Sichuan furniture industry channels can complement each other to see the cost

At present, more and more furniture companies are starting to launch direct sales stores based on the original franchise stores. This practice has attracted the attention of franchisees. They believe that direct-operated stores will have an impact on the franchise stores, and may even replace them, thus damaging the interests of franchisees. Objectively speaking, this kind of worry is not a dealer's care. Therefore, companies should carefully consider whether to operate a direct sales store. Once they decide to operate a direct sales store, they should properly handle the relationship between the direct store and the franchise store, not only to exploit the strengths of the direct store, but also to avoid the direct store to the franchise store. Cause interference and shock. For many companies, it is not easy to do this. Most of the first-tier cities directly operate stores, most of the Sichuan enterprises, will be in the first-tier cities in the province to build a direct-sale flagship store. Its main functions are two: one is to show the comprehensive strength and image of the enterprise; the other is to occupy the primary market of “home door”, to facilitate the acceptance of engineering orders, to meet the franchisees from afar. Due to the needs of these two functions, these flagship stores are often very luxurious in terms of decoration, and the decoration cost is generally more than 500,000 yuan. It is understood that a flagship store of direct-operated brands established in the first-tier cities of the province can bring tens of millions of yuan of retail orders and engineering orders to enterprises every year. This is why enterprises are willing to invest heavily in first-tier cities to open flagship stores. the reason. In addition to the flagship stores opened by local companies, some foreign coastal brands have also opened flagship stores in first-tier cities in Sichuan, and their effects are quite good. The boss of a flagship store in a coastal high-end solid wood enterprise in Chengdu told the author that in the first year, the construction cost was earned back in only three months, and the profit was several million yuan in the same year. In the following years, the annual turnover was close. Ten thousand yuan. As the profitability of flagship stores in first-tier cities is largely guaranteed, companies generally choose to open direct flagship stores instead of franchise stores in first-tier cities. Of course, there are also cases where a small number of companies are concerned about the interference of direct flagship stores in franchise stores, as well as the limited human and financial resources of enterprises, and only open direct flagship stores in one or several particularly important cities, or Simply abandon the direct flagship store and build the branded product display store in the factory. When the second- and third-tier city franchise stores are located in the second- and third-tier markets of the country, the franchise stores are the focus of the channel. With the advancement of urban and rural integration construction, many franchisees of Sichuan enterprises have extended to the second and third tier cities of the province and the country, and even some townships. At the same time, brand furniture companies from the international and coastal areas have also taken Chengdu as a radiant point, quickly entered the second and third-tier markets in the west, and robbed the western market with local brands in Sichuan. Nowadays, the second and third-tier market dealers have begun to fight for the war, and will intensify in the next few years. This means that Sichuan enterprises should not only focus on production, but also rely on a strong marketing team and advanced marketing concepts to vigorously expand the secondary and tertiary markets and continuously increase market share. Only when Sichuan's family-owned enterprises establish a multi-level sales network can they make the brand bigger and stronger and compete with foreign famous brands. Profit and cost are the key manufacturers to open a direct store or a franchise store, the key to the choice is nothing more than two aspects: profit maximization and cost minimization. Intuitively, open-operated stores should be able to maximize profits and minimize costs because they do not need to be beneficial to dealers. At the same time, they are more conducive to companies to strengthen control of the market. But in fact, this judgment can only be based on theory. After the actual operation, the comprehensive cost of opening a direct store is often higher than that of the franchise store, and the management and operation are more difficult. Therefore, unless there is a sufficient human and financial basis, companies are more willing to choose the mode of investment promotion, even if they open a direct store, they will strictly control their quantity. In fact, the core competitiveness of dealers is that they are very familiar with the local market and can fully utilize their local network resources to expand the market. The advantage of this kind of "people" is difficult for enterprises to obtain, and it is also the core advantage of dealers. As long as the dealers give full play to this advantage, they can get good sales and help the company to establish a customer service system with local humanities characteristics, which will bring the company closer to consumers. To some extent, dealer franchise stores and factory-operated stores can achieve complementary advantages: factory direct stores highlight brand image, standard services; franchise stores are easy to achieve emotional communication with customers, creating a relaxed and harmonious business atmosphere. Furniture companies must recognize this in order to avoid confusion in the choice and operation of channel models.

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