The pace of frequent withdrawal of home business companies is quietly emerging

Located in a large home store on the fourth ring, the storefront of the Sophia wardrobe is busy setting up the exhibition hall. The salesperson revealed that a wardrobe brand was removed from the store some time ago. The reporter also learned that this brand has only rushed to the store due to poor performance in less than one year after the store was operated. The market is getting colder, the natural passenger flow is decreasing, the store is accelerating, and the rent is high. Under various pressures, the company’s withdrawal from the store is helpless, or it is a “prelude” for the new channel reform.

Home-enterprise frequency withdrawal shop channel changes quietly rise

Home improvement company into the withdrawal shop "first march"

As a direct downstream enterprise of real estate, home improvement companies bear most of the pressure from market regulation, and the effectiveness of the store channel is being tested by home improvement companies. The industry peak is one of the first home improvement companies to try to get rid of the store channel. In the interview with the reporter, the planning manager of the industry peak said that Fenggehui Home, which is self-operated by the industry peak, is the prerequisite for the industry to independently operate its channel construction. In the case of the market's overall poor store, more of the market will not rely on the natural passenger flow of the store, but as a brand image store, through other channels such as community expansion to maintain store operations. The removal of the home improvement company also comes from the consideration of the market outlook. Li Jianhua, general manager of the Santa Point decoration Beijing area, told reporters that the decoration of the holy spot also has the intention to withdraw the store. He also said that the business focus of the decoration of the Holy Point will not be to build a store, but to open its own center store and make its own products.

Building materials furniture curve "slimming"

Compared with the home improvement industry, the distributors of building materials and furniture are obviously more closely related to the store. Ma Jianguo, director of the “Marketing of Ceramics” of Marco Polo, revealed that whether it is “shaking hands” with the home improvement company or sticking to the store channel, at this stage, the building materials dealers are not yet fully capable of operating independently. Even so, building materials and furniture have adjusted their development direction in the market. Ou Pai cabinets have their own flagship store, and the top 100 furniture also opened the “Top 100 International Homes” before the “Eleventh” and embarked on the road of independent development and comprehensive operation. Retaining and strengthening the advantages of the storefront, withdrawing the loss of the storefront, and changing the "weight-bearing forward" to "light-loading", in the current situation, for dealers, the appropriate streamlining of the number of stores is an effective way to reduce costs.

The store is actively "singing more"

In the interview of the reporter, the store is still cautiously optimistic. Although they are mostly reluctant to talk about the phenomenon of withdrawal, they also admit that the phenomenon of withdrawal in the past two years has increased. Yin Yuxin, general manager of Oriental Home Furnishing Plaza, said: The withdrawal rate of major supermarkets in Beijing has indeed increased. In the past few years, it may have been “more in progress, less in out” and recently “in and out of balance”. The phenomenon of withdrawal from the store does not mean that there is a big problem in the living space of the store. After all, for a long time, the store will also assume the status of leading passenger flow. What the reporter learned from the enterprise side is that the store is better than the original.

Market seeks differentiated management

Whether the withdrawal of the store will become a trend is still unknown, but the action of the store is often an indisputable fact. Among them, the active absorption of new brands has also become a means of preventing the withdrawal of stores. According to the store, the new brand has a low level of recognition, but it has sufficient follow-up development power. Taking Zhibang cabinets as an example, as a brand of foreigners entering Beijing, Zhibang successively arranged large-scale stores such as Red Star Macalline and Real Home, and achieved good results. In addition, the differentiated operation of the store has become the mainstream. On the basis of the service, the home of the hotel has newly promoted the “old-for-new” service to reinforce the status of “service features” in the minds of consumers. Red Star Meikailong has opened up a new home store model, and the first mixed-style home store in Beijing is about to open. Behind the withdrawal of the store is the store to expand brand management, to create a channel leader.

Emerging channels become the "new darling" of enterprises

From "sitting business" to "trading", from "offline" to "online", for enterprises, the channel revitalization after the withdrawal of the store is an important lesson for the enterprise. Before 2011, community marketing has been in a tepid state. More home improvement companies and building materials companies are more keen to "sit" to do their homework. In 2011, more companies chose to “go global”. Kuda and Industry Peak extended the tentacles of the community expansion to the suburbs; Zhibang entered the courtyard of the community. In 2011, Kuda’s “Process Channel” was officially launched; Jin Bo, deputy general manager of Canoe Decoration, also revealed that the company is interested in expanding its network marketing channels. Not only that, but the independent store channel has become a stepping stone for companies to break away from the dominant position of the store. In 2011 alone, there were nearly 10 independent stores in Beijing, which exceeded the total number of independent stores in the previous two years.

Innovation is the only way to change

Zhang Ren, secretary general of the China Building Decoration Association, believes that the regulation of real estate is a clear market adjustment behavior, and its actions and effects will exist for a long time. To this end, the traditional home marketing model and the home market pattern will change accordingly. Main materials and home improvement companies have directly entered the consumer terminal, and corporate marketing has diversified. Various new marketing methods, such as “Salon Marketing” and “Sports Marketing”, are being tried by enterprises. Large-scale stores as a model of the home market with Chinese characteristics will also be tested, and “retreating the store” may be the beginning of the test. However, in general, the existence and development of large-scale home stores will remain for a long time, but it is by no means an “oligarch”, but is gradually matured with the home enterprises in transforming marketing models and innovative thinking.

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