30 Years of Furniture: Conjecture on the Future Channel Model of the Furniture Industry

April 18, 2020

1. The evolution and trend of terminal channels in China's furniture industry

     Chinese furniture has experienced 30 years of development, old companies and old brands are gradually awakening, and the regional marketing sector has begun to rise. The market is changing, the terminal is changing, and manufacturing companies must change. Furniture industry can not just be satisfied with the role of the manufacturer, and now the store is the platform operator, possible future business that you are going to build this platform and serves as an operator, personally make sales terminals, but the country has not really existing models Go to the end.

     The mode we are facing now, how to upgrade the industry and how to break through, this is a stage that must be encountered in the development of the furniture company itself. The dream of manufacturers one step to the end is slowly turning into reality. In the era of " channel is king, terminal wins " , manufacturers and channel vendors are boiling with the fastest speed and facing the widest range of end users.

     Changes in consumer behavior and rich product choices are changing the pattern of China's furniture industry channels; channels gradually sink from cities to urban areas and rural areas. In recent years, many companies have used cities as their main battlefield. However, excessive competition in cities has become a " Red Sea " , and the rate of return on investment is continuously decreasing. Urban areas and rural areas have become the choice of many enterprises; the zero-order channel is favored by enterprises. The so-called zero-order channel means that the company sells its products directly to consumers without going through the intermediate links. Where an enterprise sells its products to consumers is the Internet.

     Enterprises should deeply understand these trends, adjust their organizational structure to adapt to this change, and create a unique combination of marketing channels based on their actual situation. Only in this way can we gain the initiative in a changing market and create maximum profits.

  Second, the diversification strategy of China's furniture industry terminal channels

     Around the vendors, agents and end-dealers, Chinese furniture terminal channel pattern of the past two years can be described as fast, especially the fierce competition of the geographical furniture sector, the market environment is becoming increasingly complex channels to bring many new variables. We believe that in the next few years, furniture manufacturers will become more diversified in channel selection.

     Conjecture for future furniture industry channels: 1. Leisure shopping complex. Commercial real estate is directly implemented to marketers and manufacturers without the concept of landlord; Second, supermarkets. No matter what period of time, low prices, large quantities, and sustained profitability are the magic weapon to win; 3. The network platform is convenient and extensive, and the younger generation favors the method; 4. The Experience Pavilion ( Life Pavilion ) . The industry research on the single product structure is aimed at consumer demand with a strong purpose; Fourth, the dealer uprising. In the future model, it has inherited comprehensive elements and the rent is not high. Combine supermarkets, internet, experience centers, CBD . For example, Red Apple ’s experience pavilion model, Qumei ’s online marketing model, and the federal agency ’s exclusive agency for the joint operation of multiple franchisees in the same city. Jisheng Weibang has created a pavilion that will never end in the core area of ​​Pazhou Convention and Exhibition, integrating exhibition and retail functions .

     Channel diversification and flattening have become an inevitable pattern for local companies, and the era of relying on a single channel to win is a thing of the past. In an increasingly competitive and buyer-driven market, enterprises should not only obtain cost advantages through flattening channels, but also must strengthen their understanding and control of the target market by flattening channels and enhance their competitiveness. The marketing channel is a traditional circulation planning task, which is to send the right amount of products to the right sales points at the right time, and present the products in front of the consumers in the target market with the appropriate display methods to facilitate the consumers to buy The diversification of marketing models has further promoted the healthy development of competition.

  3. The conjecture of a win-win model for the industry chain of future stores, manufacturers, distributors and consumers

     With the development of China's furniture industry, the industrial chain is gradually divided into raw material production, finished product production, and marketing. These links are usually completed by different production enterprises and distributors, and there is a relationship of cooperation and restriction between raw material manufacturers and finished product manufacturers and distributors. With the impact of the financial crisis on the furniture industry spreading throughout the entire industry chain, people in the industry are more aware of the importance of cooperation with upstream and downstream companies than ever before.

     For the industrial chain of the furniture industry, how should we construct it reasonably and effectively? As each business in the chain, should have "a prosperity, a loss for both sides," the development of consciousness industry, always adhere to customer-centric, providing the best quality service. Only when everyone regards meeting the needs of customers and owners as the highest goal and achieves " integrity first, quality first " in every aspect of business operation, we can create a virtue of interdependence, mutual trust and mutual support Only in a cooperative environment can we work together to provide our customers and owners with the most satisfactory products and services.

     In terms of resource integration, entrepreneurs should focus on inter-industry cooperation. There are many cooperations in the same industry, but they often encounter bottlenecks in the course of practice. This requires strengthening the complementary strengths of related industries and optimizing the supply chain with industry groups. The cost of the logistics industry has risen by more than 30% . Enterprises need to save and misplace marketing. At the same time, they must focus on one yuan and diversified development to diversify and reduce risks.

 

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