The Reason Why China Lacks Famous Home Textile Brands: Home Textile Enterprises Choose To Develop The Two Tier Market.

During the Spring Festival of 2010, many home textile brand dealers are busy with their livelihoods and careless new year, because the annual shopping malls adjustment is the best time for them to seize the channels. Once they miss the opportunity, they will have to wait for the coming year.

Ge Keming, the chief distributor of Beijing home textile company in Shanghai, returned to Zhejiang and her hometown in Zhejiang during the Spring Festival to return to Beijing after a quick reunion dinner. They only reunited with their relatives and friends for 3 days.

"At this time of year, our dealers and family members are far apart from each other, because we have to enter as many outlets as possible during the Spring Festival, that is, the adjustment period of commercial buildings, otherwise it will be difficult to complete the tasks assigned by the head office."

Ge Keming said.

In 2009, Ge Ke Ming completed the plan to enter the shopping malls such as B&Q, GI ho mansion, blue island mall, and reluctantly completed the company's business targets.

"In recent years, the home textile terminal competition is fierce, this time is like silkworms, like a silkworm skin, this year's head office's task is even higher. If we do not start as early as possible, the completion of the target in 2010 will be even more difficult."

Beijing distributor of violet home textiles, Beijing distributor of Hongrun home textiles and Beijing distributor of Lan Siyu home textiles are also trying their best to seize the opportunity to enter the shopping mall for the first time.

Cui Wei shopping mall is the highest volume of home textile brand. Every year, many home textile brands fight bloody battles, some of them are eliminated, and some come out.

Winners are complacent, and the losers find another way.

In the Cui Wei mall, dealers who came to the relationship were in an endless stream, and there was a long queue at the door of the consumer goods office.

"At this time, if you can see the lobby manager who manages the home textile counters, you will be very lucky."

Ge Keming disclosed this.

The head of a southern Brand Company has been waiting for 7 days in Beijing, and all kinds of gifts, shopping cards and cash bags are still not delivered.

"The Beijing market is too difficult to do. Dealers should not only be familiar with the market rules, but also have connections with all kinds of relationships, which is more important than opening the market."

The person in charge said sharply.

It is reported that blue silk feather spent about 1000000 yuan to operate the Beijing market, and the cost of developing the Beijing market by violets is 2 million yuan. The rent of Hongrun home textile in Beijing is about 600000 yuan a year.

The cost of these brands is largely lost, and the market development effect is negligible.

According to statistics, 60% of Beijing's home textile brands are at the edge of loss or loss, and 30% of brands have balance of payments. Only 10% of the brands are in a state of profit.

"Some home textile brands are very attractive to the outside world, but in fact, they are making brand illusion, and even regard it as an advertising strategy."

Hongrun home textile Beijing general distribution Wang Lidong said, "the reason for choosing shopping malls is that shopping malls can not only enhance brand grades, the advantages of large volume of traffic make more customers aware of and familiar with brands, shopping malls can play the role of bridgehead in the promotion of the whole market, and play a promotional effect with dots, so the mall has been well received by the major brands and become the pilgrimage of the brand."

Because in many large and medium-sized cities, people's consumption habits are mainly in large shopping malls, so many home textile brands, whether from popularity or to facilitate agency franchisees to understand the brand, want to enter the local famous stores, but the brand is not all high sales and high profit, on the contrary, many brands in the introduction period or even loss, but brand home textile from the strategic perspective choose to adhere to the end.

Although the mall has brought more stable passenger flow to the brand, it has also increased the cost to the brand.

First is the entry fee, many stores will enter the brand fee once for entering the brand, and when the brand exits the shopping mall, the cost is not refundable. Next is the decoration cost. After entering the shopping mall, the brand needs to decorate and display according to its own image and the needs of the venue, and it changes the decoration every year or every few years along with the change of the market image. Then the shopping mall's buckles, most of the shopping mall's home textile brand's buckles are about 20%~30%; besides, there are also the cost of the shopping guide.

While shopping malls do not pay so much to the brand, except for a few shopping malls, most shopping malls have to drag on for three or five months to make payments.

Therefore, at this stage, many home textile enterprises choose to develop the two tier market, because considering that if the brand is too high in the first tier cities and the funds pressure is too high, it is easy to understand the reason why China lacks the well-known home textile brand because it has to go back to the two tier market.

In today's market pattern changes, dealers in order to compete with stores or to get rid of the pressure from modern channels, began to build their own channels.

Just after the Spring Festival, the Shanghai Kasen home textile company always distributes Ge Keming no longer to bear the great torment brought by the shopping mall. He wants to get rid of the shopping mall's choking situation. So he rented nearly 2000 square meters exhibition hall near B&Q bridge in Sijiqing. He wanted to build his own home textile channel and build a home life hall to absorb the weak family textile brand.

Ge Keming invested about 2000000 yuan to get rid of the control of the mall once and for all and become the real channel owner.

In Taizhou, Zhejiang, Wang Shuhua also used a self built building to start a home textile store and represented more than 10 home textile brands.

"Brand Company used to be a nose pick, but now I choose the brand, and the initiative and the right to speak are clearly reversed."

Wang Shuhua said.

But such a huge investment requires more strength and strength.

If we look at the trend of future development, dealers' self built channels certainly point out a direction for the development of enterprises, but dealers still have a lot of homework to do if they want to build their own channels and make profits.

Wu Qifeng, general manager of Shanghai people's marketing planning company, suggests that if a business owner ignores the drawbacks of self built channels and has to act arbitrarily and build his own channels, there are four points to consider carefully. First, we should seriously ask ourselves if we have the ability to build and manage channels.

Second, is there any other way to choose whether or not we have to build our own channels?

Third, how does your product, enterprise and brand integrate their social resources?

Fourth, what is the main theme and development trend of the whole channel construction?

In the field of home textiles, daily chemicals and other products, modern channels have occupied the absolute leading position. If the enterprises engaged in these industries are to build their own businesses without modern channels, they will lose more often than not.

But he is sure that if a powerful distributor can control the channel, it will bring about the optimization and integration of the channel. The home textile industry will not rely solely on the terminal outlets such as shopping malls and supermarkets, which will open another way for home textile sales.