The current situation of the furniture retail industry: Zhang Chi game with four layers of contradictions
Hou Kepeng: How did we make money in the past? Most people make money in hypermarkets. Today the situation is not good, anti-rent, no rent, and this behavior is not a basic business spirit. Therefore, we must thank the hypermarket for promoting the progress of the furniture retail industry, which in turn has driven the development of our furniture logistics industry, which in turn has our scale today.
But the dilemma we are facing right now comes from the single business model of the hypermarket. Let's analyze these four layers of relationship-
The first level of relationship is the contradiction between the store and the dealer.
This is a contradiction that is difficult to reconcile. Why do you say that? As a store, I hope that the rent will increase year by year, and the contract will be signed once a year; as the dealer's rent is getting lower and lower, it is best not to pay rent.
The second level of relationship is the contradiction between the dealer and the factory.
Factory I hope that the more factories open, the better. Opening stores in the past is very simple. Go to Guangdong to run a few exhibitions, get a few brands, and make money selling goods. Now this kind of thing is unlikely. But the factory hopes that the more you open, the faster my capital will return. But if it is beneficial to the dealer, there is no way to continue this cycle.
The third level of relationship is the contradiction between the store and the factory.
Originally, there was no direct contradiction between the store and the factory, and the rent was not given by the factory. However, as a result of the highly market-oriented expansion of the store, the factory must be combined to enable the dealer to open the store faster than the expansion of the store. The factory did not want to participate in it, and now it is also ruthlessly wrapped in it. Do you want to follow suit? You have to follow in first-tier and second-tier cities.
The fourth level of relationship is the contradiction between the store and the consumer.
It is not uncommon for ordinary people to really buy cheap furniture. Whether your factory buys two thousand to get one thousand, buy three thousand to get two thousand, but the direct impression to consumers is that this is a profiteering industry, especially after the Da Vinci incident, it is given to consumers. impression. And all our daily newspaper advertisements in the store are to meet the needs of consumers without sacrificing their own interests. Do you think consumers are fools? They must understand that you are inducing me, so in the long run, we have not established a good image in the minds of consumers.
Opportunities for the furniture retail industry: "Is this industry worth being followed?"
Hou Kepeng: We are thinking, in the end, the value of our industry is not worth everyone to follow.
After investigation and analysis of the furniture market, we found that this market has unlimited potential-our current direct consumers in the furniture industry are only 370 million to 380 million people. That is to say, since the reform and opening up, we have worked hard for thirty years, and the people who really use our furniture account for one third of the national population.
And the average annual growth rate of our furniture industry in the past three decades is 22.2% per year. According to this growth rate, the total output value of our industry by 2015 will reach 2.4 trillion. The current status of the automotive industry is only two trillion. In other words, by 2015, the total output value of our furniture industry will exceed the current automotive industry. Of course, the automotive industry will also grow.
In particular, the current urbanization construction and new rural construction have further catalyzed our potential market opportunities. The policy says that the proportion of China's future urbanization will reach 49%, and the population living in cities and towns will be almost 600 million. This is good news for us. They have to buy a house when they enter a house, and they have to buy furniture when they buy a house.
In short, in these two decades, China's furniture industry is still a fast-growing industry, so we must have full confidence in the furniture industry.
Challenges in the furniture retail industry: "What is left of our dealers?"
Hou Kepeng: At present, dealers face many challenges.
The first challenge is the current ability of our dealers.
The ability of most distributors is not enough to adapt to the future development of the furniture industry. People's qualities and abilities are not up, how can they hope that this industry has developed rapidly?
What is the shape of most of our dealers now? Basically, two couples open a shop, and there are very few dealers that develop across regions. You can not beat others, who can guarantee that others will not beat you? So our current dealers have problems with their own capabilities. Does the dealer think about your positioning value to the factory?
The second challenge is a challenge to our business model.
We are too simple at present, and the 30-year reform and opening up is still the model of hypermarkets. Let us look at it in reverse. What is left of our dealers, at most is the cash and goods left? The brand is not yours, and the venue is not yours.
If we do not solve these two challenges, it is impossible for this industry to continue to grow.
The reform and development path of the furniture retail industry: "Can't make a brand for money"
Hou Kepeng: The first point is to solve the problem of knowledge dealers.
The key lies in education, through education to enhance the ideological realm of the majority of dealers. Most distributors still stay in the physical realm. When staying in the physical realm, only the distributors will work for money, so they cannot make brands. Only when you enter the spiritual realm, you are willing to spend money on software, only to be inspiring. Therefore, it is difficult to solve this problem without education.
Everyone we are doing is a person with some capital accumulation, and there must be some money. None of you work just for three meals a day to solve the basic food and clothing problem, so why do we have to be so busy? If we are still making money for the sake of making money, if we are still in this concept, we cannot be universally concerned by this society. Make your own money and use it yourself, no one will envy you. If the dealer's own awareness has not improved, how can our industry develop?
What kind of people can be respected by this society? I think it is Lide, creating a model to promote industry upgrade. Without big commerce, how can there be big logistics? Without big logistics, how can there be big manufacturing?
Education is our future development path.
The second point is to solve the pattern problem.
Our current model needs to change. If it has not changed for so many years, the hypermarket can continue to survive, indicating that the industry has not developed.
At present, independent store models across the country are being developed, including Yabo's distributor model, which is to unite dealers and manufacturers through a service model. In the next version, distributors and factories are united through funds. When people and money are together, the heart will be together. At present, this model can solve a service problem with the factory, but cannot solve a cash flow problem for the factory.
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