Stores in full bloom dealers will face the danger of reshuffle

The rising pressure of raw materials and the home furnishing stores are now fully blossoming. This is a real problem in the home furnishing industry. Under double pressure, the dealers have to expand their capacity. But not all dealers can make money at the same time, the market volume tends to be saturated, the rigid demand is far from the expansion speed of the store. If the dealer enters multiple stores, each standard store is calculated at 200 square meters, and the gross profit earned is not enough to protect the capital.

Ningbo Home Store has been expanding and upgrading in the past two years. Under the limited market volume, it has now gathered AIA, Huakang, Hyundai Mall, Sixth Space, Red Star Macalline, Decker, Hongguang, Huamei, etc. Large-scale stores, some of which have opened a number of chains, local store regional linkage to maximize market share, while foreign chain predators use the power of capital to combine vertically and horizontally, want to be a regional oligarch. The rapid expansion and upgrading of stores is staggering.

It is reported that Red Star Macalline will open a second store next. There are also projects in AIA City West. Actually, the home will also enter the Ningbo market. There are other investment projects. After the accelerated expansion of the store, there are also many problems . Many people still remember the large-scale closure of the store in 2008 . The excessive growth rate of stores is caused by the transfer of furniture exports to domestic sales on the one hand, and the promotion of local governments on the other. Many hypermarkets are built in areas supported by the government. After the store expansion, the number of dealers also increased. In order to fill more blank markets and maintain market share, many manufacturers and stores often put pressure on distributors to expand simultaneously.

In the face of more and more powerful platforms, dealers lacking operating strength and product characteristics are likely to face the risk of reshuffle. On the one hand, dealers face the rent and other cost pressures of the store, on the other hand, the upgraded store Increased investment thresholds have specific requirements for dealers' capital flow and brand image, which will also "wash" some dealers. To get rid of the embarrassment of making sandwiches, distributors are the key to improving their own strength. Either an independent portal, learn from Meikemeijia, or use their own strength to call small and medium-sized distributors around the world to form a sales alliance, or quickly establish online marketing channels to achieve multiple legs walk.

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