How closet companies find their way out

In 2011, a hotly-spoken Internet word appeared leisurely in front of home furnishing companies and dealers: "expanded." The spearhead is directed at the home chain store, which makes many closet merchants uneasy.

The pressure behind expansion

Since the global financial crisis hit China, China's market economy has bid farewell to its arrogant pretensions and turned into a downturn. In such a large environment, many wardrobe and home furnishing companies chose to withdraw and close stores. In sharp contrast to this, the number of home stores has continued to increase. Red Star Macalline, the actual home and other new store opening news can be seen everywhere.

Furniture stores choose to expand, this is because new stores generally have a relatively strong attraction, the sales of newly opened new stores are generally very impressive, it can use the results obtained when opening new stores to offset the costs of new stores and Losses in old stores with poor performance. However, for the wardrobe supplier, it is necessary to bear the cost pressure of opening a counter in the new store, including the cost of rent, decoration, goods, manpower, etc., but also face the dilemma of disproportionate investment and income, so many wardrobe merchants are Unwilling to expand business. Chen Zhongxin, chairman of Guangdong Zhongzhixin Furniture, admitted frankly: "The days of our corporate bosses, corporate sales directors, and agents have been very sad. Let's see how many people have a happy life now? Many companies dare not expand."

Since the general store adopts a simple leasing model, the closet merchant signs a contract with the store, stipulating that the closet merchant rents a small unit in the store for sale. It is precisely because the closet merchants rely on the stores to make profits, so they have to take orders from the hypermarkets that hold retail channels. Even if they are unwilling to continue to expand and open new stores, under the pressure of the store, the wardrobe business has to follow the footsteps of the store to develop new business.

Whether it is an enterprise or a distributor, the ultimate goal of opening a store is to make a profit. Now that we know that there is no profit or even a loss to open a new store, we have to open it. This situation has already caused the wardrobe companies to complain. Xu Yuxin, a Carosa wardrobe in Shanghai, said: "Having halved the area of ​​the existing home store, the people can still buy Ruyi's home products and have the opportunity to buy better home products." This statement shows that the home market has now Saturated, there is no need to continue to expand the store to sell. The result of the expansion can only be that the home furnishing company can not withstand huge pressure and choose to withdraw.

Wardrobe enterprise seeks its own way

So far, the original intention and advantages of entering the store no longer exist. At that time, I wanted to use the store channel to promote sales and play games with competitors. Now I have to increase the cost pressure with the expansion of the store. This is a complaint of a dealer. Under such circumstances, some brands began to gradually get rid of market control and take the independent mode.

Faced with the expansion of the store, many wardrobe companies believe that the basis of cooperation is a win-win situation. Without this foundation, such cooperation will inevitably not last long. Lin Jianqin, the principal of Shanghai Leiboer, believes that the store and the merchant are the relationship between fish and water. They are interdependent and strive to be themselves. The indispensable part of making themselves a partner is the philosophy they have been insisting on for so many years. This shows that there is a clear consensus between the enterprise and the distributor: a win-win situation for both parties is the long-term way of cooperation.

Lin Shanbiao, the person in charge of the sliding door in Shanghai, and Wu An, the person in charge of the Panerqi wardrobe, believe that regardless of the company or distributor, to know that the brand and the store are "fish and water relations", first of all, you must clearly define your brand positioning and choose the one that suits you. In order to find the market accurately, we can actively explore the cooperation strategy with the store.

In recent years, a number of one-stop chain stores have emerged in Shanghai. This model can greatly integrate enterprise resources and meet consumers' needs for wardrobes and promote the company's own wardrobe brand.

This development momentum should not be underestimated. This may be one of the trends in the future supply and sales model.

The one-stop chain approach requires companies to establish their own brand image and continuously expand their brand influence. Only by having a certain influence in the minds of consumers can a one-stop chain store attract more targeted consumer groups, thereby increasing the company's market share and realizing the expansion of sales. For wardrobe companies, they need to have their own channel development model, such as wardrobe stores, specialty stores, building materials supermarkets, etc., and there must be a variety of sales channels to protect the development of their enterprises.

In order to get rid of the difficulties of profit sharing, rent increase, and expansion, wardrobe companies have sought their own ways, seeking a cooperation model that is conducive to their own development, or a new model of self-opening one-stop stores, which can greatly ease the dilemma. To a certain extent, promote the profitability and development of enterprises. The establishment of a new model of supply and sale will open up a whole new development situation for enterprises. As a wardrobe business, it is also necessary to actively respond to the situation of expansion, and strive to explore new models of supply and sales in the wardrobe industry.

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