Manulife IKEA Furniture will tell you about the four major channels that furniture dealers are facing! We are in a social environment with diversified channels. For entrepreneurs and enterprises, this is a good thing. Diversified channels provide companies with many development directions and business growth points; For consumers, a variety of consumption scenarios enrich the shopping experience. However, for traditional home dealers, channel diversification means that dealers' position as the main channel has been shaken. This threat mainly comes from four aspects of channel reform. In response to national policies, various real estate companies have begun to test water hardcover business. The rise of the fine decoration business is a huge blow to the traditional dealers, which means that the future demand for home furnishing from the incremental market will be contracted by real estate agents and decoration companies. They will look for home furnishing manufacturers with large-scale delivery capabilities. Cooperate with the supply chain, and will not cooperate with local brand distributors. In addition, the large-scale centralized procurement model has strong bargaining power, and even if it is purchased through a dealer, the dealer is not profitable. But at present, real estate agents and decoration companies have not completely replaced dealers, because hardcover still has some unsolvable pain points. One is the quality delivery capability. Hardcover involves the collection of thousands of SKUs. Many small real estate developers and decoration companies do not have the ability to do hardcover on a large scale. Quality problems in hardcover rooms are endless. The second is that hardcover cannot meet the personalized needs of users. How many people are there in the head of the household, whether there are elderly people, whether there are children, style preferences, etc., the overall hardcover delivery cannot be satisfied. These two points lead to a high rate of demolition of fine decoration. For the high rate of demolition decoration, real estate developers and decoration companies have not been affected, because the cost of decoration has already been calculated into the house, and the removal of heavy equipment has brought secondary profits to the decoration companies. The market that can be obtained by the dealers who survive the cracks is the heads of households who have removed the heavy equipment and have not found the enterprise. But in the future, under the general trend of hardcover, dealers, decoration companies and consumers will have different degrees of compromise, and hardcover will also develop in a personalized direction, and the market of dealers will be further reduced. The supply chain enterprises that have emerged in recent years are mainly in direct contact with factories, shortening the production and marketing path, and collecting product categories to empower foremen and freelance designers. This model has its rationality. The Xueque Life Museum that I have come into contact with recently is a full-category supply chain enterprise. Such enterprises have the following advantages: 1. The past product circulation path is: manufacturer-brand-general agent-regional agent-distributor-store-customer, each layer puts a part of profit, and finally reaches the consumer, often the price It has been three or four times higher, the supply chain can replace some of these roles, and the price of the product will naturally decrease. 2. In the huge stock market, freelance designers and foremen account for a large part. These people used to rely on home stores to purchase the main materials. The procurement efficiency is low, and the foreman who purchases in small quantities is almost in front of brand dealers. Without bargaining power, the foreman's profit is very thin. Snowflake's model is to empower these foremen and designers. On the one hand, these external designers and foremen have not thoroughly studied the lifestyle. For example, in daily life, how much space do girls need to put shoes, take off shoes and coats after returning home, and a series of movement processes, the difference between men and women living space Needs can be quantified with data. Free designers do not have so much data storage. At the same time, in the store, standardized products cannot meet these personalized needs. On the other hand, Snow Sparrow provides one-stop full-category procurement, which improves the purchase efficiency, and also provides certain sales rebates for the foremen and designers, and provides practical communication venues for these free foremen and designers to endorse and win consumption.者 trust. In this process, in the past, freelance chiefs and designers diverted from the store to the supply chain, and the role of distributor was replaced. In order to cope with this situation and protect their dealers, some main material brands have also begun to look for new development ideas. The chairman of a customized home furnishing told the author that they want to cooperate with the decoration company to provide a product supply chain, let the original dealers transform to serve, and provide dealers with new profit points. This is indeed a development idea, but in the actual operation process, it is also a big problem to ensure the service quality of dealers. The most direct factor leading to the misery of the dealer is the home store represented by the actual home, Red Star Macalline. Both online and offline traffic are declining, and the cost of acquiring customers is getting higher and higher. Even the traffic gathering places like the two major home stores cannot avoid disasters. The reduction in traffic directly leads to a decline in store sales. At the same time, rents in home stores are still rising, and most dealers' profits are getting lower and lower, and they are all struggling to support them. For companies and dealers, it is not a good thing to blindly chase the store and bind their own destiny to the store. When the traffic in the store is good, the dealer does make a profit, but at the same time, it also loses the ability to collect and collect customers independently, and can only rely on the flow of the store to "wait for feeding". When the traffic in the store is not good, the dealer needs to find a way to obtain traffic, and the accurate flow obtained will be dispersed after being diverted to the store, and the result will be less effective. At present, many home furnishing brands have clearly seen this reality, and they have detached from the store and built their own independent big stores, model rooms, community stores and so on. The impact of online shopping on the real economy is almost disastrous. Even if the home furnishing industry is an experience-intensive industry, e-commerce and community group purchases still take a lot of traffic. Coupled with the blessings of platforms such as Taobao, Tmall, and JD.com, consumers are increasingly accepting online purchases of furniture. In order to make up for the weakness of experience, e-commerce platforms are paying more and more attention to services, such as door-to-door customization, online ordering, free distribution and installation, 7-day unreasonable return and exchange, etc., consumers can complete the decoration without going out demand. Compared with brick-and-mortar stores, home e-commerce has lower costs, more channels for obtaining traffic, and easier user education for subtlety. At present, home e-commerce such as Lin's Wood and Youfan Art have emerged. Conclusion: After the closure of multiple channels and the increase of its own operating costs, the survival pressure of home dealers is increasing. In the incremental market, there are installed enterprises and real estate companies that control the flow of exports; in the stock market, the cooperation of supply chain enterprises with designers and foremen also takes away most of the flow. Coupled with the increasing cost of acquiring customers, the intensified market competition environment, and the serious homogeneity of products, it can be said that home furnishing dealers are the most miserable and the most incapable role in the industry.
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3. The decline in home store traffic and rising rents
4. The rise of home e-commerce platforms