Recently, the home furnishing direct market has challenged the business model of traditional home furnishing stores and has become a hot topic in the industry. On Sunday, Ouhua Shangmei, the first home furnishing direct sales market in Beijing, is about to open, and another home market, the Harmony Home Furnishing Market, which focuses on the direct selling model, has also begun to attract investment. We heard two voices from the industry. One was expressing support and expectations for this low-rent or no-rent direct sales model. After all, in the context of the downturn in the overall market environment, manufacturers can be relieved of pressure, increase sales and give back to consumers while also creating a multi-profit situation; another voice is questioning some of the problems in the home sales market itself, not Optimistic about this business model. So, what are the problems with the home direct sales model? The Morning News reporter conducted an interview this week.
Can the low price of the direct sales market be realized?
For the traditional leasing system, the direct sales market changes the leasing model of the traditional store and crosses the links of agents and distributors. All commodities are directly purchased from the manufacturers, unified sales, and unified distribution. Manufacturers do not need to invest in decoration, management and operation costs, just display and regularly replace samples, and the store is responsible for sales, logistics, and after-sales service.
Through understanding, it is found that the biggest selling point of the home direct selling market is "low price, parity". The direct selling market explains that because it has crossed agents and distributors, the price is relatively low. Can the low price mentioned here really be achieved? The reporter interviewed Liu Chen, Secretary-General of the Home Furnishing Branch of the Beijing Market Association on this issue. He said: "For the home furnishing market, it is an iron law to have the same price for the same brand of the same brand in the same region. Direct sales can reduce the price. This is not true. The so-called cheap and expensive must have corresponding comparison standards, so it is still to be verified that the price is the same in the same area. "Yin Bo, Manager of Lanjingli Family, Dazhong Temple It also said: "Many furniture stores now generally have the concept of direct sales. Whether there is an advantage depends on the brand concentration and price. The traditional stores are now in Beijing, one in five kilometers, and the coverage is relatively dense. The establishment of new markets requires Breaking through many resistances, the geographical location, whether the common people accept or not, or not buy, are all problems. "
Unified management becomes the biggest challenge of direct selling model
Compared with the unified operation of the store, the operating cost is relatively high and the difficulty is not small. Secretary Liu said: "The direct sales store is like a large supermarket. It is solely responsible for various issues between buyers and sellers, and any details appear to buyers or sellers. Issues such as personnel follow-up, management processes, and advance payment of quality issues are all great tests for direct sales stores. The settlement method of running reversals also requires special care. The running reversal settlement derived from the transaction amount The way is not new in the home market, but there are many problems that need to be dealt with in the settlement of the home direct sales market. For example, how to control the sales share reasonably and fairly? From the transaction amount, it is more difficult to grasp whether the commission amount is true or not. It is also necessary to strictly prevent the occurrence of "flying orders" and other situations. Don't let such problems appear to make the direct sales model of the home store a last resort. "
Direct selling market should pay attention to the mutual benefit of brand value
Brand added value is a problem that any brand attaches great importance to, and it is also an answer that must be completed in the direct marketing market. An industry source who asked not to be named said that there are two types of brand added value, one is its own brand value created through years of operation, and the other is its added value after entering the sales terminal, which is different from the store's Brand added value is proportional. For example, in some stores, their own positioning is the mid-to-high-end consumer group. Consumers can obtain more quality assurance, after-sales service, and brand credibility from these stores, and the added value of the brand can be reflected from it. The store has also identified the standards of the brand, and brands entering this kind of store must be "just right." This is the so-called mutual benefit in the added value of the home brand and the store brand. If the brand value of the store cannot be achieved, it will be a loss for both parties.
Ouhua Shangmei, which is about to open, and Xianghe Home, which will open at the end of the year, develop new markets with new concepts, which are meaningful attempts for the home market environment. It is worth waiting and seeing how to combine our own advantages, avoid possible problems, and obtain more added value.
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