Under the pressure of traditional channels and high channel costs, it is urgent and necessary for companies to open up new channels and create more suitable channels to maximize profits.
A few days ago, the owner of a bamboo flooring factory in Liuyang, Changsha, told the author that the factory had been completely shut down because the products were not sold. In recent times, Guangdong, Zhejiang and other places, there are many small pan-home enterprises are on the verge of bankruptcy. The danger stems from many factors. For example, the backwardness of equipment technology leads to backwardness of products; poor management; no capital source chain breaks, many enterprises in Zhejiang maintain their operations through the form of loan sharks, and the profits from operations are not enough interest on usury; there is also a very important point. The lack of smooth construction leads to no sales of products.
Changsha's bamboo home furnishing enterprises are concentrated in Liuyang. The bamboo flooring production is mainly based on small scale and the brand is very weak. In Liuyang, a place where fireworks is the pillar industry, bamboo flooring is a small industry, and it is difficult to get more government. Support. The channels of bamboo household manufacturers are also relatively narrow, and there are a small number of engineering renovations, which are more slowly developed through traditional channels, such as the form of recruiting dealers. But the pressures on all fronts, especially from the channels, have already made them breathless.
Traditional channel costs are high
According to industry insiders, most of the domestic household circulation channels currently experience four stages of “manufacturer-distributor-home store, building materials market-consumerâ€. In the past two years, on the one hand, store rents have been rising; on the other hand, due to inflation, employee wages, commissions, advertising expenses, etc. have risen sharply; coupled with rising logistics and transportation costs, rising raw materials, channel costs are It is growing at an average annual rate of 15% to 30%.
At present, the consumption of bamboo households is still in a training period. There is no strong consumption power in the market, and many dealers can't hold back the rent pressure of the store, so they can only make a compromise. This is why bamboo home terminal stores are difficult to have big. Shop, it is difficult to have a good position in the store, it is difficult to appear in high-end stores.
The channel is king. Under the pressure of traditional channels and high channel costs, it is urgent and necessary for companies to open up new channels and create more suitable channels to maximize profits.
Diversified emerging channels
The traditional household distribution channels include “manufacturer-distributor-home store, building materials market-consumerâ€. The dealer's link may include regional agents, provincial agents, and municipal agents until the county level agents; the middle can be described as “layered pressure, layer-level price increaseâ€, which directly leads to increased product circulation costs. In response to this, the flattening of channels is coming out. The flattening of channels is aimed at maximizing the profits of enterprises, and based on the conditions of enterprises themselves, using modern management methods and high technology to maximize the direct sale and transfer of goods to the final consumers by producers to reduce the sales level. Distribution channels. To put it simply, it is to minimize the circulation, thereby achieving cost advantages, and at the same time reducing information distortion caused by excessive intermediate links. The flattening of channels is a direction for enterprises to win in the future. It is not only a way to lower the selling price for consumers, but also a magic weapon to improve corporate profits and a strong competitive force for the long-term development of enterprises. At the moment, some emerging channels with flat channels have emerged, and these channels have increasingly shown strong vitality.
The charm of e-commerce
Today, when technology is developed, the network makes the B2C model more feasible when there is a major change in consumer habits. According to reports, in 2011, the global e-commerce market is expected to reach 680 billion US dollars. In China, the total size of China's e-commerce market is expected to reach US$176 billion by 2014. According to the report, in the past five years, the average growth rate of e-commerce in China has exceeded 90%, and currently there are about 150 million consumers in China shopping online. In addition, according to the survey, the transaction scale of the home online market in 2009 was 11.2 billion yuan, accounting for 4.7% of the overall online shopping market. Some insiders have conservatively estimated that this figure will reach 70 billion yuan in three years. In recent years, the output value of China's furniture industry has exceeded 700 billion yuan, accounting for 70% of the world's furniture manufacturing; in developed countries such as Europe and the United States, online shopping furniture accounted for 30% of total furniture consumption, while China's proportion is less than 2 %.
At the first Ai Baba Home Furnishing Summit held in August this year, Taobao said: In the first half of 2011, Taobao Mall's household transaction volume increased by 468% year-on-year; in the second quarter, home improvement main materials, bedding, and residential furniture. The growth rates are 430%, 530%, and 560%, respectively. The same is from the news at the summit, many home business enterprises with more mature e-commerce channels have ushered in explosive growth, and the online influence is far greater than offline. For example, Lin's wood industry's online turnover reached 100 million yuan last year. After Kohler, Jiumu and other enterprises entered the e-commerce field, online transactions increased by 10 times compared with last year.
Many pioneers have gone far, Qumei and Lin are pioneers in individual enterprises; many third-party online home malls have also opened up, Taobao Mall homes, home malls, etc.; even the combination of online and offline modes It has been tested in cities such as Beijing.
It can be said that many obstacles to the development of network channels are gradually being removed, and bamboo home enterprises cannot certainly fall too far behind. At present, according to the author's understanding, some bamboo flooring manufacturers in Changsha are also trying to make further intimate contact with the network by perfecting their own homepage. In fact, the Internet is not only a publicity window, but is now increasingly turning into a sales window. Is speed faster? The progress of the times has provided a viable foundation for the development of enterprises. Why not boldly seize the historical opportunities? In the present, it can't be done, but it can't be imagined; the channel construction of enterprises also needs open thinking to find a way out.
Warehouse brand store
Recently, Ouhua Shangmei announced the opening of the home direct sales plaza in the Guangzhou-Guangzhou-Guangzhou-Guangzhou-Guangzhou-Guangzhou-Guangzhou-Guangzhou-Guangzhou-Guangzhou-Guangzhou-Guangzhou-Guangzhou-Guangzhou-Guangzhou, China. Factory direct sales as its unique business advantage; Beijing Quku warehouse furniture store, known as “furniture warehouseâ€, has been attracting consumers with “the price of the brand, the price of Xianghe†since its opening in September 2008.
It can be foreseen that the emerging distribution channel model of “Warehouse-type factory direct sales stores†will be a trend in the future development of China's home building materials stores, or it will become a “Xinhai Revolution†in the circulation channels of China's pan-home industry.
Independent store, factory direct store
In the face of increasing pressure on stores, independent stores and factory-operated stores have become hotter in the past two years. Many companies have insisted on expanding their models of independent stores, factory-operated stores or independent stores. It is one of the representatives. Not long ago, the second independent store of Meikemei Parents Sand opened in the county square of Changsha Yuelu District. Independent stores and factory-operated stores are two extensions of the traditional store channels. While giving the company a free business space, it can also help companies avoid the disadvantages of high rents and vicious competition. Of course, there are advantages and disadvantages. What matters is what the company wants.
The limited strength of the company is a major obstacle to the development of independent stores and factory-operated stores. In the face of limited strength, it is also a good idea to establish steady and steady development.
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