In recent years, some national chain stores have expanded rapidly and continuously expanded the national layout, but this has caused rents to rise continuously, sales have been declining, and profit margins have been greatly reduced. Many flooring companies have placed a heavy burden on them, and they feel that they are being squeezed by the store. The bitterness.
Chain stores have had mutual benefits and win-win with flooring manufacturers
In fact, the "enterprise + exhibition + chain store + dealers" model has been recognized by the floor companies as a mainstream, advanced floor marketing model. Many flooring brands mostly find dealers by participating in trade shows, and thus establish a "strategic partnership" relationship with home stores.
Enterprises enter high-end stores, one sells products, and the other forms a “high-end brand†reputation. The two complement each other – “It can be said with certainty that the enterprises that followed the chain stores in the early days earned money.†The respondents acknowledged that The so-called "strategic partners" foreshadows mutual benefit and win-win cooperation. Indeed, this partnership has resulted in huge profits for companies, distributors and stores. But in recent years, with the rapid expansion of home stores, more and more floor brands feel that they are “expandedâ€.
Some chain stores today, in the view of flooring manufacturers, are not tasteless. Some interviewed companies told reporters: "The rents are rising year by year, the logistics consumption is large, and the money is not much. The consequence of this is that the market seems to be a benign development. But in fact, it is in jeopardy." He said: "The floor manufacturers are forced to follow up, passive layout, cost soaring, profit dilution, the most painful is the store dealers, expensive rents, demanding regulations, capital occupation, let it slightly If you don't pay attention, you will be defeated."
Co-casting platform forms a healthy profit model
The insiders of the flooring industry talked about the problem that everyone is most concerned about making money. It is quite frank that: At present, the chain stores have reached six to four, that is, six percent, two percent, and two percent, which is already quite high. Profitability." - Do not want to fall on this basis, if you fall again, the company will eventually flee.
According to its analysis, on the one hand, large-scale stores use capital operation as a means to strengthen the value of commercial real estate. On the other hand, they will concentrate on the brand enterprises with a slight advantage, and the integration will be launched. This is the general trend. However, the flooring companies also have their own demands: First, give the floor enterprises a space, can not use the floor manufacturers as a fill-in tool for shopping malls; second, strengthen the business investment and operation norms, professional people do professional things; third, for commercial real estate value-added The purpose and the limitation of large-scale volume, most of the shopping malls are located in the suburbs, and there are fewer customers. This requires the enhancement of marketing and the follow-up of commercial support. Floor companies have become a tool for value-added commercial real estate, but they should not be victims.
Floor companies need to compete on the big platform of chain stores. The competition is for profit, how can it be profitable? "One is the development capability of the manufacturer. In the design and research and development of products, we must strive to build a large circulation platform, that is, we must cooperate to do a good job in the platform of the store. Second, the dealers must be aware. Improve distribution of talent and its capabilities."
If you want to define the current floor marketing, it is now a chaotic period, going through the upswing, adjusting the period and then coming to the platform period.
“To tell the truth, we also hope to have a bigger circulation platform.†A floor company talked about its experience in entering the store: “When it comes to the store, I know how bad I am doing. This is self-knowledge and encourages myself to work harder. The second and third-tier markets only use price to promote sales, but entering the store is the opportunity to 'train themselves.' Everyone is more than products, culture, packaging, and atmosphere. Therefore, we believe that the chain model has three good: First, the product With the opportunity to compete in the same stage, the second is that the chain model is effective for market expansion, and the third is the innovation of the vendor's thinking mode."
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