Two strong performances in the furniture industry

It is understood that after 30 years of development in the furniture industry , the financial situation is coarse and the influence is strong. Compared with the store, the store is generally better than the store. In the domestic furniture manufacturing enterprises, the high-end furniture manufacturers only The proportion is less than 10%, and 60% to 70% of furniture manufacturing companies belong to SMEs. Generally speaking, the store is a “rental woman” in the home industry, and the enterprise is a “tenant”. Therefore, in many cases, the company is still subject to the store and is in a relatively weak position.

One of the strong performances of the store: "kidnapping" to open a store

In furniture stores, especially in well-known large-scale furniture stores, the right to speak between manufacturers and stores has been seriously unequal. Yang Yi said: "The reason why the store is so strong is that it cannot be replaced. After the furniture manufacturer produces the product, it must have a certain sales channel, and because of the huge investment scale of its own store direct sales, Most domestic furniture manufacturers are unable to afford, so they have to rely on the location and influence of large stores to sell their products."

In recent years, with the increase in furniture costs, increased competition among peers, and poor market conditions, the profitability of many domestic household enterprises has gone from bad to worse. At present, in the domestic furniture industry, storefront rents account for 10% to 15% of the actual sales of furniture, and most of the home furnishing enterprises are suffering from 20% to 30% of the store rent. struggle.

Take the “homely home” of the well-known furniture store in China as an example. According to the regulations on the merchants in the store, if the home of the store opens a new store in other places, then the existing merchants must follow the new store. "Now the manufacturing costs and the increase in store rents are increasing year by year," said a reporter from a private enterprise furniture factory, Zhang Li (a pseudonym).

“The home industry is closely connected with real estate. Now the situation in the property market is not good. There are fewer people buying new houses. The number of people who need new furniture will naturally decrease. If the products cannot be sold, they will have to expand along with the store. This is equivalent to an increase. Operating costs, we are almost hard to support." Tension out of the furniture industry is currently facing difficulties, his furniture factory is located in Hebei Province, according to reports, in 2011 his company's furniture sales rose 10% year-on-year, but because The cost of raw materials, labor and other factors, the profit fell by 30%.

According to the general business logic, in the year of bad sales, merchants will give up the plan to open a new store, and will not make unnecessary investment. However, this is not the case. Most of the domestic furniture manufacturing companies are in the form of sales in the store. Many stores are very strong, and there are hard requirements for businesses to open new stores. Therefore, many furniture manufacturers have to follow suit. Open a shop.

There are not a few furniture manufacturers that are as profitable as the tension. It is understood that according to industry analysis, in the furniture industry, store rents account for 10% to 15% of store sales is ideal, merchants can obtain reasonable profit margins; and if store rents account for 20% of store sales More than %, it will cause a lot of financial pressure on the business, the days of the business will be more difficult.

Strong performance of the store: "Overlord" regulations

On June 11th, Zhang Bo, a agent of a national brand furniture in Zaozhuang, on the first floor of Zaozhuang Senbo Home, received a notice from the paper, which wrote that for the good development of the local market and the long-term interests of the distributors. , the mall notices the current regulations:

1. The rent of the business premises of the same brand store in other malls in the region will increase by 50% on the basis of the same period of rent -

2. The insider of the mall will open another brand store in another designated mall to give a minimum rent increase of 100%.

3. The regulations will be implemented from January 1, 2013.

"Half more than a month ago, we also received such a notice, the payment is the office of Semper Home Mall, but there is no stamp." In a brand home store on the third floor, Miss Yu, who is responsible for the sales, told reporters that The response of this notice to Miss is that it feels a bit too much. "The face is green, this is equivalent to saying that if you want to do a shop, you can only do it at Senbo. No other company can do it. It is not good to act on other brands in other stores. What is the reason?"

Boss Zhang told reporters that Senbo International Home is an old-fashioned home store in Zaozhuang. It mainly deals in furniture and building materials. It has a business area of ​​60,000 square meters and has concentrated on nearly 300 domestic home brands. It can be said that the current local scale, reputation, Mainstream stores with better benefits. Obviously, the unique resource advantage makes the hypermarket have a strong voice, and the manufacturer seems to have no place in the game. In an interview with reporters, many furniture manufacturers saw rising costs and rising rents as the main reasons for the decline in profits. Tension told reporters that in recent years, labor costs and material costs have risen by more than 30%, and it is likely to continue to rise in the future. At the same time, the store rents of stores are rising almost every year, which is no different when the market situation is not good. Front and rear pinch.

"This is a bit of a big shop bully. If the store is doing well, we can't just do it at your store." Zhang said that the brand she represented is a national big brand, the brand's The requirement is to have a storefront in every large store in the region. If he does not open a store in other stores, the brand will find other agents to do it.

"This kind of 'overlord' regulation of the shopping mall directly pushes these merchants into a dilemma, and goes to other stores to open stores. Here, rents will increase. Originally, the market will not earn much, and they will pay rent; if If you don't go to another store to open a store, then my exclusive qualification in Zaozhuang area will be gone, and my loss will not be small." Zhang boss said helplessly.

Obviously, the unique resource advantage makes the hypermarket have a strong voice, and the manufacturer seems to have no place in the game. In an interview with reporters, many furniture manufacturers saw rising costs and rising rents as the main reasons for the decline in profits.

According to the tension, labor costs and material costs have risen by more than 30% in recent years, and it is likely to continue to rise in the future. At the same time, store rents in stores are rising almost every year, when the market situation is not good. It is no different than before and after the attack.