Furniture Association Zhao Long: Four characteristics of the dealer group

Zhao Long, deputy director of the Training Department of China Furniture Association

From the output value of 100 billion yuan in 2000 to the output value of 730 billion yuan in 2009, the Chinese furniture industry is growing at a rapid rate of 30% per year. On the market stage of this evergreen industry, there are about 500,000 dealer groups.


China's furniture industry is different from developed countries and has the characteristics of “big industry, big circulation, small enterprises, small dealers”. The total output value of China's furniture accounts for 70% of the world's total furniture output. It is a veritable big industry. It has several large furniture distribution giants with absolute financial power in the furniture industry chain, but only operates in a leasing mode. It is the property leasing party of furniture business; the furniture manufacturing enterprise is small in scale, and it is calculated by the largest manufacturing company's all-friends furniture. In 2009, the output value was 6.7 billion yuan, still less than 1% of the total industry; and the dealer group is the quantity. Large and small, the large group of 500,000 people supported the domestic sales of 500 billion yuan, with an average sales of 1 million yuan / year.


As the strategy master Michael Porter said, the fragmented industry is characterized by many companies competing, and no company has a significant market share, and no one company can have a major impact on the development of the entire industry. The Chinese furniture industry is such an industry, and Chinese furniture dealers are a group that has grown stronger on such a stage.


Consistent with the status quo of the Chinese furniture industry, the current dealer group has the following four characteristics:


The first is “small”, which means that most dealers are single-brand dealers with annual sales of less than one million;


The second is “chaos”. At present, the composition of dealer groups is very complicated, the operating level is uneven, and the economic strength is different;


The third is “scattering”. There are about 70,000 furniture manufacturing enterprises in the country, with geographical dispersion, scattered products and scattered distribution systems;


The fourth is “low”. The furniture industry has low thresholds and can enter with certain funds, resulting in low overall competitiveness.


However, Chinese furniture dealers are also responsible for two important industry roles: First, they are the digestive system of the Chinese furniture industry. Without these people, it is impossible to send so many pieces of furniture to thousands of households. The business and market of the Chinese furniture industry; Second, they are the image group of the Chinese furniture industry, they finally completed the docking with consumers and helped the company to establish a brand image.


The financial crisis since 2008, the foreign trade dilemma brought about by the appreciation of the renminbi, and the recently tightened real estate policy have all plagued the furniture industry. As a dealer, it faces three pressures: commercial predators occupy the city, the number of stores soars, rents soar, dealers can't afford it; leading brands in manufacturing companies increase store investment, develop single-stores or direct sales Shops, dealers can't afford to play; consumers are more and more picky, shopping guides are getting harder and harder to stay, the market is getting harder and harder, and more and more dealers can't afford it.


As a dealer with low capital and weak strength, it is losing its right to speak and its living conditions are in jeopardy. But represented by the China Furniture Sellers Association, dealers are looking for ways to grow. In recent years, many dealers' development ideas have also given the industry a lot of inspiration. In summary, the future development direction of dealers will present the following characteristics.

From doing business to doing business, business operations. Furniture dealers are originally "work types" with high technical content, and need to solve various problems arising from capital operation, human resources, product marketing and business information interaction. The problems that furniture dealers have to solve are actually a problem that real entrepreneurs need to solve. The advanced form of “dealer” is “entrepreneur”. Therefore, furniture dealers are currently only concerned about the simple transaction of goods is not enough. In order to go further, we must comprehensively enhance the awareness and ability involved in commercial technology, from doing business to doing business.


Transforming the business role, channel management becomes a distributor. Traditional distributors play the role of “product consumers” in essence. Most dealers are VIP customers of production companies at best, and they are one of the digestive systems of products. The direct consequence of this role is the direction of the dealers' business focus - selling goods. In fact, there should be an important role between the production enterprise and the “selling dealer”: the channel management combined with the manufacturer refers to the distributors and the manufacturers to do a wider range of agents. With the concentration of capital, some dealers will follow this development trend and change “selling goods” to “channel management” and become distributors.
Continuous training and education to build a learning team. The dealer's work is normalized, various problems will continue to emerge, and the fire-fighting management method is destined to not adapt to the dealer development trend. Therefore, the solution to the problem needs to be normalized, and training and education as the most effective measure to solve the problem must also be normal. Only a learning team can adapt to today's consumer needs.


The shareholding system has been transformed into a stable team. The furniture circulation industry is developing faster and faster, but the speed of supplementing the core human resources of the furniture industry is far from meeting the requirements. The direct consequence of this is the loss of personnel, which is followed by the labor costs that are constantly being promoted. Preventing the high turnover rate of personnel and increasing the per capita contribution rate, it is imperative that the shareholding system transformation is widely used as the most effective incentive system.


Integrate resources and diversify operations. The process of growing dealers is the process of grabbing resources. This is the traditional growth model of dealers. In today's information age, no dealer has absolute advantage and speed, or monopolizes a certain resource. What the dealers have to do is the “integration” of resources. The difference is that the resources no longer have unique ownership and only have efficient utilization. Therefore, the combination of resources among dealers and the traction of different resources will become a new form of resource integration in the future.

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