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Recently, there have been irregularities in the practices of some distributors, such as the phenomenon of fleeing goods, which has brought a lot of harm to brands and other channel members.
Channeling refers to the distributor buying the product from the authorized channel and selling it to unauthorized channels or regions, thus destroying the first-chain relationship and market order.
1. What is channeling?
Channeling is when a distributor buys a product from an authorized channel and then sells it to an unauthorized channel or region. The behavior of fleeing goods violates the authorized operation policy of the brand and destroys the normal sales channels and market order. The characteristics of goods channeling include low-price sales, non-authorized sales, and no after-sales service.
What is the root cause of the frequent occurrence of goods fleeing?
1.Triggers for price differences: The phenomenon of goods channeling is usually related to ** differences. Distributors make a profit from the difference by buying products at low prices and then selling them to unauthorized channels.
2.Mistakes in sales management policies: Some brands have deficiencies in sales management and fail to establish a sound licensing policy and supervision system, resulting in frequent goods fleeing.
3.Unstable price control: The brand fails to effectively control the market**, resulting in speculative behavior among distributors and higher profits through channeling.
Second, what is the way to effectively solve the problem of goods channeling?
1.Strengthen control: The brand owner should establish a stable system, formulate reasonable policies, and sign contracts with distributors to clarify requirements and control measures.
2.Establish a regulatory mechanism: E-commerce platforms and other third parties can strengthen the supervision of distributors, establish channels for reporting and complaints, deal with goods fleeing in a timely manner, and punish violators.
3.Cooperative price control company: The brand can cooperate with a professional price control company to prevent price control through market research and data analysis, and provide market intelligence to help the brand establish a good image.
4.Strengthen partnerships: Establish strong relationships with distributors, strengthen communication and training, and improve their understanding and implementation of brand licensing policies.
Third, how can the brand prevent the channeling?
1.Establish an authorized operation policy: The brand owner should formulate a clear authorized operation policy, standardize the behavior of distributors, and clarify the requirements of **, sales channels and after-sales service.
2.Strengthen supervision and training: Brands can strengthen the supervision of distributors and conduct regular training to improve their professional quality and understanding of brand policies.
3.Provide marketing support: Brands can provide marketing support and marketing activities to increase distributors' profit margins and reduce the motivation to flee goods.
4.Strengthen legal protection: Brands can work with a team of lawyers to establish a legal risk early warning mechanism to pursue legal prosecution and protect their own rights and interests.
In short, brands need to take measures to control prices online according to their actual situation, so as to effectively protect their interests and brand image.
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