Home >

Zero Dealer'S Grudges Broke Into Store Fees: Game Of Hidden Rules

2008/11/10 10:07:00 41

Zero Dealer'S Grudges Broke Into Store Fees: Game Of Hidden Rules

Zero dealer's grudges broke into store fees: game of hidden rules

A well-known foreign capital chain enterprise was taken to court by bribes by suppliers, completely tearing up the "fig leaf" between retailers and suppliers in China. On July 1st, the court of Chaoyang District, Beijing, decided that 8 employees of the company were sentenced to 1 to 5 years' imprisonment for accepting bribes. Perhaps they never thought that a normal behavior which belonged to guild rules had become a criminal act for a while. This not only sounded the alarm for all retail stores, but also reflected the contradiction and inequality between Chinese manufacturers. In fact, this is the long-term game between manufacturers and suppliers of "hidden rules", and it is also a time bomb that can be detonated at any time.
 
"Into the shop fee" into a profit model
 
Along with the further development of market economy, some retail channels are gradually growing and growing. The retail terminal stores of various formats seem to be full of streets and lanes overnight, providing great convenience for consumers to shop. In these terminal stores, a number of enterprises of considerable size have also been formed. Such as the large department stores around the country, as well as the national large chain stores, supermarkets, convenience stores and so on, such as Gome, Suning, Carrefour, WAL-MART, Lianhua, 7 - 11...
 
But just like the common phenomenon of "big shop bully", large terminal stores hold high quality terminal resources, and begin to put forward various requirements to manufacturers, constantly pushing up the entry threshold, of which "enter shop fees" is the most typical representative. According to the insiders, the high cost of terminal stores mainly includes the entry fee, bar code fee, new product fee, shop Festival fee, stack charge, publicity leaflet fee (DM fee), promotion girl management fee, information fee, staff benefits and so on, and the number of "enter shop fees" is the largest and most typical. In many terminal stores, the "access fees" and other channel profits have become the main source of corporate profits. Opening stores and making profits has become one of the highest ideals pursued by many terminal stores.
 
In order to understand the real situation, he contacted Mr. Sun, who works in a large chain convenience store. He said that in recent years, convenience stores have developed very fast, but many convenience stores do not need to pay for their own expansion. For example, a new convenience store, which costs about 200 thousand yuan for rent, decoration, water and electricity, and equipment, is calculated at 6 yuan per employee and 1500 yuan per person per month. The first month's salary will probably need 10 thousand yuan, that is, the total investment of the new convenience store is about 210 thousand yuan. However, there are about 400 kinds of products in a medium-sized convenience store, which can reach 200 thousand yuan for 500 yuan for each product. If you add a lot of barcode fees, shop fees, pile up fees and other miscellaneous fees, the actual calculation of a new convenience store or small profit. He also revealed that convenience stores and supermarkets can hardly rely on the sales profits of their products to feed themselves, so they will try every means to squeeze all kinds of expenses from manufacturers.
 
A simple survey of some supermarkets in Beijing was conducted in the capacity of the manufacturer. First call Beijing Jiaxin Debao supermarket chain, this is a small supermarket with only two stores. The staff answered very simply and casually reported the figures, the cost of entering the shop was 2000 yuan, and the bar code cost was 50 yuan. When asked whether it can be reduced, the other side gave a negative answer.
 
Later, he telephoned Beijing's famous large-scale terminal store Jingkelong, when the other party learned that the marketing was a glacier mineral water, and only one variety, the other side persuaded him to give up the idea of entering Beijing Kelong. "Our store costs at least 150 thousand, and a variety is hard to earn. The 5100 mineral water in Tibet is because of this, and did not dare to come in."
 
Liu Buchen, a famous household appliance expert, said that the "entrance fee" is not only unique to China, but also widespread abroad. However, it seems that only Chinese businessmen regard it as a squeezing factory and use it as a means to make profits. Over time, Liu Buchen believes that if businesses rely too much on this means, the business innovation ability of enterprises will be greatly weakened.
 
Zero supplier resentment outbreak
 
As a matter of fact, although the "entrance fee" has the "excessive collection" of the terminal stores, it also has the "voluntary tribute" of the manufacturers. The marketing director of a small brand mineral water enterprise revealed that the bargaining power of small brand products and terminal stores was relatively low. In order to open up the market and improve the popularity, some famous supermarkets had to enter, sometimes even losing money, they had to go in because the symbolic meaning of capturing the main channel was greater than the actual significance. At the same time, in order to get more channel resources than competitors, enterprises can only use money to buy terminal stores.
 
Because of the spoil of some enterprises, many terminal stores are becoming more and more fierce, and even some terminal stores staff use their power to change hands to ask for money. Some enterprises saw the gradual decline of product profits, and began to hate the terminal stores. In 2007, a well-known large foreign chain enterprise continuously broke out the employee's request for bribes, which led to the strengthening of internal rectification and publicity of the anti-corruption hotline in order to establish a brand image. For a long time, the grievances of the factory for a long time began to burst. After a centralized renovation, a large number of employees throughout northeast, North China and Southern China were dealt with internally, and some serious cases were handed over to the judiciary.
 
In June 25, 2008, the courts of Chaoyang District tried these employees. From their testimony, it was easy to find that employees from several different positions accepted the same number of gifts from the same enterprise. According to the manufacturer, this kind of phenomenon is very common. The missing link will be "wear small shoes". Manufacturers continue to complain that with the recent restrictions of national macro-control and the rise in prices of all kinds of raw materials, the profits of enterprises have been very small, and they have already been tortured by terminal stores.
 
Different from the manufacturer's reporting of employees' bribes, the Xiamen Bureau of industry and Commerce violated the Xiamen anti unfair competition Ordinance. Last two

  • Related reading

Clothing Enterprises: The More The Franchisees Really, The Better?

Agent Recommendation
|
2008/11/8 10:47:00
58

Viewing Post 80'S Management From The Experiment Of White Mice

Agent Recommendation
|
2008/11/8 10:45:00
28

Nearly 90% Failures In Olympic Marketing Of Local Brands

Agent Recommendation
|
2008/11/8 10:44:00
55

Fang Xingdong: Internet Clothing PPG Does Not Have The Listing Conditions.

Agent Recommendation
|
2008/11/8 10:43:00
33

From Wahaha Children'S Clothing To See The Dilemma Of Children'S Wear Brand Extension

Agent Recommendation
|
2008/11/8 10:41:00
91
Read the next article

Brand Management: "Monkey Four No" And Brand Stickiness

The abuse of brand name will lose its special position in the mind of consumers. Marketing Master Philip Kotler