WHAT TO DO WHEN SUCCESSFUL IN A RETAIL ROLE (B2B) WANT TO JOIN & JOIN THE RETAIL (B2C) FIELD?
These two business mindsets … are completely different.
So if you are a good wholesaler, you must be a good retailer, even the giants, have a lot of money.
Giants who succeed in wholesale are not necessarily successful in retail.
In contrast, good retail does not necessarily mean good wholesale.
Should not be worshiped that any biz they make 100% wins, there is always a chance for the little lead soldiers but … bravery and have the ability to smell … the smell of money.
Win due to the market, time and relativity at the time of launch and seize the opportunity of founders.
Wholesale success factors – wholesale mindset, range of skilled wholesalers, excluding multi-level statuses.
Multi-level definition of the Vietnam market:
– Do not sell to end consumers
– Sell in (Sell-in) but do not try to solve the sell-out story (Sell-Out)
– Profitability ability < promised profit margin
Factor:
| – People How does a professional wholesaler interested in this item sell to a secondary agent or end consumer?
– Wholesale buyers are concerned with the risk after the market has been accepted, because they have no advantage other than capital and customer relationships.
– Wholesale buyers are interested in the ability to turn around inventory and convert cash, this is the term, but in grandma’s language, does the product sell out quickly, has the money to turn back the import capital quickly?.
– Wholesale buyers buy low, sell high, less risk of cash flow.
– Wholesale buyers use discounts and promotions to promote sales (sell-in)
– Wholesale buyers are interested in the exclusivity of range, sales geography and volume to meet market development for Manufacturers’ export. On the contrary, the manufacturer is interested in increasing output, reducing the risk of dependence on a few wholesalers and meeting timely delivery for the distribution system.
– Professional wholesale buyers know … requires Manufacturers to help sell (sell-out), that is, the definition of ‘no job’, that is, to shoulder the responsibility that is not theirs, to do the work which is the responsibility of the Manufacturer. |
– Capacity of wholesalers: Financial capacity, warehousing, delivery and customer care.
– Professional wholesalers know … requires Manufacturers to have the ability to organize distribution systems, brands, develop pricing policies and acceptable routes to the market (route-to-market) accepted.
– Pricing measured by the number of points of sale.
– 10 products to eat 1 -2 is too delicious.
– Consumer Brand for Professional Manufacturers.
– Because the sales relationship accounts for a very important % in the wholesale system so eating, drinking and thick face are necessary skills if sales want to have numbers.
– Medium margin.
– DMS: PP system management software
– Weaknesses: I don’t know what end-users think so RnD is always in a state of “what does RnD sell this year?” |
Retail:
– The elements of wholesale mostly come from financial logic (70%) + emotionality (30%)
In contrast, retail is more about emotions and values, retailers buy because it is valuable to them, not because of a close relationship with the brand. Closers support only 1-2 times, cannot support forever.
– Brand positioning and business model search capabilities.
– Packaging, logo, brand identity to remember + enter the market.
– Customer experience.
– Financial management capacity and ability to convert orders into sales.
– High or very high margins are enough to cover retail costs.
– Abuse of harmful promotions with retail brands.
– Inventory.
– Average value per order/1 business unit (area, warehouse), customer life cycle, cost to acquire 1 new customer…
– Corporate culture
– ERP: Management software when the retail scale reaches a large scale, just starting to use SaaS available in the market.
– Strengths but not sure every brand can take advantage of: Understanding end-users as customer data.
So let’s do something new, let’s determine that we learn … from the beginning if you want to participate.
