As the country continues to regulate the real estate market, the furniture industry downstream of the real estate industry is undergoing a tremendous test: increasing property rents pose the most direct challenge to dealers; the decline in real estate transaction volume has led to shrinking demand in the furniture market, which has led to a serious decline in furniture sales This poses a huge challenge to traditional furniture stores; various operating costs increase, and the homogenization of products is serious, which also puts tremendous pressure on production enterprises. The situation is so grim, how should the furniture industry break through? The current circulation system has no future The current furniture circulation market is almost a unified pattern of hypermarkets, and it is mainly concentrated in first- and second-tier cities. Other distribution methods are minimal. Excessive competition, rising rents, and high marketing costs have brought endless troubles to furniture companies, distributors, and even the store itself. Especially since the second half of last year, this hypermarket-style circulation system has exposed many shortcomings and even caused social conflicts. For example, last year, a top furniture brand MALL was exposed by the media to hire social idlers to beat joint anti-rent dealers; and another example is that the red star Macalline, which has entered the "hundreds of stores" era, has a rising trend in the vacancy rate of malls in the country. This year, a store in Pazhou, Guangzhou was closed; another industry giant Ouyada lost Shenyang in 2011; the international chain giant IKEA also exposed the supplier's "anti-Ge" incident and a lot of layoffs ... In summary, there is no future for the circulation system of hypermarkets in the furniture industry of first- and second-tier cities. The future of furniture industry The author believes that the furniture circulation system is now in a time of non-reform. For furniture distributors, it can be developed in two directions: one is the parallel operation of retail chain stores and e-commerce, and the other is the transformation into a professional commercial real estate developer; furniture manufacturers can also develop in two directions: one is to develop E-commerce, the second is to establish its own furniture brand direct stores or furniture franchise stores. In a nutshell: e-commerce and self-built channels are the way out for the furniture industry in the future. First, let's analyze e-commerce. E-commerce in the furniture industry has already started. Although there is still a long way to go, most people believe that this is the dawn before dawn, just like the sun's rays will shine on the earth. From the perspective of stores, large-scale national chain stores such as Red Star Macalline, Yuexing Home Furnishing, IKEA Home Furnishing, and Fusenmei Home Furnishing have all established their own online shopping malls, which have gradually enriched product categories and become more sophisticated. From the perspective of furniture companies, companies such as Qumei and Quanyou Furnishings have gained a lot in the field of e-commerce in 2011. Gujia, Top 100 and other leading companies in the furniture industry are entering e-commerce. Let's take a look at traditional e-commerce, which has begun to segment the traditional furniture retail market. With the rise of consumers in the 1980s and 1990s, online shopping has been increasingly used by people, so the widespread promotion of furniture e-commerce is the general trend. Let's analyze the self-built channels. At present, the furniture market in the first- and second-tier cities is basically occupied by hypermarkets. To enter these markets, furniture companies must either be "kidnapped" by hypermarkets or set up their own independent stores. Meikemeijia is widely concerned in the industry by setting up its own independent stores in first- and second-tier cities. For third- and fourth-tier cities, the national chain stores have not fully entered, and the appeal of local stores is insufficient, which provides excellent opportunities for furniture companies to build their own channels. Among them, the model is none other than Quanyou Furnishings. Quanyou Furnishings has expanded by building independent stores in third- and fourth-tier cities across the country, and it has become a household name to this day. Self-built channels to explore the market According to the usual division method in the industry, the four major cities of Beijing, Shanghai, Guangzhou and Shenzhen are called the primary market, other capital cities and sub-provincial cities are called the secondary market, most prefecture-level cities and some economically developed counties Tier-level cities are called tertiary markets, while other county-level cities, towns, and rural areas are tier-four markets. Now, the primary and secondary markets are basically saturated, and the tertiary and fourth markets are considered to be areas with great market potential to be expanded. Therefore, in the next few years, the third and fourth tier markets will definitely become the most competitive main battlefield for Chinese furniture companies. When entering the tertiary and tertiary markets, furniture companies must carefully analyze this market and fully understand its characteristics in order to be targeted. Below, the author analyzes the consumption characteristics of the tertiary and tertiary markets for you. The author believes that when companies enter the tertiary and tertiary markets, they should no longer follow the old road of relying on hypermarkets when they were in the primary and secondary markets. Instead, they should build their own channels. There are many ways to refer to, such as buying land for self-construction , Self-construction of leased land, construction in cooperation with local businesses, franchising, etc. Only if the furniture enterprise firmly grasps the scarce resource of channels, can it open up a broader market space. Rigid Core Luxury Vinyl Flooring,Luxury Vinyl Spc Flooring,Spc Vinyl Flooring,Vinyl Plank Flooring Jinan Caiming Wood Co.,LTD , https://www.caimingflooring.com