Why Group Purchase Sales Are Not Popular Recent Years?

2019-11-26 10:51 WBO GLOBAL

Recently, WBO learned from an importer that some wine companies are now afraid to recruit group purchase sales. Right now the company owners or their relatives are responsible for group purchase business.

Owners Want to Grasp the Key Points

Group purchase channels have always been the main channel for wine sellers.

Yi Shen, director of WBO Wine Business School, pointed out the serious homogenization of imported wine brand products. “From a brand perspective, product differentiation is too small for stable consumer loyalty, and it is easy to be attracted by similar products.” In this case, after the sales become familiar with the customer, he can find a similar product replacement and take the customer directly.

Yanan Chang, general manager of Beijing Gaole Liquor Company, believes that the core of group purchase channels is customers, which is often in the hands of sales. From the perspective of the team mobility, in addition to the sales who owns the personal resources, the leave of the sales may take away the customers, which will have a certain impact on the company's operation. "It also relates to the internal organization of the group purchase. As a company owner, I hope that these situations will be controllable. When considering group purchase sales, I will give priority to my relatives."

Zhengbo Ge, general manager of Ningbo Yunhai Ark Supply Chain Company, also has the same view. “The group purchase is the network of contacts.” Zhengbo Ge believes that the entry threshold for imported wine is too low, the homogenization of products is serious, and there are chances that the group sales who trained to understand the product structure mode and have understood the customers. It will result in the loss of customer resources for the company owner.

Most Consumers are MoreWilling to Do Business Directly With the Owner

As the competition in the Chinese wine market becomes increasingly fierce, the sales channels become shorter, and the market fragmentation trend is obvious. Most consumers have wine supply channels around them. Shuishui Wang, general manager of Fuzhou Sandianshui Wine Company, believes that the normal salesman lacks personal resources and needs to be trained from the beginning. Secondly, the owner of the small and medium-sized importer is the largest group purchase sales.

“For small and medium-sized importers or individual businesses, they are more willing to do group purchases. This is one of the foundations for the company's development and survival. The biggest sales person is the owner himself.” Shuishui Wang also feels that customers now are more willing to do business with the importer's owner, thinking that you can get the lowest price and the most favorable policy from the boss."Plus the owner himself can make decisions directly, eliminating the communication process of the intermediate salesman, which is more direct and effective.”

From the Employment Relationship to the Partner, the Group Purchase Sales Model has been Changed

As an importer, in order to reduce the risk of “the salesman taking away customer resources”, he also began to explore a new group purchase business model – partnership.

Zhengbo Ge believes that the industry is gradually developing a group purchase sales into partnership. "The importer provides resources such as platforms, products, places, etc., and the sales person acts as a partner to develop new customer channels. Therefore, the group purchase business can last for a long time.” Zhengbo Ge also mentioned that the first condition for developing the sales into a partner is “the transparent price”, which is, the salesperson can know the cost of the product.That should be shared between the boss and the salesman. Then the partner will be more comfortable in the follow-up sales.

Shuishui Wang also has a similar view. He developed a sales with excellent ability into a partner and provide exclusivity to the sales. “In addition, in order to retain talents, relevant social security benefitsshould be provided tomatch the platform."

“The business model has changed. It used to be an employment relationship. Now it has developed into a partner model.” Yi Shen said that this relationship exists not only in the wine industry, but also in other industries.