Do as the Romans do in China Dell abandons zero in

2022-09-23
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Do as the Romans do. Dell gives up zero inventory in the Chinese computer market.

when shopping in Chinese computer stores, we often see Dell products and computers of other brands are placed together for sale, which is quite puzzling: isn't Dell direct selling? How did Dell come here to sell

Dell "claims" to bring advanced sales methods such as direct selling, on-demand customization and zero inventory into China, but in actual operation, it "creatively" adopts the same channel distribution method as other domestic IT manufacturers, which is a semi public secret in the IT industry. In fact, more than 40% of Dell's products reach consumers through distribution - of course, Dell, which is famous for its unique sales model, has never admitted this

the premise of zero inventory is that the "factory packaging paper and cultural paper recycling rate are only increased by 3% subscribers" mode customized on demand. One set is ordered to be produced and one set is sold. Otherwise, there must be inventory for mass production with fixed models. Observing Dell's advertisements in China, we still focus on several products, rather than emphasizing on-demand customization, but the sales are a few more than those of other manufacturers. Want some personalized customization? Of course, you can ask Dell to add a memory or a hard disk in the electronic information and electrical industry. However, if this can also be called customization, domestic IT manufacturers have been so "customized" since the day they sold computers. Of course, there are still real on-demand customization, but it is mainly for large customers such as government enterprises

national conditions that do not support zero inventory

why doesn't Dell adopt its global sales method in China? This is related to China's logistics chain. The efficiency of China's logistics is difficult to support Dell's commitment in the United States to deliver products from the factory to users within three days - especially in the hands of standard experimental users in non central cities who can stretch, shrink, tear, shear, and burst metal and non-metallic materials. Moreover, the average Chinese user probably doesn't want to bear an extra cost of hundreds of yuan in order to enjoy a door-to-door service

more importantly, distribution is also related to the buying habits of Chinese people. Chinese consumers like to shop around in the stores when buying goods, because there are more choices in the stores, and they can see the authentic products before buying. For large goods such as computers, you have to try them for a few times to buy them reliably. Like Americans, it is hard for ordinary Chinese consumers to buy products before they see the real ones. In the final analysis, this is because China's per capita income is still at a relatively low level for the time being: Americans buy a computer sparsely, which is not a big deal; But we are different. For most ordinary families in China, buying computers is often a big event that can make a family, old and young, go out together

national conditions determine purchase habits, and purchase habits determine sales methods - Dell is well aware of this. In China, it simply adopts the combination of distribution and direct sales, and it can sell products. After all, the quality, brand and service of the product are first-class, which is enough to make it a strong market competitor. Distribution is Dell's behavior to adapt to the market

Haier "tests the water" and learns nothing like

but perhaps the temptation of zero inventory is too great, Dell's example is too strong, and Haier and other domestic enterprises have also come to "test the water" direct sales and zero inventory

this is quite funny. Foreign monks have begun to read Chinese classics, and Chinese monks still want to learn foreign classics. The result is often to learn four different things: Haier claims to achieve "zero inventory", but it has attracted a lot of questions; The "on-demand customization" of Haier's production line is based on the "needs" of local branches rather than the "needs" of consumers. As a result, the headquarters did achieve zero inventory, but there was a huge disguised inventory in all branches. So direct selling has become a "physical exercise" of decentralized warehouses. This kind of false zero inventory makes the enterprise get only a false name of excellent management, and it may still spend a lot of money to establish a direct selling system corresponding to zero inventory

Chinese enterprises want to learn from Dell's good example, but no one has learned from Dell's real expertise in cost control and cost saving. China has no zero inventory, and there is no need to force zero inventory. This may be a little absolute, because some Chinese people have "realized" on-demand customization and zero inventory, that is, the small appearance of Zhongguancun saving compatible machines

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