Shower room companies want different industry alliances to have more alliances with their peers

In April 2009, Europa Cabinets, Dongpeng Ceramics, Nature Floors, NVC Lighting, Red Apple Furniture, and Midea Air-Conditioning Co., Ltd. jointly established the first domestic pan-home industry alliance, the Champions League. In the same year, TATA wooden door, Wrigley bathroom, Lens shower room, icon floor, European cabinets, and Oushenuo Ceramic combined with a home network formed the leader 6+1 alliance. Subsequently, "Alliance" quickly became a hot buzzword in the pan-family industry, and various brand alliances continued to emerge.

However, the brand alliances that emerged from 2008 and 2009 are basically factory alliances. The alliance formed by distributors is either an extension of the factory alliance or just a promotional alliance, which has a very limited role to play. In the past one or two years, as the stores continued to expand, rents continued to rise, dealers' operating costs were getting higher and higher, and the building materials market was generally in the doldrums. Union agencies that really represented the interests of distributors began to emerge as the pan-family industry became increasingly Active force.

The establishment of a coalition is not only a frustration but also an inevitable pan-home industry alliance. It has only since 2008 began to enter the industry stage, and it has gone through two stages so far:

The first stage is from 2008 to 2010. Affected by the financial crisis and the European debt crisis, the performance of many manufacturers and distributors declined at the time. “Bao Tuan” and “wintering” became the two most frequent words in the industry. Many manufacturers and distributors spontaneously united, Or with the help of third-party organizations such as the media and stores, they intend to increase sales through the effect of 1+1>2. Although the brand alliance at that time was only the marketing needs and methods, it was still sought after by most manufacturers and distributors.

The second phase is from 2010 to the present. The difference from the first stage is that the dealers at this stage not only suffered from the pressure of the market downturn, but also took more pressure from the stores and manufacturers. Before 2010, the pressure brought by the stores was mainly concentrated on manufacturers. The specific performance was high alliance guarantees and advertising fees. After 2010, the pressure on the stores was transferred to ordinary dealers. The specific performance was sustained rising rents and continuous improvement. The investment threshold. Under the pressure of the two sides of the market and the store, some distributor alliances began to work to protect the rights of members and the right to speak in the industry, coordinate the interests of members internally, and act in concert with the outside world to win more rights and interests from stores and manufacturers. As a result, the functions of these dealer alliances have undergone a major transformation.

Regardless of the first phase or the second phase, there is a common ground for the establishment and growth of distributor alliances. That is, the market environment is deteriorating, and the pressure on dealers to survive has greatly increased. It can be said that the establishment of alliances by dealers is largely a helpless move. However, from the perspective of the industry chain structure and the development trend of the industry in the pan-home industry, the emergence of dealer alliances is an inevitable result.

In the pan-home industry chain, dealers have always played the role of “sandwich biscuits”. The above are manufacturers and stores, and the following are dealers. When the market is booming, although the days of dealers are better than others, they are also burdened with complicated tasks such as after-sales services. Once the market is depressed, manufacturers may be forced to unload their goods or even withdraw their agency rights. The pressure of accepting and increasing the margin of promotion leads to a drop in profits. Moreover, due to the continuous prosperity of the pan-family industry in previous years, dealers in many localities are already in surplus. With the increasing ease of buying and selling by manufacturers and vendors, the status of dealers has further deteriorated, and the power to speak is not much. weaken. As an indispensable part of the industry chain, dealers are inevitably chosen to form alliances to safeguard their own rights due to the lack of discourse power, and are an inevitable result of the continued development of the industry, even if there are no financial crisis and real estate regulation and other factors. The dealer union will also appear sooner or later.

Promotional alliances need to be upgraded to benefit alliances The 2008 financial crisis has brought a significant change to the pan-family industry, namely the daily promotion of promotions. From this point on, the phrase "no sales, no sales," was regarded as a standard by many manufacturers. Even if the effects of the financial crisis faded, the daily activities of promotions did not change, and all kinds of brand alliances that promote sales were also continued. And become more active after the introduction of real estate regulation.

Today, although some alliances representing the interests of distributor groups have emerged, they are playing an active role in the fight for rights and interests of distributors. However, throughout the country, the dealership alliance in the pan-home industry is still dominated by promotional alliances. That is to say, most dealership alliances have not fulfilled their true functions, and most dealers have not yet improved their status in the industry.

With the development of the industry and changes in the market, the fight for the rights and interests of distributors has become a real function that the dealership alliance should perform. Promotion is an additional task. In fact, although there are many promotional alliances, there is not much charisma, and consumers may not be willing to pay for a brand at the same time for a certain brand. From 2008 to now, the short-lived distributors coalitions abound, and these alliances were established with the aim of joint marketing.

Judging from the current industry situation, the dealership alliance wants to get rid of its “tasteless” status and stands firm in the industry. It must upgrade from a promotional alliance to a coalition of interests and begin to perform the function of obtaining rights and interests for dealers. Only in this way can the distributors be united within the alliance. Otherwise, even the best alliance will only be scattered. It will be manipulated by the stores, manufacturers, and individual dealers with stronger capabilities, and finally it will decentralize and collapse.

The shower room should be a multi-industry alliance and more to the industry alliance. Essentially, the dealer alliance is a combination of the weak, rather than a strong alliance. For the weak, the union is a survival and development rather than a hegemony. Therefore, the weaker industries and the weaker ones need more cooperation. However, the reality is that those who are keen on the Alliance are actually large industries, big brands, and large agents.

In the sanitary ware industry, although the shower room is known as one of the "three majors," it is undoubtedly a weak one for toilets and bathroom cabinets. There are few companies and small ones. There is no real big brand, and there is no public concern. High, so that in the major home stores are usually at the corner. A person in charge of a shower room company stated that there are generally no shower room brands in the stores. However, if the investment market is frustrated, the first thing that comes to mind is often the shower room. From this it can be seen that the shower room manufacturers and distributors need to “pull the knots and help” to change their status.

However, the shower room brands generally lack the enthusiasm of the Alliance. Apart from Lens's participation in the Leaders Alliance, other brands are all alone, participating in some promotional activities organized by stores, and making temporary arrangements with distributors from other industries. Promotional alliances. Because the shower room distributor lacks the enthusiasm for uniting with others, the right to speak in the face of stores is weaker than in most other industries.

Shower room dealers should actively participate in or organize alliances, but compared with other industries, shower room dealers must not only participate in different industry alliances, but also participate in alliances with their peers. At present, the vast majority of domestic dealership alliances belong to different industry alliances, that is, they consist of distributors from multiple industries. On the one hand, the market competition of the pan-home industry has become increasingly fierce. Because the competition among the dealers in the industry is very tight, they are exclusive when they participate in the dealership alliance. The coalition that asks to join cannot appear with their own dealers; on the other hand, distribution Several major functions of the business alliance, such as the fight for rights and interests, sales promotion, etc., can be realized as long as different industry alliances are implemented. It is not only unhelpful for multiple peers to join in, but it is prone to conflicts and affects the work of the alliance.

However, for the shower room dealers, it is of great benefit to join the industry alliance. First of all, the shower room dealership alliance can concentrate on increasing people's acceptance of the shower room, let more people know about the shower room, and then buy the shower room. At present, the biggest shackles that have plagued the development of the shower room industry is that people accept it to a low level and think that the shower room is optional. If the shower room dealers can unite together, it will not only reduce internal friction, but also help to enlarge the market cake. . According to the market prospect of the shower room, the market space available for dealers is many times that of the existing market.

Secondly, the industry alliance of the shower room dealers can play a regulatory role in the market, reduce the vicious competition in the industry, and deceive consumers with shoddy products, thereby increasing the overall reputation of the shower room industry.

Third, the industry alliance helps to increase the status and influence of the shower room in the pan-home industry and help dealers to obtain more rights in the face of the store. In the pan-family industry, shower rooms have always been a supporting role and are not valued by other industries. Therefore, even if shower room dealers join in different industry alliances, it is difficult to be treated fairly in the distribution of internal interests. It is not as good as competing in a different industry alliance. Join yourself.

From the perspective of the entire home furnishing industry, the rise of the dealership alliance has become a general trend, but the development of the industry alliance alliance is obviously limited. It is expected that in the long run, the dealership alliance will be based on different industry alliances. However, for the shower room industry, the industry alliance is a powerful weapon to hamper the shackles of the development of the industry. Therefore, the shower room dealers must not only actively join the multi-industry alliance, but also form an alliance with the industry to push the shower room to more people. a broader market.

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