Another way to "pan-integration" to revitalize the furniture circulation industry

In 2011, in the context of the sorrow of the furniture market, the furniture industry has seen new changes from manufacturing to channels to terminal store operations. Among them, the innovation and change of channels are the most obvious, which is a huge challenge for the traditional channels marked by furniture stores. In the new situation, the integration of pan-home circulation business, the so-called "pan-integration" has become a new trend in the field of furniture circulation.

Internal and external difficulties, "pan-integration" surfaced

In the past two years, anti-rental, power-off, restrictions on import and export, rushing shop staff to stop business, factory free decoration samples... All kinds of games around factories, dealers, and property are more intense than ever. At the same time, the market has never been deserted. Even in the past, the dealers broke the big chain stores in the country that they want to squeeze into their heads.

In the context of internal chaos, the enemy outside the industry frequently invaded. This year, news about the non-home business predators such as Fanke, Midea, Kangbao and Haier are preparing to enter the home furnishing industry. Chen Xiao, the former chairman of the Board of Directors of Gome, entered the home furnishing industry with a high profile and opened the first home furnishing and jewelry retail store in Shanghai. The name of the “Famous Nest Family” seems to tell everyone that the glory of the home appliance chain model will be re-opened here. Air. In August, Yuanmei Home Chain, which successfully built Shanghai's first furniture distribution platform in a few years, officially announced that it will build 10 to 20 fusion furniture, home appliances and household items in China in the next three years. Hyundai retail stores such as jewelry and building materials.

Two preconditions of "pan-integration"

The core element of the home industry to achieve large-scale development is that the most important distributors in the product supply chain must be able to dominate the entire sales process. At present, no single role has complete control ability, the store actually stays at the traditional “landlord” level; the factory is generally weak, the direct operation is more lacking in strength; the distributors are scattered and have no operational strength, and the cost is subject to excessive sales and factories. limit. It should also be pointed out that the non-standardization of furniture products itself also increases the difficulty of integration.

Why at the same time, Chen Xiao and Yuanmei Home Chain are involved in the integration of pan-home circulation? What are the conditions for pan-home integration? The following two prerequisites must be met.

Condition 1: New thinking and resource integration capabilities.

From Chen Xiao's point of view, he is undoubtedly the man of the home appliance industry. The long-term experience of Gome, the home appliance channel giant, has enabled Chen Xiao to have strong resource integration capabilities, and at the same time, he has a different operation from traditional furniture channels. New thought. Coincidentally, Yuanmei's management team members also have many years of experience in the home appliance industry marketing, and have sufficient innovation in the development concept. Based on many of its physical stores and rich furniture industry resources, its resource integration capabilities are also sufficient.

Condition 2: Accurately adapt to the market.

As an experienced and active senior operator, Chen Xiao has a keen sense of the pan-home consumer market. He once said to media friends that “the most familiar is not the home appliance industry, but the consumer psychology and consumption status”. Xiao is confident in the pulse market. Similarly, in a few years, in the highly competitive Shanghai market to create one of the best circulation of new platforms, the market judgment ability of the round beauty home management planning team is bound to be quite powerful.

Of course, in addition to these two basic conditions, the difficult operation level has put forward more requirements for the operators of the integration of the pan-home circulation industry, and we cannot elaborate on them one by one. In fact, this is a process of exploration and will face many challenges.

"Pan-integration" business strategy

The author believes that for the current situation of China's furniture industry, if the pan-home circulation business wants to survive and grow, you may wish to adopt the following business strategies:

1. Independent and self-operated: Choose the right location, establish a suitable independent display store, fully independent and self-operated, and build a fully self-control retail store system to get rid of the traditional property control of the home industry and meet the consumer experience needs.

2. Pay attention to the needs of most consumers, not too high-end, and not a low-cost market.

3. Semi-mixed format: that is, the home appliances, furniture, home accessories and soft clothes are divided into special areas for display and sales, mainly for furniture sales, supplemented by home appliances and home accessories, to achieve one-stop purchase of consumers after decoration.

4. Go to the vast second and third-tier markets: Avoid competition with home appliances stores such as Gome and Suning in the primary market, and avoid competition with furniture brands such as Red Star, Reality, and Yuexing.

Undoubtedly, the prospect of pan-home integration stores is broad. This model has more powerful capabilities for integration of vendors and even banks, which is in line with the general consumer demand of consumers and has the real possibility of realizing the development of large chains.

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