ABSTRACT摘要
互联网渠道作为一种新型的分销渠道，长期以来没有得到发展。但是，互联网渠道以其丰富的信息资源和快速的通信速度，在很短的时间内实现了快速发展，已成为人们生活的一部分。在不受时间和地域限制的情况下，结合庞大的用户数量，通过将互联网渠道整合到企业现有的分销渠道体系中，互联网渠道已成为越来越多的企业想要品尝的糖分。但这些公司大多依靠传统分销渠道的支持来拓展市场。互联网渠道引入后，很难保证传统分销渠道与互联网分销渠道之间不存在利益冲突。为了避免或减少分销渠道冲突对企业的负面影响，企业应采取哪些措施？本文试图通过对传统分销渠道与互联网分销渠道冲突的研究，结合我国家庭应用行业互联网分销渠道的特点，探讨管理传统分销渠道与互联网分销渠道冲突的方法。
As a new distribution channel, internet channel has not developed for a long time. But with its abundant information resources and fast communication speed, internet channel has achieved rapid development in a very short period of time and has become part of people’s lives. Without the limitation of time and region, combining with the huge amount of users, internet channel is now a sugar that more and more enterprises want to taste, by incorporating internet channel to the enterprise existing distribution channel system. But most of these companies are relying on the support of the traditional distribution channel to expand the market. After the introduction of internet channels, it is difficult to guarantee that there is not conflict of interest between the traditional distribution channels and internet distribution channels. In order to avoid or to reduce the negative impact that distribution channels conflict will cause to enterprises, what measures should the enterprises take? This article attempts to explore the methods to manage the conflicts between traditional distribution channels and internet distribution channels, based on the study of distribution channels conflict and the characteristics of internet distribution channels in China’s home application industry.
ACKNOWLEDGEMENT致谢
首先，我要感谢我的学术导师，克里斯劳博士。这是她的全面指导和耐心支持我继续下去。她总是给我很好的建议，并为我指出正确的方向。没有她的支持和鼓励，我无法独自完成这个项目。
同时，我想借此机会感谢英国所有的模块导师以及IGDS教授、员工和我的同学。他们的友好建议不仅帮助我在课堂上学习，而且也享受了我在香港的生活。
最后，我要感谢我的父母，他们努力为我提供这个在香港学习的极好机会。他们的爱和鼓励是我完成这篇论文的支持。这是我一生的珍宝。
First of all, I would like to thank my academic supervisor Dr. Kris Law. It was her comprehensive guidance and patience support me to carry on. She always gives me wonderful suggestions and point out the right direction for me. Without her support and encouragement, I could not finish this project all by my own.
Also I want to take this opportunity to thank all the module tutors in UK as well as IGDS professors, staff and my classmates. Their kindly suggestions helps me so much not just in class for study but also to enjoy my life in Hong Kong.
Finally, I would like to thank my parents,they work hard to provide me this wonderful opportunity to study in Hong Kong. Their love and encouragement is my support tocomplete this dissertation. It is my lifetime treasure.
DECLARATION
I have read and understood the rules on cheating, plagiarism and appropriate referencing as outlined in my handbook and I declare that the work contained in this assignment is my own, unless otherwise acknowledged.
No substantial part of the work submitted here has also been submitted by me in other assessments for this or previous degree courses, and I acknowledge that if this has been done an appropriate reduction in the mark I might otherwise have received will be made.
Signed candidate
My project relates to this definition in the following way:
The purpose of this dissertation is to present the challenges and potential opportunities for home appliance manufacturers in China.
This dissertation uses two case companies to compare by applying knowledge from IGDS courses such as business strategy, enterprise information system etc. It conducts home appliance industry analysis and comparison. Finally this dissertation gives some recommendations for the management of internet and traditional distribution channel conflict.
TABLE OF CONTENTS
ABSTRACT i
ACKNOWLEDGEMENT ii
DECLARATION iii
TABLE OF CONTENTS iv
LIST OF TABLES vii
LIST OF FIGURES viii
1 Introduction 1
1.1 Research Background 1
1.2 Research methods and theoretical tools 2
1.3 The structure of the article 4
2 Literature review 5
2.1 Distribution channel 5
2.1.1 Definition 5
2.1.2 Characteristics of Internet distribution channel 6
2.2 Core theory of distribution channel conflict 8
2.2.1 The definition of distribution channel conflict 8
2.2.2 Reasons for distribution channel conflict 9
2.2.3 The impact of distribution channel conflict 9
2.2.4 Management of distribution channel conflict 11
3. Research Methodology 12
3.1 Introduction 12
3.2 Project Objectives 12
3.3 Project Phases and Methods 13
3.3.1 Phase one 13
3.3.2 Phase two 13
3.3.3 Phase three 13
4. Home appliance industry analysis 15
4.1 Chapter Introduction 15
4.2 The home appliance industry 15
4.2.1 Industry Analysis by Five Forces model 17
4.2.2 Current Situation of Home Appliance Industry 20
4.3Home ApplianceIndustry in Global Market 21
4.3.1 Characteristics of global home appliance industry 23
4.4 Background Analysis of Home Appliance Industry in China 24
4.4.1 Political Factors 25
4.4.2 Economic Factors 25
4.4.3 Social Factors 27
4.4.4 Technological Factors 28
4 Case studies 29
5.1 Chapter Introduction 29
5.2 Haier 29
5.2.1 Introduction to Haier 29
5.2.2 SWOT analysis on Haier’s distribution channels 31
5.3 JD 39
5.3.1 Introduction to JD 39
5.2.2 SWOT analysis on JD 42
5.3.3 JD in the home appliance industry 53
5.4 Conclusions 55
6. Discussion 57
6.1 Chapter Introduction 57
6.2 Production and price 57
6.3 Promotion 59
6.4 Place 59
6.5 Customer review: an advantage 61
7. Internet distribution channel and traditional distribution channel conflict management 63
7.1 Chapter introduction 63
7.2 Recommendations on distribution channel conflict management 63
7.2.1 Choose the appropriate products and services 64
7.2.2 Set the right price 66
7.2.3 Complementary advantages of the distribution channels 67
7.2.4 Customer segmentation 68
References 69
LIST OF TABLES
Table 1 Phases and Methods of Project 17
Table 2 Categories of home appliance products 18
Table 3 Five Forces Analysis of Home Appliance Industry 23
Table 4 Development of China's home appliance industry 28
Table 5 Strengths of China's home appliance market 29
Table 6 Weaknesses of China's home appliance market 33
Table 7 Opportunities of China's home appliance market 35
Table 8 Threats of China's home appliance market 36
Table 9 Strengths of Haier’s distribution channel system 45
Table 10 Survey statistics of Haier’s market management 46
Table 11 Weaknesses of Haier’s distribution channel system 48
Table 12 Opportunities of Haier’s distribution channel system 49
Table 13 Threats of Haier’s distribution channel system 51
Table 14 The level of attention during the promotion period of different platforms 55
Table 15 Logistic centers of JD 58
Table 16 Strengths of JD 58
Table 17 Weaknesses of JD 61
Table 18 Opportunities of JD 63
Table 19 Threats of JD 64
Table 20 Appropriateness for online selling 70
LIST OF FIGURES
Figure 1 The effect of conflict level on channel efficiency 18
Figure 2 Global home appliance product market 29
Figure 3 Sales volume and growth rate of Haier 45
Figure 4 Structure of Haier’s management system 46
Figure 5 Market share of China's proprietary B2C website 57
Figure 6 China's internet users 64
Figure 7 China's online shopping users 65
1 Introduction
1.1 Research Background
With the rapid development of Internet and continuing improvement of network technology, internet distribution channel has gradually showed its great potential as a whole new business model. Meanwhile internet distribution channel is redeemed a threatby traditional distribution channels. When a consumer is covered both by the traditional distribution channels and internetdistribution channels, fighting for the common customer resources, the two channels will inevitably come into conflict.
According to the 20th China internet network development and statistics report issued by China Internet Network Information Center, by the end of 2013, the total number of Internet users in mainland China reached 618 million counting for 45.8% of the whole population. 45.9% of Internet users are in the use of online shopping, more than six times larger than 7.3%, the figure in 2004. Although the size and profit skill of China's online shopping market are lagged behind some developed countries, such as Europe and the United States, but its hidden potential is attracting enterprise's increasing attention. As of the end of 2006, China's online shopping turnover is 1.85 trillion yuan, which is 7.9% of the total retail sales of consumer goods. Although enterprises all hope to enter into the huge market through the internetdistribution channels, but they can’t manage the coordination of internet distribution channels and the traditional distribution channels, resulting in the slow development of internetdistribution channels.
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7.2.3 Complementary advantages of the distribution channels
Companies can formulate unified promotion strategy, and introduce suitable traditional distributors to consumers at the same time of using the internet for its own publicity.The companies can set up a column on the website for the traditional distributorsto advertise.In some target markets,the orders are not accepted on the internet directlyand the information of available local distributors is recommended to consumers, leading consumers to traditional distributors to buy the product.At the same time,the traditional distribution channels could be used to expand the popularity of enterprise website or to propaganda the online business provided by a third party website. On the one hand, traditional distributors can use the opportunity to contact with consumers and their understanding of consumer buying habitsto timely advertise to the ideal target customers. On the other hand, the cooperation and exchanges between the channels are improved to avoid conflict. Internet distribution channel has a limitation as it is unable to provide one of the most important functions of distribution channel - physical delivery of tangible goods. For this reason, most companies still need traditional distribution channels to help complete the delivery task of order on the internet. The level of distribution channel conflict is reduced as the suppliers let the traditional distributors to deliver the orders accepted on the internet. The main advantage of internet distribution channel is the ability to quickly provide the transfer of cash flow and information flow. However,the tangible goods cannot be transferred through the internet as cash and information. For this reason, more and more enterprises actively incorporate traditional distributors in their electronic commerce and establish a good partnership to complete the sales process.
7.2.4 Customer segmentation
Customer segmentation is to segment the customers on the basis of understanding the characteristics and requirements of them. Through the product or service design, distribution channel design and other marketing tools, some customers are kept to the traditional distribution channel while others are transferred to the internet distribution channel, so that the dominance of manufacturers is increased. Although this process is dominated by the manufacturers on the surface, in fact, the adjustment is done according to the customer characteristics and environmental change and is not based on subjective speculation of the manufacturer. Facing serious product homogeneity and the diversification of the demand of target customers, many famous home appliance enterprises established the multi-level distribution channel system based on the characteristics of the industry and different categories of target customers to make the distribution channels diversified and segmented. The distribution channel system consists of core agents, industrial partners, OEM partners and direct sale on internet, etc. The emphasis of the different distribution channels are different product categories. For example, new, fashionable home appliance products can be promoted and sold through the internet distribution channel.
When the internet distribution channel and traditional distribution channel conflict occurs, the manufacturers should not slow down the pace of development of internet distribution channels in order to protect the interests of the traditional distributors. In the competitive environment, the internet distribution channel is important. If the development of internet distribution channel lags behind, the whole enterprise will be at a disadvantage in the future competition. Therefore, the enterprise should consider the overall situation as the interests of the traditional distribution channels are considered. Also, the enterprise should pay attention to the development of the electronic commerce environment to make visionary decisions.
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