Analysis of two major business models in the soft furniture industry

The particularity of the software industry's business model is mainly reflected in its sales model. At present, domestic software furniture manufacturers mainly adopt two modes of independent brand sales and OEM sales.

1. Independent brand sales

The independent brand sales model is that software furniture manufacturers rely on their own design and research and development capabilities, create independent sales brands, have independent intellectual property rights, and rely on brand advantages to bring products to market through direct sales, direct sales, e-commerce and other perfect sales channels. Business model. Enterprises that adopt self-owned brands have strong ability to withstand risks and can obtain higher profit levels, but they have higher requirements for design and development capabilities, process technology and sales channels.

(1) Direct mode

Software retail enterprises directly invest, manage and manage various retail outlets, and adopt vertical and unified management methods for each retail outlet. By adopting the sales model of direct-operated stores, enterprises can effectively control marketing channels and implement the development strategy of the company. However, under this model, enterprises need to invest a large amount of their own funds, and the initial operating costs are high.

(2) Distribution model

The distribution model includes two modes: franchise distribution and general distribution. The franchise model refers to the software furniture company granting its own brand and trademark to the franchisee in the form of a franchise distribution contract or agreement, and to the franchisee dealer. Provide personnel training, management and other aspects of assistance; franchise dealers pay the corresponding fees to the enterprise, sell products according to the franchise distribution contract, and bear the business risks; ordinary distribution means that the software home enterprises will sell their own brand products through ordinary dealers. Sales, production companies do not participate in the general dealer's store management, brand promotion, personnel training and other work. The distribution model is conducive to software furniture companies to rapidly expand market channels and expand brand awareness on the premise of less investment.

(3) E-commerce model

The software furniture enterprise cooperates with the e-commerce website to promote the products on the e-commerce website, and the enterprise pays the corresponding fees to the e-commerce website operators, and the business risks are borne by the enterprises themselves. The orders obtained by the software home enterprise through the e-commerce website are sold by the company itself or transferred to the dealers where the customer is located to complete the sale. E-commerce is an emerging sales model for the software furniture industry.

2, OEM sales

The OEM sales model of the soft furniture industry can be divided into ODM and OEM. Among them: ODM refers to the design and development of software products by software furniture manufacturers according to market demand or customer entrustment, and organizes production according to customer orders, and the products are produced by customers. A production method for brand sales. ODM manufacturers are not only responsible for production and processing, but also responsible for design and development; OEM means that software furniture manufacturers are completely produced according to the design and requirements given by customers. The product design and development plan is completely provided by customers. OEM manufacturers only undertake processing and manufacturing tasks, OEM manufacturers The products produced are also sold to the customer's brand.

According to its own particularity, the soft furniture industry will be a marketing model suitable for its own development. In the face of the crisis of the industry's upcoming reshuffle, it will achieve a better record and will be able to go further in the future.

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