Duan Ping, Operation Director of "Furniture Business": Dealers Difficult to Make Their Lives


In March of this year, we set up the “2013 National Store Touring Interview Group”. From the end of March to mid-July, our footprints have traveled to Guangzhou, Shenzhen, Huizhou, Jiangmen, Zhongshan, Zhuhai and other places in Guangdong, Changsha, Hunan, etc. Furniture stores in Wuhan, Hubei and other places focused on visiting regional chain stores such as Hongshuwan, Bohuang, and Jianai, as well as national chain stores such as Ouyada and Xiyingmen.

After investigation, we have summarized the following points:

First, the unprecedented disaster in the furniture store may have come.

The furniture store has developed to a state of being out of control. The so-called out of control is the unreasonable layout. In some large and medium-sized cities abroad, the number of general large-scale furniture markets (furniture stores with an area of ​​more than 10,000 square meters) will not exceed 3 at most, and the total area of ​​the stores will not exceed 800,000 square meters. In China, according to rough statistics, as of the end of last year, there were more than 1,000 home furnishing stores with an area of ​​more than 10,000 square meters across the country. Statistics from the China Furniture Association show that according to the industry standard of 10,000 square meters of annual sales of 100 million yuan to calculate, last year, the furniture and building materials industry achieved annual sales of about 200 billion yuan, which means that 20 million stores can meet market demand At present, the total area of ​​domestic home furnishing stores has exceeded 40 million square meters. If the trend of the industry does not change in the future, 50% of the store area will be surplus.

The rapid expansion of stores has led to a situation of oversupply, which is one of the reasons for the decline in sales of stores. In the past two years, the increase rate of various large-scale stores that mainly focus on furniture sales has reached 20% -30% in first- and second-tier cities. The furniture store area in many provincial cities has reached 2.8 million square meters, and Every year, hundreds of thousands of square meters of new development are developed. In addition, the same positioning of shopping malls, the high overlapping rate of investment brands, the same promotion methods and promotional activities have caused many stores to operate at a loss. As early as the Global Home Trading Platform Development Forum held in March this year, Li Yang, deputy dean of the Chinese Academy of Social Sciences, pointed out in a pinch: "The current biggest problem in the Chinese home furnishing industry is the problem of circulation."

All kinds of signs indicate that furniture stores may face an unprecedented disaster.

Second, it is more difficult for dealers to make a living.

The luxurious facilities and high operating costs of furniture stores are passed on to rent and other expenses. In some economically developed provincial cities, the rents of some shopping mall stalls have exceeded 200 yuan per square meter per month. According to the current rental situation, the store size of 200 square meters, the dealer must have a monthly sales of more than 250,000, and a gross profit of 35% can be basically flat without loss. Some dealers reported that “20% of rent, 10% of transportation, distribution, installation fees, 5% of staff salaries, and commission fees have constituted 35% of gross profit, excluding taxes, finance, management and other expenses. Under such market conditions, it is actually not easy to achieve this sales. Sometimes in order to achieve sales, you can only cut profits and sell them at low prices, but even this is the same loss. "

At the same time, the aggressive momentum of e-commerce has also provided new issues for traditional furniture stores. However, the threat of e-commerce is not great. The traditional stores take the path of e-commerce, and consumers are not "cold." The online malls of Red Star Macalline, Hundred Years, and Jinhaima look beautiful, but they are struggling to operate. In fact, distributors are the most important part of the furniture industry. They help furniture companies grow bigger and stronger quickly, provide consumers with the most comprehensive furniture products, and stand at the forefront of the furniture market with a "sentinel" attitude; and once the industry has any troubles, they are also the most facing difficulties. people.

"This year there are many difficulties, but the most important thing is that the cost is really too high. From the salary of the shopping guide, to the cost of product transportation and logistics, to the rent of the store, the total is almost double that of last year; the external market It's sluggish again, how much money can you make? "This is a sentence that our reporter often hears when interviewing dealers.

According to "Furniture · Business" magazine survey, the high cost of the furniture industry has become a "blocker" that 79% of dealers have to face; 51% of dealers believe that the external environment certainly affects the furniture industry, but the industry itself is still exposed There are many problems, the product is unattractive, and fierce competition among similar products is one of them; 24% of dealers suggested that under the current general environment, manufacturers are not sufficiently supported, which is also one of the main difficulties faced by dealers; 22% Of dealers believe that the reduction in market demand is also a problem that needs to be solved in the development of the furniture industry; 4% of dealers report that "after-sales service is difficult to do."

Third, the relationship between dealers and factories.

The factory hopes that the dealers will open more stores, and the more stores, the better, so that more products will be put on the storefront, and payment will be received in time. And dealers are more concerned about which factory and which product to choose to make money. They have become more cautious in getting goods at the store. Therefore, the relationship between the dealer and the factory is a win-win cooperation, but also a pair of relatively hidden Sexual contradiction.

According to a telephone survey of "Furniture Satisfaction" of 17855 distributors nationwide by reporters from "Furniture · Business", 51% of distributors believe that the factory has too little communication with them and hope to establish a "closer" relationship in the future ; 24% of distributors are not satisfied with the current factory support and support methods for them. Some dealers said that enterprises are now facing many difficulties and have been trying their best to help dealers, but because the factory is not at the forefront of the market, they do n’t know much about what dealers really need, and hope that the factory can be Dealers have more communication and understand what dealers really need.

As mentioned earlier, dealers are in a difficult position to make a living, and 24% of the dealers are not satisfied with the current factory support and support methods for them. Manufacturers must rescue them anyway, so how to rescue the dealers?

First of all, we analyze from the level of dealers, the dealers' business methods must be changed. The furniture industry has reached a critical point through its rapid development over the past decade. There is a part of following the trend here. Everyone thinks that making furniture distribution is profitable, so they flock to it, but they do not know how to operate. Our investigation found that many specialty stores are still in the original stage of waiting for customers to come to the door. The boss does not go to the store for a week, does not study consumers, does not choose good products, such dealers should become "distribution hurt".

Secondly, we analyze from the level of the factory. Only when the factory wins a win-win situation with the dealer can it develop in the long-term and stable. A person in charge of the enterprise said that only by selecting high-quality dealers to join forces can the effect of 1 + 1 ï¹¥ 2 be achieved. Some company leaders also said that in the face of the difficulties of dealers, companies must do everything they can to support them so as not to become "distribution injuries."

In the end, I am here to make a fuss, and give some suggestions to entrepreneurs: First, companies themselves must strive to improve the quality of their own brand products, develop high-value-added products, and enhance their core competitiveness. We have a deep understanding of this point. We have interviewed many dealers. Many of them asked us to recommend brands. We will first introduce the Foshan furniture brand, but they think that although the Foshan furniture brand has a strong price-performance ratio, the brand awareness is low. It has little added value and is worthy of reflection by our entrepreneurs in Foshan. Second, it implements a diversified market strategy, actively explores emerging markets, and reduces its dependence on the original market. The humanity care of the merchants also grasped the market trends.

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