China Model of Single-layer Direct Selling
Hangzhou's fans have a long history, and are as famous as silk and tea, and are known as "the three best products in Hangzhou". Famous fans in Hangzhou can't help but mention the brand "Wang". This Fan Zhuang was built in 1875, which has been more than one hundred years. Wang's fans have won many awards at international fairs. In the Qing dynasty, as a tribute, it was a precious gift given back to foreign envoys by feudal emperors.
In the history of commercial development in China, handicraft workshops combining production and marketing occupy an important position, and the innovation of sales model is even more important. Wang Xingzhai, the founder of Fanzhuang, was born in a fan family. His grandfather and father were craftsmen in the fan industry. Wang Xingzhai and his wife carefully selected materials and designed them. The high-grade flower fans they produced are deeply loved by court nobles and literati. Therefore, Wang Qiao's reputation as a tribute fan is growing. Although he is famous in Shanghai, customers as far away as Beijing and Tianjin come to order. However, after the Republic of China, with the cheap dumping of semi-mechanized fans made in Japan, low-priced white paper fans from Hunan entered the Hangzhou market, the sales of fans in Hangzhou stagnated and the fan industry declined. At this point, Wang Xingzhai had died, and his son Wang Ziqing took over the business of the restaurant. In order to restructure the vermicelli industry, on the one hand, Wang Ziqing studied the characteristics of Japanese and French fans in international marketing, and set up a sales department in Hangzhou on 1929, with Samsung as the registered trademark, and invested heavily in advertising to carefully display various traditional famous fans. At this time, Wang Ziqing began to adjust the sales methods of fans, and began to attract business in a way similar to direct selling. According to historical research, it is a rule that whoever introduces business to Wang can get a commission of 5%- 10% of the turnover. Although it is only a simple regulation, it has opened up a new marketing model.
An objective analysis of this change in Wang vermicelli village has the operating characteristics of direct selling mode. First of all, in terms of products, fans belong to fast-moving consumer goods that ordinary people can afford and use more; Secondly, in the dissemination of commodity information, it mainly relies on interpersonal communication mode; Thirdly, in terms of payment method, it is paid according to the percentage of sales. The only thing lacking is systematic training and encouragement for sales staff. However, effective motivation and training for direct sellers is also one of the important symbols of modern direct selling.