Comment On The International Business Model Research Institute: Vigilant And Conservative

< p > five years ago, Zhang Jian, a young boy, once worked as a store manager for a few years in the store of Shenzhen Yuguang home textile, and accumulated experience in store management and sales. Later, Zhang Jian and Qian Shicheng, chairman of plume home textiles, put forward the idea of starting a business.

Qian Shicheng also wants to retain such talents. With the help of headquarters, Zhang Jian then opened a feather home textile franchise in Kunming.

Over the past few years, Zhang Jian has opened 5 chain stores of plume home textiles in several counties and counties in Yunnan, and has maintained steady sales performance.

By the beginning of this year, the annual distribution volume of Zhang Jian's exclusive stores has exceeded 5 million yuan.

Later, according to this mode, plume home textile developed another seventy or eighty franchisees, all of whom were employees inside the company, and most of them were front-line sales and shopping guide employees.

This is the unique "feather light mode" in the development of home textile industry.

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< p > aiming at the middle end market < /p >

In the past five years, the home textile industry has been one of the fastest growing industries in China, increasing by more than 20% every year. There are also well-known home textile brands such as rolls, fuanna, Meng Jie, mercury and so on in the past five years.

However, the competitive pattern of this industry is very fragmented. The market share of any famous brand is very small, so it is difficult to form the competitive advantage of the leading enterprises.

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< p > most of the famous brands in the industry started early because they launched the brand strategy first. They asked celebrities to endorse, put in a lot of advertisements, and then started to join in investment promotion, thus establishing the leading position of the industry.

But even so, the market share of the top three home textile enterprises is no more than 10%.

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"P >" home textile products are necessities of life, but because the industry is still in the initial stage of development, the market is more dispersed.

Consumers are still in the upgrading stage of home textile consumption, and more and more consumers are beginning to put forward higher consumption demand for home textile products, and the frequency of replacement is also accelerating, which gives the home textile market greater room for development.

Qian Shicheng thinks.

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< p > the three main brands represented by Luo Lai, Fu Anna and Meng Jie are the high-end market. The channel is mainly in high-end stores or self owned stores. The price of customers is above 800 yuan. The main users are high-end users, but the market is not large. The larger market is the middle end market, and the home textile brands such as plume home textile market also have a large market space.

Over the past few years, Yu Guang home textile has opened hundreds of chain stores in WAL-MART, big RFA and Carrefour. Its business area is more than 30 thousand square meters. Due to its accurate location, reasonable price and guaranteed product quality, the stores located in hypermarkets are stable, and the proportion of shops that are not profitable is very low.

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< p > Qian Shicheng told China business reporter that in 2006, plume home textile became a supplier of WAL-MART, and entered WAL-MART to open stores and counters. After that, it became a first-class supplier and gold medal partner for the textile products of big RFA and Carrefour. With the development of WAL-MART and big RFA, the brand of Yu Guang has improved significantly.

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< p > and in the experience of store experience, feather light home textile is the main service for personalized service. It fully takes into account the needs of customers for the overall decoration, comfort and atmosphere collocation, and can satisfy different customers' requirements in different atmospheres, different scenes and even different seasons and seasons.

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< p > not fast, only profit. < /p >

There are three listed companies in China's home textile industry after P: 2006: Luo Lai, Meng Jie, fuanna, and ten sales people: Mercury, Kasen and so on.

At this stage, in fact, many home textile enterprises are rapidly building the terminal in the country. The whole industry has a most classical discourse at that time. It often opens up shop, opens stores and opens large stores. For example, there are about more than 3000 stores in Luo Lai, 2000 in fuanna and more than 2000 in mercury.

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< p > behind this kind of high speed expansion channel is actually the high number of channels.

Because the speed of expansion is too fast, many shops do not do well in site selection, capital strength, operation management, training and so on, which leads to many shops rush to start business, but their performance is poor, and finally they are closed down.

In recent years, home textile industry has a relatively high rate of customs clearance.

Qian Shicheng believes that such a channel expansion strategy is actually a great damage to the brand.

At present, all feather and light home textile stores emphasize the profitability of single stores. The loss shop has been strictly controlled below 10%.

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< p > since the establishment of the brand for ten years, Yu Guang home textile has always adhered to a steady strategy in the development of the channel. On the one hand, it has been directly engaged in the main business, forming strategic cooperative relationship with WAL-MART and big RFA, and establishing a franchise store of the hypermarket. The stable source of tourists plus good product quality and reasonable price has made the whole business relatively stable. In addition, it has been cautious in developing franchising business. In the past few years, a number of franchises have been developed mainly through the way of internal staff entrepreneurship.

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< p > Qian Shicheng feels that the success or failure of expanding channels, location, the financial strength of franchisees, and follow-up management and operation are very important, and the employees in the enterprises go out to start their own businesses and choose the joining projects of plume home textiles. They do have certain advantages. They are familiar with products, familiar with sales, know how to find the right stores, plus the help and support of the late feather operation team, so this franchise project is easy to succeed.

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< p >, therefore, after four or five years of precipitation and accumulation, and the overall upgrading of feather light brand image, feather light home textile began to join the business nationwide.

Taking into account the success rate, Yu Guang headquarters only developed 30 regional single store franchises this year, with only 3~5 regional agents.

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< p > many home textile enterprises have gone through the way of asking celebrities to endorse, invest a lot in advertising and investment in three steps. But Qian Shicheng hopes to occupy the channel first and form a face, and then start the work of brand pulling.

In this era of terminal king, he felt that such a way would provide a better return for all investors joining Yu Guang home textiles.

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< p > comment on the international business model research institute < /p >

< p > be vigilant and conservative. < /p >

< p > positioning in the middle end user's feather home textiles, using endogenous joining way to expand channels, coupled with cooperation with large supermarkets, and enhancing customers' shopping experience in many ways, making plume home textiles successfully find a place in the industry.

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< p > but we can see that with the successive listing of Roy, Meng Jie and fuanna, the home textile industry has entered the era of capital competition, and they have taken the power of capital to compete in the national market.

As a result, the competition in the home textile industry has increased from product competition and channel competition to capital competition. Under this trend, many enterprises like plume home textiles are unable to join the first tier market competition and become forced to become the two or three tier.

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< p > we agree with the idea of steady expansion strategy to protect the profitability of single stores, but we need to be vigilant: if the plumes are too steady, they will tend to be conservative and will probably miss the historic opportunity for the rapid development of the home textile industry.

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< p > also, the development path of Yu Guang home textile is to occupy the channel first and form a face, and then the work of brand pulling is also open to question.

This practice seems to save communication costs, but we believe that brand and channel can be likened to two sides of a coin. Brand promotion is easy to establish, and channel expansion can also effectively enhance the brand. The two complement each other and promote each other.

Yu Guang home textile was originally a business enterprise internal entrepreneurship, employee recognition of the enterprise, to a certain extent, reduced the franchisee's brand requirements; now it has begun to expand the channels of franchise in the whole country, no brand support channels to expand, it is much more difficult.

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< p > a lot of experience has proved that when we expand the channel and establish a brand, walking on two legs may make the feather home textile go faster.

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