| Market economy changes from minute to minute and enterprises'products tend to be precisely positioned. The target market is divided into smaller and smaller segments, and management system advances with times. Led by the market economy system with Chinese characteristics, enterprises of different ownerships, including state-owned enterprises, private companies and joint ventures, grow robustly; different industries, including real estate, finance, automobile, healthcare products, beauty care products, retail selling, and direct selling, are developing fast respectively. Since the reform and opening up over the 30 years ago, excellent leaders in every industry have stood out and led the development of their own industry with creativity, pioneering ambition and perseverance. They all played important roles in promoting development of China's market economy.TIENS Group is one of representatives of China's national enterprises, a backbone of Chinese healthcare industry and a pioneer of China's national direct selling enterprises. TIENS Company was established in 1995. At the very beginning, TIENS focused on healthcare market, developed various healthcare foods and marketed them with advanced direct selling mode and channel selling successfully. In this process, TIENS has disseminated China's 5000-year-old culture of health concept and advanced direct selling mode to 103 countries in the world. Innovation is the fundamental basis of TIENS' operation. Over the past 16 years, TIENS adapted itself to the rapid growth of market economy and different demands of overseas and domestic markets, and won in market competition in different development stages. By 2010, TIENS Group has built a brand value of RMB 11,058 million, ranking the 71st in China's top 500 enterprises, the first in China's healthcare industry and Tianjin area. Currently, TIENS owns 89 subsidiaries and over 3000 franchised stores. However, over the past few years, TIENS'performance in China's market grows slowly because of rigid selling channels and aging targeted customers. For the sake of long-term development and in order to change this situation, the company adopted the marketing strategy of"Direct sales and retail sales integration"on the basis of cases in international market and its own experience. In order to study new channel operating mode of direct selling & retail of TIENS Group, the author determined the research direction, background and motivation by carrying out a lot of field investigations. A lot of practical data were analyzed. Some typical and significant data were selected out as research basis. Relevant materials and theoretical literature of direct selling and retail channels were referenced. A lot of secondary data were collected and interviews with top management of this company were carried out. Market experience was also summarized. This thesis consists of seven chapters. Chapter 1 Introduction introduces the research background, content and methods and poses questions; Chapter 2 analyzes the concept comparison, advantages & disadvantages and development trend of retail and direct selling channels. Chapter 3 briefly introduces TIENS Group and its current operation situation, and carries out SWOT analysis, then conceives the direct sales and retail sales integration mode. Chapter 4 formally puts forward the concept of direct sales and retail sales integration and analyzes the advantages and disadvantages of this mode. TIENS Group's direct sales and retail sales integration mode is manifested by its direct selling supermarket. This part studies many aspects of direct selling supermarket, including main functions and forms, form of industry situation, connotation of business mode, management model of core network members, investment mode and profit mode etc. Chapter 5 emphasizes on the operation mode of direct selling supermarket, including sites selection strategy, commodity strategy, market promotion management, management of shop operation, membership management system, logistics and supply. Chapter 6 focuses on future development of direct selling market, that is, convenient store alliance. With 89 subsidiaries in China and over 3000 franchised shops, TIENS Group can build national chain stores. Finally, Chapter 7, the conclusion part of this thesis, summarizes the whole thesis and highlights that TIENS Group will change its existing channel strategically to achieve complementary advantages of direct sales and retail sales integration and the company's growth with solid channel operation mode planning and practice.After reviewing its performance, external market and internal management situation of recent years, as China's national enterprise in native healthcare product industry with the largest direct selling channel, TIENS Group must carry out innovative improvement through rebuilding product, strengthening and developing targeted customers and channel revolution to achieve material leap so as to maintain its market position and advantages. In terms of products, TIENS should further enhance the healthcare foods'contribution to the company and strengthen the product's market share; and achieve rapid growth of beauty care products, improve its contribution rate and perfect the structure of direct distributor network. In terms of channels, after a comparative analysis of retail sales channel and direct selling channel, the thesis proposes to build a new model of direct sales and retail sales integration which can bring multiple increases in direct sales volume of general customers, core customers and ultimate customers by relying on the targets and popularity of retail sales, and therefore achieve multiple increases in the company's performance.TIENS Group China Region is gradually adjusting its direct selling supermarket strategy plan of direct sales and retail sales integration. By developing the three–year strategic plan and supported by the theory of"operational ideas, precise management and detailed services", TIENS Group will adopt and further refine the existing channel operational system and continue increasing investment so as to make the two forms of its direct selling supermarket cover everywhere in the whole country and achieve the company's multiple growth and transformation. Therefore, TIENS Group's channel reformation and strategic adjustment in China's market is especially worth more attention and study. The operational management content of direct selling supermarket, including shop site selection, decoration, facility and IT system, and the changed product combination, market promotion, membership management, logistics and supply etc., is helpful for us to make progress and provide a good lesson for building a new channel mode in direct selling industry. |
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