Terminal cost of domestic brand shampoo

The terminal cost will affect the whole production process of a brand shampoo, and the performance of second-line shampoo led by domestic brands in the terminal is also unsatisfactory. In the gap between the strong advertising of the first-line brand and the promotion of the third-line brand, the second-line brand with declining brand power and indifferent marketing has gradually become a chicken rib product that the terminal can't abandon and push.

Insufficient internal force leads to weak terminals.

"The sales of domestic second-line shampoo brands are decreasing by 20% every year." Chen Biyun of Henghui Department Store Trading Company is the channel agent of more than ten brands such as Shu Lei, Sofitel, Jingzhuang and Litao, covering more than 0/000 supermarket outlets in northern Fujian and eastern Fujian. Shampoo products account for most of the company's business. Speaking of the performance of second-tier brands in recent years, she feels very worried.

"The higher supply price of second-tier brands makes it impossible for them to invest a lot of promoters to pull the terminal, and sales are currently in a weak state." Chen Biyun told reporters that the cost of maintaining market operation is rising, and domestic brands are under great pressure. For second-tier brands, price increases will lose customers, and no price increases will not make money. Due to the shrinking performance and profits, second-tier brands are unable to invest in terminals and gradually decline.

"In some areas, second-line shampoo brands can't even afford the wages of employees." In such a severe situation, the support from manufacturers for agents has shrunk accordingly, making it more difficult to maintain the market. "This year, the manufacturers earned 8 percentage points more, but they didn't provide us with personnel. They sent us a newsletter directly and let the dealers do it themselves. " Chen Biyun estimates that the profits of these eight points can't make up for the terminal input expenses such as personnel and promotional resources, and the business risks are invisibly passed on to the dealers.

On the other hand, under the pressure of sales performance, grabbing goods has become the normal state of second-tier brands, seriously disrupting the market operation order and brand price system. Chen Biyun pointed out, "The worse the sales situation, the more salesmen will grab the goods, and the market price system is chaotic. Agents don't like to be this brand."

At the terminal, weak second-line brands have gradually become chicken ribs products. Huang Dan, the purchasing manager of Hubei Shuntai Trading Co., Ltd. said, "The sales contribution rate of second-line shampoo is very low, and it is in a position of selling but not selling well in Shang Chao, and there is no explosive force." In the supermarket chain in Xiangyang, Hubei, the second-line brands are also in a weak position. Yan Peng, a good neighbor, said, "In terms of sales contribution, the first-line brands of toiletries account for more than 50%, which is relatively stable, while the second-line brands have the smallest share. Judging from the terminal performance, there are many advertisements for first-line brands, and many promotions for third-line brands, while second-line brands appear tepid.

Second-tier brands become trapped beasts.

Chen Biyun believes that P&G and Unilever have a great impact on second-tier brands. The complete product line meets the needs of consumers at all levels, and the promotion intensity and frequency are also very strong.