In recent years, regardless of whether the agricultural supplies business is good, the status of agricultural supplies dealers in the entire industry has been very high.
Every spring, the dealers in various regions will be crowded with business personnel of the manufacturers, they are waiting for the emperor to "turn over the card" like the concubine waiting for dealers to interview. However, all this may change radically with the implementation of "one certificate, one product" for pesticides.
There are still many agricultural dealers who do not understand what "one certificate one product" is and what it means to them. In the "Letter on Soliciting opinions on the Revised Draft of the Management Measures for Pesticide Labels and Instructions" issued by the Ministry of Agriculture and Rural Affairs in 2023, a pesticide registration certificate can only be used for one product. This means that the era of authorized loan and multiple products in the pesticide industry will come to an end.
Once the "one certificate, one product" policy is implemented, the first significant impact is the sharp reduction in the number of pesticide products, some professionals predict that at least 80% of pesticide products will disappear from the market overnight. Agricultural dealers will be from the past "product surplus" into "supply shortage", and even into the "no goods to sell" dilemma. At the same time, the relationship between manufacturers will also change, and those pesticide manufacturers with many exclusive registration documents will occupy an active position in the new round of market game.
Second, agricultural dealers who do not have good products in hand will be out. As a middleman in the agricultural material industry chain, dealers rely on channel resources for negotiation; The next negotiation depends on the manufacturer's resources, and the core of the manufacturer's resources is the product. Once the hands lose competitive good products, agricultural dealers will lose the balance of downstream retailers "killer". The reason why agricultural retailers choose to purchase from dealers, so that dealers earn intermediate profits, is that dealers have exclusive agents of high-quality products. If the day comes when the distributor does not have these products, the retailer will be the first to leave him.
So, with the implementation of the "one certificate, one product" policy, how can the next agricultural dealers survive?
Before answering this question, we must first think about a question: What do pesticide manufacturers want from agricultural dealers? The answer is simple: What manufacturers want most is sales. Sales are not only the source of manufacturers' profits, but also the embodiment of market position.
From the point of view of dealers, what can be done to increase sales? First, the dealer itself should have the strength and the ability to purchase cash; Second, dealers should have their own promotion team to quickly promote the product in the regional market; Third, the downstream terminal of the dealer should be strong and have the ability to promote and sell.
Therefore, if agricultural dealers want to avoid being eliminated by the market, they must work hard in these three aspects.
1. Improve your strength
Focus on the main business: do not blindly invest and expand, but put all the limited funds into the main business. In recent years, the agricultural materials industry is in a downward period, many agricultural materials dealers choose to layout other industries in order to reduce business risks, but few winners. Therefore, in the market emergency period, agricultural dealers should return to the main business, based on the main business, big main business, because only the industry they are familiar with and good at is the industry with less business risk.
Change the business idea: resolutely cut those products that are difficult to increase in volume and occupy more funds in the short term. Agricultural materials dealers should dare to make subtraction on products, quickly return funds by clearing inventory, and then fully activate cash flow, and concentrate funds on a small number of powerful manufacturers and potential products.
Embrace new media: Learn to use new media and new tools to empower business growth. Traditional marketing methods are based on costs and expenses, such as production testing, promotion, farmers will need to invest a lot of costs, but because the form is too old-fashioned, the marketing effect is getting worse and worse. New media, by contrast, has a very low or even negligible cost. Therefore, traditional agricultural dealers can take new media as a new business track to achieve new growth in market performance.
2. Cultivate promotion team
Pay attention to talent training: In the current team of agricultural materials dealers, talents with technical service ability and promotion ability are still scarce. In order to cope with the changes in the industry, agricultural materials dealers should actively cultivate and introduce compound talents with these two skills.
Do a good job of layout in advance: in the past, when there were many pesticide market products and dealers had the initiative, manufacturers did not dare to force dealers to equip promotion teams, so many new product promotion work was basically done by manufacturers' promotion personnel. However, when the product is reduced and the manufacturer regains the active position, the dealer who has no promotion ability will lose the important chips in the game with the manufacturer. Therefore, agricultural dealers should plan ahead and train their own promotion team in advance so that they can respond effectively when the market pattern changes.
3 Reconstruct downstream relationships
Although the agricultural materials dealers and retailers are upstream and downstream cooperation, because of the special attributes of the industry, the stickiness between the two is not strong. For example: a county-level dealer has a cooperative relationship with retailers usually in the 100-200, but the real contribution to sales is often not more than 10%, the remaining 90% are very loose buying and selling relations.
When dealers have fewer products, that means fewer retailers are working with them. Therefore, the relationship between the two also needs to be reconstructed.
Reshaping partnerships: With fewer products, the relationship between distributors and retailers needs to shift from a traditional buyer-seller relationship to a partnership. This relationship is based on mutual goals and common interests to ensure that both parties can stick together and move forward in future market fluctuations.
Empower retailers: The future agricultural material distributors can not only provide high-quality product sales services, but also empower the development of retailers, such as market analysis, management guidance, technical support, personnel training, etc., in order to help retailers improve product promotion capabilities and market competitiveness.
Strengthen channel management: Next, dealers need to enhance their control over retailers through effective channel management. Agricultural distributors can strengthen their relationships with downstream retailers by offering incentive programs, signing long-term contracts, and providing exclusive products or services.
In 2024, the "one certificate and one product" of pesticides will land, and dealers will usher in a cruel reshuffle, and no one can stay out of the situation
2023 12/14