Domestic and foreign difficulties in the hottest h

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Domestic and foreign difficulties in the home market; how can dealers solve the crisis under the sharing economy

domestic and foreign difficulties in the home market. Under the sharing economy, do dealers work together to solve the crisis

april 8, 2016

[China paint information]

in June 2015, a dealer ran away in longjiajia private Town, Shaoyang City, Hunan Province; In june2015, two outlets of houlaike in Handan were closed, and the dealers ran away; In june2015, Yancheng dealers of del flooring ran away with more than 200 customers' deposits; In november2015, the capital chain of the gold medal cabinet dealers in Shenyang was broken, and they ran away behind closed doors... Home dealers ran away every year, but in 2015, there were especially many. In fact, with the intensification of competition in the furniture industry, under the multiple attacks of upstream real estate developers, home e-commerce and customized home furnishings, traditional home furnishing dealers have long been "besieged on all sides". In the face of rising operating costs and declining sales and profits, how should traditional furniture dealers break out of the tight encirclement? At a recent home dealer forum held in Guangzhou, as a new economic model, the sharing economy was highly expected by the participating dealers

peripheral environment

intensified competition and profit decline

what are the reasons for the difficulties of traditional home dealers today? From the macro perspective, in 2015, the macro economy entered the new normal, GDP growth broke 7 for the first time in six years, and market consumption was weak. Statistics show that the profit of the household industry has dropped from 32.2% in 2011 to 14% in 2015. At the same time, the real estate industry located in the upstream of the home furnishing industry has the pressure of de stocking, and at the same time, it also has to restrain the rapid rise of house prices, which makes the regulation policy of real estate become erratic. For the downstream home furnishing industry, it means that there is a lot of uncertainty on the supply side. As the only industry that has not yet been fully interconnected, the temptation of the 4trillion potential market has attracted the cross-border rush of unexpected guests such as upstream real estate enterprises and technology enterprises, and also caught the traditional home dealers by surprise

the trend of "de intermediation" is highlighted

for traditional home dealers, another phenomenon worthy of vigilance is "de intermediation". Under the sweeping tide of Internet, all walks of life will inevitably start "de intermediation". Because the key word of the Internet transformation is to remove the intermediation, shorten the intermediate links, and make profits through value-added services

from the perspective of the overall trend of the household industry in 2015, the trend of "de intermediation" has begun to highlight: the F2C model represented by IKEA has expanded rapidly without fear of the adverse trend; The 020 overall home furnishing platform represented by beautiful home furnishings adopts the same one-stop F2C mode for some soft decoration supporting products and home appliance supporting products. It is customized directly from factories all over the country and delivered directly to customers, eliminating the intermediate links of brands and agents, thus ensuring the low cost of decoration. At the same time, in 2015, Liangju also launched personalized and customized hardbound houses with Zhongying Yihai, Yunshan Shiyi, Ruilan real estate, Greenland Group, etc. to seize the market from the source. For a city where the hardbound housing market accounts for 50%, if this kind of customized hardbound housing becomes popular, it will undoubtedly be even worse for downstream dealers

double attack between customized home and home e-commerce

in addition to intensifying competition, declining profits, and "de intermediation" and cross-border food grabbing, there are two neglected competitors: customization and home e-commerce. While traditional home furnishing dealers are struggling, customized home furnishing packages maintained a high growth of about 40% in 2015! For the relatively fixed home consumption market, traditional home dealers mainly act as agents for finished furniture brands. Therefore, the rise of customization means that their living space will be further compressed

although many Chuanju dealers once scoffed at the home e-commerce, because the home e-commerce had no offline experience and it was difficult to provide offline installation and after-sales, the astronomical figures created by the home e-commerce in 2015 made many dealers a little silly. Lin's wood industry set a sales record of 510million yuan earlier during the double 11; Sofia, a new record of 274million. You know, the annual sales of a medium-sized household store in Guangzhou will not exceed 100million. For traditional furniture dealers, the rise of home e-commerce has brought about not only the widest impact on its usefulness, but also the anxiety of whether to embrace the Internet

internal factors

homogeneous competition

the profit model of traditional household dealers is similar: generally, they find products from the manufacturer and then sell them at a multiple price. In the early days, when the home market was booming, many home dealers made a lot of money. However, times have changed. In the face of the triple pressure of rapidly rising costs, gradually decreasing profits and rapidly shrinking market, the era of traditional home dealers reaping profits has gone forever

first of all, due to the serious homogenization operation, many home furnishing dealers mostly adopt the low price strategy in the face of competitors, and eventually kill thousands of enemies and lose 800, bringing the whole home furnishing market into a vicious circle of "no promotion, no sales", which virtually dilutes the profit margin of dealers. Every day we sell at special prices. Those with profits cannot be sold. The price is getting lower and lower. The volume of goods is rising, but the profits are getting less and less

rising operating costs

secondly, with the rising rent of shops and the rapid rise of labor wages, the operating costs of dealers are getting higher and higher. For home shopping malls, seeing that the dealers are in deep trouble, they are often unable to help, because most of the home shopping malls are second landlords, and the property rent is rising year by year. It is difficult not to let the dealers increase the rent. How can we talk about reducing the rent

changes in consumption habits

again, from the perspective of manufacturers, although home dealers are still the most important terminal channel for most brands, the changes in consumer groups and consumption habits are forcing home manufacturers to quickly implement channel flattening. In order to coordinate the conflicts of interest between manufacturers and dealers, many home furnishing manufacturers have adopted multi product line strategies to expand o2o, F2C and other emerging channels. In fact, this seemingly "off peak travel" can not completely avoid the impact on the interests of dealers

backward marketing concept

in addition, although dealers simply rely on exclusive resources to enjoy their success, the era of simple distribution and rough service is about to pass. However, many home furnishing dealers, especially small dealers, still have no sense of team building and marketing thinking in the Internet era. In addition to relying on the promotional activities of the stores to drive popularity and sales, they do not know how to meet the needs of upstream and downstream and find their own core values in the face of difficulties, so they can only drift with the tide

expert tips

where is the traditional home dealer

in the face of many difficulties, where should the dealer go? Recently, nearly 100 dealers and many marketing elites in the home furnishing industry gathered at the forum of "outstanding encirclement, Guangzhou home furnishing dealers' butterfly change 'group meeting" to jointly discuss the outlet of traditional home furnishing dealers. As a hot word in this forum, "sharing economy" not only received great attention from dealers, but also provided the following three feasible directions for the transformation of traditional dealers after more than two hours of agitation

e-commerce + stores, embrace the Internet in another way

"China Internet Network Information Center (CNNIC) reported that as of june2015, the Internet penetration rate was 48.8%, and the total number of people in China had reached 668million. On equipment: the report data showed that as of june2015, China's national standard had reached 594million, and the proportion of people on Internet had reached 88.9%." Fanxueyou, general manager of Haojia, pointed out that due to the changes in consumer groups and consumer behavior, traditional home dealers must actively embrace the Internet in order to win a turnaround

how to embrace the Internet? The region 020 of e-commerce + stores is regarded as a transformation direction with great potential. Because the traditional household industry has the following characteristics: first, it is durable goods, no enthusiasts; Secondly, it is an unpopular industry with low attention; Thirdly, it is a large-scale consumption, emphasizing the matching. At the same time, it is a non standardized product, emphasizing experience

therefore, it is inseparable from the column display of physical stores and supporting services. With the help of the regional 020 model of e-commerce + stores, it is equivalent to creating an online + offline three-dimensional marketing platform, both offline experience and online drainage window. Business can stay open for 24 hours, and the operation time is not limited; Many dealers share the same platform together, eliminating the cost of self built platform and the online marketing cost that a single dealer can't afford, thus realizing 365 day full marketing with maximum value. With cloud marketing, big data and accurate diversion, the cost can be saved to the greatest extent. At the same time, the benefit can be maximized through platform drainage and mutual drainage between dealers on the same platform

the appearance of the fatigue fracture surface grafted on the real estate developers or the whole metal is called the fatigue fracture body home platform

"home comments" wuchunyong not only emphasizes the "sharing economy", but also gives relevant ideas on how to play with the "sharing economy". In Wu Chun's view that this innovative material has well maintained the balance between water and air, for traditional home dealers, the wisest strategy should be to seek cooperation with other home furnishing platforms or upstream and downstream enterprises in the face of heavy pressure from multiple heads. 020 integrated home furnishing platforms such as Liangju, as well as some small customization manufacturers, and even some real estate developers planning to launch personalized hardbound houses, are potential partners. With the help of cooperation, we can not only broaden the product marketing channels of dealers, but also increase the drainage channels of dealers, because in the Internet era, traffic determines the future

Huang Qingwen, general manager of Guangzhou hechangting Construction Engineering Co., Ltd., shared his upgraded version of the alliance. According to Huang Qingwen's plan, the mahogany furniture, curtains and Changting will form a deep alliance with the other three dealer brands, which are respectively engaged in "hanging paintings", "air purifiers" and "landscape design", and operate in the form of a company. Compared with the traditional home furnishing alliance, it conforms to the general trend of the development of the overall home furnishing, and breaks the dilemma of loose structure and face to face disagreement among the members of the alliance. Through store sharing, sales drainage and interest binding, it has established a corresponding sharing mechanism between the dealer owners and the store employees, which can maximize the enthusiasm of the team members. This "break up" upgraded version of different industry alliance, due to its simple operation and flexible mechanism, is also regarded as another important direction for the transformation of traditional home dealers

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