Dealers frequently change hands
Old furniture dealers are difficult to guarantee because of the interests, small and medium-sized dealers collapsed in large numbers, making the retail market full of "new people." They are rumored to be selling furniture with high profits and can make a lot of money. Often, a fierce child has plunged into the ocean of furniture retail. When they finally know how deep the water is inside, they often have already paid a lot of tuition fees, and it is too late to turn back. For such dealer groups, the response of many furniture companies is to kill the professional furniture exhibition.
At recent major exhibitions, furniture companies tend to focus their promotions on attractive incentives. The propaganda of some companies is perfect for inexperienced dealers. Well-known brands, advanced design, fine workmanship, strong corporate strength, strong store policy support, extremely low ex-factory prices, almost all of the dealer's "fatal temptation". When the author and a friend who was looking for a new investment project visited an exhibition, he was attracted by the advertisement of an exhibitor's front door, and it was almost impossible to sign the contract. In fact, he has not even figured out whether there are dealers with this brand in the local area. Consult the manufacturer, answer: This new series of products has no dealers. Later, according to the author's investigation, in a well-known large-scale furniture store in the local area, there are dealers who have been operating for many years.
It should be said that large enterprises will not deliberately deceive dealers. In order to avoid new dealers from smashing the interests of old dealers, and at the same time, enterprises must develop new markets on the premise of ensuring the original market space. The strategy adopted by furniture companies is to continuously develop new series of products. Use a new range of products to recruit new dealer groups. This move is both an old-fashioned approach and an effective strategy for responding to new investors in the furniture retail community. Of course, since the products are brand new and even experimental, and the furniture retailer is also a newcomer to the furniture industry, such cooperation has mostly failed. In the market, dealers have a very high turnover rate. The author found that in the Luoyang furniture market, the second largest furniture market in Henan Province, the turnover rate of Guangdong brand furniture has almost reached a dazzling level. Some brand dealers have disappeared after half a year of opening, and some well-known brands have also been sold. Change hands. Contrary to the high turnover rate, as long as it is a new brand launched in Guangdong, a new series of products, the Luoyang market will soon be distributed to this brand. The solidity of the Luoyang furniture retail sector is staggering, and the spirit of its pursuit of new pursuits is equally astounding. This is a paradise for adventurers.
Not seeking quick wins, slow work out
Based on the current market conditions, many old-fashioned furniture dealers have adopted a strategy of shrinking the front line and cautiously attacking. It is difficult for furniture manufacturers to capture the glory of dozens of dealers at one exhibition. Therefore, furniture companies generally adopt the investment strategy of “not seeking quick wins, slow success and fine workâ€.
At the exhibition, a large number of professional buyers were collected, and after the exhibition, the customers were interviewed, and the potential customers were visited. The local market was understood and new customers were included in their sales team. Under the strong market pressure, furniture manufacturers pay more attention to the quality of dealers, and have a stronger desire to build long-term "unified fronts" with dealers. “It’s better to build a new, less stable business than to build an old, guaranteed business,†said a marketing director for a furniture company.
Furniture manufacturers are more eager to build a solid dealership. Due to the rapid expansion of furniture professional stores, the growth rate of furniture demand is far less than the growth rate of supply, coupled with the rapid increase in various sales costs, resulting in a very high elimination rate of furniture dealers. This is the furniture manufacturer has to Faced with market problems.
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