The European economic crisis has led to the shrinking of the global outdoor furniture consumer market. At the 29th Guangzhou (International) Outdoor Leisure Furniture Exhibition, the number of buyers decreased by 20% compared with previous years, and the volume of transactions and the number of buyers declined. The foreign outdoor furniture market is obviously in the state of "buyer's market", which generally fights "price wars", which is followed by the era of "small profits" of manufacturing companies. China's outdoor furniture companies are mostly export-oriented, and the "learning" of foreign trade, the advantages of Vietnam and Indonesia's outdoor furniture export are gradually emerging, and other challenges. Chinese outdoor furniture companies want to seek development, they must seek more outlets.
Poverty is thinking and changing. The demand for domestic outdoor furniture is increasing, and it has expanded from commercial and professional fields to ordinary families, so that many foreign trade enterprises have seen huge potential in the domestic market. Senior industry professionals and corporate leaders have said that domestic sales will become an inevitable trend, and outdoor furniture sales channels will also enter an era of diversification.
Traditional channels dominate
The basic mode of traditional channel expansion in China is: Finding dealers through exhibitions, dealers enter the store as the main sales body, and the store is for the dealer provider to sell their products. Specifically, the operation process of the township is as follows:
First, find agents and distributors through the exhibition. There are more than 20 domestic professional furniture exhibitions in China, and there are many large-scale international outdoor furniture exhibitions in France, the United States, Italy, and Germany. At the exhibition, enterprises negotiate with agents and distributors, discuss the conditions for joining, and sign cooperation agreements. Agents and distributors obtain product management rights, while enterprises obtain agents and operators who sell products. At present, the exhibition is the main way for manufacturers to find agents and distributors.
Agency and distribution operations are slightly different. Agency is to take care of business on behalf of an enterprise, not to buy out the enterprise's products, but to provide a certain amount of preferential treatment by the manufacturer. The ownership of the goods still belongs to the manufacturer. The product is not for personal use, but instead the enterprise transfers the product to the market. Distribution is the act of using funds to purchase goods directly from the enterprise and transferring the goods to the market. The products are also not for own use. The so-called "distributors" generally refer to those business units that exchange money for money from enterprises and obtain product ownership. At present, Shenzhen furniture companies mostly adopt distributor channels.
Self-built channels are developing rapidly
In order to save channel costs, more and more well-funded outdoor home city manufacturers began to get rid of furniture stores and set up their own stores. This practice has long been a precedent in the civilian furniture industry. For example, there are currently dozens of self-operated retail stores; Fuzhidao currently has more than 1,600 retail stores; the Federation currently has more than 1,000 chain stores in more than 300 cities in the country; the Dynasty chain has reached There are more than 2000; there are more than 600 all-friends; and there are more than 1,000 stores in Pocket Pearl and Shuanghu. In addition, the Shenzhen Family Association, with the "Shenzhen Furniture" regional brand advantage, called for more than 100 local furniture companies and jewelry companies to collectively enter the Nanming "Minsk" home square to explore a low-cost channel expansion for Shenzhen furniture companies. New way.
The self-built channels of producers are divided into direct sales and franchise. Direct stores can more fully reflect the manufacturer's brand image, market positioning and corporate philosophy, but have higher requirements for producer funds, human resources, etc., require greater effort, and the development rate is relatively slow. The franchise store has little capital pressure for the enterprise and can quickly enter the target market. And rely on the dealer's sales channel to quickly gain a foothold, but it requires companies to sell part of the profit.
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