Terminal costs will affect the entire production process of a brand of shampoo, and the performance of second-tier shampoos dominated by domestic brands at the terminal is also unsatisfactory. Caught between the strong advertising of first-tier brands and the promotion of third-tier brands, second-tier brands with declining brand power and indifferent marketing have gradually become useless products that terminals cannot abandon and cannot promote.

Insufficient internal strength leads to terminal weakness

"The sales volume of domestic second-tier shampoo brands decreases by 20% every year." Chen Biyun of Henghui Department Store Trading Company is the owner of Shu Lei, Soft, Liangzhuang, Litao is a channel agent for more than ten brands, including more than 1,000 supermarket outlets in northern and eastern Fujian. Shampoo products account for most of the company's business. When talking about the performance of second-tier brands in recent years, she feels very worried.

"The higher supply prices of second-tier brands prevent them from investing a large number of promotional personnel to drive terminals, and current sales are in a weak state." Chen Biyun told reporters that the costs of maintaining market operations are rising, and domestically produced Brands are under tremendous pressure. For second-tier brands, if prices increase, they will lose customer base, and if they don't increase prices, they won't make money. Due to shrinking performance and profits, second-tier brands are currently unable to invest in terminals and are gradually declining.

"In some areas, second-tier shampoo brands can barely afford to pay their staff salaries." Under such severe circumstances, the support agents receive from manufacturers has shrunk accordingly, making it even more difficult to maintain the market. . "This year, the manufacturer has increased profits by 8 percentage points, but they have not allocated staff to us. They directly sent us text messages and asked dealers to do it themselves." Chen Biyun estimated that these 8 points of profit cannot make up for the personnel, promotional resources and other aspects. The terminal investment costs and operational risks are also transferred to the dealers invisibly.

On the other hand, due to the pressure of sales performance, stock rush has become the norm for second-tier brands, seriously disrupting the market operation order and brand price system. Chen Biyun pointed out, "The worse the sales situation is, the more salespeople have to rush to sell goods, the market price system is chaotic, and agents no longer like to sell this brand."

At the terminal, the weak second-tier brands are also gradually Become a useless product. Huang Dan, purchasing manager of Hubei Shuntai Trading Co., Ltd., said, "The sales contribution rate of second-tier shampoo is very low. It is necessary to sell but not easy to sell in supermarkets. It has no explosive power." In the Good Neighbor Supermarket chain in Xiangyang, Hubei, the second-tier shampoo Brands are also in a weak position. Yan Peng, Good Neighbor Daily Chemicals Department, said, "From the perspective of sales contribution, first-tier brands account for more than 50% in the cleaning and care category, which is relatively stable, and second-tier brands have the smallest share. From the perspective of terminal performance, , first-tier brands put more advertising, third-tier brands have strong promotions, and second-tier brands appear tepid.

Second-tier brands have become trapped in the cracks

Chen Biyun believes that P&G and Unilever. The impact on second-tier brands is very large. The complete product line meets the needs of consumers at all levels, and the promotion intensity and frequency are also very strong.