In recent years, quite powerful furniture agents have created their own chain brands, such as Weizheng Living Space, Jinshang Mingdian, Shiwei Pavilion, Guangzhou Port and Europe. Under the invasion of the cold wave in the property market, what kind of breakthrough path is sought by many furniture chain brands? Recently, the reporter interviewed Shi Lei, president of Guangzhou Weizheng Home Group. He said that in addition to tapping the needs of consumers, understanding the needs of real estate developers is a major way out for current furniture agents. At the same time, the overall quality of chain brand guides is higher than that of furniture stores. They are more guideful in promoting furniture, and they are good at helping young consumers who buy first-time homes to buy comfortable furniture with beautiful appearance and uniform style. Welcomed by customers.
About market changes
A single marketing model for the home industry under the predicament
Information Times: In the three years since 2010, as a furniture chain that represents multiple board, software, and American brands, what is the industry track that you feel? In terms of real life space, how have the performances of brands such as Qumei, Shuda, and Meijia Huating changed?
Shi Lei: The property market regulation is sudden, furniture retail is the first to bear the brunt. In the past three years, the mentality of furniture companies has undergone subtle changes: in 2010, everyone’s frustration from Wang to Dan was obvious, the demand brought about by regulation was restrained, and the labor cost brought by the new labor law increased, leading to furniture manufacturers and retail enterprises. They are all in a dilemma; in terms of real life space, 2010 did have a 20% decline.
In 2011, the industry generally began to accept the status quo and respond positively. The market situation became more and more severe. We adjusted our strategy and maintained stability without further decline. In 2012, we found that the crisis has not been lifted, but it has become deeper and deeper. Looking for directions, summarizing methods, blasting marketing. Therefore, in the year of the crisis, we have achieved the first growth in the winter.
Information Times: In the context of strong demand containment and continued supply growth, what characteristics and problems have the furniture retail industry presented and exposed in the past three years? What changes have occurred in consumer psychology and behavior?
Shi Lei: The most prominent problem is that the marketing form of the furniture industry is too single, imitating the wind. From imitation design to imitation marketing, in the past two years, many furniture companies have followed the trend of blasting marketing, active marketing, and community promotion, which has caused serious overlap between marketing methods and target consumer groups: buying and selling customer information, repeating calls, and some owners can It has not been annoying to receive inquiries from several furniture brands. This will easily lead consumers to rebel against the overall image of the furniture industry, and it is not easy for the market to improve.
Secondly, the internal management level of the enterprise is uneven. Under the crisis, the turnover of employees in furniture companies is particularly frequent. It is worth mentioning that since 2010, not only has furniture retail sales been hit, but furniture factories have also been under pressure. Many factories have opened self-operated stores to increase revenue and cash flow. However, due to the lack of talents such as shopping guides, they have done a poor job. It also undermines the original development order of the industry.
During this period, consumer psychology and purchasing habits have also changed, showing a benign change from the purchase price to the purchase value. When consumers buy furniture, they are less sensitive to price than they used to. They will look for things they like rather than cheap things, and pursue the design, beauty, style and color of furniture.
About coping strategies
Can cooperate with developers for mass production
Information Times: In the past three years, in the face of continued market downturn, in response to the crisis, some furniture retail enterprises have chosen to shrink channels, while others have reversed the market expansion, some have strengthened training and internal efforts, and some have strengthened post-sales word-of-mouth communication. What kind of response measures and overall strategy have been adopted? Based on what kind of consideration?
Shi Lei: In the past three years, the furniture industry has had little expansion against the market, and expansion has been less successful. More companies are shrinking terminal channels. As far as the brand of Real Home Agent is concerned, the share of European American style is declining, while the consumption preference of board and wood and soft furniture is increasing. This is because high-end consumers have a certain reduction, and the furniture industry has a habit of following the trend, what kind of class is good to do, everyone will follow this category, such as post-modern, neo-classical, etc., resulting in a lot of porridge.
In terms of channel expansion, last year, Weizheng Home successfully launched a cooperation with developers. In the 2008 suite of Jinshazhou Hot Sale, Yujinsha, 500 suite owners used the furniture of Weizheng. We persuaded the developers to purchase the whole, and provided the newly-married couples of the white-collar workers with the modern minimalist style furniture they liked. The average price was around 60,000 yuan in the whole house. As the added value of the hardcover room, the young couples in the 85s can easily stay in the bag. This increases the value of the property without increasing the price, which is attractive and will be accepted by young owners and real estate developers.
Therefore, in an extraordinary period, furniture retailers must not only understand the needs of customers, but also understand the needs of real estate developers. In the context of the austerity of the property market, they also need to find out the added value to attract just needed. Due to the large order of the same furniture, it can be mass-produced at the same time as the production of clothing, greatly reducing production costs and competition costs.
About price control
Price stability discount stable product more valuable
Information Times: Once the furniture retail is in the doldrums, price leverage becomes the first means. Compared with other high-end furniture brands, the high price and low discount, what is the real price system?
Shi Lei: For the furniture industry, it is very important to maintain the stability of the price system. Due to the numerous brands in the furniture industry, numerous products, and high prices, unlike the home appliances, there are several brands, so several models are easy to compare horizontally; while furniture, especially high-end furniture, has a large profit margin. Many brands have 20% off today and 50% off tomorrow, let consumers question the value of the products and the integrity of the industry. Consumers in the process of furniture purchase for a few months, the more you feel that your price is stable, the discount is stable, the more you will feel that your product value is so much money, the more willing to buy.
About channel layout
Independent stores must have volume and rich products
Information Times: Furniture chain brands are often associated with furniture malls. Nowadays, the more and more stores are opening and opening, the phenomenon of withdrawal and anti-renting is also endless, which makes the furniture agents have a dilemma. Now many brands are starting to leave the store to open independent stores in the market. How do you think about it?
Shi Lei: I personally think that the independent store of furniture should be separated from the hypermarket. The size of a single store with an independent store size of 3,000 to 4,000 square meters is enough to show enough products to make customers feel that there is enough room for choice.
Nowadays, the furniture independent stores in the Guangzhou market are mostly in the bustling area or at the entrance of large communities, with an area of ​​1,000 to 2,000 square meters. At the same time, the furniture style of the display of the single store must be consistent, to have the recognition and personality, do not want to let all levels of consumers come to buy.
About consumer guidance
The guide must be careful for the customer
Information Times: Compared with a single furniture store, what are the advantages of Weizheng, Jinshang Mingdian and other furniture chain brands? Nowadays, most of the furniture purchases are the young and urgently needed groups for the first time. What characteristics do they have when buying furniture?
Shi Lei: Many young consumers who buy their first homes have a commonality when buying furniture. It is the so-called “mix and matchâ€. Because young consumers usually pay more attention to clothing, food, and games, they know very little about furniture. I often see that the young people's cabinets are European-style, but they have bought Conraden's glass coffee table. The sofa has come to buy Qumei, and the dining table has even chosen marble. In fact, more people are not pursuing the feeling of mashup, but they are not planning well. There are not many budgets for decoration and no one is guiding. The young couple are holding magazines and watching while they are shopping. They see what they want to buy, but they don’t realize the furniture. The unity of style is important for the beauty of the home.
In fact, furniture culture is the connotation of furniture precipitation. The furniture retail industry is also not mature. Many guides only care about whether their products can be sold, and they don't care for the customers: what kind of furniture have they purchased, and what furniture can they add to the icing on the cake? Therefore, mature furniture brands, good furniture guides should guide customers to learn to match the right furniture, instead of letting them waste money but not buying good things.
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