On the one hand, it is desperately expanding, while on the other hand, sales are declining. No one knows whether the Ningbo furniture store is now holding back the next bet, or is it "Qianyan Huanxiao secretly worried"?
Furniture stores expand frantically
If the crazy expansion of the furniture store is due to the good situation in the home furnishing industry, then with the overall downturn in the market environment, and for the time being there are no signs of recovery, what are the reasons for the expansion of the furniture store?
In 2010, the home furnishing industry began to expand. Among them, home furnishing stores performed particularly well. Whether this kind of race competition is a wise choice and the future of the home furnishing industry is worrying. For example, Red Star Macalline once again raised 2.6 billion yuan, and plans to open 200 stores by 2020; the home has even opened many stores, and the expansion rate is much faster than in previous years; Beijing Jimei Home Furnishing has not only built larger stores in Tianjin and Xiamen The single store, and its branch in France also opened its doors to welcome customers; Ouyada Home Furnishing from Wuhan used Tianjin as a springboard to enter the North China region and began a national enclave.
Yang Junyuan, secretary general of Ningbo Furniture Chamber of Commerce, said yesterday that the Ningbo furniture store is unclear and the development prospects are worrying.
Dealers are exhausted and have no money to make
Numerous existing facts prove that Yang Junyuan's worry is not unnecessary. In response to the increasing number of stores and competitors, furniture dealers generally feel powerless.
Cai Ming (pseudonym) is a distributor of home furnishings and children's furniture. In 2001, Cai Ming opened a store in Yongxin Furniture City (now the sixth space) near the No. 3 Bridge in Jiangdong. Now she has increased the number of stores to four. But to her chill, the total turnover was not as good as when there were only two specialty stores in 2007.
Cai Ming's situation is not unique. Due to the rapid expansion of large retail terminals in the same region, regional distributors of various furniture brands were forced to increase the input of specialty stores in order not to lose their positions. As a result, a large number of distributors have increased investment burdens, increased operating costs, and average Profits have fallen, and even losses have occurred.
According to a survey by the Ningbo Furniture Chamber of Commerce, the sales performance of a single store of the same brand generally fell sharply between 2008 and 2007, and between 2009 and 2008, generally falling by 20% -30%, and the serious has reached 60% -70% .
Furniture stores are also difficult to ride a tiger
Dealers can't make money, and furniture stores also have indescribable hardships.
The reporter noted that from 2006 to 2008, the area of ​​the furniture store in the urban area of ​​Ningbo doubled to more than 400,000 square meters, and more than 70% of them took the high-end route. In addition, the increased stores in the past two years are also under the banner of high-end.
With similar positioning and high overlap of investment brands, how can you make your furniture store have any special appeal to consumers? These may be the problems that furniture store managers and planners are thinking about every day.
"What is full reduction, full delivery! What discounts, what redemptions! It is so tricky to get around." Miss Zhu, who once worked in a store in the urban area, said that Ningbo furniture store promotion methods and promotional activities are the same, And every week have to engage in special promotions, otherwise customers will be pulled away.
Although the furniture store sales are very hard and frequent, but consumers have developed "aesthetic fatigue", and doubt whether it is discounted to the reality, so the difference in actual operating conditions is obvious to all, and the number of free stores in the store is also increasing.
The furniture industry may wish to step on the "brake"
In view of the fact that many funds lack the necessary market research and accurate market information, and blindly enter the furniture circulation market, Zhai Dongliang, chairman of the National Chamber of Commerce and Industry Furniture Decoration Industry Chamber of Commerce pointed out: "Furniture enterprises should learn from the experience of foreign-funded circulation enterprises entering China and use the market ’s Means to reorganize and cooperate at the level of capital and shares. Only scientifically integrating their respective advantages and strengths is the worthy way out for future distribution markets such as furniture. "
At the same time, as to how to change the furniture market, some people in the industry pointed out that misaligned operations, accurate positioning, avoiding homogeneous competition, branding operations, and opening up a secondary market may be a good way for merchants to survive in the future.
"Farmers around Ningbo are also getting richer, and the consumption concept of residential furniture is changing. Self-made furniture is gradually becoming a piece of furniture. The market potential cannot be underestimated." Yang Junyuan, secretary general of Ningbo Furniture Chamber of Commerce, said that furniture stores are mainly concentrated in Ningbo In the urban area, the sales terminal has not touched the low-end market, and the surrounding counties and cities can become the key layout in the next step.
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