"Currently, the cost of manufacturing and the increase in store rents are increasing year by year." A private enterprise furniture factory owner Zhang Li (pseudonym) told reporters. “The home industry is closely connected with real estate. Now the situation in the property market is not good. There are fewer people buying new houses. The number of people who need new furniture will naturally decrease. If the products cannot be sold, they have to expand with the store. This is equivalent to an increase. Operating costs, we are almost hard to support." Tension out of the furniture industry is currently facing difficulties. For example, according to the regulations on merchants in the store, if the actual home opens a new store in other places, then the existing merchants must follow the new store in accordance with the regulations of the domestic furniture store. The tension furniture factory is located in Hebei Province. According to him, in 2011, his company's furniture sales increased by 10% year-on-year, but due to the cost of raw materials, labor and other factors, profits fell by 30%. There are not a few furniture manufacturers that are as profitable as the tension. It is understood that according to industry analysis, in the furniture industry, store rents account for 10% to 15% of store sales is ideal, merchants can obtain reasonable profit margins; and if store rents account for 20% of store sales More than %, it will cause a lot of financial pressure on the business, the days of the business will be more difficult. In recent years, with the increase in furniture costs, increased competition among peers, and poor market conditions, the profitability of many domestic household enterprises has gone from bad to worse. At present, in the domestic furniture industry, store sales account for 10% to 15% of store sales, which are actually very small. Most home furnishing companies are struggling with 20% to 30% of store rentals. struggle. According to the general business logic, in the year of bad sales, merchants will give up the intention of opening a new store, and will not make unnecessary investment. However, the current situation is not the case. Most of the domestic furniture manufacturing companies are in the form of sales in the store. Many stores are very strong, and there are hard requirements for businesses to open new stores. Therefore, many furniture manufacturers have to follow suit. Open a shop. Take the well-known furniture store in China as an example. According to the regulations on merchants in the store, if the home is opened in other places, then the existing merchants must also be in the new store of the home. Follow it to open a new store to support the operation of the home. Yang Yi, a professional manager of a furniture company, told reporters: For the merchants, the expansion of the store means that the output of the store is reduced, and the operating costs of the furniture manufacturers after the follow-up expansion will obviously increase, and now the real estate regulation policy It has also affected the sales of furniture, and the market situation is difficult to pick up. Therefore, in the case of such internal and external problems, the profit margins of many manufacturers have been squeezed and even suffered losses. However, the reality is that if the furniture manufacturer does not follow up, it will violate the "hard" rules of the store and will be "banned" by the store in the future. For furniture manufacturers, it also means giving up this part of the market, so many manufacturers' new stores are opened under this passive situation. Not only that, but in addition to requiring furniture manufacturers to expand according to follow-up, furniture stores are also reflected in their daily management. It is understood that the family actually implements the principle of “first paying†for consumers, that is, when consumers buy defective furniture products in the store, the store will first replace the manufacturers to pay for the consumers, and then all the payouts. The fee will be returned to the store by the manufacturer; at the same time, if the store holds a promotional campaign, then regardless of whether the manufacturer wants to sell the discount, it will be required to participate in the store's promotional activities at the same time. A furniture manufacturer who opened a shop in a real home told reporters: "The principle of such advance payment is a guarantee for consumer rights, but the standard for whether to pay is defined by the store, so if there is no condition for payment, The product is initially paid for by the store, so the manufacturer must also bear the cost, which is obviously not reasonable." In addition, if the store holds a preferential promotion, such as a 15% discount for the entire audience, then the store will return at most two Point to the manufacturer, which means that the manufacturer will eventually sell the product at a discount of 18%, which can improve the sales performance of the entire store, but specific to individual manufacturers, may not be able to profit from this promotion. The strength of the store is difficult to change. In the domestic furniture manufacturing enterprises, high-end furniture manufacturers account for less than 10%, and 60% to 70% of furniture manufacturing enterprises belong to SMEs. In furniture stores, especially in well-known large-scale furniture stores, the right to speak between manufacturers and stores has been seriously unequal. Yang Yi said: "The reason why the store is so strong is that it cannot be replaced. After the furniture manufacturer produces the product, it must have a certain sales channel, and because of the huge investment scale of its own store direct sales, Most domestic furniture manufacturers are unable to afford, so they have to rely on the geographical location and influence of large stores to sell their products.†The above furniture manufacturer tension said: “Because domestic furniture manufacturers often have similar products, they are In addition to selecting products, consumers should also consider the quality of their after-sales service, so they usually have to shop around when buying, and there are many brands in big stores that can be selected, so they consume compared to a single factory-operated store. Obviously, it is more recognized by hypermarkets. At the same time, from the perspective of manufacturers, the investment cost of building a store is at least tens of millions of yuan. Moreover, furniture manufacturers can not find a suitable place if they build their own stores. Passenger traffic, so entering the hypermarket is arguably the only choice for most furniture manufacturers." Obviously, the unique resource advantage makes the hypermarket have a strong voice, and the manufacturer seems to have no place in the game. In an interview with reporters, many furniture manufacturers have seen rising costs and rising rents as the main reasons for the decline in profits. Tension told reporters that in recent years, labor costs and material costs have risen by more than 30%, and it is likely to continue to rise in the future. At the same time, store rents in stores are rising almost every year, which is no different when the market is not good. Front and rear pinch. For the strong behavior of the store, a deputy general manager of the family said: "The starting point of the home is based on the interests of consumers, and from the market feedback, consumers' "first pay" principle It is also very recognized, and this is the basis for us to achieve this scale. At the same time, we have always adopted a strategic cooperation model with the merchants, and the purpose is to strive for mutual benefit." In this regard, the decisive enterprise management Li Weiming, vice president of the consulting company and a well-known consultant in the furniture industry, said: "From the perspective of consumers, the management methods such as the 'first payment' of the actual home can indeed guarantee the interests of consumers to a certain extent and enhance the service quality of the merchants, but From a business point of view, any business cooperation should be equal and voluntary. If one party is unwilling or forced, then this cooperation model will not last long. For example, it is mandatory to require merchants to follow the store to open new stores. If the merchants themselves have expansionary needs, then such cooperation is naturally feasible, but if the merchants The situation is not good. If there is no plan to open a new store, the result of passive shop opening is that the merchant has invested a large amount of money. As a result, the cost investment is increased and the market sales are not good. In the end, the merchants themselves must bear the consequences of losses. In recent years, the status quo of the rapid expansion of stores in various places, Li Weiming suggested that the most fundamental problem in the current decline in sales of the furniture industry is that the design of the product is not novel enough, not original enough, and in the case of poor sales, the store only through rapid expansion Stores and a lot of network outlets to seize the market, this not only does not solve the current core problems, but also bring new pressure to the merchants. Therefore, instead of madly expanding, it is better to intensively work on several existing stores, from management and logistics costs. Finding ways to reduce costs, research collaboration with merchants, and improve the level of service to consumers in a deeper and more intimate manner is a sustainable and healthy management model. The reporter observed that the product is too strong to have the right to speak as an industry closely related to real estate. The home industry has brought a layer of “seeing the sky to eat†color. Many furniture manufacturing companies are very passive in the bad market environment. However, an industry veteran believes that in fact, market demand is always there, the key is whether the company itself has the ability to withstand risks, and whether furniture manufacturers can come up with innovative products. Very similar to the automotive industry, in 2008, 2009, 2010, the automotive market has shown rapid growth. However, since 2011, the growth rate of the automobile market has begun to fall sharply. From the previous years, the growth rate of more than 30% has plummeted to 2.45%, and the shortcomings of domestic independent brands have begun to stand out at that time, with the decline of the market situation. The sales volume and market share of independent brands have dropped rapidly, and the performance of the entire self-owned brand auto companies has declined. Today, the same curse has appeared in domestic furniture companies. Zeng Zhenyu, the rotating chairman of the China Furniture Sellers Association, once said: "The 2011 home industry is a 'year of awkwardness'. The majority of furniture manufacturers and sellers feel that business is difficult to do, and various operating costs remain high, especially It is the rent of the store. At the same time, the more and more hypermarkets, the disorderly expansion makes the majority of manufacturers exhausted, the output per unit area has hit a record low, the profit scale has fallen sharply, the sellers have suffered a large loss, and some cities have reached a loss rate of more than 80%. However, when the domestic furniture enterprises were "squatting", there were still some imported furniture manufacturers who were still "stable in Taishan" under the contrarian trend, and they were eye-catching. This is like the overall decline in the auto market, while foreign brands such as Volkswagen, BMW and Audi are still able to strike strongly and sales are rising rapidly. It can be seen that no matter what kind of market conditions, as long as the company has excellent products, effective management, and mature sales channels, it can still stand out even under the contrarian trend. The life and death of a company is not entirely determined by the quality of the environment. For example, although most furniture manufacturers in China do not have the right to speak in dialogue with the store, in fact, the strength of the store is not "uniform". A dealer who has represented a number of imported furniture brands said that although the price of its imported brands is high, the design concept is innovative and the product quality is excellent. The sales volume in 2011 is still very impressive, and the overall performance of the store is greatly improved. The help, therefore, as a big customer of the store, its position in the store should not be underestimated, and has full voice. “When the store opens a branch elsewhere, the average merchant must follow the way to open a new store, but we will do our best. If we think it is not suitable to open a new store now, we have the right to refuse. Similarly, if the store holds a special promotion, We may not participate, generally participate in the promotion according to the speed of their own product updates, or do not participate in the event." The dealer said. Obviously, the so-called strong store is not a wall that cannot be broken. The merchant and the store itself are the relationship between fish and water, and the two need to depend on each other. If merchants want to swim freely in this water, their level of development and ability to adapt to the environment is crucial. However, at present, China's furniture manufacturers, plagiarism is very serious, often on the basis of other products to change the curvature or adjust the details, it has become a brand of their own products. How do such furniture manufacturers talk about competitiveness? What is the right to speak? Also in the sales channel, most domestic furniture manufacturers do not have strong capital to open direct sales stores, so the traditional form of entering the store has been used. But in fact, the store is not the only sales channel. If domestic manufacturers can open up their ideas and actively innovate some new marketing channels with low cost and applicability, it will undoubtedly take the lead in the market. For example, furniture manufacturers should consider how to connect more closely with consumers, carry out a one-stop, sustainable service, pay attention to the needs of consumers, and establish their own irreplaceability, in order to get out of the store. alone
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