Household Electrical Appliance Enterprises Marketing Channel Management Research

Household appliance industry in China is now experiencing mature period. Upgrade of current products and innovation of new generation that can meet arising new needs will become the impetus for further development of the industry. At the same time, establishing highly effective and responsive distribution channel has become the source of new profits for home appliances companies.Since distribution channels have already been diversified as a result of the renovation of the current distribution system, when household appliances specialized chain-like pattern emerges as a representing terminal, the main distribution channel evolves to the new pattern which is primarily based on alliance with the emerging terminals and direct retail sales channel pattern, taking the direct on-line sales as the breakthrough, and also using the traditional dealership system as auxiliary. The channel center therefore moves downward. As a result, household appliance firms must improve their management of distribution channels, and optimize their strategy according to their own situation.This article first analyzes the issues existing in current distribution channels of KELON Appliance Co. and the main issues that household appliance firms in China are facing during the transforming period by combining the distribution theory and the real examples together, and then it looks for key successful factors for optimizing strategy and management. It recommends that the optimization strategy for household appliance firms in China should be: implementing complex and flat distribution system according to different markets; strengthening segregation and cooperation of each distribution member by fully utilizing advanced supply chain technology and electronic information technology, and obtaining the benefits from specialization and economics of scales.The article also points out that the key factors of distribution management for household appliances firms in the process of transforms of distribution channel are: design of distribution system, reinforcement system for distributors, conflict management, evaluation and control management.Household appliance firms must continually adjust their distribution strategies and strengthen maintenance management. While multiple distribution channels are implemented simultaneously, firms need to promptly notice the tendency and the information among various channels, distinguish the possibility of conflict and correspondingly adjust the strategy and the method for the distribution management, improve the control of channels, thus improving the distribution competition of the firms.