasing Guide, the annual wage of about 19,200 yuan, while the store will be adjusted once a year at least stand, manufacturers have to pay 20,000 yuan or so, store covering fees and management fees total 26,400 yuan per year, to an annual total of all costs store is 91,600 yuan. The official said the factory's booth is small, every month a store's sales also more than 10 million over the year not more than 1.5 million yuan, remove the store's profits rebate, profit to 5%, meaning that this year of making profits is not enough to pay the cost of stores.

Contradiction Key words: force charge

Business pass business losses

Friction between vendors Another factor is the store's force charged issue. This factory official told reporters, often wants to store some large events, and these activities require the support of manufacturers, businessmen sometimes do not win the support of manufacturers to cut prices on the unauthorized, the loss would have forced the final load in the factory head if no settlement is reached among the last companies to force stores often charge.

In fact, this contradiction between the long time vendors in the end not only the differences on the amounts of promotional expenses, including a number of charges on the above differences, and holds the right to receive payment of the businesses to use more force deduction section of this move, which directly caused the manufacturers of dissatisfaction, also led to other new conflicts.

Contradiction Keywords: account of the problem

Delay checkout worried for naught

"Through the rectification of previous years, the most current billing rules that state the United States but some businesses would have a month end models are often three months to settle accounts, and check out Shi Huan many excuses." The manufacturer is responsible for said, accounts for the period of delay for the manufacturers not only affect the cash flow, and very insecure. For example, a small manufacturer in a store a month if sales of 80 million, three months does not end there shall in fact 2.4 million yuan, plus samples and other charges nearly 20 million, if the business suddenly closed down , then it means the manufacturer has failed to be 2.6 million yuan. The manufacturer responsible person said, check out a business before the very "rules", but since the listing became extremely difficult, businesses are likely to tie up money manufacturers have to invest in the other industries, and in fact became a factory for the business to provide free loans of banks.

Why manufacturers do not say no to business

On business have been complaining why the manufacturers still have to sell it in stores? An industry that appliance manufacturers have not strength of the merchants say. For the manufacturers, if out of stores, first significant loss of market share.

Take Gome, the market share of home appliances in Tianjin, has more than 60%, out of the country if the U.S. store, it means that most of the market share will suddenly disappear; Secondly, the appliance manufacturers have not established their own channels, the traditional stores are out of home appliance sales, stores not only the high cost of self, but the risk was great, so supermarkets are the most important manufacturers rely on the channel; Finally, if out of stores, brand awareness will mean a significant drop in appliance stores to deliver an important message to consumers is, "are trusted brand", if out of store, brand image is bound to be seriously affected. For these factors, manufacturers more often had to "swallow."

I am an expert from China Chemicals Products, usually analyzes all kind of industries situation, such as steel spheres , gilding gold leaf.