Hardware industry competition, major companies continue to seek new ways to break the competitors. In recent years, the rise of hardware tools industry, a new form of channel model - supermarket chains. The birth of this model, essentially because competition is so intense, very serious homogenization, desperation, and only began to change from the corporate channels, the channel hopes to re-shuffle, quickly led to increase sales, corporate sales breakthrough not growing embarrassment, but for this form of future development, many companies did not do a detailed scientific thesis, for future strategic development, but also need to do more detailed planning.
One is the strength of the larger dealers in the local or surrounding cities to increase sales shop, which is to open several stores.
Another new form of the so-called purchasing alliance, had this idea is very good, you can form alliances between dealers, the rapid formation of a strong buying group, centralized purchasing, integration and distribution, reduce costs, expand brand influence, forming monopoly or a strong position in the channel, even through the reorganization of assets, can packaging market. However, due to many reasons purchasing alliance of their own development, not successful, there is still a loose joint dealers, real business value is not great.
Over the years hardware tools distributor model, little change for many reasons, both ideas, internal reasons, such as financial strength, there are also reasons for the procurement of gray, plus a number of upstream suppliers, and change only a handful.
Our hardware tools channel model has been unable to keep pace with the development of brands, Difficult to analyze the profitability of the store, supermarket chains profitability variety of modes of the strongest brand portfolio, a single brand of chain model to be somewhat less. Single brand in the product line are unlikely to be infinite, unless the enterprise ultimately to integrate buyers.
Therefore, we can find that joining the supermarket chains, can exist, can develop, the key is whether a company has a superior financial strength, product sourcing capabilities, integrated research and development capabilities, chain management, branding capabilities, personnel and so on. If you have a, this model can be developed quickly, if you do not have, is likely to be stillborn, companies should be carefully considered.
