The 2018-2019 year is the most painful year for agricultural distributors. Under the further strengthening of national environmental protection, the implementation of the strategy of Rural Revitalization in 13th Five-Year and the No. 1 document of the central government in 2019 and the implementation of Internet plus agriculture in 2019 made some fertilizer dealers living in hotbeds in the year of 2018. I have chosen to quit. At the same time, such as the closure of more than 70% of the fertilizer manufacturers in Linyi, Shandong Province, the market forces fertilizer distributors to lose their jobs and passively withdraw from the market, which is like a war without smoke of gunpowder.
The remaining fertilizer dealers apparently lived every day with trepidation. Here, according to the changes in the agricultural market, we will sort out the fertilizer market on behalf of the agricultural distributors. This is not the result of nothing, but of fact, or of reasonable reasoning.
1, does the manufacturer really want to directly cultivate large farmers?
Two years ago, the manufacturer has been directly to the large customers, but at the same time safeguarding the interests of the distributors, through the distributors in operation. Fertilizer dealers are not playing this game as well as they like. Mainly reflected in the fact that distributors, in order to meet the demand of manufacturers'sales volume and compete in the market, have made unexpected moves. That is to say, by different means, they are actually selling on credit in a different direction, which not only confuses the market, but also sets themselves in. The bitterness is only clear to the distributors themselves, while some fertilizer distributors have changed their credit sales to farmers, but become credit sales to large households, and dig a big pit for themselves. In fact, manufacturers do not want to be direct to large customers, they do not have so much human, material and financial resources, in fact, they want to give dealers a breakthrough. When dealers enter this besieged city, they think how smart they are and often lose their sense in competition. Quit, there are so many bad debts, don't refund, can't maintain normal purchase sales. Agricultural dealers often suffer from their own consequences.
2. Guarantee market or profit?
Zero fertilizer growth in 2020 is a rigid indicator. The state has made a radical change in the past year. Small-capacity manufacturers and those with smaller production capacity are also eliminated. Enterprises that fail to meet environmental protection standards are also eliminated. According to incomplete statistics, more than 30% of the state's small-capacity fertilizer enterprises have been removed, and more than 70% of the Shandong Linyi manufacturer have been removed. This is equivalent to nearly 30% of fertilizer dealers dying out on their own.
And the rest of the dealers have apparently smelled something. Will they die next? Keeping the business in a trembling state while trying to clear the accounts, thinking about doing things after clearing the accounts. But in retrospect, farmers or big households are better than distributors. They won't settle your accounts casually. The purpose is obvious. If you don't have a clear account, you can still make some money to continue credit next year. If you fall down, this account may be. The manufacturer is different to the distributor and survives in the competition. The more factories are removed, the more likely they are to increase their own sales. In this situation, the assessment of dealers has become more and more stringent. Are dealers bowing in this market structure? Or not bow? In fact, there is no choice at all. If you do it, you will bow your head and bear it. If you don't do it, you will quit. Now the manufacturer is fragrant Baboon on the contrary. It must be a big enough profit for the distributor, but the marketing method is more focused on the distributor's own ability. Between sales and profits, between credit and cash, between the real market and the real competition, dealers have a problem. Maybe there will be more bad debts, but not necessarily bad debts. The result of the dealer's own misdeeds came out.
3, channel flattening is a foregone conclusion?
Fertilizer distributors are no longer terrible about channel flattening. Because for so many years, did not see how the manufacturers themselves. If you have such an idea, I think you must be a child who does not wake up. When you are used to lying in the hotbed, you must think that you are the unyielding Monkey King. No one will do anything to yourself. Fertilizer marketing is a business of huddle heating. Under the original three-level model of counties and villages, the distributors at the county level were given great power. The profits at the two levels of counties were totally controlled by the distributors at the county level. The manufacturers seldom managed the distributors at the two levels of countryside or strived for something for the profits at the two levels of countryside. County distributors have tasted sweetness in many years of actual operation, and some manufacturers'special policies have not gone deep into the rural level. So in this trend, it is strange that the two levels of the countryside do not rebel. On the one hand, some rural distributors maintain the relationship with county distributors, on the other hand, they directly purchase goods from manufacturers with their own brand, which is an indisputable fact. If in such a situation, County distributors are not aware, then the level of withdrawal must be county level. In fact, three years ago, I mentioned that fertilizer marketing in the future will not be idle, especially those dealers who get nothing for nothing. It is certain that the channel will be flattened to a definite conclusion, depending on which level will be cut down first. What needs to be proven now is who is more capable of reaching out to grass-roots customers, or who has more customer resources. Now the channel flattening is overnight, there is no room for discussion. Failure to do this in the first three years is not unexpected by the manufacturer, but a smooth transition, not a one-size-fits-all approach, which will hurt the nerves of the manufacturer. From the marketing mechanism of large factories, a marketing department is divided into several transformational marketing departments, we can see that Ni Duan comes down and will certainly have major operations in dealers, maybe now.
4. Is it feasible to promote seeds, fertilizers and pesticides?
It is not uncommon for agricultural distributors to make use of each other or to sell their products in packages. Its incentive lies in the profit support of dealers on the one hand, and mutual promotion on the other. Make fertilizers with seeds, pesticides for promotion; make seeds with fertilizers for promotion, pesticides can also be made with seeds, fertilizers for promotion. We found that the products we run must be profit products, while the other products we bring must be promotional products. The direct result of this mutual promotion is that the prices of seeds, fertilizers and pesticides have fallen like Waterloo. Although on the surface distributors get their own sales and profits, over the years, it has been found that no one's products are selling well now. No matter how much you ask for it, it's always cheaper than you. Why? Because people are sold as promotional products, they can naturally make less money or lose some money to sell, and you are selling as a major profitable product, of course, can not be compared.
Although agricultural means are seeds, fertilizers, pesticides and so on, when these three are used as promotional products, the market price system of products will be broken, and the injury will not be complete. When dealers wake up, they find that their products have been rotten. In the final analysis, the agricultural dealers'own control over the promotion is not carried out in the big market of agricultural materials, but for their personal interests, and they also dream that others will not start on themselves. This kind of self-interest, others pay the idea of pitting themselves severely. When County distributors run out of pattern promotions, the direct victims are rural distributors. They find that no matter how hard they try, lower-priced products are heard, seen and called out without believing them. Actually, I don't believe it is right, because the low price is unreasonable in terms of cost, but it really exists. If you think about it carefully, some distributors are burning themselves with promotions. As for this result, manufacturers often have no way to remedy it, which is the result of the distributors themselves dancing in the agricultural circle.
5, must combine Internet + agriculture? Traditional sales are off work?
Looking at the above four points, is it not clear how chaotic traditional agricultural sales are? Internet + agriculture started in 2015. At that time, the theory of "pigs can fly" was put forward in society. On the Internet draught, no one would fall behind. Now, agricultural distributors should be able to feel the strong ones. Let's leave the traditional fertilizer sales off work for a while. It should not be that situation now. However, some small and medium-sized fertilizer manufacturers have been cooperating with the Internet in a new round of dealer elimination, and particularly fast. We often see some fat enterprises give a lecture on a video website, which can recruit 200 distributors at the township level in a day. This is the fact. Not to mention the quality of products, this marketing concept alone will let agricultural dealers breathe air-conditioning. Now the fertilizer market is not the time for distributors to shout at each other. If the manufacturer wants to restructure and reorganize the distributor system directly, can you resist it? As we mentioned above, why don't some big factories do that? One is the relationship, the other is the sale of a sudden restructuring is unknown, so it must be a step-by-step water test, if the feasibility is high, then change is overnight. If the distributors at county level can smell the internet, then they should do a good job of the distributors at the rural level first and make sure they can hold a group to warm themselves up. Then, when the tuyere comes, they will not panic. Why? There is a person who is familiar with the product and the manufacturer. Why do you need to find other distributors? What needs to be changed is, when the manufacturer changes, do you think about how to lower your stature and become a rural distributor? In the final analysis, it is to force County distributors to distribute their profits to the underlying problems. Internet + agriculture has been written into the rural leading projects in 2019, and we must have enough sense of smell from policy. Now it is not a prediction that was made three years ago. It is actually being implemented. Agricultural distributors must be an important part of the Internet, because the most important part of Internet plus agriculture is the sale of agricultural products and agricultural products.
6. What can agricultural dealers do in eco-recycling agriculture?
The development of ecological recycling agriculture has been put forward for a long time, mainly attributed to the large or excessive use of fertilizers and pesticides. Moreover, the development of circular agriculture can get the support of raw materials from planting, breeding and processing, reduce costs and improve the utilization rate of products. This is also combined with the zero growth plan of fertilizer and pesticide, and the plan of further reduction of fertilizer and pesticide will be implemented in the future. From these policies, we can analyze that in the future, agricultural distributors should promote and apply the products of product upgrading while trying to get sales from competition. These believe that fertilizer distributors have already thought of it and seen it. From the general trend, it is right for agricultural dealers to cooperate with large farmers and agricultural professional cooperatives. But because of the distorted way of credit sale in the early stage, the dealers are now tightening up the cooperation between the big households and the cooperatives, which is also right. If we interpret from the policy of circular agriculture that fertilizer will be reduced or upgraded in the next few years or more, we should actively cooperate with manufacturers in marketing and promotion of new products, which is why we will put forward the relationship between fertilizer manufacturers and distributors at the eighth point. It's still a matter of relationship between superiors and subordinates. Cooperating with each other is life-long, and not coordinating properly is life-and-death for you.
7, to do services, fertilizer distributors to serve what?
In the past ten years, fertilizer marketing has been emphasizing service. At first, it is customer relationship service, just contact good people; then, it is crop solution, do a good job of crop solution, that is to do the whole process of service, oneself is an omnipotent player. At that time, it is certainly not possible, because no one is omnipotent, professional and meticulous. The score is more obvious. For example, why does airplane medicine stand out? People are professionals, not you can do what you want to do, you can do it, but only with the technical support of others. Next comes channel services and grass-roots farmers'services. It's still feasible to control the network. But you can't control the market after all. I think 10% of the network control is very good. Therefore, the main tasks of service are different at different time points and in different market environments. So, what aspects should fertilizer distributors serve now? First of all, I believe that I believe in my products and manufacturers, and do a good job of communication with manufacturers, do a good job of contacts. People often say that they don't communicate with each other. If they have something to discuss, the Yellow cauliflower will be cold. In the current situation of fertilizer dealers in distress, it will be very difficult to communicate with them well, and maybe the job will disappear. Communication with the manufacturer is service in a way, because the manufacturer needs your information, because your information is often credible. Then there is the service of two-level distributors in the countryside. In fact, this service does not need to talk about the relationship between customers. What is needed is the ability of the upper and the mediocrity of the lower. Do a good job of dealer arrangement at the grass-roots level under the tuyere in advance. When facing the channel change of manufacturers, they can adapt to the situation and continue to cooperate with manufacturers to make adjustments, rather than complaints. Everyone is willing to cooperate with obedient distributors. The service of rural distributors is mainly to adjust profit distribution and regional differentiation, and collect cash according to the region without credit, so as to eliminate the predicament of credit in the past. At the same time, the marketing team should be restructured to cope with any sudden channel changes. This is the long-term vision of distributors. The expression of light.
8. Is fertilizer manufacturer and distributor a cooperative relationship or a superior-subordinate relationship?
Fertilizer distributors often regard themselves as partners of fertilizer manufacturers, and in various meetings, manufacturers have clearly expressed that the distributors are their own food and clothing parents, in theory, that is, cooperative relations. However, with the change of market environment, when you are not recognized by the manufacturers in marketing, you are a subordinate of the manufacturers. He takes you at any time, which can be seen from the actual operation of the manufacturers changing the dealers at any time. It's the same as people. When you're useful, you're a brother. When you're useless, it's possible to give you the next set. Therefore, the relationship between any manufacturer and distributor is not unchanged. Some of them are just utilizing relationships. It's just piercing a layer of window paper. That's not bad. Regardless of the trend of fertilizer marketing in the future, the relationship between manufacturer and distributor will remain cooperative. But if communication is not good, or if the dealer thinks he's right, then it's not as good as a superior-subordinate relationship, because if you don't do something, he can kick you out, because he won't give you credit, there's no debt problem; and some due promotions will be tightened, when that time comes, the dealer will make it. The fate estimate is over. Whether the manufacturer should follow the mode of Internet + or the mode of flat channel is the final decision of the manufacturer.
In the current complex environment of fertilizer sales, we together analyzed eight major problems encountered by fertilizer distributors, asking manufacturers, but also the market, at the same time, the distributors themselves. Compared with three years ago, the problem is more serious, because it is time for a qualitative change, rather than how to sell and how to build channels three years ago, which has raised the question of whether to do several layers of sales or not. The market is developing, there must be a change in the development, there must be business opportunities in the change, I hope that agricultural dealers can seize this business opportunity, contact manufacturers, integrate channels, safeguard the interests of farmers, so that their fertilizer sales can really make a qualitative leap with the e-commerce outlet!