Compared with the home improvement of furniture and building materials, the furniture stores are more flexible and more convenient to operate. At the same time, these enterprises are more sensitive to the market. At present, many enterprises are also adjusting their direction, from heavy quantity to heavy quality. .
External expansion is not diminished
On November 27th, Red Star Macalline (Laiyang) International Home Life Plaza opened. It is reported that the Life Plaza is jointly built by Shandong Shenglong Real Estate Group Co., Ltd. and Shanghai Hongxing Meikailong Enterprise Management Co., Ltd. with a construction area of ​​110,000 square meters. High-end building materials, furniture, home appliances, casual catering and other services.
It is understood that in 2012, Red Star Macalline opened new stores in Tianjin, Hebei Cangzhou, Guangdong Zhongshan, Inner Mongolia Bayannaoer, Liaoning Shenyang, Shaanxi Xi'an, Jilin Changchun and other places. Actually, there are 16 new stores in Dalian, Liaoning, Shenyang, Anhui Lu'an, Shandong Laiyang, Yunnan Kunming, Hebei Tangshan, Shijiazhuang, and Hunan Changsha.
The second and third tier cities have gradually become the focus of competition for brand enterprises. Meng Xiangmin, the general manager of the North Fourth Ring Store, believes that the second and third tier cities are the main places in the next urbanization process in China, so the group is now mainly developing second and third tier cities. “Those places have a lot to do and the consumption potential is very large.†Wang Qingqiang, marketing director of Beijing Shengxiang Wood Co., Ltd. also said that any city has rich and no money, and consumers in second- and third-tier cities also have considerable purchasing power.
Shop opening speed has slowed down
In addition to the major well-known stores, all the home improvement companies, furniture and building materials companies, with the development of the store to the second and third tier cities, some even earlier, and this year's speed has slowed down.
According to the reporter's incomplete statistics, Dongyi Risheng added 10 new stores in 2012, which was the same as last year. Industry Peak opened 6 branches in second- and third-tier cities last year. No branch was opened this year, only 6 more. The franchise store; the current decoration has been keeping the speed of opening a store for one or two years. This year, only one direct-selling Hefei store was opened; Qumei Furniture's increase in the storefront in this year also slowed down.
As furniture and building materials companies are more flexible than stores, the store is more flexible and more convenient to operate, and has a very obvious advantage in terms of quantity. However, for the operation of the opening of the store, many companies are constantly adjusting during the expansion process. For example, Boloni has recovered the home improvement business in the field since last year. Cai Ming, chairman of Boloni Furniture, said that Bologna currently only sells core products in second- and third-tier cities. Home improvement service is not available. At the same time, due to the influence of the property market, and some enterprises have not been able to adapt to local conditions after the small cities, many companies have made difficult choices such as withdrawing shops and closing stores in the market competition.
From heavy to heavy
Shi Jiechu, executive vice president of Yuanzhou Decoration, said that Shi Weichu, general manager of Siweide Investment Consulting Co., Ltd., started a new business in Wuhan this year, and opened the Rubik's Cube home in Shijiazhuang and Zhengzhou. The furniture and building materials industry is also undergoing adjustments. Wen Shiquan, chairman of Yifeng Furniture, said that this year, some stores were opened in the field, and some stores were closed. Overall, the number of stores has increased. "Most of the enterprises in the industry this year. Live less, die more, slow down than in previous years."
For home furnishing enterprises, the development benefits of small cities need to be cultivated with patience. Shen Yaojun, president of Jimei Home Group, bluntly said: "We also open stores in Xiamen. Second- and third-tier cities are not as good as we thought, mainly because the input and output ratio is not high. The turnover is only one-fifth and one-sixth of the first-tier cities. Hardly make money."
Yin Yuxin, deputy general manager of Oriental Home Furniture City, said that according to the layout of big cities, the layout of third- and fourth-tier cities is definitely a gap. "The layout of the third- and fourth-tier cities should be calm and suffocating, because at that time, we needed a long-term appeal to guide consumption. We could not use the model of big city development in small cities. The GDP of each city is still different. Our vision and pace should adapt to the demands of small cities, develop and deploy specialty stores or stores. Depending on local conditions, the long-term development of small cities should be slow and slow."
â– Market analysis
Choose a franchisee to be more cautious
"The situation in the past two years has not been very good, and the expansion of our nephews has indeed been affected." For such a situation, home improvement companies and big brands appear to be more calm. Pan Liang, director of the Real Estate E-Commerce Department, said: “There is a bad market share, and the progress of the opening of the store is also reflected in the overall development strategy of the group.â€
In the interview, the reporter found that most of the home improvement companies said that the form of the opening of the store was not affected by the market. According to the staff of Boloni: "The brand image of Boloni in the field is not uniform, and the consumption level of small cities is the main reason for the exit of Boloni's home improvement business in some third- and fourth-tier cities." Pan Liang also said that Shichuang Decoration opened in the country this year. There are five directly operated stores, and plans to open another 10 next year, mainly covering provincial capital cities. “Where there is a market, we will go there and don’t feel the impact of the market cold.â€
The furniture companies are obviously not so optimistic. According to Wan Ganfu, deputy general manager of Beijing Jinxiu Investment Co., Ltd., which is the agent of Red Apple, Huari and other furniture brands, the company’s agency brand accounted for 10%-20% of the total number of stores this year. Wang Hongmei, the sales director of the top 100 foreign company, said that the top 100 new agents this year were the same as last year, but they are obviously more cautious in their choice. "In the past, we may have sufficient funds. We are more cautious this year. First, we must examine the consumption power of the local market. Secondly, agents must agree with the concepts of the top 100 brands and management, and they will not be able to act as agents."
ZhiBang kitchen cabinet Beijing Marketing Director He Fuwei said: "The next year will definitely not like this attention to the number to join this year, more is to promote our company's Direct experience to the franchisee that, to join the sales done. â€
Targeting second and third tier cities
The second and third line, the third and fourth line, this became a vocabulary frequently mentioned by the reporters in the interview. The saturated market in the north, Guangzhou, Shenzhen and the provincial capitals has made it possible for home furnishing companies to focus on prefecture-level cities and even county-level cities. In some of the more mature enterprise plans, the planning of the third- and fourth-tier cities is the next step after the large-scale paving in the previous two years.
For home improvement companies, the growth of these markets has surprised them. According to Shi Yichu, “Yuanzhou’s prefecture-level and county-level cities in Jiangsu, Zhejiang and Anhui have quite good business, and the store opening speed is fast. It is also on the right track. For example, in the county-level city of Zhangjiagang, our first year Formally invested in April, reaching a turnover of 20 million yuan by the end of the year, reaching more than 30 million yuan in the second year, and the average amount of each order is more than 150,000-200,000 yuan."
According to Wang Jianguo, general manager of the Federal Home Beijing Company, “the sales performance of the first-tier cities in the United States has declined compared with last year. The second-tier cities are flat and continue to grow in third-tier cities. In Kunming, there are dealers who open stores easily. I know that there are no more than 10 million stores now." Liu Hong, vice president of Gujia Home, also said: "This year, Gu Jia has grown particularly rapidly in these areas of Shandong and Henan. For example, the Shandong branch was also rated as the national store champion in the middle of the year. "Wen Shiquan analyzed: "The Italian style is also very good in Shandong and Henan, which is related to the stability of local housing prices."
Focus on existing cities
In the past two years, home improvement companies and stores have made the decision to steadily develop their local businesses under the existing market conditions. According to Qi Shifeng, deputy director of the Industry's Peak Decoration Operations Management Center, “The six direct-operated branches opened by the industry's peak this year are in close contact with the original direct-operated branch companies in the vicinity, providing logistics for newly opened companies. Human resources and other cost support. In fact, the consumer groups in the vicinity of the original branch began to consult with them. When we saw the potential market, we decided to open the branch.†Zhang Zhi, chairman of Yezhifeng, also said in an interview: "We deliberately slowed down the speed of opening a store, and now we are pushing the dominant cities to the end and the advantages continue to widen.
Lu Jiyi also said: "Our main reason is not to expand in the second and third lines, more is the infiltration work. In the city that has already opened the store, open a second store, the third store."
â– Pattern analysis
Home improvement direct + franchise
In the home improvement industry, the opening of the store is mainly based on direct sales branches and franchise. The direct-operated company is the headquarters investment, and the manager is stationed to form a management team, which is managed by a unified national management model. And realize the manager system, the business management, human resources management and business results guidance, the headquarters is responsible for profit and loss. The franchise company and the headquarters company are two legal entities that are completely independent of each other. After the franchise company pays the franchise fee, the franchise company can obtain the brand authorization, the trademark license, the management system license and the continuous contract period. Training and consulting services.
According to Shi Yichu, most of the companies started to expand, mainly in the form of direct chain; after the brand awareness gradually increased, the franchise business began to accelerate. In the current market is not very good, companies have slowed down the pace of opening direct stores.
Furniture Direct + Agent
Furniture manufacturers are expanding in foreign countries and are generally divided into open-operated stores and agents. At present, most of them are mostly agents. According to Wang Hongmei, in the early stage of the expansion of furniture enterprises, it is the stage of joint efforts of the headquarters and dealers, and it is the process of establishing a brand. Enterprises open direct-sale stores must cross-regional, invest in human capital and a large amount of funds, so generally open-operated stores must be based on full understanding and confidence in the local market.
In the face of market crisis, dealers often become blocked Wrigley household enterprises and umbrella. According to Wan Ganfu, furniture companies are now "seeing money delivery". When dealers and consumers and furniture manufacturers are doing "double trading", the capital chain is the lifeline of dealers. Once a break occurs, it is very likely to cause The collapse, that is, the "dead shop" situation.
â– Industry voice
Consider local consumer habits
â—Meng Xiangmin, General Manager of North Fourth Ring Store
The advantage of the store is that consumers can buy one-stop, service and management in place, one-stop service, first-come payment, etc., while independent stores generally only sell one product. Brands opening stores in the field, according to the habits of local consumers, manufacturers or dealers to locate according to local buying habits and purchasing power, positioning is accurate, and things will succeed.
Some companies sell well in Beijing, and they don't sell well in the field. Some companies sell well in Beijing and sell well in other places. Can only say that your product is not suitable for the local, many manufacturers will have a variety of series, a variety of styles, different styles of different styles are also different, the local is called high-end positioning, but the local high-end positioning is not the same in every place , according to local purchasing power and local habits.
Big brands bring a sense of security
â—Liu Hong, Vice President of Gujia Home
This year our store is still very smooth, basically guaranteed at 500. At the China Merchants Conference in September, we recruited 360 dealers. It is said that this year's market is not good, dealers are not so active, but I think that the more the market is not good, the more dealers favor big brands, and feel that big brands have strength and security.
This year, brands have generally developed downwards, especially in counties, cities and villages around big cities. One is that the degree of industrialization in rural areas is relatively high, and the local consumption level is relatively high; on the other hand, these places are the satellite cities of big cities, and the demand for home ownership is large. In the future, Gu Jia will walk on two legs in the channel, and open direct stores and follow the store at the same time.
Human resources are the most important
â—Shi Yichu, Vice President of Yuanzhou Decoration Administration, General Manager of Siweide Investment Consulting Co., Ltd.
In the past three or four years, Yuanzhou's franchise business has successfully transitioned from quantitative change to qualitative change. The conditions for joining, the standard operation after joining, and the smoothness of cooperation between the franchisee and the Yuanzhou headquarters have been significantly improved.
Yuanzhou Company believes that joining is not to buy a brand to make money, we choose franchisees, and more emphasis on the comprehensive quality of joining investors, including the familiarity of the industry, business management experience, investment capabilities. Today, the franchise rate of the franchisees operating normally in the franchise system of the Yuanzhou franchise system can reach 95% or more.
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