Traditional channels "slimming
Located in a store on the edge of the Fourth Ring Road in Beijing, the storefront of the Sophia wardrobe is busy setting up the exhibition hall. Prior to this, the “owner†of this exhibition hall was not Sofia, but another wardrobe brand – it lost “the capital†due to poor management and poor performance. According to industry insiders, the decrease in passenger flow, rising rents, and rising raw materials are all reasons why the brand dealers have no choice but to withdraw their stores.
Under the background of large chain and large circulation, the saying that “channel is king†is not an exaggeration. After decades of development, the home building materials industry has “gradually become a climateâ€. Among them, the home store “has been indispensable†and played an important role in the growth of the performance of major brands. At present, due to the “implementation†of real estate policy regulation, the home market in the downstream of the industrial chain is deserted. Along with the rise in store rents, the pressure on distribution has increased, profits have become slippery, and “days are sadâ€, which is basically in a state of hard support. “Breaking the wrist to survive†and withdrawing from the store are becoming the norm for dealers to “self-helpâ€.
"In the downturn of the overall market, we may cut down the storefronts that are not well-managed, and focus on the advantages of the storefront." Wang Jin, general manager of the home of Gusha, bluntly said. The argument coincides with the view of Zeng Zhenyu, president of the Hong Kong Shengjia Agency: In response to the current market environment, Zeng Zhenyu’s measures are to avoid full-scale follow-up market expansion and “cut off unprofitable stores†at the expense of development speed. Keep the strength for defending and defending. It is understood that Hong Kong Shengjia currently represents dozens of furniture brands such as "Red Apple", "left and right", "Yu Ting Furniture", "I Love My Family", and more than 100 stores nationwide.
The industry believes that in the home industry, the strong position of the store is self-evident, and it is still a long time for dealers in a weak position to change their single channel. "In two or three years, the industry status of dealers relying solely on the store will not change much." Zeng Zhenyu said. Ma Jianguo, director of the Marco Polo tile market, also believes that building materials dealers do not yet have the ability to operate completely independently.
New channel "expanding"
When the store was evacuated, brand dealers chose to “slim down†and began to enter the new low-cost channel. New channels such as e-commerce, independent stores, and community stores are being keen on them. In the eyes of industry insiders, new channels may be the most effective way to “self-helpâ€.
For self-help, Huanian Home chose to "expand the base area." Although it has established “base areas†in 13 provinces and cities across the country, Huanian Home also wants a larger site. "The overall poor market environment is precisely the opportunity for us to create an expansion base." Zhang Zhiliang, vice president of Huanai Home Group, pointed out that cross-regional operation is the bottleneck of dealer development. Huanai took the opportunity to take the opportunity of “unwilling to engage in the dealership of the home building materials industry†in the form of equity acquisition. It is understood that Huaneng Group has successfully won the agency rights of certain brands in cities such as Tianjin, Heilongjiang and Nanjing, and has been expanding according to the “plate†of the place.
Kohler dealers are also "expanding the map", but the expansion of its layout requires the addition of certain "conditions", which are implemented on the basis of the original store renovation. “The selling price of the store is getting higher and higher. The first thing that Kohler thinks is to increase the display density of the product and increase the output per unit area.†Luo Jiaru, general manager of Fuan Jiaye said. It is reported that in the Shilihe store in Beijing's home, the Kohler store was refurbished in the past, and on the basis of not affecting the senses of consumers, the product display density was increased, and a high-end atmosphere was created for consumers. At the same time, Kohler expects to open a flagship store of more than 1,000 square meters in the North Fifth Ring Road in Beijing next year.
Compared with Huan Nai and Kohler's practices, the ultra-comfortable action is also very big. According to Wang Lanyu, general manager of Super Comfort International Home, Super Comfort regards the layout of independent stores as an accelerator for enterprise development. “We plan to establish large stores in Shanghai, Changsha, Wuhan, Shenyang and other citiesâ€. At the same time, Super Comfort also launched the agency joining mechanism to promote super comfort from Beijing to the whole country. Wang Lanyu said that in Zhengzhou, Chengdu, Chongqing, Wuhan and other places, distributors have joined.
Take the road of e-commerce
When many dealers consider expanding their operations, they naturally think of “opening more storefronts and covering more peopleâ€. However, with the continuous increase of storefronts, operating costs are increasing, and various problems are emerging. The emergence of e-commerce has become an effective way to avoid rising costs, and its “far more than the advantages of retail stores†is being recognized by the industry.
Beijing Mingguang Century Building Materials Co., Ltd. is a tile bathroom agent, established in 1997. At the beginning, the company mainly represented Anbo, St. Taosha, Yulian, Shunlian and Garcia tiles, with the building materials market and stores as the main channels. In order to open up the retail market, in 2007, Garcia began to team up with Sohu Home, and became attached to e-commerce. “The company mainly participated in the group purchase and collection activities organized by Sohu Home, and then organized consumers to go to the store to purchase. It was found that this model increased sales,†said Wang Zhenliang, general agent of Garcia Tiles.
From the initial sixty-seven single to the current one hundred and thirty singles, the economic benefits generated through the network are considerable. Therefore, Wang Zhenliang hired a special network production company to establish a website, and assigned a dedicated sales staff to be responsible for the network direct sales business. Because the tiles belong to the “home delivery†product, Wang Zhenliang decided to make this website a display platform – with physical pictures, text descriptions and uniform prices, “payments are made in the nearest store.†“More and more customers are coming to our website to learn about our products and purchase them.†Wang Zhenliang said. In his view, "in the current situation, most of the performance is achieved through the network."
From 2007 to 2011, online shopping brought many customers to Wang Zhenliang, and they have become old customers of Mingguang Building Materials. In the face of rapid development of e-commerce, Wang Zhenliang is ambitious. According to Zeng Zhenyu, chairman of Shengjia Home Furnishing Chain, at present, both manufacturers and distributors have tried water electronics malls or joined the integrated home building electronics mall. There is no doubt that “touching the net†is becoming a new way for dealers to “self-helpâ€.
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