The flooring industry continues to be in a downturn, new channel strategies are popular

At the end of October and early November 2012, the financial reports of a number of listed companies in the home furnishing industry were released one after another, continuing the trend of the third quarter of the decline in the performance of the mid-year report. The performance of the entire home furnishing industry was generally low. Although there were many companies that were against the market growth, the overall situation was not optimistic.

The “cold flow” of the home is spreading throughout the industry chain. The research analysis from the brokerage pointed out: "It takes only 2 years for the home wind to blow downstream." Due to the influence of upstream real estate regulation and the obstruction of export channels, China's home furnishing industry is facing unprecedented challenges, and the large-scale elimination and integration of the entire industry is about to start.

At the same time, the collapse of home sales has followed. Actually Hangzhou House, Bafang Long Lighting (lighting decoration renderings) City, Beijing Xinglong Home Building Materials City, Jinkaideide Furniture Store, Oriental Home Lishuiqiao Store, B&Q Juqiao North Store, Real Home Dadongfa Store, etc., or Close the door or withdraw from the field.

Adjust the regional layout in a timely manner to survive the downturn

After reviewing the data of the three quarterly reports of listed companies in the household category, the reporter found that in the home furnishing industry, in addition to the price reduction of raw materials and the sales growth of customized products to achieve revenue growth and profit doubling, flooring, furniture, lighting, coatings The market segments such as ceramic sanitary ware are still undergoing severe tests.

Rethinking the problems in the entire home furnishing industry, in addition to the macro-factors of reducing the purchase volume of building materials and homes due to the influence of real estate regulation and control, many companies have exposed multiple problems in corporate strategy formulation and management.

In addition to the problems caused by excessive expansion, rising raw material costs and rising labor costs have further tested homes such as flooring. History has shown that in the case of rising overall costs and shrinking consumption, the best way for companies to respond is to launch distinctive products, often referred to as "customized products" in the home industry. Once the customized products are branded and recognized by the market, they can get the brand premium and solve the problem of rising costs, which will help the industry to form high gross profit.

When talking about the unsatisfactory terminal sales, Mr. Yan Jianbin, director and vice president of China Flooring Holdings Co., Ltd. said: “In addition to the large-scale environment such as real estate regulation and control, the decline in dealer enthusiasm is also one of the reasons. Some dealers saw the market very pessimistic this year. There has been a change, and it is appropriate to think that the industry is not doing well. But the bigger the trend is, the more it tests the market."

New channel strategy is popular

The degree of cooperation between brand channels and channel vendors is becoming the biggest test for home furnishing companies in the current era.

Perhaps it is based on this background, a mode of direct storage direct sales is favored by the market, and its charm and personality in the winter of this home market.

A salesperson at a home store told reporters: "There are more than 50 brands of furniture in the collection. In the traditional furniture store, each furniture brand is operated by an agent, and more than 50 brands of furniture here. There is only one general agent, because the warehouse rent is much cheaper than the store rent, it can be said that it directly benefits the consumers."

Indeed, on the website of Lejiachao, there is such data, “store rents rose by 30%, performance fell by 40%, ordinary store rents were 160 yuan per square meter, and a 200 square meter store rent was more than 30,000 yuan. The warehouse rent is less than 10 yuan per square meter. Therefore, the warehouse sales model has great advantages in store rent and operating costs."

Not only that, the circulation of goods sales under the traditional sales model usually goes through five links, from the production base to the warehouse to the regional agent, from the provincial agent to the storefront, each link will add a layer of cost, in addition to the cost of sales and management. In addition to the increase in cost, the increase in each link means the weakening and reduction of customer information feedback, which is not conducive to the formation of a customer-centric sales model. In the era of product differentiation and individualized demand, the direct result of the traditional sales model is to let the company see the opportunity and let the channel or dealer generate pessimism.

When talking about the warehouse direct selling model of the home supermarket, Zhang Chunxiao of Harbin University of Commerce pointed out: “Warehouse direct sales have been very popular in foreign countries. This model is not only a supplement to traditional stores, but also a budding of mainstream trends. Warehouse direct sales will become There is a new form of vitality in the Chinese furniture circulation industry."

Regarding the advantages of this model, Zhang Chunxiao summarized it as: "It is a channel established by the manufacturer and the distributor, and the warehouse is transferred from the manufacturer to the dealer, which brings the distance between the manufacturer and the consumer closer, thus providing more favorable The price and better service and other advantages."

According to the reporter's survey, more and more home brand companies began to choose this sales model. For example, international brands such as Smioni and Ai Sier have chosen to cooperate with Baichuan Home Park, and the enterprises engaged in warehousing and sales mode have begun to accelerate the pace of expansion under market recognition.

However, in the home industry, in addition to the warehousing sales model, is there any other model that can save the cost of the sales process while maximizing the demand for customized products?

Mr. Pan, the general manager of a flooring company, told reporters that their approach is to make dealers and maintain equal status with dealers. This can help companies maximize sales information from the front line, help companies transform to customized products, and then customize Get higher profit margins in chemical products, and finally get out of the impact of the low price and shrinking market to the home furnishing industry.