Spy on "The Way to Win Federal Furniture


If the wolf really came, who would be the first loser to be washed out? Who will control the greater right to speak, gather more resources, occupy a larger territory in the reconstruction of rules, and become the big winner in the market reshuffle?

So nowadays, it seems more practical and timely to explore the "winners" of successful people than to chase after the bad news in the market. Looking at the status quo of the furniture industry, there is no doubt that if the "wolf" really comes, the three types of companies will be very different: those who only want to go for a while, who sells the products, and which types of products sell well. " Companies that imitate who have no value pursuit and goal beliefs, and only focus on speculation and trickery at the "technical" level, will surely fall to the first echelon and not be sympathized by anyone; those who are not only flexible at the "technical" level, Those who have made achievements at the "law" level of product model, marketing model, team model, etc., can certainly go further, but it is not ruled out that some will fall into the second and third echelons and are regrettable; only those who are Understand the "art" and "law", at the same time understand the "Tao", have the ability to "find the overall situation", be able to grasp the trends and laws of industry changes, so as to adapt to and control the situation with great realm, great wisdom, in order to market In the baptism of the strong man Hengqiang, calm and calmly laugh all the way to the end.

An objective assessment is that the huge number of tens of thousands of Chinese furniture companies has made the furniture "world factory" and the furniture "first exporting country". But it ’s not polite to say that among the nation ’s plethora of companies, good “techniques” may account for more than 50%, less than 30% are good at “dharma”, and less than 20% are good at “dharma”. Too. Therefore, after the entire industry has gone through the historical stage from small to large, it must embark on a new course from large to strong and chaotic governance. It has become a very meaningful thing to lock in a group of benchmarking enterprise models in the industry and vigorously explore and respect the "winners" of some successful companies.

Speaking of which, one can't help but think of a name, a company, that is the Federation. From the original "Federal Chair" fame, to the leading enterprise that is talked about by its peers in terms of concept, strategy, technology, market size, and business model, its consistent and orderly "winner" , It is worth peering one by one.

The Way of Federal Products: Focus on Life, Design Life

As we all know, today the United States is the world's best country for nurturing mass consumer goods companies and brands. However, after studying and comparing the competitiveness of large Chinese and American companies, some well-known domestic enterprise strategy experts found that the success of famous American consumer brands does not lie in the grand strategic design that the Chinese are accustomed to understand, but in returning to the fundamentals of consumer demand. In the impetuous era, this most simple principle is the most difficult business philosophy for enterprises to stick to.

Fortunately, the Federation, which was born in the mid-1980s, strived to get rid of the temptation of furniture "low-end" and "copy" from the beginning, return to the origin of consumption, pursue original design, and build its own brand. This is recognized by the industry. Rather than saying that a solid wood "federal chair" made the Federation take off, it is better to say that the entrepreneurs of the Federation chose a correct take-off posture and correct take-off origin from the beginning. This correct take-off posture is called "original design", and the correct take-off origin is "life". In fact, long before the "Federal Chair", the Federation was famous for its cool "rattan chair" products. And that was also successful in paying attention to life and being considerate to the needs, which solved the big problem of the sultry weather in the south.

If a sofa is considered solely from the concept and appearance of the sofa, even creative people can only make different materials and simple decoration. But if we start from the way the human body sits and sits, and study from the aspects of living style, background and human environment, then there will be many ideas. Since the birth of the “Federal Chair” that is popular in the north and the south, the federal people seem to have found the way to product success, that is, to insist on originality, and soberly realize that original furniture is by no means a simple design of an object, but “ Create a more reasonable lifestyle. " It should be said that the Federation is one of the first few furniture companies in China to understand the phrase "the purpose of design is people, not products".

After generation after generation of product replacement and market baptism again and again, today's federal product development has already passed the design stage of a single product series and a single lifestyle, and has comprehensively moved towards the design market, design price, design consumer group, Design a new height of consumer culture and design a colorful home lifestyle.

The Way to the Federal Market: Multi-Product Line Brand Expansion

Today's domestic furniture distribution giants, such as Hongxing, Juran, Jisheng Weibang, etc., when investing in new stores, can always "find" ordinary brands to clearly and accurately find the exact furniture sector classification and give the corresponding floor location arrangements. If you only encounter the Federation, you will always encounter a headache, that is, what floor location is the Federation arranged for? Will the Federation be classified as a solid wood brand or a panel brand? Is it a software brand? In the end, will federal products be classified as modern, post-modern products or classic and post-classical products? In fact, this involves understanding the federal “multi-product line brand expansion” market approach.

The market strategy of "multi-product line brand expansion" is precisely the federal rooted in the philosophy of Oriental Habitat culture and targeting the large market of middle-class consumption, and then to meet the needs of market segmentation, expand the market share cake, and create a distinctive product "structure The key to "force". Those who are interested will find that since the opening of the "Guangzhou Federation Home Furnishing Plaza" in 1999, the promotion appeal of the Federation has changed from "furniture" to "home furnishing". Although it is a word difference, there are big articles behind it: This is the “one-stop solution” that the Federation has moved from selling complete sets of furniture to selling “whole home” and then selling home space. In order to support the realization of this marketing concept, the “relevant diversification strategy” of federal products has surfaced, that is: take the road of multi-brands, sell wooden furniture; take the road of integrated operators, sell related and complementary related diversification Products, continue to deepen the unique profit model.

Today, the federal “structural strength” “multi-product line brand expansion” strategy has been magnificently formed: not only in the field of wooden furniture, 8 series of product series squares with differentiated styles, price tiers, and family items have been formed. And has cultivated a federation in the software field that can compete with similar mainstream markets? Mini sofa and federation? Mengfeisi mattresses, at the same time in the field of custom-made cabinets with storage function, in the field of soft decoration at home, and also have a Federation of products that are popular in the country? Gordon Wall Cabinet, Federation? Baoda carpet professional brand. With such a strong and complete, rich and professional product lineup, and such cross-border integration capabilities in terms of complementary categories, it is difficult for domestic furniture companies to find a second comparable example.

Nowadays, the national distributors in the Federation can enjoy the full freedom of product mix according to different regional market characteristics and implement different market segmentation strategies or single orders in the federal “multi-product line brand expansion” strategy. Series monopoly, or multiple series of group battles, so as to avoid or dilute the risk to the greatest extent, and can achieve greater market share with the special advantages of multiple and special.

Federal industry approach: opening up manufacturing and commercial value chains

Domestic furniture companies, especially early furniture companies, generally have a single attribute of division of labor, focusing on a certain area of ​​the industrial chain. For example, it is either a manufacturer, a seller, or a distributor, or an equipment material supplier or logistics service provider that provides upstream and downstream services in the above-mentioned fields. Few developments have been made in many fields. Since the 1990s, the Federation has begun to promote the combination of manufacturing and commerce, so that the Federation has expanded from creating industrial brands to creating commercial brands, forming a development model of combining manufacturing and commerce. This model has enabled the Federation to get rid of the enterprise operations that are limited to excellent products and enter the vast world of commercial marketing innovation.

From the earliest in the early 1990s to put forward the "marketing community" theory in the industry, to the mid-1990s in Guangzhou, Beijing, Shanghai, Chongqing and other domestic high-altitude cities to establish a model market in the form of direct sales of branches, and then to the mid-late The mode of operation has vigorously developed brand chain stores throughout the country. The Federation has spent the last ten years building its own large market system. At the same time, it has constantly influenced the industry ’s marketing model changes with its own innovative actions. In 1999, the successful operation of the "Federal Home Plaza" commercial institution created a new one-stop home service format, allowing the Federation to extend its brand creativity and influence from simple furniture products to a complete home life. "Overall home solution" provider and service provider. So far, from excellent products to controlling terminals, from selling furniture products to selling home living solutions, the industrial value chain explored by the Federation has basically been opened up. So far, the Federation has more than 60 self-operated stores nationwide and more than 1,000 franchise chain stores, which has basically achieved market coverage in all first- and second-tier cities and most third-tier cities. The industrial model that the federal industrial brand and the commercial brand are equally important, and the self-operated system and the franchise system are combined, not only plays a key role in the continued healthy and rapid development of the federal government, but also is increasingly followed by other companies.

The Federal Way of Faith: Integrity is the cornerstone of a century-old brand

Speaking of the corporate temperament and character of the Federation, people in the industry will all be described by the words of "decent", "righteousness" or "good manners", and there are even many well-meaning people who kindly remind the Federation whether it is too "a rib". If you are more mellow in many things, you will eat less "dumb losses". One of the most famous examples is that the Federation had proactively compensated three color TV sets for a TV cabinet in the early days, and the reason was that the TV cabinet was tilted when customers sat on the TV cabinet. In the eyes of many people, at least they will do something to blame customers for “improper use”, but the Federation will reflect on the typical cases of product design defects and immediately settle claims. In the early days, there was a joint promotion with the real estate. Two customers won the "send house" award. However, the cooperative real estate was badly ended, and the Federation did not procrastinate. It directly cashed to the customers in cash in accordance with the market price. There are too many similar examples of kindness. As for "scrapping" the federation is too "one-strength", do not know how to "wasted" a lot of wealth-making opportunities by speculating real estate, plots and steel, it is more commonplace.

Many people have called the six natural person shareholders of the Federation "undivided" for more than two decades now as a miracle, but in the eyes of the six of them, this is a natural thing. Du Zehua, chairman of the Federal Board of Directors, said that unlike foreign companies that focus on "investment", Chinese companies are more particular about "trust", especially in the initial stage of the company. Du Zehua said, "Faith" has multiple meanings. One refers to trust and trust; the other refers to "people's words" as "trust", and each should talk about integrity and credit; of course, it also includes prestige, that is, corporate orders should be single and maintain decision-making authority. In the face of the federal public interest, any Personal interests or grievances must make way.

It is precisely based on the founders' commitment and promotion of these plain "integrity views" that have slowly accumulated the formation of the federal "people-oriented", "integrity first", "value creation proud" corporate culture values. Many people have n’t quite understood why a federation that has always “innovated and surpassed itself” in terms of products, systems, marketing, management, etc., is so pedantic and honest when it comes to the value orientation of the integrity category "And" one rib "? In fact, this is exactly the philosophical belief of the Federation's great wisdom and cleverness.

As the old saying goes: "Those who find things in the dark room, Mo Liang is good at fire; those who keep ropes in the world, Mo Liang is honest." The Federation is using the "sincerity" ropeway in the world, and the true meaning of the brand in a century.

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