Annual Report Abstract                               |Back|

2000-2001’s Annual Report for

the Situation and Development of

China’s Network Products Channel

(Abstract)


 

Viewpoint

1. The channeling mode of the network products is yet to come to maturity or reach a step of active exploration in China. The future system of channeling would be typified by the simplification, visualization, integration, electronification and specialization of the channels and the focus on providing value added service with customers at the center.

2. The transformed channeling mode is still far from maturity despite the trend of channel simplification and electronification. As we perceived, the simplification of channels by reducing the middle steps would normally result in undesired lack of visualization. The value of channels could be realized and the smoothness of merchandise flow could be increased only after a well-designed division of labor.

3. The mode of channels for the future network products would move forward into polarization, one end being the complete mode of distribution, the other being direct electronic sales, or online sales.

4. The mode of channeled distribution would be the general mode for, at least, the sale of hi-end products, with the trends of both specialization and integration desired.

5. The transformation of distributors would be one of the highlights in the system of channels. Since the part of distribution would still be an indispensable component of the channels of network products, the providers of such products should rationally select the modes of distribution channels according to the actual condition, which may include, for example, the general distribution by multiple agencies or sole representative, the providers as the distributors themselves, or even direct sale and the traditional 3-level mode.

I. Overview of the market environment of network products in 2000

1. Economic environment

2. Business environment

3. Technology condition

4. Condition of market competition

a. Volume of the complete market for network products

b. Structure of the market for network products

c. Competition among providers

II. Overview of the channel systems of network products in 2000

1. Briefing on the channels for network products

a. Mode of the channel systems

b. Organizational structure of the channel systems

c. Evolution of the channel systems

2. Peculiarities of the growth of channels for network products

3. Problems ahead in the growth of channels for network

  products

Chapter highlights

The chapter focuses on the characteristics and problems of the development of the current channel systems through the study and summarization of the prevailing mode of channel systems for network products. Such development has passed 3 phases, pure distribution of technology, application distribution, and large-scale distribution, and has entered into its current stage which is outlined by the following characteristics: popularity of simplification and electronification of the channels, more specified channeling, recognition of the brand channel managers, and consolidation of the channel functions, more emphasis on value added service, and last, the highlighted cooperative training.

III. Case study of the channels for network products in 2000

1. Study of the Cisco channel systems

2. Study of the 3Com channel systems

3. Study of the Huawei channel systems

4. Study of the Start channel systems

Chapter highlights

The chapter analyzes the channel systems of the major providers of network products by reviewing the channel structure, channel management and inspiration.

IV. Analysis of the chief factors that will influence the growth of the channel systems for network products during the period of 2001-2003

1. Influence of the development of network products on the growth of channels for network products.

2. Influence of the ultimate users’ demand on the growth of channels for network products.

3. Influence of the networking on the growth of channels for network products.

Chapter Highlights

The chapter previews the growth of the channel systems from 2001 to 2003 through the three aspects listed above. The simplification of the technology applied in network products increases the number of distributors on the market, and simultaneously brings about more specified division of labor. The providers of products and distributors are required by the versatility of users’ demand to concern themselves with the technological trend, and furthermore, to fuse it with the users’ particular needs. Networking calls for the concentration of providers and distributors on providing integral and personalized solutions, rationalizing the division of specifications, consolidation of channels and offering value added service.

V. Growth trend of the channel systems for network products during the period of 2001-2003

1. Concept of designing the channel systems for network products

2. Growth trend of the management of channels for network products

Chapter Highlights

The future channel systems for network products will be typified by the simplification, visualization, integration, electronification and specialization of the channels and the focus on providing value added service for customers that are deemed the very center.