Coating Distributor Partner Mechanism for Coatings Enterprise Transformation

If you compare a company to a big tree, there is no doubt that distributors are the roots underground. Therefore, the importance of distributors to enterprises is self-evident, and it is not an exaggeration to say that they are the lifeline of enterprises.
At present, the coating industry is at an important development node, domestic overcapacity, continuous consumption of resources and energy, environmental pollution, real estate facing the situation of destocking, etc., these problems are all major challenges for the coating industry. In the context of the coexistence of vitality and reshuffle, paint companies need more stability and cooperation from dealers if they want to survive and develop.
In the past, enterprises supplied dealers and gave human, material and financial support, but now this model has made it difficult to form a community of destiny between large dealers and enterprises. At present, paint companies should create a partnership mechanism to promote the optimization and upgrading of channel management.
Case - five years of operation, dealers have no choice but to "jump ship"
For dealers, choosing a brand as the starting point for entrepreneurship is also deliberate. It's like two people falling in love, from knowing and falling in love, to blossoming and fruiting, it is the result of the run-in of both parties. Of course, there will inevitably be differences during the cooperation period, but unless it is necessary, the dealer will not come to the step of "breaking up" and will not easily change the brand.
A dealer in a certain place in Shaanxi, began to operate a paint brand in 2011, because of its super personal ability, far-sighted thinking and unique dealer profit system, in the local market he led the team to start the brand from scratch, in just three or four years to build a business network with more than 200 distributors, annual sales of more than 10 million, in the local building materials market can also be called a group of dark horses.
But as a result, due to the brand represented by the dealer, the product has no characteristics, the brand has no popularity, the product quality is unstable, and the supply is slow; At the same time, due to the frequent turnover of marketing personnel, the service has not kept up, and the combination of manufacturers has not even lasted to the "seven-year itch", and the dealer has to reconsider changing brands or finding another way out (in the end, after contacting many brand enterprises, the dealer resolutely chose the road of independent OEM and operating independent brands).
The product has no characteristics, the brand has no popularity, and the follow-up service is not in place... This will directly lead to dealers not making money, it is difficult to support the dealer team and marketing expenses, and the cooperation is naturally difficult to last. This is especially common for many small and micro enterprises. The speed of development of customers in front is like a cloud, and the backyard is like firefighting, which is not a long-term solution after all.
Breaking the situation - creating a dealer partnership mechanism
In fact, paint companies should be wary of the spread of the "job-hopping" situation of dealers, especially heavyweight dealers, and the cascading effect on other regions cannot be underestimated; But at the same time, it is not impossible to cut off this contagion trend. This requires enterprises and distributors to change from a simple buyer-seller relationship in the past to a partnership mechanism in the future. Just as in business management, the boss and employee need to change from an employment relationship to a partnership relationship.
Since last year, many companies have begun to explore the model of partners, such as Ating paint, Beyuan shell powder paint, Jirenle makeup, etc., and their attempts have also achieved a good reputation in the industry.
So, what do enterprises need to pay attention to to to build a partnership model for dealers?
First, build a dealer profit system. For business, all unprofitable business activities are hooliganism, and profit is naturally the ultimate goal pursued by dealers. For paint distributors, especially those just starting out, it is very important for companies to help them make a profit initially, and then make them profitable in the process of operating on their own.
Therefore, in the early stage, we will assist dealers to establish a team, build a profit model, determine channels and directions, and clarify the entry points of advertising and promotion. It is crucial to build distributors' products and pricing systems through local market research, and help dealers get on the road quickly through a series of activities. In the middle and late stages, it is also critical to give professional guidance to the team and give dealers some new marketing ideas guidance according to market changes to help dealers build a sustainable profit system.
For key model markets, it can also form a binding mechanism with the interests of the company and build a community of destiny. In this way, it is more difficult for dealers to change brands.
Second, strengthen technological innovation. For enterprises, products are always the trump card of distributors to conquer the market. Enterprises can only meet the market demand in products, such as the past market requirements for coatings are only scrub resistance, whiteness, fullness and other basic functional requirements are very high, many products will also focus on the number of scuff resistance to achieve. For coatings, on the one hand, it can play the function of protecting the wall, and the other major function is the decorative function. With the rise of post-80s and post-90s consumers, price is no longer the preferred condition, and everyone's pursuit of environmental protection performance and beautification and decorative performance of coatings is getting higher and higher. Functional coatings such as texture film, art paint, shell powder, seaweed mud, diatom mud have also gradually entered thousands of households, partially replacing the traditional interior and exterior wall latex paint.
Therefore, as an enterprise, we must start from the market, do fine work, and create a profitable product system for distributors.
Third, enhance the core competitiveness of enterprises. In the process of chatting with distributors, many dealers often complain: a foreign-funded brand and domestic first-line brand agency conditions are harsh, there are many pressed goods, and they are miserable. But in fact, you can see that the dealer turnover rate of these brands is very low.
Why?
In today's market environment of survival of the fittest, as an enterprise, the iron needs to be hard. Only when the enterprise is strong, the distributor will be more stable. After all, it is so cool under the big tree, and no one wants to be afraid of a crumbling enterprise. Therefore, coating companies to strengthen brand innovation and enhance brand image is the key to helping dealers win market competition.
In short, in the face of the fittest environment, coating companies must comply with market demand, meet various challenges, understand the causes of the dilemma, and then analyze the changes and do a good job in coping strategies, so that they can usher in new development in the dilemma. (Source: Global Coatings Network) (For more information, please visit: Global Coatings Network