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The price war in the furniture industry is difficult to last, zero formaldehyde against the trend, the victory breaks out
If this year's interviews with executives in the domestic furniture industry, the most adjectives should be "severe." Throughout the trend of the entire furniture industry in 2012, the European debt crisis, the new environmental protection standards and exchange rate changes in Europe and the United States, the external demand export market has been compressed smaller and smaller; the country continues to strictly regulate the real estate market, timber prices, The increase in labor costs and the shrinking of profit margins have brought severe challenges to furniture companies. Price war: let the furniture sales mud deepen the above-mentioned pressure faced by furniture manufacturers, and the transformation into the downstream channels, naturally evolved into a deterioration of the marketing competition environment. In order to maintain survival and sales in a tight market, many furniture manufacturers have to put into the market in the form of price wars and start trading in “small profits but quick turnoverâ€. Many first-line brands have not hesitated to let go of their bodies, so that the industry's surprise price cuts will be added to this desperate fight. The price war in the furniture industry is difficult to last. Zero formaldehyde is on the rise. The author has visited the big home stores in several cities around May 1st and 11th. I found that this year’s various group buying activities, mall promotions and bargaining activities have been achieved. The degree of white heat. When the author arrived at a prefecture-level hypermarket in a certain weekend, it was found that there was no high flow phenomenon at the weekend. I only know when I found out that there were about 5-6 promotions in the city this weekend, which absorbed most of the passengers out of the market, resulting in a “guest vacuum†in the store. Not doing activities, waiting for customers, etc. seems to be a dead end. But the furniture dealers who are actively involved in the “activity†do not seem to benefit much. Many dealers complain that the more the activities are, the shortage of sales teams, and the fact that employees are running out of battle, corresponding to higher management costs, salary costs and various types of advertising investment. Although some successful activities can grab a batch of orders in the store, but because the competitive price cuts are too fierce, there is often a phenomenon of “single orders and more moneyâ€. Some dealers lamented, "In fact, I don't want to pick up so many orders. I have more orders and no more money, but the amount of after-sales service and quality disputes have become bigger. Headache!" Homogenization: Behind the price war Throughout the story, the sales situation in various markets this year, the increase in the number of promotional activities, and the renovation of promotional patterns is a common phenomenon. Many first- and second-line brands have expanded their headquarters support activities in order to support dealers in a wide range of promotional activities. Some companies do not hesitate to invest a large amount of labor costs, set up a special activity department; some companies will transfer the management functions of regional managers from the original new dealers to the development of activities, and the number of activities initiated as the assessment elements of regional managers One. The dealers who used to be "sitting in business" also realized that the situation was urgent and they all acted. Whether they could do it or not, they began to "go to the sea" to start activities.