Outdoor furniture transformation "quartet" Active change seeks a way out

Most foreign trade outdoor furniture enterprises have large production chain integration management efficiency, long-term stable customer source, high standardization of operation, advanced production management, and these advantages can not change their low-end position in the industry chain - - Processing links. However, with the changes in the global economic situation and the adjustment of national policies, the former "core advantage" aura of foreign trade enterprises is gradually dimming, especially the formation of the international integration competition pattern, the export environment has begun to deteriorate, foreign trade orders have plummeted, and profits have become increasingly thin. The "foreign trade" is becoming more and more "chicken ribs". In 2012, most outdoor furniture export companies are facing greater challenges. How to deal with the difficulties? Deng Xiaoping, the chief architect of reform and opening up, once said: "Development is the last word, and reform is a dead end!"

Export to domestic sales

Switching to the domestic market is the only way for many foreign trade enterprises to seek development. The test is how the enterprise can change its wisdom under the new environment, the new situation and the new challenges, and break through the predicament to find a way.

Dilemma 1: The number of domestic sales orders is small

In the past, foreign trade enterprises mostly produced orders, with few product categories and large quantities, often producing tens of thousands of products of one specification. The demand for products in the domestic market is far from the foreign trade orders. Generally, the batch size is small, the categories are large, and the demand changes greatly. How to adjust the production mode and production cycle of the product to the domestic market and effectively control the production cost is the biggest challenge for the domestic sales to domestic enterprises.

Dilemma 2: The domestic market is not standardized, and the recovery of funds is difficult.

The industry is not mature, the competition is not standardized, and the risk of foreign trade enterprises turning to domestic sales is also raised. The outdoor furniture industry is still in the development stage. The management methods and means are slightly “barbaric” compared with the mature industry. The price war, imitation counterfeiting, and bad credit are common. The infringement of intellectual property rights such as product design, brand and trademark is especially Severe; domestic sales generally adopt the “depreciation” method, which leads to “arrears of payment” and “triangular debts”. The foreign trade enterprises need to pay the value-added tax and customs duties of equipment and imported materials, which will inevitably lead to production costs. increase. The finished products need to be subject to tariffs and value-added tax before sales, which will further increase the cost. This will undoubtedly increase the burden on foreign trade enterprises with very tight capital, reduce the ability to compete with domestic counterparts, and make the foreign trade enterprises have strong productivity advantages. There are very few left. All of the above factors have increased the difficulty of foreign trade enterprises in opening up the domestic market to varying degrees.

Dilemma 3: The channel is not smooth. It is difficult to enter the store.

How should the foreign trade outdoor furniture enterprise develop the first step in the domestic market? Is it to improve the design first, or to improve the logistics first; whether to carry out brand promotion first, or to adjust the production mode first... But the most important consideration for enterprises is how to build channels. At present, there is no professional store in the outdoor furniture industry. The cost of opening an independent store is high, and the propaganda is difficult. Most enterprises choose to enter the integrated store. The significance of entering a comprehensive store is that you have tickets to participate in the competition in the mid- to high-end market.

The production mode of foreign trade enterprises is mostly order production, that is, “finish production, sit back and pay back”. However, if you open up the domestic market, companies still use this model. They think that as long as they find a dealer, they only need to produce products according to the dealers' needs. This kind of "stocking" thinking will lead to the elimination of enterprises in the market competition. For domestic sales, companies must not only find dealers, enter the market, but also grasp the brand, and comprehensive management and support of the channels, so that the company's products, brands, manpower, financial resources and other advantages are fully utilized through the channels, allowing consumers to intuitively feel To. However, at present, the number of integrated stores in the integrated display of outdoor furniture products is limited, the difficulty of entering the comprehensive store, the uneven level of dealers, and the lack of channel construction and management experience of foreign trade enterprises, so the “channel” becomes the foreign trade enterprise when it is transferred to domestic sales. weakness.

Dilemma 4: Differences in domestic sales positioning Consumer market is still to be guided

The outdoor furniture industry has a history of more than 30 years in Western countries, and its development has matured and has formed a general consumer demand. However, in China, consumers' awareness and acceptance of outdoor furniture are not high, and the market is mainly concentrated at the high-end consumption level. Obvious market differences require companies to change their position when they switch to domestic sales.

However, most of the company's role transformation is difficult to master, and even directly resell foreign trade products to the domestic market. The effect can be imagined, and the phenomenon of “unacceptable water and soil” is obvious. In addition, consumers' perceptions and consumption concepts of outdoor furniture are still not high, and enterprises need to advocate the concept of outdoor life while promoting the brand.

Positive change, seek a way out

On the strategic level of external transfer, outdoor home enterprises must first clearly understand themselves, have a comprehensive and systematic analysis and positioning, and then customize a series of precise development plans to find the right direction and play an advantage in the domestic market. Open up the way.

Way Out: Transforming Channels and Seizing the Market

Foreign trade export enterprises are affected by the international market business model. When developing traditional channels, they are likely to cause price confusion and inter-regional rushing. When the competition is fierce, the response is slow, and it is necessary for experienced managers to control them without death. Not chaotic." In order to get rid of the situation of over-reliance on a single channel, some companies have established their own brand stores, such as Sunny Garden and Agio. However, the company's direct sales and distribution system must unify the price system, so that the two channels complement each other and avoid conflicts. Do a good job, that is, to seize the market, is "at the right time, the right place

Point, at the right price, in the right way, to exchange the right product with the right buyer. "These six "appropriate" must be unified in the channel. As the saying goes, "channel is king." Only through channel competition can we maximize the value of goods.

Way out: Exhibition promotion, brand building

In the domestic outdoor furniture industry, brand concentration is low. According to the survey and analysis, the share of leading enterprises in the domestic market does not exceed 10%. If this state continues, it will affect the healthy and orderly development of the entire industry, and the domestic market will also be dragged down. Therefore, if outdoor furniture companies want to be bigger and stronger, they must shape their brands and promote their brands. For the time being, the lack of “brand” sword is an important reason that hinders the rapid development of the domestic outdoor furniture market.

The exhibition is one of the best platforms for enterprises to shape their brands. At present, there are more and more domestic outdoor furniture industry exhibitions, such as Guangzhou Furniture Exhibition, Shanghai Outdoor Furniture Exhibition, Hangzhou Leisure Products Exhibition, Hainan International Leisure Products Expo, etc., although various leisure exhibitions have emerged. , but specifically for the domestic market, professional exhibition

There are only a handful of people. The first China Outdoor and Leisure Furniture Expo held at the Poly World Trade Center Expo in Guangzhou from July 8th to 10th, 2012 was specifically targeted at the domestic market and won high attention from the industry. The exhibition is expected to build a good platform for the brand promotion of enterprises, realize the efficient docking of dealers and enterprises, and promote the sound development of the domestic market.

Way Out: Stabilizing Customer Relationships Maintaining Marketing Expenditure

In addition to focusing on production, companies must pay attention to the needs of consumers in order to win market reputation and form stable customer relationships. In 2011, the furniture market generally declined in sales, which was more than 30% lower than the same period of the previous year. In the face of the unfavorable market situation, many furniture companies took measures to reduce marketing expenses to compensate for the loss of profits caused by the decline in sales. This is like drinking and quenching thirst. There is data showing that brands that increase their investment increase their market share and return on investment at a lower cost than the economy during the recession. In the midst of a depressed market or an immature stage of the industry, consumers need to build confidence based on branding. For the time being, the domestic sales market of the outdoor furniture industry is in a period of slow development. How to stimulate consumers' enthusiasm for the purchase of outdoor furniture and respond in time to meet the needs of customers is the company's current efforts. Only by formulating and implementing various marketing and production plans according to market demand will it be beneficial to the smooth transformation of outdoor furniture enterprises.

Way Out: Adjust Product Structure Support Reseller Upgrade

At present, versatile leisure outdoor furniture products are more popular than professional outdoor furniture products. Mid-to-high-end consumers pay more attention to product-related services when purchasing outdoor furniture products, such as providing free home furnishing design services. Outdoor furniture enterprises should adjust the product structure according to the needs of consumers. In addition to improving product categories, they should also increase the bundled sales of service items to form a complete sales plan for “product + service”.

The product structure adjustment can also be reflected in the form of brand upgrade. In addition to the adjustment of the enterprise itself, it is necessary to implement a comprehensive upgrade for the dealer. Enterprises can implement training policies, products, discounts and other support policies for dealers according to their own situations and brand plans, and improve the overall quality of enterprises by enhancing terminal channels, thereby expanding product market share.

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Changxing Mingwang Rubber & Plastic Technologies Co.,Ltd. , https://www.cxmingwang.com

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