Article by jekky

Looking back on Chinese furniture industry in recent decades, the basic marketing model are Lease Form system, support development of the industry to today’s three major sections: manufacturers, distributors, stores have been in continuous conflict, and their various ways to strike a balance. At the same time, exploration of a variety of business models have not stopped. Storage Direct, which has been very popular overseas model, has finally emerged into a kind of Chinese life. Compared with the traditional direct sales model warehouse home business model is concerned, not only as a supplement to traditional stores or a mainstream trend in the bud. Home Gallery in Beijing, represented by direct sales warehouse is becoming apparent in China’s domestic circulation the vitality of a new industry. Insiders said the warehouse direct and cut off circulation inside the furniture’s high cost of intermediate links, direct consumers to purchase high-quality low-cost furniture warehouse, factory to warehouse and rent free office space, it will traditional furniture circulation a huge impact. Endless chain of contradictions Industry With international and domestic furniture, raw materials, production equipment prices are rising, manufacturers are facing intense pressure, while the manufacturers face increasingly fierce competition between the various manufacturers had to accelerate the pace of new product design and development, had to open up new sales channels and a major effort to improve sales, hired senior management personnel, planning personnel, put a lot of advertising, the event to seek advantage Proxy Providers, etc. are to doubling the cost, resulting in production of the production costs, operating expenses and serious imbalance in the ratio of corporate profits. The impact of domestic exports to switch to new markets is difficult, especially in the first-line market, experience is not suitable for the location of the store, find a suitable rental booth again prohibitively high, even into the store incoming store operation is harsh terms of the already meager profits have been cut at various levels, leaving very little profit manufacturers, coupled with the similar products the price war between distributors, manufacturers even make matters worse. Domestic home market in a million years, more than the profit of not less than 50, more than 10 million in less than 10, the market investors enjoy the tremendous benefits of high rents, the relative profits far higher than the manufacturer and brand agents, and any arbitrary rent increase, leading to uneven development of the market. Beijing, for example, the average rent per square meter home market remained at between 300 to 450, and generally pay a quarterly basis, sales shall also unified the cash register to the mall, at least a month to be settled, as dealer, the only all high cost of all imposed on the sales price, which the consumer price index as a consumer had no doubt great obstacles. New business model Bill Ford With the rapid development of economy, this existing traditional furniture stores as the main body of the traditional model has the rapid development in the market shows a lot of discomfort, the furniture industry has also been creating new business models to get rid of the traditional model with to the cost dilemma, manufacturers of the commercial impulse, have surfaced in Internet sales, the industry is also looking forward to an entirely new business models to make up for the traditional furniture business models to promote the furniture industry into a new journey. As a comparatively new warehouse direct, recent contact with Beijing’s ‘Home Library’ famous home base for storage and direct sales, direct sales on the storage mode and a detailed understanding of the operation. Beijing as the country’s political, economic, cultural and international exchange center, the annual production value reached 350 billion yuan in China ranks first in the North, particularly the strong economic impetus for the Olympic Games and the ‘capital economy’ concept of the building, it is gave birth to the most super-growth consumer market. Office Furniture Regard, it has the largest group purchasing market, accounting for sales of office furniture is 1 / 6, hotel furniture sales 1 / 4; civil furniture, furniture, Beijing has hundreds of billions of years of spending power, coupled with leveraging real estate Jump to upgrade domestic industry, which undoubtedly is a large cake. The face piece of cake, store in the competition heated up, and a magic weapon to win is to win the respect of consumers. Based on this, ‘home library’ was taken to direct this new model storage. ‘Home Library’ famous home base in southwest Ring direct storage, the total planning area of 200 mu, the total size of 500,000 square meters, a 10 million square meters of warehouse relying on the main exhibition hall, close to Beijing World Park, surrounded large commercial projects and high number of residential areas, especially in the ABP group will focus on 500 business headquarters, Gome development of ‘international fashion brand Trade Center’ area of 560,000 square meters, is a major international fashion brand, flagship store base; under construction large-scale commercial projects ‘South Mall’, ‘Beijing Railway Train section’ integrated zone up to 5 million people the size of working life, will focus on Beijing’s highest income groups, to ensure there is a huge business around the long-term stream of people. To this end, it integrates well-known furniture companies join to provide warehouse super-cheap shopping patterns to a very low operating costs, tidy furniture chain, adequate storage platform to a full range of after-sales service system to experience the advantages of warehouse-style shopping , show success, sales, warehousing, logistics, trading as the core of the new synthesis.

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