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Challenges And Chances In 2017

Jan 07, 2017

 

2016 for fastener manufacturers, is a difficult year. The decline in gross margin, turnover also reduced, while wages, rents, operating costs are increasing, coupled with the instability of steel prices. Fastener suppliers generally reflect the business is difficult now, the need for new ideas, innovative business.

However, how to innovate, where to start, for a time, most of the fastener business into a confused.
2016 will be in the past, if we also tangled what led to the market so difficult, it will never be able to walk in front of difficulties. With a greater challenge, we will usher in a more agnostic and turbulent 2017.
    

"Screws and Machinery" magazine summary analysis, 2017 we should do:
    

For the market
    Fastener market is infinite, as a dealer can not do all the markets, even a small town, we can not cover everything.
    Therefore, dealers need to market segments to see what is around the main direction of your products are for which a group of customers and prepared.
    The result is that everything can not catch.
    When doing market segmentation, according to their own hands to grasp the resources for analysis, not profitable, or others do good, it must be for you.
    Each screw dealer in the hands of the resources are not the same, so must first recognize themselves in order to identify the market.
    Well-known financial journal "Fortune Weekly" forecast: the future of business opportunities is that we will lose the mass brand, most of the services of SMEs is only a specific group of people. As long as the formation of this particular ethnic group in your brand concept, recognition of your product prices, you can become very small and beautiful excellent business.
    

For the product
    Screw dealers through the baptism of 2016, to sort out their own products: what is the amount of running, and which is the profit type, which is a mature product, which is the growth of products, what are new products. How the structure of a variety of products, the agency's product category structure is reasonable.
    We found that often for product dealers must do bad, 80% of the dealer is absolutely insist on making money for a particular category or brand products.
    Of course, the best-selling products, there will be slow-moving and obsolete. This time on the need for dealers to adjust the product structure.
    And constantly adjust, so as to adapt to the new environment to optimize the product structure, and only continue to adapt to adjust, you can find a most suitable for the status quo, the most suitable for their own path, or you switch or be eliminated.
    

For the upstream and downstream
    Dealer is a bridge connecting upstream manufacturers and downstream terminals. In the past to a large extent the role of the dealer is the product of porters.
    

    And now in the Internet age, manufacturers and terminals more easily between the links, dealers, retailers, the role and function are subject to the impact and challenges. Channel-side changes, making the dealer must be the mode of regeneration.
    

In 2017, we believe that the main screw dealers need to do the following:
    1) the market segmentation
    2) optimize the product structure
    3) to find the product of the "pain point", "selling point", "profit point"
    4) to create their own core competitiveness
    5) do a good job on the downstream relationship
    6) rational optimization of resources
    7) comply with the development of Internet electronic business
    8) the regeneration of the channel model
    9) the upgrading of business management
    

    China is a vast territory, uneven economic development around the market demand and characteristics of each have their own characteristics, so screw dealers are faced with the situation is complex and varied, even with a product, where others can succeed in you Not necessarily.
    

    Channel transformation and regeneration is urgent and necessary, 2017 screw dealers in addition to the challenge of responding to market uncertainty, but also the need to face the changes in the channel side of Daobi own transformation.