How does the business model change the furniture factory out of the direct marshland?
Constant Temperature And Humidity Test Chamber Dongguan Best Instrument Technology Co., Ltd , https://www.dgbestinstrument.com
September 16 11:10:44, 2023
At present, more and more furniture factories have introduced direct management models, especially in key markets such as Beijing and Shanghai. What is the direct effect of these furniture factories? What are the gains and losses in the operation process? How can the factory's direct business model bring useful thoughts to the entire industry? There are four main business models in the Chinese furniture market: 1. The local dealers represent the brand, enter the store and invest resources to carry out renovations, and staff storefront retail. The dealer bears the site rent and management fees. The factory support resources mainly calculate the rebate per unit area and return it to the dealer in the form of payment. The daily management of the public part of the store is the responsibility of the property. It is currently the most common distribution method. 2. Self-operated by multiple brands of property agents, the property is invested in resource decoration, and equipped with staff storefront retail. The factory support resources mainly calculate the rebate per unit area. The property is essentially a function of the combination of the dealer and the property. Such as Wuhan Golden Horse Kaixuan home. 3. The factory selects the store, invests in the renovation cost, and is equipped with the retail staff of the store to carry out the direct operation. The factory pays all the site rent and management fees to the property, and the property is responsible for the daily management of the public part of the store. For example, Emmon mattresses are directly operated by all the specialty stores in the Shanghai market. 4. Property sales are relatively small, and small products are the main products. On the surface, furniture factories are not tired of direct sales. More and more factory owners like to use the direct mode to express their status in the industry. However, when they really walk into their hearts, they know that everyone is suffering from a bitter stomach. Behind this kind of surface scenery is the infinite pain of vicissitudes! Let's take a look at the relatively mature industries such as home appliances and IT. After several major industry reshuffles, the industry has spawned factories, distributors, logistics companies and other giants in different supply chain positions. When I talked with an executive of Midea Electric, I learned that for such a home appliance company, even if there are many terminal management personnel, it is not suitable to take direct management, because the direct mode will involve a large number of enterprises. The manpower and material resources, once not handled well, are easy to fall into the management of the swamp, hard work, low efficiency but can not stop. Let us analyze the direct mode of the furniture factory through the representative Shanghai market. As the benchmark for the Chinese home furnishing industry, the Shanghai giants, Yuexing, Haobai, Jianlong, Jinsheng's shopping mall giants, factories and dealers in this environment have relatively weak gaming chips. With the deepening of industry reshuffle, many dealers have gradually withdrawn from the industry competition. But when the dealers drop the store, there is a pile of mess in front of each factory. Don't pick it up! ? The eyes are not seen as net, but they have lost this market with strategic commanding heights. Pick it up! ? This is a hot potato! It is a managed marshland! In the face of the headaches of operating expenses and management energy input, when will the factory turn around and take out the factory production management? Usually the factory's concerns about market influence finally took over and there were several different business attitudes: The first attitude: not bad money! The factory feels that it has a thick family. For the market like Shanghai, it should take the initiative to invest, as for losses! Give more pressure to the direct department to see if you can lose more! ? At the end of the year, if you don’t lose more than 10 million, you will win! All happy! Go back and start the summary meeting. We have made great contributions to the national market and accepted the heartfelt thanks from the business people in other markets across the country! The second attitude: pain and continue to hurt! Although our family is not particularly good, but we must die! Because this is a face problem, you can't improve your performance and you will be replaced! Really not, the top level is directly in charge! So a new position was born: switch manager! The third attitude: positive but no way! Must be picked up! And be sure to turn a profit! ! But how to achieve it? I don't know, can't find it! Although active, it is a chronic suicide! I finally waited a day to lose a few million, but also to withdraw the store! On the rivers and lakes, there is a saying: XX can't do it in Shanghai! All closed! I was told that I had lost a few tens of millions of dollars. The author believes that the first and second attitudes are not desirable! ! The continuous deepening of market competition requires that any enterprise should pursue the maximization of profit for business purposes. If you can overdraw profits because your family is rich, will it affect the values ​​of the whole company, and will it give birth to the "rich second generation"? What's more, for the flat market like Shanghai, as long as it is intensive, it is entirely possible to reverse the trend and achieve profitability! If it is a little positive, it is the third attitude, but it is easy to say, there is no talent, it is easy to intensively study! ? Some dealers try to contract the store to the store manager. This kind of discussion is courageous, but because each store management idea is difficult to be highly unified, the back-end supply chain is prone to internal friction and resources are difficult to use efficiently. Whether it is feasible or not is still a question mark. Left and right sofas - As the leading brand of Chinese sofa category, the direct development of the Shanghai market in the past two years has not been smooth. However, since May of this year, the sudden emergence of the military, the sales performance has risen several times in a row, and the sales performance of the main stores such as Yuexing, Hongxing, Jianlong, Haobai, Jinsheng, etc. is far ahead, and it has become a major competitor of Diaoyutai. The regional manager changed the person in charge for three months. What makes the left and right sofas achieve huge performance improvement in such a short period of time? The reporter took pains to dig and finally learned the real behind-the-scenes trader--Shanghai Yuanmei Home Chain. From the end of 2007, I entered the home furnishing industry with a little-known little character. The Shanghai Yuanmei home chain has a long-term salary and a solid market. In just two years, it has become the general agent of Fuzhidao Furniture Shanghai and Zhejiang, one of the two core distributors of Shanghai and Shanghai, and the two core distributors of Suibao mattress in Shanghai. It also owns HOSS Haoshi custom furniture and Gude software. The two major brands and supporting production plants in the home, the sales network covers the home shopping malls of Yuexing, Hongxing, Jinsheng, Jianlong, and Baiyin in Jiangsu, Zhejiang and Shanghai. There are more than 40 home-name stores and more than 170 employees. Self-built and own professional home furniture logistics distribution and service system, service network covers Jiangsu, Zhejiang and Shanghai. In 2008, the sales volume of Yuanmei Home Chain Shanghai has reached more than 83 million. How can a furniture factory walk out of a direct swamp like the real example above? This requires a problem that factories, shopping malls, and dealers must think deeply. At present, the general operating mode of the market, the profits generated by product retailing are basically divided by the property, dealers, and factories in different ways such as rent or payment. However, with the fierce competition in the market, most dealers lack efficient management teams and effective methods to increase sales, and the stability of long-term operation of brands and stores is not strong. The shopping mall is also affected by the poor operating capacity of the tenants, which causes the real business area to shrink and affect the rental income. The stagnation of retail sales has affected the sales of the factory. And because the three parties have not become a unity of interest assessment, when it is really difficult to operate, they are also independent. Even if there are some support offers, it is itchy or difficult to use effectively. During this time, many properties have been rented down or even rent-free for a year, or manufacturers have introduced many special products and promotional measures, but there are still many dealers who lack the confidence to exit because of lack of management talents, business sense and management ability. . Once this phenomenon reaches a certain amount, it will affect the healthy development of the home industry. In order to truly get out of the direct wetlands, the furniture factory must develop ideas and actively cooperate with a new dealer team like Yuanmei Home Chain, intensively and actively marketing. Establish a strong retail management system for stores, improve the logistics distribution and after-sales service system, and strengthen the expansion of non-store sales channels. The future home industry is bound to be a segmented market. Only a professional team can truly lead the market development. If you regret it until that day, it is not only painful to bring it to the furniture factory...