Mobile phone competition changes the secret you do not know the channel threshold

Li Qiong, a Shenzhen-based sports manager, is telling her managers that the ultimate service is the core competitiveness of the stores.

The old Purchasing Guide who joined vivo seven years ago managed to manage more than 70 direct experience stores and specialty stores including Huaqiangbei Experience Center from ordinary employees. In 2015, the experience store in Huaqiangbei, which was considered to be “not able to sell machines,” achieved sales during the peak season months that year-on-year growth year-on-year.  

Under the overall low growth of the industry, in the first two quarters of 2016, vivo entered the top TOP5 mobile phone manufacturers with a high sales growth of 123.8% and 80.2%. Vivo's growth is not a miracle. In fact, it is due to numerous stores and administrators, as well as the transition of vivo's channels, that supports rapid growth.  

From traditional sales to service sales, the real transformation and advantages of its channel system is to introduce the 4S system similar to the automobile industry to the mobile phone industry and build a 4S store system. So far, the 4S system still dominates the sales of the automotive industry. .

Vivo is located in Shenzhen's experience center and service personnel are introducing products.

From traditional sales to service sales

When the aforementioned experience center deviated from the Huaqiangbei business district was opened, because of its remote location, there was no peer manager who was optimistic about the sales prospects of the store. "A lot of people advised me that you gave up the shop and the shop really couldn't sell the machine." Recalling the scene at that time, Li Qiong said that even some employees left because they couldn't see the store's hope.

Fortunately, vivo does not primarily assess sales of the experience center, but also evaluates, for example, employees' service to users. Li Qiong, who had the idea to try out "doing service," proved that a store might be tapped.  

At present, vivo has built nearly 4,000 such stores across the country. Unlike traditional stores, its experience centers mainly carry vivo's core offline channel strategy, that is, transforming past offline stores that are solely sales-oriented. Integrated platform for integrating sales and service functions.  

This seemingly impossible-to-achievement offline store actually keeps old users through meticulous service and attracts new users through word of mouth. In this store, each Purchasing Guide must at least have a service expertise, from the mobile phone foil to solve the various problems of customer use. When the customer permits, it will actively increase the WeChat with the customer to respond to the service at any time.

In addition, the store will also put 16 services such as mobile phone maintenance, mobile phone cleaning, small packages, photo printing and even umbrella services in a prominent position. Vivo users can fully enjoy these services. Under the service business circle positioning, it includes a number of services such as mobile phone stickers, and it is also provided free of charge to other non-vivo mobile phone users.  

The next door to many vivo stores is actually a strong competitor such as OPPO, Samsung, or Huawei. The competition between offline stores is very fierce. From product details to service details, the user's comparison is very fine, and it is each detail. On the constant comparison and optimization, may affect the final purchase decision of the user.  

Including direct operating nearly 4,000 experience centers, vivo agents direct experience stores and specialty stores, as well as dealer franchise stores, the so-called vivo offline channel, including a total of about 200,000 of the above types of offline stores. Based on the experience center model, according to the different nature of the store, vivo also provides that each agent direct experience store can provide at least 10 free value-added services, and the non-direct dealer store can provide at least 6 services. The focus of the physical fitness manager is to drive the transition of the regional stores to service-oriented stores.  

This may be some very trivial details, but it has changed one of the biggest self-built offline channels of the domestic mobile phone industry so far.

Mobile phone sales may also be 4S  

No one has ever said that the 4S model of the automotive industry is also applicable to the mobile phone industry. When the mobile phone companies meticulously cultivated the market to today, some mobile phone manufacturers, including vivo, which are closely related to the model, have intentionally or unintentionally borrowed from the 4S model.

As we all know, the auto industry has born a 4S model when the market has matured and competition among manufacturers has intensified, and it has dominated the sales of automobiles. Auto dealers have opened outlets, and they have developed from simple sales outlets to sales and spare parts. (Sparepart), after-sales service (Service), and information feedback (Survey) integrated service store, through the provision of services, allowing users to trust the brand, thereby expanding sales.  

At this time, the overall growth of the smart phone market in China and the world has slowed down, and the smart phone market has entered a period of rapid growth from which everyone can share dividends, to structural growth, the total stability of the forces of the parties, industry competition. Intensified, manufacturers continue to reshuffle, and consumers tend to be rational and mature. The focus on products and services gradually exceeds the concern for simple prices.

Some mobile phone manufacturers with strong offline channel layouts, including some mobile phone professional chain channels, are trying to build some direct-operated stores and flagship stores into sales, value-added services, and after-sales services. (Survey) in one mobile phone 4S shop. For example, in addition to the above-mentioned converged sales and services, vivo is also trying to integrate after-sales service and information feedback in the store system.  

In the fusion of information feedback. As a mobile phone company that competes in the open market for a long period of time, defining products based on insights into the core needs of consumers is the core logic behind the products of such companies. Vivo builds more than 100 consumer research projects each year. In these studies, it is huge. The store system has become an important source of information for iterative upgrades. "For the product department, we hope to establish channels for connecting with consumers through the channels." Hu Yuhang, vivo product manager responsible for the X7 product line, said.

At present, vivo has a total of 430 direct after-sales service centers, which are not small in the industry. However, according to traditional practices, it is not possible to respond to users' maintenance needs anytime, anywhere, but after the huge offline store network began to support after-sales service, After-sales efficiency has been greatly improved.  

“If the user maintains the machine, but does not want to go directly to the after-sales service center, he can hand it over to any of our sales points. Our business team will regularly pick it up. Within three days, we will pick it up at the service center. After returning to the point of sale, 85% of the users can complete the repairs and return the entire process in seven days.” Zhu Chuntao, Minister of customer service at vivo.  

In addition, vivo also tried to integrate some after-sales service centers directly into the direct experience center, and comprehensively built a “one-stop mobile solution for mobile phones” in the experience center.

In addition to mobile phone makers, some of the offline store chains, which are relatively strong offline store chains, are actively trying to introduce experience store models and services into their own store systems. For example, in recent years, channel distributors have actively reformed a number of flagship stores, built store-style stores as "club-style" leisure shopping venues, and improved the purchasing experience. At the same time, they also introduced free services such as film.

Why is it so hard to learn VO?

It should be said that as the 4S model of the automobile brought about changes in the automobile industry, the 4S model of mobile phones may also be an important variable that affects the pattern of the mobile phone industry.

In recent years, the channel change has been an important factor in the change of the industry structure. Regardless of channel operators such as Coolpad, ZTE, and Lenovo, mobile phone companies such as Xiaomi and 360, which have Internet genes, their backs and bounds are all in tune with the background of channel changes at that time.  

When operators dominate the mobile phone industry, it is the golden era of “China Kuailian”. After operators’ channel changes, except for a few companies that have been successful in transition, performance has generally declined. In addition, the “pure online model” advocated by some companies proves that they must also actively change.

Many mobile phone companies in the transition have announced that they are devoting themselves to offline channels. According to incomplete statistics, mobile phone companies such as Coolpad and ZTE, as well as Internet mobile phone companies including Xiaomi, have disclosed development plans for offline channels. For example, ZTE has said that it plans to establish 3,000 to 4,000 stores nationwide and adjust the ratio of operator channels, online channels and offline channels to 1:1:1. And Xiaomi Chairman Lei Jun said on his personal microblog this year that Xiaomi plans to open 200 millet home experience stores in the next two years.

In contrast to the above two types of mobile phone companies, from the era of operators, they have built their own open channels of vivo and OPPO. Since last year, they have come back to “traditional return” to support the company's operation with a brand premium. Outside of product competitiveness, public The breadth and depth gain market competitive advantage. By 2015, both companies have significantly expanded the number of their offline stores, and also strengthened their channel transformation in depth.

Huawei, which has experienced rapid growth so far, launched the “Thousands of County Plan” in the fourth quarter of 2015, and plans to build a physical store covering 1,000 counties nationwide on the basis of Huawei’s financial and human resources. In fact, the frontal competition with VO has been overwhelming. In the aspect of open channel construction, Huawei is a latecomer, but it is undoubtedly the current strong chaser and challenger of VO.

"With offline there may not be everything, and without the line, there may not even be a ticket." Some current mobile phone companies have such ambivalence.  

Even if you can imitate VO's offline channel model, the trader may also face some specific bottlenecks. The first is funding: A few years ago, Hua Qiang North’s store rental may be 1/5 of the current price, and if it is calculated according to the ordinary rent of more than 200,000 yuan in a store, it is not artificial, and now thousands of self-operated experience stores have been built. The input is not necessarily the number that every manufacturer can afford; the second is the talent: the most difficult to replace the channels under the VO line is the inside personnel, who exactly constitute each cell of the VO channel neural network, even if funds are in place. The bottleneck of manufacturers' human resources also needs to be broken.

Each company has its own unique gene, and is it a good starting point and destination for VO?

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