Based on the analysis of the environment and the market, in fact, the problems and contradictions in the accessories business have been very clear. Time is how to survive the bleak period of the market to win the future, and space is how to get the share of sales volume as much as possible in the case of limited profits.
So what are the competitive elements of accessories merchants?
As an accessory business, the author once wrote in “False Proposition? As discussed in the article “E-commerce of Construction Machinery Parts”, its essence is a channel intermediary, but it also provides a lot of value, one is to acquire customers, and a group of potential customers in demand are obtained locally; the other is circulation, allowing Distant accessories products are circulated to customers; the third is service, which is a very professional knowledge service to accurately screen out the products that customers need and cost-effective from the vague accessories; the fourth is the link between after-sales and trust chain and service It is trust. The chain of trust can effectively reduce the cost of commercial transactions and help customers solve after-sales problems of products.
Therefore, we first need to think about what value we provide to our customers, what value cannot be eliminated by other competitors and we have a comparative advantage, and how can we amplify these values?
Secondly, after the value comes the question of price. As a commercial carrier, profit is our goal, and cash flow is the basis for our survival. How to protect our cash flow, how to reduce our own costs, how to increase our revenue, and how to compete in the competition Overcoming opponents in China is the core issue that we must consider.
Comparative advantage 1: customer acquisition
How many accessory owners have not added new customers for a long time, and the increase of new customers is far less than the loss of old customers? The incremental market is a staking, and the importance of customer acquisition is self-evident. The stock market also needs to acquire customers. If you have more customers, others will have fewer customers. In addition, you should pay more attention to the loss of customers than before, and you cannot be dug by your opponents.
Traffic is the source of business. In the past, customers came to you, and whoever put up a sign for people to see can make money. Later, when traffic converged into a market, you could also make money by opening a store in the retail market and waiting for customers to come. Once the golden age passed, it turned into finding customers. , drive a car to visit, and go to customers through channels; then the traffic is on WeChat, and customers rely on WeChat groups and word-of-mouth.
So in essence, where the customer traffic is, accessories merchants should go. There is no doubt that Douyin and WeChat are now the gathering places of traffic. If you don’t continuously acquire customers and take advantage of the trends of the times, it is useless to talk about other means without customers.
The author’s suggestion is that merchants who are still doing accessories in 2022 must learn the marketing and customer acquisition capabilities of the new era, and must do Douyin and private domain traffic, and the author will describe in detail in the next article. If there are platforms, manufacturers, and third-party brands that have a large amount of low-cost user traffic as accessories, the living space of individual merchants will continue to be compressed.
Comparative advantage two: circulation
Circulation is an unavoidable value point. Construction machinery is a production tool no matter what, and it will lose a day if it stops, so there is a high demand for the timeliness of accessories. With the development of logistics, manufacturers are laying the groundwork for sinking channels, and middlemen are further squeezed. It is obvious that wholesalers across the country have begun to squeeze the market of provincial wholesalers, and provincial wholesalers have squeezed terminal channel merchants. survival market. Competition between provinces is also ubiquitous, such as Tianjin’s parts market shrinking due to the rise of Beijing, Shenyang, Changchun, Zhengzhou and Shijiazhuang. As the value link of circulation, we have to consider, from the perspective of logistics response, who am I competing with (probably no longer the old king next door), and who can I compete with (not necessarily just staring at the original one mu three subdivision).
Comparative advantage three: service
In the past, product was king, but now the gap between products has become smaller and smaller, and accessories merchants are beginning to realize that they should become service providers. It is not difficult to find the reasons for dismantling customer churn. There are fewer and fewer factors attributable to the product itself, and more and more churn caused by services.
Excellent merchants organize their products properly and stock well, but this is only a low-level stage of business. The next stage is product servitization. Serving customers is not for selling products but for solving problems. We need to establish a business organization that helps customers solve problems. The advanced stage is the productization of services. Like Haidilao, the service is standardized, so that it can be replicated, quantified and traceable. Only by reaching this point can we occupy the market as much as possible and achieve scale.
After the product is serviced, you can rely on the service to firmly grasp a group of customers that belong to you and be in an invincible position; and after the service is commercialized, you have the ability to conquer the city and develop on a large scale. Similarly, we also need to pay attention to the emergence of large organizations and chain brands with such capabilities.
Comparative Advantage Four: Trust
More difficult to conquer than service is trust. Trust is very delicate. If it is big, it is a brand. If you do a good job in brand building and have customer loyalty, you can also enjoy a certain premium profit; if it is small, it is an individual tendency. A customer may only trust you but not your employees. It is also possible to trust your employees instead of your company, and if he leaves, your customers are also lost.
Whoever wins the trust of customers at a lower cost can stand out in the market. Whoever comprehends and manages this factor of market trust acquisition and makes it a manageable factor can create a higher market. Some accessories merchants use Douyin to attract traffic, and found that unfamiliar customers on Douyin have a higher transaction rate. The reason is that the short video of Douyin presents you as a person, so that unfamiliar customers can understand you in all directions, without having to go offline. The foundation of trust can be quickly reached, which is why short videos should become standard for future accessories merchants.
After considering our comparative advantages through the above four dimensions, we must consider our own advantages from a business perspective, that is, reducing costs and increasing income. Survive at low cost and increase our sales at low cost. From rough management to refined management, from non-standard service to standard service. This is the category of management, with various methods and methods, and it is also the market maturity that brings higher management requirements to player
Post time: Apr-11-2022