From 230,000 to 700 million, Dong Mingzhu’s luck in bringing goods and the suffering of the channel 640,296 “>
From 230,000 to 300 million to 700 million, Dong Mingzhu’s live sales of goods brought on the road are like sitting on a rocket. There is no highest but only higher. At the same time, as this number continues to rise, her attitude towards live streaming or online sales is also changing.
From “do not live broadcast, stick to offline”, to “normalize live broadcast”, Dong Mingzhu specifically mentioned Gree’s more than 30,000 offline distributors, saying that he would combine offline and online, his own live broadcast Bringing goods is a good way for them.
But can the live broadcast attempt of “Leader Sister” become normal? Can all e-commerce platforms and distributors continue to play with them?
30 thousand offline distributors “go online”, where does the traffic support for amateurs come from?
“Under normal circumstances, the price of air conditioners in our store is unlikely to reach the discount that Dong Mingzhu live broadcast. The minimum air conditioner in her live broadcast is only 1799 yuan, and the lowest price in our store is only 1999.” Gree Electric ’s front-line sales staff recently expressed their understanding of notes.
The salesperson revealed: “As the most basic distributors, we hardly make money on air conditioners, and they often go in and out. The revenue of the store mainly depends on the rebate of Gree headquarters after completing the sales target. , The more you sell, the more rebates. But in the past two years, the market is not good, Gree still has a strong pressure on the goods, and the sales task is difficult to complete. “
After JD.com ’s “success” live broadcast, some Weibo netizens said that the better Dong Mingzhu ’s live broadcast, the more the offline distributors will cry. Perhaps, after seeing Dong Mingzhu’s live broadcast prices, there were not many dealers who “cried”.
The problem of suppressing goods is the source of the pain after dealers saw JD.com ’s live broadcast of more than 700 million transactions. In the past two years, dealers have long complained about suppressing goods. At the beginning of 2019, the media exposed the news that Gree had pressed goods to dealers on a large scale in order to achieve revenue commitments. This point can be glimpsed from Gree Electric’s changes in the proportion of inventory assets in recent years.
According to Gree ’s financial report, Gree ’s inventory in 2019 was 24.085 billion yuan, accounting for 8.51% of total assets. ThisOne figure was 16.568 billion yuan (accounting for 7.71%) in 2017, and 20.012 billion yuan (accounting for 7.97%) in 2018. The gradual increase in three years shows that Gree’s inventory pressure is huge.
Know that Dong Mingzhu ’s 300 million live broadcast on Kuaishou and more than 700 million live broadcasts on JD.com have nothing to do with channel providers.
“Dong Mingzhu’s efforts online are actually a kind of harm to offline dealers. Essentially, offline and online are a contradictory relationship.” Liu Buchen, an analyst in the home appliance industry, told me that the entire air conditioning market The demand is fixed. The larger the amount of Dong Mingzhu sold online, the less the offline distributors. “She once said that she wants to use both online and offline to make the offline Gree store a user experience store. But the dealers are definitely not willing to let their store only play an experience role. What they need is real sales. “
Of course, Dong Mingzhu ’s appeal for offline channels is also very clear, so she also tried to find a balance between developing online channels and stabilizing offline channels.
For the situation of traditional offline dealers, Liu Buchen made an analysis: “Dong Mingzhu himself is definitely not willing to abandon these offline dealers. After all, in the past era of creating a store model, Dong Mingzhu has nearly twice In the process of being re-elected as the chairman of Gree Electric Appliances, these offline distributors have made great contributions. Without their support, Dong Mingzhu cannot have the status as today. “He emphasized that in a sense, between the distributor and Dong Mingzhu Acting in concert, it is not appropriate to abandon the dealer at this time for reason.
But the balance between the two is obviously difficult to achieve. From the perspective of Gree’s future development, it is necessary to increase the emphasis and investment on online channels, which is equivalent to standing on the opposite side of offline dealers and the third largest share of Tokyo Sea Guarantee.
The key point is that Dong Mingzhu seems to have made up his mind to “develop online channels”.
After the success of the fast-hand live broadcast, Dong Mingzhu pointed out: Gree live broadcast may be normalized in the future. This statement highlights Dong Mingzhu’s changes in the perception of sales channels, and it can also be said that the effect of live streaming with goods has shocked her. Gree used to advertise and promote the online channel of CCTV, “Dong Mingzhu’s small shop”, which generated only 350 million yuan in sales throughout 2019. Today, a JD live broadcast is comparable to the two-year performance of the former, and Dong Mingzhu naturally cannot resist such temptation.
However, Gree ’s more than 30,000 offline distributors can “respond to the upheaval due to Dong Mingzhu ’s several live broadcasts and bring in goods.”High”? Dong Mingzhu seems to have forgotten that not everyone is an internet celebrity entrepreneur like her. More than 30,000 offline distributors are not only amateurs, but also less likely to get traffic and subsidies from the platform.
For such channel transformation measures, Liu Buchen also emphasized: “In the past few years, Gree Electric has not been smooth in product diversification. Due to the excessive strength of the air-conditioning category, a large number of offline dealers have only Sell Gree air conditioners, and small appliances, refrigerators and other categories will not be sold. Online live broadcast requires traffic, these offline amateur dealers do not have any online traffic foundation, they are not Dong Mingzhu with their own traffic, It is difficult to get support from the platform even if you stubbornly live broadcast. “So, Dong Mingzhu’s idea of making offline dealers like her to achieve offline and online dual-channel parallelism is extremely difficult.” This is just her personal good wishes, and Will not become a reality. “
On the one hand, it is the temptation to continuously increase online sales, and on the one hand, the complexity and stagnation of offline channels. No wonder Dong Mingzhu recently stressed in an interview with the media that “Gree sales executives have changed for two rounds. Now I want to Catch sales in person. “
Channel distributors are “overdone”, is it a panacea for online live streaming?
Gree ’s sluggishness in online channels comes not only from the genes of traditional home appliance companies, but also from its dependence on the original ecosystem for many years.
It was just this outbreak that made Gree suddenly realize the fragility of physical channels. Dong Mingzhu once said in an interview that due to the epidemic, Gree basically had no sales in February this year, and in February of last year it had nearly 20 billion yuan in sales. According to Gree ’s financial report for the first quarter, Gree ’s Q1 revenue reached 20.4 billion yuan, down 49.7% year-on-year; net profit was 1.56 billion yuan, a year-on-year decrease of 72.5%.
At this time, the huge difference between e-commerce channels and traditional retail channels is also highlighted. According to the “China Household Appliances Market Report for the First Quarter of 2020” released by the China Electronics and Information Industry Development Research Institute, the domestic retail market of the domestic appliance market reached 120.4 billion yuan in the first quarter of 2020; the contribution rate of e-commerce channels to household appliance retail For the first time, it exceeded 50% and reached 55.8%, and the role of online retail in promoting home appliance consumption was further enhanced.
Gui is a brother of the domestic air-conditioning industry, with a annual revenue of more than 200 billion Big Mac, Gree’s online channel has always been its biggest shortcoming. According to the previous air conditioner market report for the first quarter of 2019 released by Zhongyi Kang, the major brands China and the United States accounted for 35.1%, Oaks accounted for 22.8%, and Gree only 16.3%.
From another perspective, the reason for the slow development of Gree’s online channels is also closely linked to the complex relationship between its offline dealers.
Reviewing the development of Gree Electric, its huge and complicated offline dealer system has played an important role in Dong Mingzhu’s success. In 2007, a total of 10 Gree Electric Regional Distribution CompaniesHe Beijing Haiguai Investment Co., Ltd., which was formed together, obtained a 10% stake in Gree Electric. To this day, He Beijing Haiguai Investment Co., Ltd. is still the third largest shareholder of Gree Electric, holding 8.91%. Gree Electric Appliances and distributors are already a community of interests.
Gree currently has more than 30,000 offline distributors and 500,000 to 600,000 offline sales staff. This group played a vital role in the development and rise of Gree Electric Appliances, and also contributed to Dong Mingzhu. But in the face of the new retail era, will this channel model remain unchanged? How should it change?
In this regard, Liang Zhenpeng, an analyst of the home appliance industry, said to the understanding notes: “Historically, Gree has always been very protective of its dealers. Many e-commerce platforms want to cooperate with Gree and ultimately need to sell from Gree. Take the goods in the hands of merchants. But the real problem today is that if you take the goods from the dealers, it is not conducive to the flat reform of the sales channel, and it is not conducive to the reform of the e-commerce of the sales channel. “
From the perspective of price, the traditional dealer system also makes Gree’s terminal sales price not very advantageous. Liang Zhenpeng pointed out: “Layer-by-layer dealer agency system means that Gree ’s products will increase in price, which is equivalent to the same product specifications for consumers. Buying Gree will cost more, because each layer of dealers The product price must be increased by at least 10%. “In his view, in the current era of e-commerce channels, if Gree wants to protect dealers, e-commerce channels still have to take goods from Gree dealers. The market price of the product There will be no advantage, “Naturally, the willingness to cooperate in e-commerce channels will not be very strong. It can be said that this layer of dealers’ agency system is itself a representative of backward productivity. “
But both online and offline, and even major changes to offline channels cannot be reckless, nor can they be applied across the board. After all, this involves more than 30,000 offline sales stores and the work of hundreds of thousands of people. Liu Buchen predicts that this channel reform will continue for at least 2 to 3 years.
More importantly, if Dong Mingzhu regards the “subsidies” of the game between platforms as the grasping hand on the transition line, it is likely that he will see an embarrassing sight of no one taking orders in the future. Because today’s hundreds of millions of live broadcast sales, the “lowest price of the whole network” smashed out of money, piled up one yuan one yuan.
From 230,000 to 700 million, who will pick up the game when changing the platform?
“I was scolded to death that day. After the broadcast, I was scolded one by one on the phone. But this is all about your scolding, and they want you to sell more.” Dong Mingzhu recently accepted CCTV’s “face-to-face” program commented on the “overturn” of its live show.
In fact, from the perspective of the live broadcast process and sales, the much-anticipated Dong Mingzhu’s first live broadcast debut was very unsuccessful. The entire live broadcast process was very stagnant, and the overall sales were only a poor 230,000 yuan. However, this number became 300 million on the fast-hand platform half a month later, and a few days later the Jingdong live show jumped directly to 700 million.
It is true that the difference between the three live broadcasts has both objective reasons and Dong Mingzhu ’s own change of concept, but the most important thing is this-platform subsidies.
The first show of the Douyin platform is not satisfactory. Kuaishou naturally sees the problem in the eyes. As a local battle against competitors, it naturally has to do everything possible to make Dong Mingzhu win a bright spot on Kuaishou platform. Eye score. In addition to Gree ’s great changes in product selection, Juicer, rice cooker and low-end air-conditioning products have been added. In terms of anchor liner, Kuaishou has also equipped well-known anchors such as Erlu couple and Li Xin. In addition to Gree’s official product prices, Kuaishou also specifically provides subsidies for each Gree product, which has achieved the “lowest price of the entire network”.
So, the people who eat melon saw the Gree inverter air conditioner of “1799 yuan” and the turnover of 300 million yuan.
The same is true for subsequent JD live broadcasts. JD.com invited V Wang, the digital circle, to be a live broadcast partner, and JD.com also gave a very generous discount on the same day-in addition to many Gree products hitting the lowest price in a year, and a platform Coupons over 1000-500, 1500-750, etc.
Mr. Dong Mingzhu, an online celebrity entrepreneur, does bring her own traffic, and her value is also valued by the e-commerce platform that is making efforts to live broadcast and bring goods, so there will be a “scene” of live broadcast changing one platform at a time. This kind of operation also allows the live streaming platform to pay a huge amount of subsidies for competition in terms of traffic and influence.
But as Zhang Ruimin, chairman of the board of directors of Haier Group, said, live streaming is essentially a price war. “The lowest price in the entire network” is the biggest incentive to drive the crowd to place orders, and this lowest price in the entire network requires Gree and the live broadcast platform to “bleed.” However, it will alsoHow many big platforms are willing to take over the live show of Miss Dong, which has “rised” to a turnover of 700 million yuan? How many other families have the determination to continue playing with huge subsidies?
The Gree and live broadcast platforms have obtained sales and traffic through “bleeding”, but this “subsidy” gameplay is unsustainable, and it will turn more than 30,000 offline dealers of Gree into a live broadcast subsidy war. “Victim”.
So, if Gree only sees the soaring turnover of the platform, and only sees the subsidies invested between the platforms in order to compete for huge amounts, they forget the development rules of their own channels. Obviously, they will encounter another serious setback after turning around online .
【Conclusion】
Innumerable dealers are like “Knights” who have made great contributions to the rise of Gree, and they all have the former glory. In the era of live broadcast platforms, their glory seems to be suddenly challenged. From the perspective of the new retail evolution, they may no longer belong to this era, and they are even becoming a burden for the development of Gree Electric. But where should Gree’s future “cutting the vassal” begin?