Factory dealers store three-party game

On January 12th, at the "2012 Beijing Market Situation Seminar" hosted by the National Federation of Industry and Commerce Furniture and Decoration Industry Association, factories, dealers and store representatives all believed that for the current market "cold winter", under the premise of cooperation A good way to make a living is to compromise. However, how to compromise and which party compromised first, has fallen into a three-way game situation.

Factory dealers store three-party game

On January 12th, at the "2012 Beijing Market Situation Seminar" hosted by the National Federation of Industry and Commerce Furniture and Decoration Industry Association, factories, dealers and store representatives all believed that for the current market "cold winter", under the premise of cooperation A good way to make a living is to compromise. However, how to compromise and which party compromised first, has fallen into a three-way game situation.

Dealer business frustrated

"If our stores and factory support are not enough, our dealers will lose too much. When the market needs 100cc, 200cc, 500cc, we can donate blood to the market, but when 1000cc is needed, no one will contribute." January 12 At the "2012 Beijing Market Situation Seminar" where the home stores, factories and dealers gathered together, Wang Dawei, the chairman of Klass Home, who represented more than a dozen household products, vividly explained the dealers with the word "blood donation". The dilemma clearly indicates that dealers are difficult to survive in an environment where upstream property regulation is unshakable, downstream demand markets are shrinking, and store rents are not cheap.

According to Wang Dawei, the overall profit of Klass Home in 2011 has not declined slightly from 2010. Only one-third of all stores in the country make money, one-third of stores are flat, and the remaining stores are losing money. "In the course of business in 2012, if the rent of the store gives us a reduction, the exemption will be exempted, the factory will not raise the price casually, and the after-sales service will be carried out. Our dealers will insist on insisting, even if it is slightly Loss."

Zhang Zhaohua, chairman of Fu Shijie Furniture, who started as an agent, believes that at least three cards in the market will be washed in the next three years. The protagonists are stores, dealers and factories. In Shenyang, the first card of the store has already begun to wash. In recent years, with the arrival of the real estate, Red Star Macalline and other hypermarkets, the local small and medium-sized stores closed a lot, and only five markets closed down last year. The dealer is the second card, and finally it is the turn of the factory. "There is no savior in the world, dealers, stores, factories can not compromise, if you follow the original path, everyone will die."

The factory will do the subtraction

The market situation is not good. Dealers facing end consumers need factory support and stores to make compromises. However, factories also have their own grievances and rescue measures. Among them, Wen Shiquan, chairman of Yifeng Furniture, is the most representative. He believes that companies should "slim down" at the appropriate time to do the subtraction and choose to go light.
"If you sell more, you will pay more rent. If you sell less, you will pay less rent. Is this also called market competition? If you develop your own strength, grab your opponent's orders, and push your competitors to the cliff, we will survive. This is the time. It is market competition." Wen Shiquan believes that "slimming" is the most important now. At present, the principle of Yifeng Furniture is to slim down and pretend. For this reason, five stores have been changed from big stores to small stores at the end of last year, and the scale has been reduced.

According to the 2011 financial statements released by Gujiajiao, sales still increased, but the profit margin dropped by 5%-8%. Wang Caibiao, vice president of Gujiajiao, believes that this is related to his own mismanagement. For the future development, his mentality is as calm and calm as Wen Shiquan. "The factory also has a bottom line. If the profit rate drops by 10% or 20% in the next 1-2 years, the Gu family can't hold it anymore. It is necessary to do the subtraction when doing the subtraction."

Referring to the profit rate, Liu Yongkang, chairman of the Guangdong Furniture Brand Alliance and president of Conraden Furniture, provided such a set of data: if the company that makes board furniture, if the profit margin is less than 30%, there is no profit, because there are rents, labor and other costs. If you are a high-end furniture company, you can earn a profit margin of more than 20%. If you are lower than this digital company, you will have to cry.

The store promises to compromise

In this seminar, whether it is a dealer or a factory representative, when referring to the channel of the store, there is no exception to mention the rent. It is considered that high rent is not a small pressure, and the call for “rent reduction” is not small. As one of the few store representatives on the scene, Chengwai Cheng and Lan Jingli also made a concession on the rent issue, saying that they would make some compromises at an appropriate time.

“There is no good brand store, this platform is no good, and the development of Chengwai is inseparable from the support of the brand and dealers. As for the compromise, I think it is a matter for the store, the factory and the dealer. The company should slim down the slimming body, the dealers should close the store, and the store should reduce the rent and rent.” Liu Changhe, the general manager of Chengwaicheng Home, said that it is really hard to make a living in the home industry. What should I do? Can not blame the people, can only rely on the ability to find their own way, from product style, service, brand promotion to enhance competitiveness.

Yin Bo, general manager of Lan Jingli, agrees with Liu Changhe. He stated that “the timely adjustment of rents in the store to meet the changes in the market is also appropriate”, but in the face of changes in the industry and the market, manufacturers and distributors carefully study The market is the key. "The market demand is still there. Take Beijing alone as an example. Last year, there were more than 190 new districts, and this year there were more than 230 districts, and the entire home market still has potential for consumption."

The dealers let the factories and stores give support, the dealers and the factories do their own, the factory itself takes the initiative to slim down and do the subtraction. How to compromise, the game results of the three parties need to be tested by the market.

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