Today, with the rapid development of social economy, we have to face a serious problem: Water pollution! With the continuous rise and exposure of water pollution incidents, consumers' awareness of healthy drinking water has been unprecedentedly stimulated, and this has led to a new revolution in the drinking water industry. !
In the overall downturn of the home appliance market, water purification equipment still maintains a high-speed growth trend. According to statistics, from 2016 to 2020, the water purifier market is expected to maintain a compound annual growth rate of 47%, 2020 net Water appliances will exceed 139 billion yuan, already an invisible market of 100 billion yuan.
However, many water purification product distributors have another kind of doubt: When I take the unlimited expectation of the water purification market and join them, I feel like it is not the case! Then where is the problem?
Pain point one: lack of industry standard specifications brand complexities
The huge market potential of the water purification industry has caused many companies to flock to the water purification industry. Naturally, this has led to the complexity of the brand name of the water purification market, as well as the uneven quality of the resulting products, the price confusion, and exaggerated propaganda and other chaos.
According to incomplete statistics, there are currently more than 5,000 companies engaged in the production and sales of water purifier products in China!' The current water purifier market is a mixed bag. On the one hand, some companies' water purifier products can be described as sloppy, with uneven quality. There is no guarantee for users' water security at all. There are even some brands with a certain reputation. On the other hand, a considerable number of companies use consumers' knowledge of water purification products but there are concerns about the potential risks of drinking water quality. Come to deceive consumers.
In the face of these chaos in the market, although the state has introduced corresponding measures, it has never been able to truly regulate them. As a result, consumers’ confidence in water purification products has been greatly reduced, resulting in some excellent quality and cost-effective freshmen. The brand's market channels have become narrower and narrower, even to the point where it is difficult to sustain.
Pain Point 2: Entity Store Operating Costs Lower Profitability
In the early days, when the gross profit rate of water purifiers was high, they would buy one for three days, which wouldn’t open for three days. Now that the gross sales volume has dropped, the cost has also increased.
Among them, the labor cost is the most prominent. Compared with e-commerce logic, the traditional store model still has the existence of some 'unnecessary' personnel. They actually directly give the company 'value-added', such as excessive sales personnel, settlement personnel, cashiers and More drivers, warehouse personnel, cost pressure on operators.
One year afterwards, one account is often lost and earned, others are described as moving bricks for the store, which is not an exaggeration. In previous years, the fees charged by large chains were high, and manufacturers and agents could not bear it. Taobao, Tmall, Jingdong , Suning Tesco just got a little improvement, a bit of sales, all kinds of expenses came up.
Pain point three: The length of the sales chain is difficult to develop in the terminal market
In addition to the small logistical obstacles of small-scale logistics, water purification products are not different from other major appliances. The traditional approach is to take the agency and even multi-level wholesale agents, and the retail stores are mainly specialized in home appliances, while the agents are engaged in installation and maintenance at the same time.
After the increase in the proportion of e-commerce sales, it is generally who sells and who installs it, or the factory entrusts the local market to install the agent. This mode is still worthwhile in large and medium-sized cities.
However, there are too many small businesses in the industry, and customers have fewer channels and short channels. They have a long channel and can't play after the diversification of retail formats. For example, who sells products to consumers in the water purification industry? Consumers do not Clearly, which consumer is sold, who is the consumer, and the manufacturers are confused. The contradiction is highlighted after the electricity supplier's indiscriminate price has lowered the gross margin of the distribution channel.
Pain 4: After-sales service is difficult to avoid
Many dealers/agents (including many manufacturers) in the water purification industry are far from understanding the complexity of service management, or are not enough. Looking at the service is too simple. Strictly speaking, it is not as easy as marketing management. Service Management Needs a certain process, but also need to evaluate the system, which is known to the general distribution/agents, most of the powerful distribution/agents do so.
However, service management is not just this. Some key links are not well handled and grasped, or are not well managed. For example, it is difficult to coordinate the processing of the promised service charges and the final on-site service fee. Not necessarily everyone can manage it.
For example, the activation rate of a certain brand of water purification brand in Fujian is only about 30%. On the one hand, in the sales process, the terminal shopping guide is afraid of affecting the transaction and only talks about the benefits of the water purifier, but on the water purifier. It requires life-long maintenance, and must pay the relevant cost downplay, or not mention, let consumers mistakenly believe that buying a water purifier product is once and for all. Causes late service due to misunderstanding with consumers, and difficult to activate.
Water purifiers aren't the normal home appliances that can be plugged in and plugged in. They involve issues such as household water pressure. Therefore, it takes a long, difficult path to solve the problem of the maturity of the service platform. It is not simply to burn money. What can be overcome. Only the after-sales staff will continue to improve their own professional knowledge, and be thoroughly familiar with all kinds of possible malfunctions of the water purifier, so as to solve customer problems in the first place.
In recent years, with the upgrading of consumption and the improvement of the quality of life, people are paying more and more attention to health and health, and the demands for water quality are getting higher and higher. Water purifiers have therefore become indispensable appliances for many families. In the future, water purifiers The demand of the market must also be very substantial. As water purifier manufacturers and agents must combine the actual situation of the industry and the actual problems of consumers, improve the industry influence, good reputation and reputation, and enhance the level of service, so as to be in the clean water The big market environment continues to grow.