The relatively closed and fragmented small villages, small towns and small cities are still gestating new increments and hopes. Everyone has seen them, but how do they sink and how to unify them? Not only to maintain the social traditions of human relations, but also to upgrade informatization and improve services, wisdom is needed, Liu Liping, the manager of the only OPPO store in Gaocheng Town, Dengfeng, Henan Province, learned to play private domain traffic during the epidemic. Private domain traffic is a buzzword, in fact, it is through online communication and transactions, offline SF Express distribution of goods to stabilize the store.
The town of Gaocheng is not big or small, with 72.82 square kilometers, more than 50,000 people, and a mine. There is a national key cultural relic protection unit observatory in the territory. There are workers from other provinces recruited by mines all year round, and tourists attracted by scenic spots such as the stargazing platform. In 6 years, the population has gone from 20,000 to 30,000 to 50,000 now. Following the expansion, there are GDP figures and various consumer demands.
Liu Liping’s store is located on the bustling commercial street near the Observatory. After she took the store, she was not only a shopping guide, store manager, but also a dealer contracted with OPPO Henan Zhengzhou District, and she also hired a clerk.
There are many after-sales problems in the small town. It really can’t be solved, Liu Liping has her own way. The uncle in his 50s bought a mobile phone and couldn’t log in to WeChat. He didn’t solve the problem at the scene, and was furious. After get off work, Liu Liping bought gifts and drove her colleagues to rent a van and ran to the uncle’s house. Find out why WeChat is installed, and fix the wifi in the other party’s home by the way.
Download songs, download videos, recharge phone bills, download Xiqu app. Except for college students who go out to study, the majority of customers are 30-50 years old. The elderly do not answer the smartphone, and they feel irritable to ask their grandchildren. At noon in the summer, Liu Liping rushed into the store, and Liu Liping drew a few pages of A4 paper, “The old man is illiterate, said it more than a dozen times, and remembers the icon.”
This is the epitome of mobile phone consumption in a small town. Trivial needs, unimaginable pain points. Store managers and shopping guides like Liu Liping are available in more than 10,000 OPPO outlets in Henan province. They are like capillaries, and they are like small but wide-ranging tentacles. They can touch more than two dozen administrative villages under the jurisdiction of the township, and they also bear the raid of the black swan of the epidemic.
In the first half of this year, global mobile phone shipments fell 18.2%, and China sold 149 million mobile phones, a year-on-year decrease of 20%. There are epidemic factors in this, but they cannot be entirely attributed to the epidemic factors. If we look at the long term, after the mobile phone market enters the stock market, the simple demographic dividend will disappear, and the sea of tactics, marketing incentives, and channel incentives will be difficult. “. How to guarantee sales in this situation?
To grow offline. This is not a new idea, it is OPPO’s winning method in the 4G era, but it is not outdated and even requires further intensive cultivation.
The latest Urban Construction Statistics Yearbook of the Ministry of Housing and Urban-Rural Development shows that in 2018, China had 1,519 counties, 18,300 organic towns, 1.02 townships, and 2.452 million villages. In these counties, organizational towns, townships, and villages, there are 137.73 million (temporary residents: 172.2 million), 161 million, 25 million, and 771 million registered residents.
There are 1 billion mobile phone consumers at county level and below. The 5G replacement wave, the increase in the mobile phone market, is not just a smoother, more high-definition mobile phone. For major mobile phone brands, it may be a new space to successfully bring users including small towns and villages to embark on a wave of technology upgrades and experience upgrades.
Sink, sink again
Serve all customers who buy mobile phones from the store, no matter how old or what occupation. Serve well in every detail. Compared with sales, Liu Liping is more willing to view her work in this way.
“I can’t say anything about being tall.” Liu Liping told the reporter of Caijing. It is said that customers are God, and she does not like to treat customers as God. “All friends.” The 60-square-meter specialty store is often a rest area, transit station, and senior citizen’s club for the residents of the town.
When encountering deaf-mute people, Liu Liping is also willing to spend 5 hours in the afternoon explaining the installment policy and mobile phone functions on A4 paper sentence by sentence. Three times, five times, “Do it if you understand it, don’t do it if you don’t understand it.” The other party brought his wife to the store for the third time, and the two parties made a deal.
Liu Liping’s shop provides filming and cleaning services for all brands of mobile phones all year round. Even if it is not an OPPO mobile phone, you can enter the shop to repair the phone, charge your phone bill, and debug functions. Nowadays, the deaf and mute and his wife often visit the store to charge and change the membrane of their mobile phones. The factory and mine workers repaired a non-OPPO machine, but did not consume it. They brought their workers to buy it. One time, for a holiday, they gave Liu Liping a handful of twists to express their gratitude.
Although the business of regular customers in small towns is not comparable to the acquaintance society in the countryside, in the past few years, Liu Liping has accumulated 85% of repeat customers. Most of the people in the town said, “I’ll get acquainted with a few words.” On rainy days, customers take the umbrellas from the store and help their neighbors receive courier services. Customers sometimes print out the information in the work unit, and the fruits and snacks bought by the customers are always on the table. For a long time, the anxiety is hidden behind, and on the surface there is some meaning of calmness and calmness.
In contrast, mobile phone salesmen in general stores in cities are in the grassland ecology where wolves are fighting for food. Li Cui is in a comprehensive store in Jinshui District, Zhengzhou. He is cheerful and sharp-eyed. The main point of the service is to say hello, a glass of water on a bench, and listen carefully to the other party’s needs. “Shopping guides of different brands are like wolves. Whoever sells it is not fast.”
Even for customers of the designated brand and model, she still keeps an ear and transforms afterwards. After-sales customers find faults, or serve them. They are patient until the other party is embarrassed and find faults. In the end, they all become 1/4000 in the WeChat address book.
People’s consumption needs are similar to their consumption habits. They recognize stores and people more. Li Pan, the manager of the experience store in West Street, Zhengzhou, moved here from the South Third Ring Road, and some regular customers would ask why they were missing. Since the establishment of the store in West Street in 2012, the service of free photo taking, mobile phone maintenance, filming, and even free printing of various things has started.
“Helping to print some things for free will generate purchases in stores every month, and customers with children print more frequently.” Li Pan told a reporter from Caijing. After going back and forth, customers have feelings for the store, and many of them have been looking for Li Pan himself for replacement and purchase for several years. There are both community residents and business circles.
All these are the epitome of the needs of mobile phone users. The so-called service subsidence may not only exist in counties, towns and villages. Among the real purchasers, there are both the desire to purchase and replace them, as well as trivial service demands. I hope to buy a cost-effective mobile phone, and I also like small gifts and small events.
The real sinking market is huge, with the population of county towns and below exceeding 1.05 billion. The popularity of smartphones and the wave of 5G replacements are happening simultaneously in this big market where the aging problem is gradually becoming prominent. The needs of these people are different from those of Beijing, Shanghai, Guangzhou and Shenzhen. How to do this market seems complicated, but it is actually very simple. .
They cover college students, young people, middle-aged and elderly people. Especially the latter, illiterate, have low acceptance of smart phones, and need software and hardware, children’s videos, and phones. When something went wrong, there was nothing to do, so I had to go back to the shop where I bought the machine and ask for help.
Most mobile phone brands outsource after-sales service, and OPPO holds all after-sales in its own hands. Uniform standards for replacement parts, maintenance plans, and price grades. Self-operated stores, specialty stores, and business halls are strictly controlled. How to make consumers in remote areas enjoy the same after-sales service is a difficult problem.
OPPO has set up a quick repair center in Henan to open cell phone repair services throughout the province. There are nearly 50 customer service centers in 18 cities and individual counties with monthly sales exceeding 2000, and more than 100 pick-up points in towns. In February and March, the fast repair center ushered in the “peak season”. Sometimes, the director of the service center drove directly to the county to pick up the airport and go to Zhengzhou for repairs.
Liu Liping’s store is integrated with sales and service. Now, with OPPO’s service system, the average repair time of Liu Liping’s shop has changed from 5-7 days to 2-3 days. When selling the machine, Liu Liping will urge customers not to download unknown software at will, beware of fraud, and avoid general software problems.
In the after-sales link, 30% of the repairs can be solved in the shop; incurable diseases are transferred to the service center in the urban area. If it can’t be repaired, go to the quick repair center or return to the headquarters’ advanced repair point. In the past, retail stores in towns and villages needed to accumulate a certain amount before sending them; now, one piece is also sent. It took three days and two nights for the customer to send a repair application to get the phone intact.
Now, in a workshop-like maintenance production line, more than 400 maintenance machines from various cities and towns are gathered every month. Henan after-sales service manager Zhang Deliang said that consumers can request repairs and view real-time logistics in the mobile app. The future goal is to check the status of the machine in real time.
Such a service system will level all markets such as business districts, communities, and villages.
Put together to form a closed loop
“It didn’t have much money, don’t worry.” Xu Guanghui is OPPO’s dealer in Henan. Dealers at all levels and OPPO Henan Company form a sales network. When OPPO Henan promoted its IT system internally, Xu Guanghui was the first batch of users of OPPO Henan Digital System. Treasury management and finance are handed over to the system, which “saves manpower and speeds up turnover.” In addition, the system will mark the price adjustment to make up the difference (the price of mobile phones, the subsidy of the brand to the channel), the main launch of new products, and the tail-clearing machine.
In 2008, Xu Guanghui pushed his business all the way from Zaozhuang, Shandong to Dengfeng, Henan, opening a store at all potential crossroads. There is OPPO if there is a store. In recent years, the situation has not been good. He has closed several stores and still has several general stores and specialty stores in his hands.
In the past, channels would collude. In particular, for channel dealers who set up online stores, Henan mobile phones can be sold in Sichuan and Yunnan for the purpose of selling goods (tail goods, etc.), and the price is cheaper than the local ones. When purchasing goods, in order to make a larger volume, individual distributors often make false claims and pay more. The advantage of the digital system is that the same product has the same quality and the same price.
The system will not lie. Xu Guanghui told the Caijing reporter that from the supervisory reporting of goods and the delivery of the city company to the clear algorithm and statistical caliber. “It improves the fairness between channels.” There are more than 1,000 retailers like him with multiple stores.
Henan is like a “big rural market”, with towns and villages contributing 45% of the market. 38 agents, under control of hypermarket experience stores, specialty stores, and mom-and-pop stores. These are the retail networks developed by agents through local powerful dealer customers-spread to over 10,000 cities, counties, townships and towns Store.
Channel pain is the combined result of online shocks, off-line smashing of goods at random prices, using OPPO to fight OPPO, and difficulty in finding increments. The OPPO channel, which opened the door to the same level as China Post, has already perceived that it has reached a new turning point.
Six years ago, OPPO Henan President Tang Jinghui envisioned using information technology to optimize channels and stores. “The essence is to empower customers and retailers.” In fact, it is the brand’s “informatization reengineering” with agents and channel vendors at all levels, focusing on services. With the advantages of the integrated agency system and branch company system, the agency is changed to a direct supply model.
“This is a change.” Tang Jinghui said, this is the re-growth and reconstruction of the organization. For warehouse management, finance, billing, HR, and salary, the agent saved 500 logistics staff. At present, more than 6,000 management, business personnel, and frontline employees have introduced this standardized system.
Relying on the software system developed by the company (six subsystems: terminal system, supply chain system, experience store system, advertising fee system, OA office system and cloud warehouse system), 38 first-level agents no longer take goods and distribute goods, and more than 10,000 The store orders directly online, products and gifts are taken directly from the same Zhengzhou factory and Yuncang, and SF Express sends them on behalf of the company. Delivery in 24 hours.
In this way, the role of the agent has changed. The core functions of the 38 agents are focused on front-end services, and the shopping guide and business teams are dispatched to serve hundreds of retailers in their jurisdiction. The channels of the middlemen make upstream and downstream collide, which is a matter of life and death. Tang Jinghui explained that the current online system is only open to self-operated stores.
The images on the stocking up for payment are replaced by software. “I don’t know what to do, and I don’t know what to do.” Li Ganxi, general manager of OPPO’s Zhengzhou direct-operated county, told Caijing reporter that after traditional wholesale sales are “online”, how to focus on services and help agents and retailers To sell better, the business team has a certain sense of confusion and powerlessness.
“The system has released the transfer task, and the business personnel still communicate it manually.” One-to-one communication and more terminal retail training. Li Qianxi said that from the B-side thinking to the C-side thinking, regional performance and sales continued to grow with the application of the system, “Only the entire team has moved from resistance to recognition of’online’.”
The OPPO supervisor who was in contact with Xu Guanghui turned to help him do in-store display, strengthen product training, and cooperate with store activities. Li Pan and Liu Liping also put aside the red tape of treasury management and finance, and focused on providing better services to customers. Li Cui, who was the first to realize the change, is already a star shopping guide in the store.
“Open up retail stores from top to bottom and empower the front end.” Tang Jinghui explained to media including Caijing that factories make products, and companies lead channel vendors to provide services. “Products + services” form a synergy, and it will continue in the future. There are consumer systems and quick repair systems, so that hypermarkets, flagship stores, and mom-and-pop stores can “provide solutions for users.”
This is similar to the new retail promoted by e-commerce companies. The difference is that although the mobile phone is a standardized product, the subsequent services have a lot of personalization. In the society of acquaintances, traditional services are preserved, while the background is modernized and reformed to form information support, to achieve a high degree of opposition and unity between tradition and modernity, which has become a feature that is difficult to replicate on OPPO channels.
Brand owners can fully understand who bought my product and when, what maintenance needs were raised, when it was time for maintenance or replacement, and what was the repurchase rate. Form a data closed loop. The data is fed back to the factory in a straight line, and precise production, product adjustment, and sales strategy are all based on it.
But this vision has many practical obstacles. Changing huge amounts of money into small amounts of money is a way of working through layers of channels. IDC mobile phone analyst Wang Xi analyzed to the Caijing reporter, how to persuade, how to train, how much input and output, and whether the future can pay back? This is the problem facing mobile phone brands.
Tell a long-term story
Channels are always profit-seeking.
In Hunan and Yunnan, OPPO’s agent level has been reduced, directly connecting with the provincial level. This is called the direct supply mode. For example, the county no longer asks for goods from the city, and establishes local offices to directly ask for the provincial headquarters. Reduce middlemen.
Huaihua, Hunan is a prefecture-level city with several deep-mountain counties below. Li Lin, the general manager of OPPO Huaihua, began to expand channels in 2014. It is not easy to get to these dealers in the mountains. He needs to drive a whole day, travel over the mountains, and often arrive early in the morning. Some dealers sell several OPPO phones in a month. But Li Lin didn’t dare to give up, he knew the truth about the accumulation of sand. I often run 15 or 16 hours a day, and run 30,000 kilometers a year.
“The market is too deep and too wide.” Motorola, HTC, Samsung, and Gionee also sank to villages and towns at that time, and Li Lin had to run. Set up the counter, display and help sell the first order of OPPO mobile phone. Whenever going to the market in the township, salesmen and business supervisors drag the dealers and a family to dance and sell machines in front of the store. “Until the other party thinks’Well, OPPO can still be sold, you can try it’.”
With the intensive cultivation at that time, Huaihua has now grown from more than 300 cooperative dealers to 1,050. Each relatively closed small ecology, intensive farming is hard work. “The more the township-level market, the lower the willingness to access the system and the higher the difficulty.” Wang Xi said, some people are used to wild roads, like roasted seeds and nuts, and sell all brands.
On the positive side, the team that has experienced the baptism is the cornerstone of channel transformation. Li Lin entered the BBK AV factory and DVD factory in 2008 and made BBK household appliances. In 2011, he moved to OPPO, “doing it, fulfilling its responsibilities and missions.” There is no shortage of people like Li Lin in the OPPO system.
“We have experienced two Nirvana.” From a functional machine to a smart machine, from 3G to 4G, “this time it is not so difficult.” Li Lin said.
Fundamentally, providing a sense of belonging is also a long-term business experience. After graduating, Liping Liu worked as a restaurant receptionist and a supermarket cashier. In 2014, she became the manager of an OPPO store and has been for 6 years. She lives in the town and has a 10-minute commute. The partner is also a local and has worked for 4 years. “One look, one action, you know what to do.”
Li Cui has moved from the Dixintong store to the business hall as a shopping guide for 5 years. After graduation, Li Pan joined the OPPO system and became a store manager all the way. Marriage, buying a house, buying a car, and having children, “the company provides me with these resources.” More importantly, whether it is for employees or customers, “it values you very much, and we value customers very much.”
Not overwhelming. This is another big dealer reputation of the OPPO system. Squeezing goods in the off-season can increase sales in the peak season, but it also takes up dealer funds. Distributors like Xu Guanghui are completely free from the pain of suppressing goods. In addition, the insuring time of mobile phone brands varies. OPPO insures the price throughout the entire journey, and the difference is automatically credited to the account every time the phone price is reduced.
The epidemic has filtered out some channels. In the past, mom-and-pop shop owners who relied on operator subsidies found that operators continue to reduce commissions, and there is no longer an era of subsidies of two to three hundred yuan. It is impossible to survive without making mobile phone profits higher. Some stores were closed during the epidemic.
Xu Guanghui held it on. “Obviously, the number of machines in the price range of 3,000-4,000 yuan has been sold less.” The epidemic has combined with factors such as excess channels and economic conditions in the past few years. There are dozens of yuan for a machine, and now you can earn 10,000 yuan by selling 100. A little better, each can reach 200, 300 yuan.
Watches, earphones, bracelets, and IoT products have been sold in Xu Guanghui and Liu Liping’s stores. In Gaocheng Town, Liu Liping can sell a dozen bracelets and five or six earphones a month. However, Xu Guanghui felt that the change of thinking in front-line sales was not so positive. “When peripheral products are sold well, consumers will become more sticky and connected.” He often guides store employees in this way.
“Mobile phones are one of the carriers for the integration of everything. Now we need to transfer from street shops to shopping malls, and store shops to shopping malls mobile phones in different industries.” Xu Guanghui expressed his observation to the reporter of Caijing. A collection store of different businesses, Xu Guanghui tried to open a milk tea shop in a mobile phone shop last year.
The transformation of the end of sales is very fast. Everyone understands that the core of the channel is still the “beatable” product. Regardless of whether mobile phones, headsets, or bracelets meet consumer demand, channels will never evade.
According to data from the third-party organization Gfk, between 2015 and 2019, the proportion of online e-commerce channels for mobile phone sales rose from 22% to 28%. Among the offline open channels for mobile phone sales consisting of home appliance chains, communication chains and independent stores (brand flagship stores, specialty stores, authorized stores, etc.), independent stores have increased from 35% to 50%, which is becoming more and more important.
The latest data from IDC, a third-party market analysis agency, shows that Huawei (including Honor), OPPO, vivo, Xiaomi and Apple’s shipments of the TOP5 brands have swallowed 93.5% of the domestic mobile phone market share. Next, the fertile soil of offline channels will be intensively cultivated by several local brands. Service may be the most important part and core of this.
5G means the upgrading of products, channels, brands and services. We need patented technology upwards, the moat of the next 10 years, we have to dig deeper foundations downwards. Whoever can make profit and increase profit for the channel, who can achieve the ultimate demand and service of various segments, will be more able to stabilize the basic market of the domestic market. This is the long-term doctrine of sharing the benefits of channels and going with (loyal) consumers.