With the country's continuous regulation of the real estate market, the furniture industry in the downstream of real estate has undergone a huge test: the growing property rent poses the most direct challenge to dealers; the decline in real estate transaction volume has led to a shrinking demand in the furniture market, causing a serious decline in furniture sales. This poses a huge challenge to the traditional furniture store; the increase in operating costs and the serious homogenization of products have brought tremendous pressure on the production enterprises. The situation is so severe, how should the furniture industry break through? The existing circulation system does not have a future furniture circulation market. It is almost a pattern dominated by hypermarkets, and it is mainly concentrated in first- and second-tier cities. Other ways of circulation are minimal. Excessive fierce competition, rising rents, and high marketing costs have brought endless troubles to furniture companies, dealers, and even the store itself. Especially since the second half of last year, this kind of hypermarket-style circulation system has exposed many drawbacks and even caused social contradictions. For example, last year, a top brand home MALL was exposed by the media to hire social idlers to beat the joint anti-rental dealers; as well as the redemption of Hongxing Meikailong in the “100-store era†This year, it closed a store in Pazhou, Guangzhou; another industry giant Ouyada lost to Shenyang in 2011; international chain giant IKEA also exposed the news of suppliers' anti-go and a large number of layoffs... In summary, The circulation system of such a hypermarket in the furniture industry in the first and second tier cities has no future. The future of the furniture industry, the author believes that the furniture distribution system has now reached the point of non-change. For furniture distributors, it can be developed in two directions: first, chain retail stores and e-commerce in parallel, and second, transformation into professional commercial real estate developers; furniture manufacturers can also develop in two directions: First, vigorous development E-commerce, the second is to establish its own brand direct stores or franchise stores. In a nutshell: e-commerce and self-built channels are the future of the furniture industry. First, let's analyze e-commerce. E-commerce in the furniture industry has begun to take off. Although there is still a long way to go, most people believe that this is the dawn before dawn, just as the sun's rays will shine through the earth. From the perspective of the store, Red Star Macalline, Yuexing Home, IKEA Home, Fusenmei Home and other large chain stores nationwide have established their own online shopping malls, and the product categories are gradually enriched and the functions are becoming more and more perfect. From the perspective of furniture companies, Qumei, Quanyou Home and other enterprises have gained a lot in the field of e-commerce in 2011. Leading companies in the furniture industry such as Gujia and Baiqiang are marching into e-commerce. Let's take a look at the traditional e-commerce, which has begun to divide the traditional furniture retail market. With the rise of consumers after the 1980s and 1990s, online shopping has been increasingly used by people, so the widespread promotion of furniture e-commerce is the general trend. Then analyze the self-built channels. At present, the furniture market in first- and second-tier cities is basically occupied by big-selling places. If furniture companies want to enter these markets, they will either be “kidnapped†by the big-selling places or set up their own independent stores. Meikemeijia is building its own independent store in first- and second-tier cities, which has received wide attention from the industry. For the third- and fourth-tier cities, the national chain stores have not yet fully entered, and the local store has insufficient appeal, which provides an excellent opportunity for furniture companies to build their own channels. Among them, the model is not all-friends home, and all-friends home is expanded by building an independent store in the third- and fourth-tier cities across the country. Self-built channels to develop markets According to the industry's usual division method, Beijing, Shanghai, Guangzhou and Shenzhen are called the primary market. Other provincial and sub-provincial cities are called secondary markets, most of them are prefecture-level cities. And some economically developed county-level cities are called third-tier markets, while other county-level cities, townships, and rural areas are four-tier markets. Now, the primary and secondary markets are basically saturated, and the third and fourth-tier markets are considered to be areas of market potential with great market potential. Therefore, in the next few years, the third- and fourth-tier markets will surely become the most competitive main battlefield for Chinese furniture companies. When furniture companies enter the third- and fourth-tier markets, they must carefully analyze this market and fully understand their characteristics in order to be targeted. Below, the author analyzes the consumption characteristics of the third and fourth-tier markets for everyone. The author believes that when companies enter the third- and fourth-tier markets, they should not rely on the old roads of the hypermarkets in the first and second-tier markets. Instead, they should build their own channels. There are many ways to refer to them, such as buying land for self-construction. , lease land to build, cooperate with local businesses, join hosting, and so on. Furniture companies can only open up a broader market space if they firmly grasp the scarce resources of channels.
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