Civilian perspective perspective 2010 furniture industry development cited reflection

In 2010, more than three hundred days, many stories and accidents eventually became history and were sealed by time.
However, from stone carvings to tortoise shells, bamboo slips to silk silk, from rice paper to thread binding books, group memories replaced individual memories, and ordinary people's micro-memory kept aphasia in the rolling wheels of history.
All along, in the development of Chinese furniture, there is a lack of a micro historical record of the civilian perspective. And we always believe that every ordinary person in this industry can become a recorder.
This time, in the process of visiting dealers, stores, factories and shopping guides in Shanghai, they as the main body of records, through the form of family books, together with the people in the industry to sort out the changes in this year's world events, showing the small people in the background Sweet and bitter, fate ups and downs.
Dear factory brothers alive:
Hello
When I saw this letter, I was already in a very far place.
The market development in 2010 made us all take a breath. The industry shock caused by the real estate regulation and control policy has shown that the first year of industry reshuffle was last year.
It's a pity that my factory didn't hear the ringing of the 2011 New Year's bell, but it officially closed on January 28.
When I recalled the painful 2010, I regretted many things. For everyone and for the industry, I felt the need to write a letter to everyone.
Furniture products are a very special industry. Due to the non-standardization of products, low entry barriers, and uneven quality of employees, the industry has been chaotic. There are nearly 100 stores supporting sales, and annual sales are more than 100 million. But three fatal mistakes I made last year put my factory on the road to no return.
Too much trust in direct sales:
Earlier, someone said to me that direct sales are profitable and that I can build my own distribution network. Last year I opened more than 20 direct sales stores in Shanghai. But when I walked in, I found the opposite.
Looking back at last year's financial statements, the cost was up to 45% of sales, of which rent accounted for 30% of our sales, a serious loss! I can see through the heavy fog of direct sales. Some brands that seem to be doing well are actually factories that are supplementing at least 15% of their production profits.
The Shanghai market is distributed by shopping mall giants such as Red Star, Yuexing, Jisheng Weibang, Hundred Years, Jian Peilong and Jinsheng. Factory and dealers are relatively weak in this environment. With the deepening of the industry reshuffle, many dealers gradually withdrew from the industry competition. But when the dealers withdrew their stores, there was a pile of mess in front of each factory. Did they pick up or not? Don't pick it up! ? Seeing is invisible, but has lost this market with strategic commanding heights. Pick it up! ? This is a hot potato! It is a managed swamp! Faced with headaches in operating costs and investment in management energy, when can the factory reverse the decline and pull out to do a good job in factory production management?
Usually, the factory's concerns about market influence eventually took over, and there were several different business attitudes:
The first attitude: not bad money! The factory feels that it has a solid foundation, so it should take the initiative to invest in the Shanghai market, as for losses! Give more pressure to the direct sales department to see if you can lose less! ? At the end of the year, if there is no loss of more than 10 million, it will be a victory! Everyone rejoices! Go back and have a good meeting, we have made great contributions to the national market, and accept the heartfelt thanks from the business personnel in other markets in the country!
The second attitude: pain and continue to hurt! Although our family is not particularly honest, but we must die! Because this is a face problem, if you can't improve your performance, you can make a substitution! If it doesn't work, the high-level leaders will be in charge! So a new position was created: switch manager!
The third attitude: positive but no way! Pick it up! And we must turn losses into profits! ! But how? I do n’t know, I ca n’t find it! Although active, it is chronic suicide! I finally waited for a loss of several million a day, and then withdrew the store! There is a saying on the rivers and lakes: XX can't do it in Shanghai! It's all closed! Accidental misrepresentation was also said to have cost tens of millions.
I think: the first and second attitudes are undesirable! ! The continuous deepening of market competition requires that any enterprise must pursue the pursuit of profit maximization as its business purpose. If it is possible to overdraw profits because of a wealthy family, will it affect the values ​​of the entire enterprise and will it spawn a "rich second generation"? What's more, for the flat market like Shanghai, as long as you work hard, it is actually possible to reverse the decline and achieve profitability! If it is a little positive, it is the third attitude, but it is easy to say, there is no talent, so it is not easy to work hard! ? Some dealers try to contract the store to the store manager. This kind of discussion is certainly courageous. However, because the management ideas of each store are difficult to be highly unified, the back-end supply chain is prone to internal friction, and the resources are difficult to use efficiently.
Anyway, in a year, the direct sales store in Shanghai lost more than 20 million of the factory's profits. In the end, I believed the old man's words: The art industry had specialization!
Product R & D and Quality Last year, our product development was charming from the beginning, fashionable and with many bright spots. But as soon as it was put on the market, I found that the effect was completely opposite, because I overlooked a very important point: regional consumption differences.
Take Beishangguangshen as an example, there is a large demand for sofas and suite furniture in small apartments, but our suite lacks a double bed of 1.37 meters, our sofa lacks specifications of less than 2 meters and so on. The unsatisfactory sales of the product made me lose the sales of the four major markets. You should know that Shanghai used to account for 30% of our national sales.
Speaking of quality, I am even more angry. I have always stressed that I pay close attention to the quality of production. I have been entertaining frequently last year, I have played golf more times, and have gone to the market less. The people under my control are not my responsibility. Goods returned by quality problems can be sent to another region, and quality complaints can be delayed. Let our reputation in the industry plummet! And when these problems arise, I still wonder if this ball can hit par!
The purchase had a rebate, and there were several mass raw material accidents. The customer service department was able to confuse it. If I knew it at that time, I really had to learn about cars, and all of them were recalled and replaced for free.
Customers always go to the store to quarrel, not to mention that sales are affected, even recruiting new people is difficult!
Unfortunately, these ideas are too late!
The lack of key support for the construction of dealer channels Last year we adopted the practice of sprinkling pepper noodles, and the policy is to play a national game. Customers are big and small, but from a business perspective, this idea is wrong.
If my factory is still alive, I will focus on supporting the A-level market. Some marginalized markets seem to have opened new stores and invested resources. In fact, every child has a little meal, but everyone does not. Eat enough and eventually starve to death!
Before the brand investment, our factory was exporting, but in the past two years, it was very difficult to export. We determined to be our own brand. However, in the face of the deep market in the domestic market, we only focus on opening stores, but we ignore brand investment, especially in Shanghai. In the market, more than 20 stores were opened, and no large outdoor billboards or TV advertisements were actively considered. I always think that there will be eggs first and then chickens. If you do n’t invest in a chicken, how can there be eggs out? It is very difficult to invest in dealers because dealers do not have the strength to invest in a brand. Due to the uneven development of the market, the factory actually needs to actively invest in brand resources in some key markets. Only when the brands in key regions have been upgraded can they be used to help promote the national market.
There are many, many more things to say. I have stopped moving forward and left the industry. I do n’t want us to meet, because if we meet, it means that you are already following me.

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