Research On Channel Alliance Between Manufacturers And Chain Retailers In Electric Household Appliance In China

As the increasing market competition and the uncertainty of the environment, a single enterprise of the channel hardly achieves long-term competitive advantages relying on their own resources. Marketing channel model transforms from short-term based channel model to close alliance channel model as the idea of win-win cooperation is widely recognized.Due to overproduction, lack of innovation and other reasons, electric household appliance industry does not have the core competitive. Because the appliance manufacturers excessively depend on large retailers, the channel power becomes imbalance. As a new business pattern, the chain retail industry has developed rapidly in recent years. Large retailers like GOME and Sunning have almost monopoly the first and second market. Traditional retailers profits from price differences between purchasing and selling. At present, large retailers rely on its large-scale, professional and other advantages to exploit upstream suppliers. These acts aroused strong dissatisfaction among suppliers. The"GOME-GELY accident"is a reflection of this status quo. With the opening up of retail industry, multinational retailers have been a tremendous threat for Chinese appliance retail market. Chain retailers should change unhealthy business model, improve its own strength and strive to create value for customers. Therefore, the establishment of channel alliance becomes a strategic choice to resolve conflicts and gain competitive advantage.The proposition of channel alliance has been demonstrated both from theory and practice. First, channel appliance can save transaction costs. Second, channel alliance can integrate the core expertise of different enterprises to create greater value and improve economic efficiency. Third, channel alliance can solve conflict and contradictions and achieve the harmony between the upstream and downstream firms.Manufacturers through the establishment of channel alliance could improve their competitive; reduce business risk, obtain timely and accurate market information, achieve high market share through lower cost. The construction of channel alliance is favorable for chain retailers to establish a good business image and realize the differential operating. Finally, the members of market channel can better realize information sharing and better meet customers'needs.At last, the motivations, conditions of the channel alliance have been demonstrated.