Terminal store profit is a big problem

Although various emerging channels of the furniture industry are constantly emerging, it is still the main profit model of opening dealer stores. The furniture industry has a single channel, and dealers are the main way for production enterprises to go to the country. Opening a store has become a way for manufacturers to survive. During the furniture exhibition twice a year, the manufacturers of the Eight Immortals across the sea show their magical powers, in order to attract investment, attract dealers to join the store. The ones who come are not allowed to, the more they drive, the better. The bigger the better, the better.

The store should also adapt to the needs of the market. The store is getting bigger and bigger, the more it is built, the more magnificent it is. The expansion of the store can't stop the car for a while, which leads to a sharp drop in unit sales, and the profitability of dealers has become a big problem. Before the launch of the exhibition in March this year, the marketing staff of the company rushed to the areas in charge of each other to do market research. The reporter interviewed several companies, all of which reflected that the terminal situation was not good. “The market was very weak last year. Most dealers who didn’t make any money continued to cooperate. The 10% or so dealers clearly stated that they would not get the goods, or change jobs, or consider other brands.” One is not willing The business owner who revealed the name told the reporter, "This year will only be more difficult than last year. The market is so light, the daily expenses of the store are so big, and it is inevitable that the dealers will not do it. The biggest headache for us now is how to make the terminal store profitable. ."

The reporter learned that since the second half of last year, many merchants in the Suhang area have successively withdrawn their stores. Some distributors in Guangzhou cannot withstand the high cost pressure, or withdraw or release. According to insiders, some of these brands are made in Shunde.

Home enterprises began to explore service roles

How to deal with it? It has become the problem that every boss thinks the most. In the interview, the bosses of furniture companies are even eager to inquire about the countermeasures of other companies.
However, the reporter noticed that compared with the investment in previous years, this year's Shunde enterprises are more rational, paying more attention to the effect of opening a store, rather than blindly pursuing quantity. The person in charge of Swarovski furniture told reporters that furniture companies do not maintain the store, most dealers do not understand marketing, open a family to die, dealers lose money, naturally no longer buy your account, how can companies continue to develop? “In order to cope with the current market changes, only the service work of the terminal stores can be done to win the dealers and the market.”

The reporter also learned that the company made a major adjustment this year and put the service forward. Set up a service team to follow up each store one-on-one. This service group includes professionals such as marketers, Accessories, and design to help dealers open stores, provide marketing support and services, and help them conduct market research in the local area. "It is better to teach fish than to teach it."

Lixing furniture marketers also told reporters that the company has also reduced its store opening target this year and set a threshold to ensure the profitability of the terminal store. “In the past, companies also attached great importance to dealers, but they were not allowed to do so. Dealers used to be miserable, but with the fierce competition in the terminal market, companies finally realized the relationship between this layer of cold and cold. More and more companies began to focus on Put on how to help dealers open a good store."

Transformation to production service companies

Chen Baoguang, vice chairman of the China Furniture Association, said that the transformation of furniture companies from traditional manufacturing to production service-oriented enterprises is a very important strategy during the economic downturn and a major trend in the development of the industry. “This transformation is very crucial. In the face of competition in the domestic market, entrepreneurs must have a sense of marketing, a sense of service, to adapt to the current market changes.”

Production is the advantage of furniture companies, but has always neglected after-sales service and maintenance. The long-formed bad habits have to be changed. The industry believes that in such a severe environment, the market will not be optimistic this year, the reshuffle will be carried out at the dealer level first, and the enterprises at the back end will inevitably be affected. To maintain the market, adapt to the market, and make a strategic transformation is the only choice that business owners have to do.

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