Agricultural Machinery Dealer Alliance Development

[ China Agricultural Machinery Industry News ] In Chongqing, Shandong, Henan, Jiangsu, Zhejiang and other regions, in the past two years, there have been spontaneous distributor organizations of non-governmental organizations. Several distributors have joined forces across townships and counties, or in some regional markets. The dealers spontaneously united to unify the purchase, standardize the price, share the network, unify the promotion, and unify the service.

Agricultural machinery dealers seem to have a tendency to move from single-handedness to centralized development. Then why should these agricultural machinery dealers unite, what is the development trend behind these alliances? How should we look at this new thing?

First, spontaneous union, warmth

From our visits to some distributor alliances and the introduction of the companies we work with, we find that they are moving from decentralized distribution to alliances for at least the following reasons:

1. Join forces to fight for policies from production companies

In the agricultural machinery industry, in recent years, the production enterprises are getting bigger and bigger. For example, Yituo, Lovol, Shifeng, etc. are all enterprises with sales revenue exceeding 10 billion, while agricultural machinery dealers have no more than 5 billion, and 1 billion are also Fengmao. The scales, volume and scale are not equal, and the industry's right to speak is on the side of the production enterprise.

In recent years, the business policies of production companies have become more and more powerful. Nowadays, they are basically not written off. Large enterprises require first-come goods, and they are required to reserve spare parts. The obvious funds, inventory and sales risks are all passed on to the dealers.

However, in the field of agricultural machinery circulation, the small scattered mess is still a true portrayal of the dealers. The vicious competition and shrinking profits caused by this have jeopardized the production and development of most dealers. Of course, they are fighting each other, making them in the manufacturing enterprise. In front of a weak position.

Pressure inventory, low gross profit, high mission is the three big mountains in the dealers. As the market growth slows down, the production capacity of the production enterprises is not released, so the stocks are constantly pressed to the dealers, and the dealers are required to purchase the goods. A large amount of goods have been entered, the dealer's funds have been occupied for a long time, and the cost of the dealers is getting higher and higher.

Under this circumstance, the channel alliance can quickly end the small scattered situation and form a stable and orderly market environment in a small area. The combined dealers can jointly voice and gain more benefits in the negotiations with the upstream.

2, united, you can share resources

The existing alliances of several agricultural machinery dealers have been negotiated together and negotiated with the upstream manufacturers. The brands that are discussed are shared among the dealers. In addition, for the strong brands of the distributors, the dealers coordinate the manufacturers and then the members of the alliance. They can be mutually available, which is suitable for dealers with different products and different sales areas.

In addition, the individual dealer resources are limited, and some large-scale promotional activities cannot be undertaken. However, the dealer alliance can cooperate and fight. "All people collect firewood and high flames." Everyone joins together. If there is scale, there will be good activity effects. effective.

3, the association will rise, regulate behavior

For the sake of competition, in the regional market, in order to compete for resources, to compete for the brands in the hands of competitors, to kill each other, and to dig each other, it is common to happen. Even the things that have been framed have occurred from time to time. The result of the competition is both hurt, and it is used by the upstream manufacturers from time to time, and it also makes everyone have no profit.

The establishment of a coalition organization by scattered dealers is a good way to regulate the behavior of the industry. With the alliance, it is possible to formulate norms and guidelines for the industries that constrain the dealers. With the credibility guarantee of such alliances, individual dealers can be in the hearts of users. The reliability and image will be improved. Users don't have to worry about the dealer's reputation during the purchase process, and the dealers can also make less effort.

Of course, if there are violations in the alliance, such as shoddy, fake and shoddy, etc., the alliance may have corresponding penalties, and the alliance can take the form of advance payment to protect the rights of users.

Second, the prediction of the development of agricultural machinery dealers alliance

1, the number will be more and more, from loose cooperation to the community of destiny

We have reason to believe that after the industry enters a mature period, the dealers' days will become more and more difficult, so this kind of "group warming" alliance organization will be more and more, and will be from loose organization to close cooperation. change.

2. Will attract the attention of capital

The agricultural machinery dealers will eventually be transformed from the chaos of the current “Jihou Babai”, and the agricultural machinery dealers will lay the foundation for the large-scale integration of agricultural machinery circulation. The organized dealer alliance will be the big enterprise and capital. The integration of the subject matter, with the help of capital, the integration speed of the agricultural machinery circulation field will accelerate.

3. Production enterprises will promote the development of the alliance

In addition, with the help of information means, if this alliance is indeed more than a single dealer, the upstream production enterprises will also rush to cooperate, and even the later production enterprises may actively promote the integration of agricultural machinery dealers in the region. It can increase the density of the outlets of the production enterprises, which is beneficial to the rapid establishment of exclusive advantages in the regional market.

There are already ready-made cases in the industry. A certain brand of agricultural machinery and equipment manufacturing enterprises in Hebei is cooperating with more than a dozen small dealers in Chongqing to develop the rotary tiller market in Luxi. The distributor alliance representatives and manufacturers have formulated a unified sales policy. Uniform prices, unified organization and promotion, sales in 2016 doubled from the previous year, marketing costs have been greatly reduced, and profits have increased significantly.

Third, the recommendations of upstream and downstream production enterprises and distributors

1. Suggestions for upstream production companies

It is recommended that manufacturers pay attention to this new thing. They should adopt a cooperative attitude rather than hostility. In the downward cycle of the market, the marketing cost of the enterprise will definitely increase, and the marketing will be more difficult. It is better to cooperate with the individual dealers in the region. Dealer alliance cooperation.

This spontaneously organized consortium can control user resources within a small area. In cooperation with the dealer alliance, the products can be quickly put on the market. If you can win the alliance sales, you can also shield the competitive brands from the alliance, and even squeeze out the regional market, then one-on-one and one-to-many. Compared to marketing costs will be very economical.

In the long run, the alliance between production enterprises and distributors should establish long-term cooperative relations and respect each other. In the market policy and benefit distribution, the production enterprises and distributor alliances should be jointly formulated, and deep cooperation and symbiosis mechanisms should be established to enable the two sides to go further.

2. Suggestions for the Agricultural Machinery Distributors Union

It is easy to form an alliance, but specific cooperation is not easy. It is even harder for the alliance to exist for a long time! During the Spring and Autumn Period and the Warring States Period, the vertical and horizontal family under the Ghost Valley was based on the idea of ​​"combining the vertical and the horizontal" and promoted the establishment of countless alliances. Because they each have their own interests and each has a small calculation, these alliances often have a short life span.

For the agricultural machinery dealers alliance, if you want to develop for a long time, it is recommended to change from the existing loose cooperation to close cooperation. Specifically, you can have the following cooperation methods: First, the company operation, from one to two relatively strong dealers Take the lead, everyone participates in the joint venture, set up a joint venture company, so that everyone can cooperate with legal protection; second, form a community of destiny, the enterprises within the alliance establish a community of destiny through mutual shareholding, do not care how many shares, what is required is "you have I, I have you." In the market competition, there will be mutual awareness of each other and mutual ally, which is conducive to the development of enterprises within the alliance; the third is the development of chain, which needs to be initiated by a strong enterprise, others Enterprises become a branch of a strong enterprise or become a franchise store, chain management, this relationship will be more stable.

In short, close partnerships are better able to cope with upstream and downstream games and market competition than loose ones.

In addition, whether management is loose cooperation or close cooperation, it is necessary to use information tool management, such as order management system, customer management system, inventory management system, etc., which are customized for such alliances. The information is transparent, facilitating the communication between members and the synergy of products, information, capital and logistics.