Wooden door furniture builds brand alliance management to establish a win-win thinking

By uniting large-scale brand manufacturing enterprises and exerting their respective product expertise and professional advantages in the field of wooden door furniture, the circulation and channel brands of the wooden door furniture industry have been created, which has become a new model for the recent exploration and sales innovation of wooden door furniture enterprises.

Recently, Shenzhen Furniture Association and a total of 9 furniture brands invested a total of 100 million yuan to establish Shenzhen Youyou Furniture Co., Ltd. At the Guangzhou Office Environment Exhibition in March 2013, the alliance vigorously absorbed member companies and hoped to become a channel brand operator in the Office Furniture industry and to obtain more market sales profits for member brand enterprises.

Zhu Changling, chairman of the China Furniture Industry Association, said that the establishment of the alliance must have certain common goals, which is a good thing for the industry, but how to develop in the next step depends on how the alliance operates.

200 billion yuan market without leadership brand

The rapid development of China's furniture industry has promoted the transfer of the world furniture industry to China. Relevant data show that 70% of office furniture in Europe is imported from China, and Russia imports more and more Chinese furniture.

At present, China has become a major producer and exporter of furniture. According to data released by the China Furniture Association, in 2012, China's furniture enterprises completed a total industrial output value of about 1.13 billion yuan, the output value of office furniture was about 200 billion yuan, and the output value of office furniture enterprises above designated size reached 150 billion to 200 billion yuan.

China's wooden door furniture industry is still advancing rapidly and has achieved good results. It should not be overlooked that in the office furniture market of 200 billion yuan, there is no listed company, and no famous furniture brand with annual sales exceeding 5% has been produced. The wooden door furniture industry is facing a dilemma of big industry and small enterprises.

From singles to brand alliances

Brand alliance management is not the originality of the wood door furniture industry. In fact, the civil furniture brand alliance business model appeared in 2006. In 2006, 8 companies including TATA Wooden Door, Ou Pai Cabinet, Wrigley Sanitary Ware and Mona Lisa Tiles formed the “Big Eight Pieces of Home” in Beijing, and 8 companies linked marketing to market.

In 2009, Nature Floor, Ou Pai Cabinet, Dongpeng Tile, Midea, NVC Lighting, Red Apple Furniture, etc. jointly announced the establishment of "Champion Alliance" to test the joint marketing of water and home.

According to industry insiders, the form of brand alliance is more likely to occur in the case of a bad market. There is a premise for establishing a brand alliance: the alliance must have a common goal.

Brand alliances for office furniture have also appeared. In 2006, Guangzhou Furniture Association established the office furniture brand alliance. At that time, there were more than a dozen excellent office furniture enterprises such as Baili Wenyi, Zhisheng Guanmei, Olin, and Youpai.

However, more than six years have passed, and the actual operation of the alliance and the actual results achieved are unknown. Obviously, everything remains to be seen.

The core of brand alliance: building a win-win thinking

The emergence of brand alliances is often related to the economic situation. In the economic downturn, various costs increase and pressure increases, and the market expansion of individual brand enterprises often encounters bottlenecks in development. At this time, the brand alliance has become a form of warmth.

For the role of the alliance, the industry is not convinced. Regardless of the form of alliance, especially the commercial cross-enterprise alliance, the biggest obstacle encountered is the prisoner's dilemma, that is, the maximization of individual interests may lead to suboptimal choices of overall interests. There is no doubt that member companies in the alliance join the alliance in order to promote the sales of their brand terminals through the strength of the alliance, and the overall sales of the alliance is not the member's most concerned.

Based on the views of all walks of life, we found that the success of the alliance needs to meet the following requirements:

The purpose of the alliance is to achieve a win-win situation, but members often forget that the first priority of a win-win situation is often to let the partners win first, and then to achieve a true sense of mutual benefit, and thus achieve a lasting win-win situation. Therefore, alliance members need to have a win-win thinking.

Alliances should take the path of value alliance more. The establishment of alliance should ensure that there is no direct competition among members. On the contrary, there should be strong complementarity and relevance in products and channels, through channels between different members. Sharing and complementing resources form a marketing and value that is difficult for a single company to form. The resulting superposition effect can really help the members of the alliance to gain.

In addition, the alliance needs to create an integrated platform with vitality and influence, such as an integrated marketing platform, procurement platform, media promotion and promotion platform, and sales platform. Members contribute resources to companies within the alliance and benefit from each other's activities. In particular, a unified sales platform, such as the establishment of an alliance mall.

Finally, the league should keep in mind the dealer relationship handling, especially the Wood Door Furniture Enterprise Alliance to deal with the relationship between dealers. At present, wooden door furniture manufacturers are developing their own direct sales channels on the one hand, and vigorously developing dealer teams on the other hand. Whether the dealers can cooperate with each other directly relates to the promotion of brand products.

It is not difficult to see that the size of the alliance's achievements is also how it works in the later period. In addition, statistics show that one-third of the value curve created by modern enterprises originates from the inside of the enterprise, and 2/3 originates from the enterprise. At present, wooden door furniture gradually enters the entire home space integration solution from a single furniture configuration. It can be seen that no matter how strong a furniture company is, it is still difficult to control all products and technologies in the entire home space. So the benefits of the alliance are obvious. While expanding the professional competitive advantage of the enterprise, the alliance can also enhance their core competitiveness through cooperation, so that they can create greater value. This can reduce the acquisition cost and achieve a win-win situation for the user of the terminal.

Editor in charge: Tan Rong

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