In 2004, Nokia mobile phone market share in China surged 40% over Motorola claimed the first throne of China's mobile phone market in 2005, China became Nokia's largest single market in the world in 2006, Nokia mobile devices and 3G devices in greater China market share ranking first in 2007, Nokia's peak period of its development, its global market share of 40% ... ...
In addition to Nokia's own product line, praised by industry for many years throughout the channel system is undeniable, especially FD (Fulfillment Distribute) channel mode (that is, direct distributors at the provincial level), the highest FD when Nokia over 60% of mobile phone sales in China.
Once BA Shan XI k distribution model is not able to save troubled Nokia these days. Instead, after the Nokia into the arms of Microsoft's Windows Phone platform, FD models are also coming to an end. Known the exact message is: Nokia has decided to cancel the FD mode. So far from the end of 2011, has been canceled the country's dozens of FD's, this means that Nokia in China for 8 years, proud of the FD channel model will become history.
What motivates FD mode is coming to an end? Very simple: 1. single product line, not enough to cope with the FD distribution model and support the distribution channels, the cost of inputs. 2. in the face of multiple channel strategy, business losses have not too much invested capital Hello Kitty N4 case
Product lines a single cancellation, FD mode
FD mode is a creative change in channel in China, but there are some risks. , FD mode is a necessary condition for the smooth functioning of their products to have enough shipments, once the decline in shipments, sales would be seriously affected.
According to the latest Nokia reported mobile phone sales, Nokia's mobile phone shipments in the second quarter of this year to 83.7 million, down 5%, Smartphone shipments of only 10.2 million, down by 39%. Most important Chinese market handset shipments in the quarter was only 7.9 million units, falling 11.3 million in the same period last year compared with 30%.
FD mode works fine when the market is. But once the market sales, product shrinkage. Will deal a blow to the enthusiasm of dealers in the upper reaches, especially as Nokia has long been declining sales and market share decline every year, research and development of new models of the shrinking number of awkward time. Inventory pressures will naturally bring to the dealer.
Dealer life so difficult in the upper reaches, as access to users downstream of the top retailers already prepared in advance. For them there is no pressure on the stock, a brand or a cell phone is no longer popular, or low profits, is no longer active to promote, just moved to other brands.
Currently, Nokia's main push in the domestic market is based on the Windows Phone platform Lumia products, including positioning high-end Lumia 800 Unicom and Telecom editions, positioning the low-end Lumia 710 interchange and Lumia 610 of Unicom and Telecom editions. Reshuffling of Nokia products streamline condensed or simple says, is pathetic.
For FD, mode, the product is very important and a good product can directly affect the province's income. Before the Lumia series, Nokia is very rich product line, from models: function of intelligent machines, machine prices: high, medium and low price, category more clear. Other phone brands agents often require cross-brand agency to ensure the bountiful supply of hand. Nokia, FD is basically sit back and relax, a brand all indiscriminately. Nokia product line rich so that when the FD province run with exclusive models and rarely consider other brands. Today only three single Lumia series product, distributors are unable to obtain more sales to earn rebates. Things have happened in other mobile phone brands happen to Nokia, this time. Circle of fate.
As of the first half of 2012, Nokia Lumia products about 6 million units have been sold worldwide, China sold fewer than 1.5 million units, and sales of Nokia mobile phones in China in the past six months compared to less than 10%
FD mode is dependent on prerequisite has become firm enough to channel the collective "rebels" is natural. Many generations after the expiration of the contract have to switch to other brands, and Nokia itself see the single products can not meet the profit, and let nature take its course to cancel the province, currently left only contractors and direct channels.
FD mode is active but not for product support Hello Kitty Note 4 Cases
Nokia channels form diversified portfolio, from the large structure is divided into two major categories, one is the operator channel, and one is the open channel. Open channels and State contractors, provincial agencies, direct three retail channels. Major sub-contractors is telling, in the mail, and the top three provincial agents is in major provinces across the country established distribution platform, as many as 30 homes, direct retailing, such as the United States (PO), suning, Dixon and Nokia stores and authorized outlet store.
FD mode is a set of Nokia at the provincial level on the agent, is a product of agent system is compromised with the direct mode. This mode Nokia signed a sales agreement with direct distributors at the provincial level, including sales volume, market share and marketing and after-sales service, and so on. Biggest difference with traditional provincial agents, it does assume responsibility for building provincial funding and logistics platform, no other distributor is responsible for unwanted, sales, marketing and other functions.
FD model to some extent reduction or cancel a portion of the large area (above the provincial level) agents, take the next and set up branches or any other means to achieve provincial direct sales model. Both reduced has link, and strengthening has on Terminal of management, and on price of control, national main stores not only can achieved straight for, and also enjoys information of transparent of and timely of, daily manufacturers are can get national sales terminal of retail volume of full data, all level of wholesalers, and channel all link daily of into, and PIN, and save, each a machine species each species color of sales, are can in day get hand data. FD mean manufacturers to strengthen control of the channel, to focus its responsibilities and rights, weakening the provincial agency, the implementation of direct supply of large area directly to retail outlets.
FD line of category IV client is developed by Nokia, which is FD mode is different from the traditional model of the key. Nokia for the FD's select line customers can be divided into two categories: one is the WKA (Wholesale Key Account), that is, wholesale key customer, this type of customer is a key retailer with wholesale distribution function; the other is RKA (Retailer Key Account), the retail key accounts, such retail not wholesale customers only. These two types of customers for the FD's steady sales, and Nokia's grip on key retail customers can be realized.
From this point, felt, FD-mode is similar to Nokia's third-party monitors, not on the market under pressure, Nokia can obtain its impartial third party data and channel and Terminal retail network to strengthen control. Of course, FD, nor charity, Nokia is also to ensure that their profits are not affected can make this marketing strategy into a virtuous circle.
Products from the manufacturer to the platform, and then to the next level across three or four lines Terminal in dealer hands in the town market, pricing power all belonging to Nokia, although there are some differences, but FD province no longer makes money by phone post, if agreement can be completed in a variety of tasks, FD province to earn a rebate from Nokia. As for Nokia, in this way may be sales and marketing of the two functions into their own hands. For agents, nor mess due to competition and price war, as long as continued selling Nokia phones, they make more money.
FD mode greatly stimulated the passion of agents, Nokia in city and county level are able to penetrate the market, over time, the distributors formed rely more and more on Nokia's case, this 2009 Nokia dealer fined for changing products, it can be seen, virtually no provincial above dealer fined dared break with the Nokia.
Nokia to FD of the province's rebate was 5%, although quite low, but in all forms, FD products of the province's largest, peaked at more than 60% of Nokia's overall sales, profits of a very rich. Because a large amount of sustainable, relying on quick turnaround, small profits but quick turnover, many FD's done years worth tens of millions.
Summary
Because FD channel model, Nokia in China obtained the market numerous annual sales and share of the Crown. But with the change in Nokia's product strategy, FD models have been unable to adapt to the development of the now, but personally think FD channels of mode cancel is not just a marketing strategy, it is indicated that an information: shrink the company product line, product, performance loss and all the elements are not sufficient to support this mode of operation. Is expected in the future by shortening the front only, original sales channels to boost market share. But pricing will increase the chances of their own sales channels. Sales model essentially into a vicious circle.
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