Home Textile Industry "Big Shuffle": Agents Battle Outside The Mall

Home textiles

The rapid development of the industry today, brand is not only the way to enter shopping malls, but new channels have opened up a new path for many home textile enterprises. The departing people do not need to be upset because they are eliminated. Successful executives need not be excessively excited, because whether they can laugh until the end is still unknown, and if they are not careful, they may pay the price and become others' "warning".

Enticing temptation

In order to enter the shopping mall, the home textile brand is willing to fight for the first time to break the blood flow, which is no longer news in the industry.

To explore the reasons carefully, it is no more than two words of "interest".

"The advantage of entering stores is obvious. The sellers have larger traffic and relatively high credibility. Merchants can directly accumulate customers' resources with the help of their fame and popularity.

Moreover, consumers have strong purchasing power, and more expensive products can be sold here, which has reduced many worries for us.

A brand agent told reporters.

The advantages of shopping malls are obvious, and shopping malls play a leading role in brand sales.

When the reporter called Wang Lidong, Beijing general agent of Hongrun home textiles, he said: "in 2010, the sales volume of Hongrun doubled in Beijing than in 2009. This is mainly due to the number of stores we have, and 6 new stores opened last year.

Now, Hongrun has special counters in 10 large shopping malls in Beijing, such as Xidan in Xicheng District and Zhuge Sheng Guang in Xuanwu District, which are the most famous and popular shopping malls in all urban areas.

According to the National Bureau of statistics, the total retail sales of consumer goods reached 15 trillion and 700 billion yuan in 2010, an increase of 18.4% over the same period last year.

Among them, the retail sales of consumer goods in Beijing in 2010 exceeded 600 billion yuan, exceeding the total retail sales of consumer goods in 2009 for nearly 100 billion yuan, an increase of 17.3% over the same period last year.

In the 2010 annual report on China's department store development, it also showed that in 2010, some leading retail outlets from some medium-sized cities with a population of only about one million were very beautiful or even amazing.

Among them, the sales volume of Shandong Weifang department store Limited was 1 billion 764 million 870 thousand yuan in 2010, an increase of 18.7% over the same period last year, and its profit was 31 million 460 thousand yuan, an increase of 218.4% over the same period last year.

Commercial building sales in Jiangsu in 2010 amounted to 636 million 980 thousand yuan, an increase of 52.7% over the same period last year, and its profit was 11 million 275 thousand and 700 yuan, up 244.4% over the same period last year.

It can be concluded that the sales profits of department stores in Beijing, Shanghai and other first tier cities will be even more substantial. These growing data are undoubtedly the important reasons for attracting brands into shopping malls.

However, profits are tempting, but it is even harder for the brand to get a slice of it.

Obstacles in the field

Shopping malls to enter the venue brand access fees and kickbacks has become an open secret in the industry, for agents, this is undoubtedly the pain of cutting meat, if the product sales situation is good, if not good, even the principal will be lost.

A clothing brand agent who has long been mixed up in various shopping malls in Beijing has counted out an account for reporters. He said: "from the analysis of several well-known shopping malls in Beijing, such as Cui Wei shopping mall, Zhongyou department store and new world department store, the shopping mall rebate is generally 25~28 points, and the fee is 1~2 points, and the value-added tax is 17 points, so it will add up to 43~47 points.

With this algorithm, if the agent takes the goods from the company is 3~4 discount, then the profit is probably 60~70 points, and 43~47 points will be eaten by the mall, so the profit of the agent is only 27 points.

This is only the best selling status. If you encounter the promotion of the mall, the brand will be deducted 20 points, and if the sales target is not achieved in 3 months, the agent will digest the inventory himself, so that he will lose money.

Then the average cost of the entry and decoration is up to the sales per month, so the profits from the agents are almost nothing.

However, some agents negotiate with the branding party, demanding that they share the value added tax, the brand side pays 12%, the agent pays 5%, and there are not many enterprises that have the strength and willingness to pay, but eventually they will fall to the head of the agent.

In November last year, at the five executive director's (enlarged) meeting of the China Textile Association, a representative of a brand dealer put forward the hope that the association could join together with the general merchandise business association to reduce the demand for the rebate points collected by the mall.

This shows that the road to enter the shopping mall is not easy.

Broad road outside the field

For those brands that hang around outside the mall, the "home life Pavilion" has become the third thoroughfare after franchised stores and commercial supermarkets.

The Yuci LAN dream home living center located in West Fourth Ring Road, Beijing, is the first selling platform in Beijing, which is built by home textile dealers. The living hall attracts many home textile brands and realizes one-stop shopping in home life.

In fact, this model has already appeared in the consumer market, such as IKEA, Illinois, HOLA, and even the home. But they do not take home textiles as the main selling category, but rather a wide range of products that gather furniture and other daily necessities.

When the brand enters the home hall, there is no need to worry about the passenger flow problem, because the one-stop shopping hall with a professional and rich brand of household products will surely attract the attention of many consumers.

The only thing for the brand to do is to improve the quality of the products, because the similar products are gathered together, and the advantages and disadvantages of the products are easy to be exposed.

And for those small and medium sized home textile enterprises whose brands are small and can not reach the standards of shopping malls, they can choose to draw on successful examples of clothing brands, such as Masa Marceau, who was born in the Internet. When the brand owns certain popularity and fixed consumer groups on the Internet, it starts to open a physical store in Beijing World Trade Street shopping mall.

Because of its high network sales, the Martha Marceau brand into the mall is a very smooth process.

This way of "saving the country by curves" is undoubtedly a gospel for the home textile market, which is the majority of small and medium-sized home textile enterprises.

Faced with the changing channels, enterprises should broaden their horizons so that brands can go longer and farther.