Discussion On The Channel Of China'S Home Textile Market In The First Half Of 2010

The channel has become the focus of attention of Chinese home textile brands. Based on the category of bed products, the author makes a channel analysis of the domestic textile market in the first half of 2010.

Market

According to incomplete statistics, in the first quarter of 2010, the sales of home textile special stores accounted for more than 40% of the total sales of the bed products. The shopping malls were still the largest share sales channels of high-end home textiles, and also the main channel for brand influence sales.

But in the face of increasingly fierce competition in the industry, the high cost of shopping in the mall has led many home textile enterprises and distributors to retreat. Some home textile enterprises have begun to try to cooperate with other channels. They have set up home life shops in furniture city or decoration city or set up home store stores in large chain stores. For example, Kasen home textiles in B&Q's life home museum is a sales mode of cooperation between home textile enterprises and building materials supermarkets.

Although these explorations have not yet attracted large-scale industry imitation, some brands believe that they will win the terminal competition with this new channel mode.

The home textile industry is going through a horse race enclosure process. Although the industry leaders of Fu Anna and Luo Lai began to adopt the channel mode of chain joining since the 90s of last century, more stores in the past were joined by the store counters, and chain stores only expanded in recent years.

There are two major trends in the store mode in the future: first, the franchised stores will develop to three tier cities or even four line cities.

Take Luo Lai as an example, at present, the number of stores has reached about 1000. According to the development trend of clothing industry, once the number of stores reaches 800, the layout of the second tier cities has been completed, and the space for expansion is not large. The store will expand to the three or four tier cities in the future.

Another trend is that the proportion of direct battalion will increase.

With the development of chain store system, the focus of future store management will be to enhance the management level of franchisees and terminals.

As the progress of the horse race enclosure is drawing to a close, it will become more and more difficult to continue to grow in quantity. The focus of franchised stores will gradually turn into quality competition and seek growth from operational efficiency.

In this regard, fuanna is in the forefront of the industry. The author calculates according to the relevant data shown in his financial statements in 2009: the sales terminal of fuanna is 60% of the sales of Luo Lai, and its sales reach 70% of that of Luo Lai. The output of fuanna's single shop is 700 thousand yuan / year, and that of Luo Lai is 630 thousand yuan / year, the difference is 10%.

From the analysis of financial data, the sales performance of Fuan single store is closely related to its excellent direct battalion system. Many home textile enterprises in the industry also improve the terminal operation ability of enterprises from fuanna's digging camp personnel.

Of course, the good operation of the terminal will not necessarily mean that the dealer system is not excellent.

On the one hand, the direct business system has more business resources than dealers, and on the other hand, there are always conflicts of interest between franchisees and manufacturers.

The success of franchised stores depends more on the concept of franchisees and the enhancement of their operational capabilities. How to eliminate poor performance franchisees and retain excellent franchisees, and how to successfully copy the good experience and business logic of the direct operation system to dealers, may be the focus of the management of the home textile industry in the future.

Wholesale market: market share decreasing

Compared with the booming of the exclusive stores and the prosperity of the shopping malls, the wholesale market is still in the air.

The home textile wholesale market, which is distributed in most second tier cities, is not as large as ever, no matter in terms of quantity or scale. The market share has been close to 30% to 15% in the past few years.

Among many home textile brands pformed from wholesale markets, mercury home textiles is one of the successful pformation companies.

Mercury is one of the earliest modern home textile enterprises in China, like most home textile enterprises. Before 2000, the way of selling mercury was mainly wholesale.

Since 2000, mercury has been gradually pforming its marketing partners into mercury home textile franchisees.

Mercury has been an industry leader in the number of franchisees. As early as 2008, the number of mercury stores has reached nearly 2000.

The pformation of marketing channels is the promotion of products and spleen.

In 2000, the company moved to Shanghai. In 2004, the company signed Carina Lau as the brand spokesperson. The company became one of the first domestic textile enterprises to advertise on CCTV. In 2008, the flagship store opened in Shanghai. This series of actions successfully promoted the brand promotion of mercury, and mercury successfully pformed from the wholesale market brand to the high-end home textile brand.

Internet channels: expect innovators to emerge

When it comes to new channels, the first reaction of most people is the Internet. In the past, most of the sales of home textile enterprises were to reduce prices to attract consumers.

Although some enterprises in the industry have launched their own network brands or set up Independent E-commerce departments to build network channels (such as Luo Lai and fuanna have launched their own network product brands), but more home textile enterprises are merely supplementing the network channels as shopping malls and franchised stores, or regulating the role of network channels. That is to say, "since the franchisee has already dumped the Internet on the Internet, it is better than myself to sell" such an attitude to carry out the network operation, and regard the Internet as another "wholesale channel".

In the industry, there is no brand like "fan Ke Cheng pin" which takes the network as the main sales channel.

There will be some differences, but for home textile products, the size is not a big problem. The product base is all standardized. Even if the size is slightly different, it will not be used. The most important experience of buying a garment is to try it on. After all, seeing the best is not enough to ensure that the dress is suitable. The experience of home textile products is more from the exclusive layout of the exclusive store or the overall layout of the counters and home textile products. The former has little to do with the product, and the latter is more related to the fabric texture of the product. 3., the display mode is for the solid clothing store, the products displayed will be sold, but the home textile terminal is limited by the business area, the sample quantity is limited, and the other products can be selected by consumers in the form of picture albums and other 1.. As a matter of fact, home textile products have the advantage of online sales than clothing: 1. size, clothing is strictly required for size, because different versions even have the same size of clothing.

To break through the network channel, we must break the confinement of traditional mode of thinking, launch products that are really suitable for online shoppers, take network sales as a way to create brand, and not just sell them at a low price.

The future home textile market will show diversified development, and the marketing channel is no longer a single one. Who can better grasp the characteristics of some channel, and who can gain the advantage in this channel.

2010 will be an important year for domestic textile enterprises. With capital entering again, the enterprises that are favored by capital will develop more rapidly. The leaders will widen the gap with the latecomers. The industry structure of the future home textile industry will be outlined in early 2010.