Flooring companies seek healthy profit model

In recent years, some nationwide chain stores have expanded rapidly and have continued to expand the country's overall distribution. However, this has caused rising rents, declining sales volume, and a shrinking profit margin. Many flooring companies bear a heavy burden and feel squeezed by the stores. The pain.

The chain stores have been mutually beneficial and win-win with floor manufacturers. In fact, the “corporate + exhibition + chain stores + dealers” model has been recognized by the flooring companies as the mainstream, advanced floor marketing model. Many floor brands mostly find dealers by participating in industry exhibitions, and establish "strategic partnerships" with home stores.

Enterprises enter high-end stores, one sells products, and two form “high-end brand” reputations. The two complement each other. “For sure, early-stage enterprises that followed the chain stores earned money.” The interviewed company admitted that The so-called "strategic partners" indicates that we are mutually beneficial and win-win cooperation. Indeed, this cooperative relationship has made great profits for businesses, dealers, and stores. However, in recent years, with the rapid expansion of home stores, more and more floor brands feel that they are "expanded."

Nowadays, some of the chain stores are not ridiculous to the floor manufacturers. Some interviewed companies told reporters: “Rental rents rise year after year, and logistics consumption is high. The result is that the shopping mall seems to be benign. , but in fact it is in jeopardy.” He said: “The floor manufacturers were forced to follow up, the passive layout, the cost soared, the profits were diluted, the most painful is the store dealers, expensive rents, harsh regulations, the occupation of funds, let it If you don't pay attention, you will lose out."

Co-plating platform to form a healthy profit model Flooring industry insiders talk about the issue that everyone is most concerned about not making money. It is admitting to say: currently in the chain stores “reach ** open, that is, Liu Cheng Ying, Liang Cheng Ping, and two percent losses. It is already a very high profit rate." - Do not want to decline on this basis, 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, and on the other hand, they bring together brand enterprises with a slight advantage, and thus start the process of integration. This is a general trend. However, the floor companies also have their own demands: First, give floor companies a space, they can't use flooring manufacturers as a tool to make up for the shopping malls; Second, strengthen business investment and operating norms, professional people do professional things; Third, value-added for commercial real estate The purpose and large-scale mass restrictions, shopping malls are mostly located in the suburbs, fewer customers, which requires the strengthening of shopping mall marketing and business support follow-up. Flooring companies have become a tool for adding value to commercial real estate, but it should not be a victim.

Floor companies need to compete on the big platform of chain stores. Whereas competition is for profit, how can it be profitable? "The first is the ability of manufacturers to develop, in the product design, research and development should strive to build a large distribution platform, that is, we must cooperate to do a good platform for the store; Second, the dealer awareness, we must step by step to improve the distribution personnel and their capabilities."

If you want to define the current floor marketing, it is now a chaotic period. It will go through an ascending period, an adjustment period and then come to the platform period.

“To tell the truth, we also hope to have a larger circulation platform.” A floor company talks about his experience in entering the store: “When they arrived at the store, they learned how bad they were doing. This was self-knowledge and prompted them to work harder. The second and third markets only use price to promote sales, but entering the store is an opportunity to “exercise yourself.” Everyone is better than products, culture, packaging, and atmosphere. Therefore, we believe that there are three types of chain models: First, products. With the opportunity to compete on the same platform, the second is that the chain model is effective for market expansion, and the third is the innovation of the vendor's thinking model."