The three aspects of the "Measures" directly hit the soft underbelly of home appliance retailers

For a long time, the use of unreasonable expenses to squeeze manufacturers' profits, malicious defaults and false promotions seems to be inseparable from Chinese retail companies. Today, these contradictions have become the focus of conflict between manufacturers and retailers in the field of home appliances, and are increasingly fierce as competition in the home appliance market intensifies. How to straighten out the relationship between zero-supply of home appliances has become a topic of general concern in the industry. At this time, the Ministry of Commerce launched the "Retailer and Supplier Purchase Trading Management Measures?? Consultation Draft??", hereinafter referred to as the "Measures"?, has completed the consultation and entered the final formulation stage. According to the reporter's understanding, the "Measures" shed 36 articles, covering the mandatory contract terms, quality responsibility commitment, promotion management, unreasonable expenses, payment terms and many other contents, and there is a gesture of solving all problems once. However, is the fact really so optimistic? For the home appliance retail industry, what role can the "Measures" play?

Three major areas directly hit the weakness of home appliance retailers

The "Measures" firstly stipulates the problem of unreasonable charges for retailers that are most concerned about in the current home appliance industry. All along, the entrance fee, promotion fee, and advertising fee charged by the store have caused headaches for manufacturers and have become the main reason for the tension between the two parties. In this regard, Article 15 of the Measures stipulates that if a retailer collects a promotional service fee from a supplier, it shall obtain the consent of the supplier in advance, conclude the contract, and clearly stipulate the items, contents, deadlines, and charges for the service. The standard, amount, purpose, method and liability for breach of contract, if the supplier does not agree, the retailer may not be forced in any way. Moreover, Article 16 of the Measures stipulates that the expenses and risks arising from the promotion activities shall be reasonably shared by the retailer and the supplier.

Article 20 of the Measures clearly defines the scope of retailers’ unreasonable charges. Nine common indiscriminate charging methods based on festivals, festivals, new stores, listings, mergers, etc. are all banned.

Secondly, the "Measures" have made clear provisions on the unconventional behaviors of today's appliance stores, such as holidays, celebrations, etc., to suppress competitors and force manufacturers to pay the bills. Article 21 of the Measures stipulates that the price at which a supplier directly sells goods to consumers shall not be lower than or equal to the sales price of the retailer; the supplier shall not be required to change the terms of the transaction, not to trade with it, or to sever the transaction. It is not allowed to supply to other retailers with competitive positions within a certain geographical area, or there is no justifiable reason to restrict suppliers from supplying to specific retailers; no fines or other responsibilities may be imposed, and suppliers are not allowed to provide other retailers. More favorable product supply price.

Third, the “Measures” clearly stipulates the deadline for retailers to pay suppliers. Article 25 stipulates that if a retailer sells goods by way of purchase and sale, the goods supplied by the supplier shall be paid to the supplier within 10 days after receiving the goods; for fast-moving consumer goods, the supplier shall be notified within 45 days after receiving the goods. For other commodities, the two parties may agree to pay the payment period, but the payment period may not be longer than 75 days after the receipt; if the parties agree on the payment period, the retailer shall pay the supplier within 45 days after receiving the goods.

Article 26 of the Measures also stipulates that, except as otherwise stipulated in the contract, if the retailer sells the goods by means of agency sales, purchasing, joint venture, etc., it shall pay the supplier within 30 days after the sale of the goods. If the retailer delays payment to the supplier for its own reasons, it should pay the late payment fee to the supplier according to the bank's loan interest rate.

Manufacturers are cautiously welcome

Judging from the contents of the Measures, the interests of manufacturers have been more protected. It is reasonable to say that manufacturers should be very excited, but in interviews with reporters, many manufacturers are not excited, but on the contrary, they are more cautious.

In an interview with reporters, Chunlan believes that the manufacturer of the "Measures" is of course welcome, but believes that it can not solve the problem fundamentally, because manufacturers must rely on businesses after all. Although the "Measures" provide manufacturers with better public opinion support, so that manufacturers can straighten up when they are clamoring with the business, but the mutual profit of the two must rely on the market to adjust. Nowadays, there is a surplus of home appliances and there are many brands, so that businesses have more choices. In addition, the entire home appliance market has yet to be further integrated to achieve the survival of the fittest. Therefore, the influence of manufacturers' brands needs to be further strengthened to enhance the strength of negotiations with merchants.

The relevant person in charge of another company was even more understated in an interview with reporters. He said that the "Measures" stipulates that "retailers should not be forced to pay for the promotion service fees from suppliers in any way, and suppliers need to pay voluntarily." blurry. At present, the home appliance retail industry is the buyer's market. Suppliers always try their best to enter the terminal. In the cooperation between the two parties, the retailers never have to force, some suppliers are hard to say, and there are 10,000 unwillingness in their minds. I want to save money.
In an interview with reporters, although home appliance manufacturers have many complaints about retailers, they all want to say and stop, fearing that they will offend retailers and have an impact on future relationships. However, the formulation of the "Measures" has the same attitude - cautiously welcome, after all, there is always better than nothing.

Retailers are hard to accept

Although the contents of the "Measures" are mostly aimed at the restrictive clauses set by retailers, in the recent symposium organized by the Ministry of Commerce, the home appliance retail giants, in addition to Dazhong, Gome, Suning, Yongle, etc., have participated. All said that there is no opinion. So does this statement really mean accepting it willingly?

An indisputable fact is that nearly 25% of the total profit of China's home appliance chain retailers comes from the criticism of the promotion fees, entrance fees and booth fees. These unreasonable expenses as determined by the Measures, retailers often do not provide any services, or can not provide comparable value services. Different from the profit of the main business, these incomes will not occupy funds and will not bear business risks. For retailers, these so-called “unreasonable expenses” are the easiest part of the profit as long as there are enough stores and large enough sales. If the "Measures" are implemented in a practical and complete manner, this part of the profits will be lost. If so, retailers will certainly be unacceptable.

In addition, the "Measures" restrictions on payment terms, although to some extent limit retailers' malicious defaults, but also should be seen, in the absence of efficient low-cost financing channels, those are not prepared to give up large-scale It is impossible for home appliance chain retailers in store expansion and non-retail business to withdraw their occupied funds in a short period of time, and thus it is impossible to make timely payments.

Moreover, the rapid expansion of home appliance chain stores is now the use of working capital from deferred payments. Experts pointed out that the chain store has both rapid expansion and strong profitability. The fundamental reason is that its business model is actually a “financial-like” model, which is delayed by three or four months while paying cash transactions with consumers. In the case of commercial goods, there is a large amount of floating cash on the books for a long time, and it forms a “scale expansion – the increase in sales scale leads to the floating of cash on the books – the use of supplier funds for scale expansion or other use – further scale The expansion of the value of the retail channel has brought more books to float cash. Using the funds of many suppliers and using them in a rolling way for long-term use, if the "Measures" is fully implemented, it will be tantamount to the rapid expansion of the chain stores. If so, can retailers agree? He said very helplessly: "Aside from voluntary payment, is there any other way?" At present, the era of "manufacturing is king" has ended. Instead, the era of "terminal is king" is coming, and dealers are firmly in control. The right to speak. It is understood that a series of payment items, such as entry fees, promotion fees, advertising fees, and store celebration fees, are carried out by both home appliance manufacturers and retailers under the contract.

The authenticity of this information has not been confirmed by the international electrical network, for your reference only.

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