Distributor Management System

Distributor Management System

Distributed management system under the Online Marketplace will be an important mechanism to drive the cosmetics trading in the future. Quality Plus has invested in Evogue (Thailand) Co., Ltd. as a start-up company in the field of digital technology that will play a role in solving the problem of distribution channels in health, beauty and fashion. Focus on problem solving (Pain Points) to the target audience as follows:

  1. Brand owner
  2. Distributor
  3. Consumer Products

Distribution channels in health, beauty and fashion segments are divided into 3 main channels:

Traditional Trade

Traditional Trade

Modern Trade

Modern Trade

Ecommerce

Ecommerce

In each distribution channel there are problems and obstacles that brand owners has to bear the burden as follows:

1. Problem of risk and complexity of Thai cosmetics

Traditional Trade

Traditional trade channel issues

  1. Depend on distributors to generate revenue and ow bargaining power
  2. The retailer database can’t be kept
  3. Undercutting prices in the market results in short product life cycles
  4. No database is used to analyze purchase behavior
Modern Trade

Modern retail channel issues

  1. The brand does not have enough capital to pay entry fees in Modern Trade stores
  2. The brand being exploited by high trading volume without guaranteeing sales
  3. Brands can’t store customer databases or product users
  4. Brand can’t bring the database to analyze purchase behavior
Ecommerce

Ecommerce channel
issues

  1. The brand still lacking knowledge in Ecommerce Platform Technology
  2. The current Ecommerce Platform system is lacking the online distributor management system
  3. Ecommerce systems are currently unable to serve as a major revenue channel for small, medium and large brands

2. Problem and the hassle of the distributor

Dealer Risk and Troubleshooting
  1. Investments in the purchase order

    1. Investments in the purchase order

    01
  2. Stock large quantities of product

    2. Stock large quantities of product

    02
  3. Selling undercut

    3. Selling undercut

    03
  4. The difficulty in packing and shipping

    4. The difficulty in packing and shipping

    04

Problem and the hassle of the distributor

  1. Distributors use their investment in high volume orders. Because the brand motivates them to buy high volume products in exchange for discounts or incentives that comes in the form of gold, air tickets, cash etc.
  2. Distributors have to bear a lot of risk in stock to get a discount and prizes from the brand owner. As result have to bear the risk of goods not sold and the expired products.
  3. Sales are undercut by other distributors because of the large number of distributors in the market and high sales competition, therefore, need to provide a discount to the distributor to push the stock out before the product expires. Due to price war often sell in losses to get cash back.
  4. The complexity of the packing and shipping to customers. In the case of a larger number of orders, the agent has to pay for the cost of the parcel, shipping, and employee packs, resulting in higher costs.

3. The risk and frustration of buyers or users

Counterfeit goods

Counterfeit goods

Did not receive the goods

Product not received

Delayed Goods Receipt

Delay in receiving product

Risk, problems and frustration of shoppers or users

  1. The buyer must bear the risk because there is a chance of being a counterfeit product when shopping from online channels and traditional retail channels
  2. The buyer may not receive the goods when ordering goods online or get cheated
  3. Shoppers gets frustrated delay order when ordering through online channels and also talking to a dealer or agent for a longer time to respond

Distributor management system (DMS)

It is an important tool to help solve the problem, branding between brand owners, distributors and customers include:

Distributor management system (DMS)
  1. Solution to the brand owner
    • Prepare Ecommerce platform and function to boost sales channels for the brand
    • Develop a distributor management system for brands with customization
    • Brands can store all levels of distributorship information, including buyer databases, and reuse them
    • Cost savings in dependence on modern retail systems by reducing the initial value
    • Cut down the price war and make the brand last longer
  2. The solution to distributor
    • Reduce the problem of forcing distributors to hoard goods
    • Distributors have a tools (Deep Link & QR Code) to promote the product and promotion
    • Distributors can log in to check balance, trading history through the Dashboard
    • Distributors are motivated to sell with special incentive and bonus
  3. Consumer Problem Solving
    • The system screening the actual product from the brand owner or the authorized distributor
    • Standard pricing to reduce consumer exploitation
    • Inspection and guarantee of quality in terms of standards and certifications
    • A variety of payment channels for consumers
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