Home shopping is filled with smoke and how to find a new way out
Expansion + competition = inevitable
Is the expansion of the store like the rumors of smoke spreading across the board?
Fang Quanming, deputy general manager of Shanghai Yuexing Holding Group Co., Ltd.'s Macau store, believes that there are signs of easing of relations between hypermarkets.
However, Shao Jun, deputy general manager of the investment center of Yindu Road Plaza of Jinsheng National Home Furnishing , believes that the expansion and competition of the store are still escalating, and even to the point of not advancing. "The vicious competition in the store is more pressureful. If there is no competition in some hypermarkets, it will not develop to the current scale. I will not open, but Red Star is still open, so I will be eliminated by acquisition. So he opened, I It must also be opened, and the third person will die. First eat some small ones, and then a few big ones will be either alliances or competitions. Competition can develop better. "
So, behind this confusing, ambiguous or hostile hypermarket game, how does the hypermarket view the competition and expansion of the hypermarket from its own perspective.
"In fact, for dealers, there are more and more shopping malls, and dealers are also facing a temporary pain. Now the malls are escorting dealers to enter this store. If they do not enter, they will open the store here. The shop is cut. But to a certain degree of competition, after reshuffling, the seller will face more choices. Because the market is like this, it is impossible to produce a complete monopoly. "Shao Jun said.
No rent increase? + Slightly up? = Situation
Regardless of whether it is admitted or not, the tentacles of hypermarket expansion continue to extend in the already saturated furniture market in Shanghai. Faced with this established reality, dealers began to send their voices to the inside and outside of the industry through various channels under the pressure of survival, actively seeking the right to speak, and striving for survival space.
But in the furniture industry for many years, they have their own views on the current crisis theory.
Fang Quanming said: "In 2010, the monthly sales of our 242 booths in the Moon Star Macau store, 80% were profitable, 10% were flat, and 10% were losses. He also said:" The first half of this year Difficulties are a reality, but I am optimistic about the overall furniture market in Shanghai, and we are confident. "
For dealers, whether the furniture store rent increase in 2011 is their biggest concern. The reporter learned through the interview:
Fang Quanming said: "Our Yuexing Macau store will not increase rents this year."
It is rare that Yuexing does not increase rents in Shanghai. According to the shopping guide of Red Star Macalline Zhenbei Store, their rent has risen by 20 yuan per square meter. And Jinsheng will rise slightly this year.
Against the backdrop of an inflationary economy, rent increase seems inevitable for stores. But will rent increases accelerate the rapid collapse of already fragile dealers? This may take time to test. Faced with the inevitable trend of rising rents, one thing is certain, the contradiction between sellers and stores is increasing.
Flame + sea water = sense of crisis
In the face of the grim situation, the store believes that it is also in a deep crisis of survival.
According to a store tycoon: In addition to the competition in the area expansion of the store, there are certain discordant factors in the store's management methods and promotional methods.
Fang Quanming said: "For example, there is a regulation in the furniture industry that" returns without reason "means that customers who buy furniture within 48 hours can return them without reason. Our competitors put forward the slogan" Returns without reason within one month "and The hype is beyond the national regulations. I do n’t approve of this practice. I think it should be done in accordance with the national regulations. If it is purely for publicity, it can be through other channels. "
Shao Jun also cited an example: "We have extended the business hours for two hours every Saturday night. After the transaction, the price will drop again, and we will collaborate with the real estate collectively. These are all followed by competitors."
At the same time, he also believes that from the perspective of long-term market development, pure real estate will not last long without commercial support. Store expansion is a commercial real estate practice, the risk is that if the business is not doing well, the rent will drop. "Actually, I also lose money every year, but I need to support it. Because my land is appreciated, the best state is that I rely on commercial profits to maintain peace." He told reporters frankly.
He predicted: "From the perspective of the market economy competition law, the rent of the store will one day come down. Once the market situation is no longer good this year, some stores will be hit or even eliminated."
Planning marketing + channel competition = way out?
In the game of market economy, the relationship of the participants will change to some extent with the hot and cold market and the strength of the power. In the crisis, the furniture store tycoons who are accustomed to be respectful and optimistic also began to gradually realize the mutually beneficial relationship with the dealers and explore new ways.
Shao Jun also revealed this year's preliminary measures: "This year our marketing channels will also be changed, adding some Yiye joint activities. Cooperate with advertising companies and do some community activities; cooperate with wedding companies. The current competition is It ’s channel competition. First grab the source of the channel. In addition, this year our store structure will be optimized and adjusted. All exhibition halls will become independent stores. Large dealers will open independent stores and flagship stores. "
Fang Quanming said: "We have made some adjustments this year. For dealers who have failed to meet the promotion standards for four consecutive months, I invited their boss to come over to dinner and help them analyze the reasons; this year's main work is planning and marketing , The estimated marketing and investment costs are the highest in the year. "
It can be seen that in the face of the crisis, some furniture tycoons who are aware of the crisis have also begun to change their models. However, during the interview with the reporter, it was learned that some hypermarkets are completely based on their subjective will when doing marketing and marketing planning, without consulting the dealers. Several senior leaders in the office made final decisions and forced promotion carried out. The distributors, as the main body of the store activities and direct participants, have not received due respect.
Obviously, the coordination of planning programs without a mass foundation will be greatly weakened during the promotion process, so that the reporter found that some large-scale publicity posters in the store read "President's signing" "buy 2000 get 1000", and went into certain At the storefront, the shopping guide informed "Our store does not participate in this activity, which is in conflict with our store's own promotion." This invisibly weakens the customer's recognition and trust in the store.
In the furniture market, a three-party community that is closely connected, only from the perspective of respect for communication can we develop better in harmony.
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