The rapid expansion of furniture companies and the advantages of conservative management

In 2010, home furnishing companies can be described as a few happy and a few sad, some have opened new stores, built new factories, and developed prosperously; some contracted the front line, delayed the launch of new products, and stumbled for a year. Has the home industry market capacity been saturated in 2011? How should companies seek new breakthroughs in the market? What requirements does the new model and business strategy impose on enterprises? During our interview, many leaders in the home furnishing industry said that 2011 was a tough battle for home furnishing companies, and the situation is not optimistic. How to break through the market and expand the living space is a problem worth pondering. To this end, we have planned and organized the "2011 Home Furnishing Enterprises Market Breakthrough Road Series Report", hoping to contribute to the development of the home furnishing industry.

Many home furnishing enterprises encounter "expanded"

In 2010, there was a wind of expansion in the home furnishing industry, especially in home furnishing stores. For example, Red Star Macalline once again raised 2.6 billion yuan and plans to open 200 stores by 2020; The speed is far beyond that of previous years; Beijing Jimei Home Furnishing has not only built large single stores in Tianjin and Xiamen, but also opened its French stores to welcome customers; Ouyada Home Furnishing from Wuhan uses Tianjin as a springboard to enter the North China region. The sword refers to the national rodeo operations.

A few days ago, home furnishing enterprises represented by Chen Zhongxin, chairman of Zhongzhixin Furniture, broke the news that they were "expanded" in 2010. The spearhead implied that the excessive expansion of home stores led to soaring costs of home furnishing companies and diluting profits.

Chen Zhongxin's "expanded" remarks were supported by many companies. A senior executive of a home furnishing company responded on Weibo: "Mr. Chen said everyone's voice, factories and dealers have already been intolerable." Another netizen said: "Sooner or later the expansion of the store will die, and the manufacturers will be weak. The expansion has to reluctantly follow up, and dealers are also frustrated at both ends. "

Chen Hui, the chairman of Dongyi Risheng, was very faced with the "expanded" company. He said: "For capable companies, the market will never be saturated. However, if manufacturers blindly follow the expansion of the store, they will not consider their actual situation. It will dilute a lot of profits. The enterprise's marketing channels are already scattered. Will the manufacturers survive after being 'expanded'? "

Whether there is a surplus of home stores is controversial

In the face of the country's strict real estate regulation and control policies and the shrinking property market, the home furnishing market still chose to attack the city on a large scale in major cities across the country. Such a rapid expansion rate makes the home store market saturated, and the argument is saturated. "From an objective perspective of industry development and a perspective of conscience, it can be said that if the area of ​​the existing home store is reduced by half, people can still easily buy home products, and there is a chance to buy better homes. Products. "Liu Yongkang, president of Connaught Home Furnishing, expressed his understanding of the surplus in the store.

Xin Yihua, vice president of Dongfang Jiayuan, threw out his opinion and said: "Home furnishing stores usually have two modes of operation, one is a rental store and the other is a chain operation. I think the rental store is already saturated, even in third- and fourth-tier cities A large number of rental home furnishing stores are highly competitive. However, chain stores are flourishing. This market is not saturated. In the future, home furnishing stores must take the road of chaining. "

Che Jianfang, vice president of Red Star Macalline, also said: "China's home furnishing stores have not yet reached saturation, and no real store brand has been formed in the market. It is still in a relatively chaotic state. For the entire market, big fish The phenomenon of eating small fish, fast fish and slow fish is normal. "" At present, China's household distribution industry is in a mess, and industry associations and relevant government departments lack medium- and long-term planning. "Yin Bo, general manager of Beijing Lanjinglijia said In fact, enterprises are calling for relevant government departments to regulate the market environment.

Rapid expansion and conservative management, which is better

Must rapid expansion be good? Is conservative management necessarily detrimental to corporate development? In fact, two very different modes of rapid expansion and conservative management have emerged in the market. Chen Zhongxin said bluntly: "In 2010, the days of enterprises and agents have been very sad. You can do a front-line market research to see how many home furnishing companies have a happy life. Blind expansion makes the operation of the enterprise The sharp rise in costs, coupled with the fact that the management mechanism may not keep up, today, many companies, including us, are afraid to expand casually. "

Liu Chen, the secretary general of the Beijing Market Association Home Furnishing Branch, told reporters that the national expansion of home furnishing companies faces two huge challenges: first, companies expanding to the port must directly connect with the local market, and may be squeezed by local companies. Suppressing development is more difficult, and marketing costs are higher. Second, the rapid expansion of enterprises has to face the shortage of talents. The mature development of an enterprise is inseparable from the management of high-level talents. If the enterprise ’s talent strategy cannot keep up, Rapid expansion will become very passive.

People in the industry who hold the view of rapid expansion believe: "Objectively, there are indeed huge challenges in expansion, but if you do not expand, you will miss good opportunities. With the development of the real estate market, the home building materials industry as a downstream industry has ushered in a golden period At this time, a quick horse race is conducive to the priority establishment of channel advantages. If we can take the lead in completing the national layout, it will lay the foundation for the next step of revenue. "
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