Operating costs “up and down†coating companies should fully control the flow of funds
With the rising rents of paint stores and the rising operating costs of enterprises, it is undoubtedly worse for the paint companies that have already been “Ya Li Shan Da†to face a new round of funding problems. For paint companies, it is useless to complain. Only actively adjust the development strategy, develop e-commerce, take advantage of various contradictions, and reduce costs in an all-round way to enable enterprises to embark on a healthy development path.
Taking advantage of information technology to achieve innovative development
Nowadays, with the commercial technology centered on modern information technology, the efficiency of the international leading commerce and circulation enterprises in new store construction, commodity management, enterprise management, marketing promotion, logistics organization, etc. has been greatly improved, and the circulation cost has been significantly reduced. In China's paint commodity circulation industry, due to the constraints of the current industry, operators are less organized, weaker in strength, less aware of technology application and technological innovation, insufficient support from government and industry organizations, and widespread application and innovation of commercial technology. The level of backwardness has greatly restricted the efficiency of circulation and the reduction of circulation costs.
“Slimming†for production to terminal circulation
At present, the household coating products used in house decoration and decoration in China are basically transferred from the production field to the consumption field by means of distribution, that is, through the circulation chain of manufacturers, first-level distributors, second-tier distributors and third-level distributors. The transfer of goods from the production sector to the consumer sector. Each level of distributors has a circulation fee, and there are profit claims. Multi-level distribution will inevitably generate more circulation costs.
Actively resolve conflicts with stores to seek rent reduction
In recent years, the contradiction between China's paint merchants and stores has intensified, and a large part of the reason is that store rents are rising. As we all know, China's coatings market adopts a booth-based operating model. Under this model, the owner of the business site (commercial real estate development operator) and the commodity operators in the market (paint commodity dealers) are different stakeholders. Interest-game relationship, commercial real estate development operators should maximize rents or maintain high rent levels to maximize their own interests; paint commodity operators, including painters, want low rents to reduce operating expenses. Increase or maintain profitability.
Paint companies adjust their logistics costs appropriately
At present, the logistics cost of China's coating products accounts for nearly 20% of the sales revenue, while the logistics costs of developed countries in Europe, America and Japan are less than 10%. Excessive logistics costs are an important factor driving up the cost of circulation of household coatings in China. The high logistics cost is related to the current road toll policy in China; on the other hand, it is related to the unreasonable and unscientific layout of related logistics facilities. Both aspects require reform and improvement.
After the above adjustments, the coatings enterprises can have sufficient funds to allow them to have sufficient liquidity in the development process to inject capital into the development of the company.
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