Furniture stores are rushing to "decommissioning tides" 80% of dealers are in a difficult situation

“Guangzhou Furniture Fair in September this year may be the worst in many years! Most of the good companies in the industry as a whole are not exhibiting, most of them are second- and third-class enterprises! Most of them are export-oriented enterprises, and the prices are low. Untrustworthy!” The furniture fair in Guangdong in the spring and autumn has always been the most intuitive barometer in the industry. For the autumn furniture fair that just passed, the exhibitor Yinguowei’s president Yang Jianwei commented, “The winter of the furniture industry in 2011, but only the beginning of the winter, 2012 will be even worse.”
Due to the sluggish industry, the big stores are ridiculous, and “quiet” is abnormal. However, under such “quietness”, there is actually another kind of dynamic: the merchants are rushing to the store.
In the case of a well-known Beijing home store, for example, nearly 50 merchants have been withdrawn from the market, and the air-rent rate is over 15%. In fact, the situation of the withdrawal of the store has already started since the end of last year, but it was not obvious at the time, but this year, after watching the store again, the brand has changed. Some insiders predict that after the "Golden September and Silver 10", a large number of brands will be withdrawn.
Retaining and strengthening the advantage of the storefront, withdrawing the loss of the storefront, and changing the “loading forward” to “lightweight loading”, in the current situation, the appropriate streamlined storefront for dealers is an effective way to reduce costs.
"In addition to withdrawing the store, it is to withdraw the store, then withdraw the store, and then withdraw the store, let the landlord rush, it is estimated that there may be a good hope at that time! Now most of the big dealers are struggling to fight the cost of compression. The question is how long can it last?" said Yang Weiwei, president of Enochi.
80% of dealers are in a tough situation. How long can furniture dealers stay? "Only one morning, I received five factory calls and asked if I was interested in doing their brand. Then I called the dealer. They lamented: Brother, I can't afford it... The real winter has arrived." Lin Weiliang, general manager of the Hong Kong Shengjia Home Liaoning Province, described such a scenario.
The situation described by Lin Weiliang is not uncommon at present. Many old dealers who have been able to operate in the past are eating old and barely maintaining. How long will this winter last?
Zeng Zhenyu, the rotating president of the China Furniture Sellers Association, recently gave a set of figures: "At present, 80% of the sellers in the country are losing money." Perhaps this figure is not exact, but it is a fact that dealers are in a difficult situation.
Zhu Changling pointed out at the Guangdong show in autumn 2011: "Although the market environment is a bit cold, there is still room for the furniture market. The key is how to make the product cards and services more refined. Market shocks will bring opportunities for brand integration. The concentration of the furniture industry is expected to accelerate."
In the entire furniture industry chain, the largest group but the weakest is the dealers at all levels, and the reshuffle of the furniture industry may be the first among dealers.
Industry insiders appealed to the store to expand the industry's analysis in an orderly manner. "The dealers have a bad time, there are many reasons, there are big national policies, or the background of the world economy. But there is also a very important reason, that is, the store is expanding too fast, like Hangzhou. The average furniture store in Xiamen is a few square meters. The dealers are not good at doing, and naturally there are fewer exhibitions, so this exhibition also sounded an alarm for everyone."
Zeng Zhenyu is a straightforward pros and cons. One of the reasons for the difficult situation of dealers is that the store rents remain high, and at the same time, the rapid expansion has led to the fact that the store does not engage in activities. No one is engaged in the loss of the dealers. .
At the 17th China International Furniture Fair Summit, Zou Wenlong, chairman of Jisheng Weibang, also acknowledged that the hypermarkets brought great pressure to dealers: "The biggest problem in circulation is that the commercial channels are too narrow and are crowded on a runway, so There are too many, too fast, or no quality, which brings a lot of confusion and pressure to the dealers in the retail chain."
Since last year, the industry has called on the stores to slow down their expansion. However, the appeal is only to appeal to the competition situation in which the stores have stores. The pace of the major circulation enterprises from the local to the country has not slowed down. Some people in the industry have even proposed to apply to the relevant departments of the country to plan the home shopping malls in each city, and to expand rationally and orderly, otherwise the industry will become more and more difficult to do, in fact, it is also a huge waste of social resources.
In fact, it is not enough to only appeal to the store to tighten the pace. Although the store and the brand are interdependent, but because of the large number of enterprises in the home industry, the brand concentration is low, so the speed of market expansion is more subject to competition among stores. degree.
Therefore, neither the producer nor the retailer in the entire industrial chain is on the same level as the distributor, and the dealer has to run to win the store, which is even more unrealistic. What the current dealer can do is to win other dealers.
Where is the dealer's way out?
Due to the long-term rapid development of the furniture industry, a large number of outstanding and excellent distributors have grown up. However, as a whole, there are also some problems brought about by rapid development.
Yang Jianwei once pointed out that the boss of China's home furnishing industry is really hard. First of all, it needs to produce good quality, make good design and provide it to the market, and be a good industry marketing expert and market public relations expert! Need to provide the market, that is, dealers with a complete store design, beautiful storefront, complete sales training and so on! This also shows how fragile the dealers on our retail terminals are.
"In the process of home market research, we found that most dealers have some problems in business model, publicity and management. The big distributors with ideas also believe that the current method is not sustainable." Yang Jianwei said.
An industry media person also pointed out another problem: the manufacturers seem to be fully loyal to the dealers, but they are still out of touch. The manufacturer does not understand marketing, the dealer does not understand the brand. Many brands are hurt by the dealers, or become the dealer's brand. The relationship of science is not a complete commitment, it is not a disjoint, but a strategic cooperation.
Face up to the problem, break through the inherent thinking, and focus on improvement. The harder it is, the more effort is needed. Yang Jianwei compared the current form with the development history of foreign home furnishing industry. It was found that the European furniture industry in the 1970s and 1980s also experienced a similar stage. “Domestic dealers have to increase due to industry rents and frequent new stores. Joining, causing huge rent pressure for yourself, but the turnover has not increased, the following trends will be very obvious: 1, a large area of ​​withdrawal; 2, the independent store of the minded dealers will begin to appear; 3, the difference is large The store began to appear, and there is no difference in the current store."
“The furniture industry needs more and more professional dealers, brand service providers and regional operators.” Industry insiders pointed out that the most important thing for dealers is to improve their own business capabilities, when a large number of dealers exit the market. When big distributors grow up. We look forward to seeing a group of excellent and mature dealers stand out in this period of market ups and downs.

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