The furniture industry is under pressure to expand the high-cost channel expansion war is about to start
In recent years, furniture consumption has shown a clear trend of consumption upgrades, and people have begun to pursue products, services that are personal, comfortable, healthy, environmentally friendly, and intelligent. In some mature regionalized markets, diversified values ​​and personalized lifestyles have begun to take shape, which creates a huge space for the growth of branded furniture. On the other hand, the ever-increasing manufacturing costs and rising rents in stores have also forced furniture brands to find ways for their own development through market segmentation and channel expansion.
Relevant experts said that in the short term, the growth rate of real estate sales in 2012 was within 5%, and the growth rate was lower than the potential growth rate due to the impact of real estate sales. In the long term, the Chinese furniture industry is still in the middle stage of growth in the next five years, and the compound growth rate is expected to be 22% -24%. During this period, with the continuous improvement of the dealer's grade positioning, as well as the expansion of traditional store sales rents and new store operating costs, the physical distribution channels of furniture companies are facing high cost challenges, without brand and brand power It is more difficult for low manufacturers to attract investment, while brand furniture companies have sufficient resources and funds to expand their channels. Channels are strong, companies are strong, and the concept of "channel is king" is quietly emerging.
In terms of channel expansion, the top 100 furniture that has always advertised as "really very German" took the lead. In September 2011, the Top 100 International Home Mall opened in Zhongkun Square of Dazhong Temple, becoming the first independent store of the Top 100 to break away from the home store channel. In addition to displaying all the products of the Top 100, it will also display the top 100 agents Of various international home furnishing brands.
According to industry insiders, the Top 100 International Home Mall has opened a brand-new model that integrates a variety of international brands, one-stop purchase of furniture and soft decoration, and all products are sold by Top 100 furniture agents. This innovative model is reflected in three aspects: first, it meets the customers' one-stop shopping needs for the overall furniture soft decoration design; second, it will be equipped with a "product passport" for each brand and each series of products, To ensure that every imported product is real and authentic; third, it innovatively uses 3D technology to set up a "five-sided three-dimensional space", customers can experience the matching effect of the future home before decoration. The opening of the Top 100 International Home Furnishing Mall has set a good example for channel expansion of other brands of furniture.
In addition to the "independent stores" such as the Top 100 International Home Mall, Top 100 Furniture will also focus on the field of e-commerce. "E-commerce is a new model of sales in the future, and its share in the enterprise will increase over time. More and more things are going on. My initial feeling is that if e-commerce is done, it may account for one-third of the turnover, and it will become 50% in a few years, and maybe in a few years. It will be even higher. "For this emerging channel, Chen Xiaotai, the head of the top 100 furniture, is clearly prepared.
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