In the home circle, one of the favorite games that some bosses play is playing cards. In the airport, on the plane, in the hotel, as long as everyone can relax, there must be three groups, and five groups will join together to fight the landlord.
Of course, these bosses are not gambling, but a kind of leisure entertainment, communicating feelings and communicating business during the playing process.
Most of the Chinese people know that it is usually played by three people. Each time there is a person called a landlord. The other two are a group. The final one is the winner and the other is the loser. Of course, every card has the possibility of being a local lord according to the rules of the game, so there is no eternal ally, only eternal interests.
In 2011, as the property market regulation entered the deep water period, the downstream home market was weakened, the sales of various brands' terminals declined, and profits shrank. This was followed by various contradictions. One of the outstanding ones was the problem of home sales and rent.
In this context, the original harmonious business field relationship has undergone subtle changes, and the game between the two sides has also changed from the original secret to the short-term match between the real and the real gun. The terminal business is not good, the store is open, and the rent does not fall. It seems that the factory and dealers can't afford it. Therefore, in various sizes, it is inevitable to stage a real version of the "landlord".
Open the "landlord"
In the home industry, because most companies basically adopt a distribution model, they form an inseparable triangle relationship between factories (brands), dealers (agents), and stores. According to the simple explanation of the industry, the store rents the operating mall, the agent pays the rent and sells the goods, the manufacturer supplies the agent and supports the security system. Therefore, the factory and the dealer compare the image of the store to the “landlordâ€.
It is understood that this year, with the rapid expansion of national home furnishing stores, furniture, building materials factories, dealers often send out the feeling of "can not keep up." Because the home store is the most important and even the only sales channel for each home brand. In the relationship between the two parties, the store is more active and stronger.
"It cannot be denied that the rapid expansion of home hypermarkets has led to the formation of many national furniture and building materials brands, but as the two sides develop rapidly, the relationship between the two will be subtle." An unnamed furniture Said the boss.
However, with the downturn in the entire home market in 2011 and the acceleration of the expansion of the store, the contradictions between the two sides have finally become public.
On December 20, 2011, at the "8th China Home Furnishing Industry Development Summit Forum" held in Dongguan, Guangdong Province, Zeng Zhenyu, the rotating chairman of the China Furniture Sellers Association, representing the interests of furniture dealers, said that the furniture industry in 2011 was " Awkward year." The vast number of furniture manufacturers and sellers feel that business is difficult to do, and the operating costs remain high, especially in the store. At the same time, the hypermarkets opened more and more, the disorderly expansion made the vast number of manufacturers exhausted, the output per unit area hit a record low, the profit scale fell sharply, the sellers lost a large area, and some cities have reached a loss rate of more than 80%.
On January 12, 2012, at the “2012 Beijing Market Situation Seminar†hosted by the National Federation of Industry and Commerce Furniture and Decoration Industry Association and the China Home Brand Alliance, representatives of 50 furniture companies from Guangdong and Beijing once again publicly appealed to the store. With the factory and dealers in the same boat, give more support, especially in the field of rent should be reduced.
Rent reduction becomes the focus
In 2011, in the face of the sluggish market demand, the sales growth of various merchants was weak. In the case of various high costs, the profits have shrunk dramatically. At this time, there is no looseness, and the firm sales rent has become the target of everyone. ".
According to Liu Yongkang, president of Hong Kong Kangsheng (Conraden) Group and chairman of the China Household Brand Alliance Supervisory Board, furniture dealers have a happiness index, which means that 10% of sales can make a lot of money, accounting for 15%. There are also four to five points of profit, accounting for 20% of the time to start to protect the capital, more than 20% of the dealers will tears.
Klaus Home Chairman Wang Dawei calculated the account, Klass made more than 30% of the storefront in 2011, more than 30% of the store is flat, more than 30% of the store loss. As a dealer, Wang Dawei’s hope is: “In 2012, the rent of the store will be reduced, the exemption will be exempted, the factory will not be able to raise the price casually, and the after-sales service will be done. Only then can the dealers stick to it, even if it is slightly Loss."
According to Zhang Lei, general manager of the company in Drolland, the current situation is likely to cause the home industry to fall into a vicious circle. "In the current situation, most dealers can't make money. If the dealer can't make money, there is no way to purchase the goods. Then the factory will be difficult to sustain. If there is no brand to support the channel, then even if you want to maintain high rents, Development is also more difficult. The ideal result is that everyone will compromise each other and tide over difficulties."
Or compromise
In the face of the merchants' rent reduction calls, the home store also expressed an attitude of dealing with the merchants. Wang Linpeng, the president of the Real Estate House, said at the manufacturer's annual meeting at the end of 2011 that in 2012, the home of the company would never open a store that would allow the manufacturer to lose money, and would not open a store with a bad location, and would not open a store in a city that could not be the leader. In addition, the actual home will also give more support to the merchants according to the changes in the market form, and will consider concessions and reductions to the merchant rent if necessary.
In addition, Red Star Macalline Chairman and CEO Che Jianxin, Jimei Home President Zhao Jianguo, Beijing Dazhong Temple Lan Jingli General Manager Yin Bo, and off-site Chengjia Plaza General Manager Liu Changhe and other store representatives also publicly stated that the store The rent will be adjusted in a timely manner to meet market changes.
"Leasing rent may cure the problem, but it can't cure this." In the view of Shen Yaojun, vice president of Jimei Home, it is still a surplus of store area, the profit of single store is too low, causing the profitability of merchants to drop sharply, and the pressure on rent is amplified. In the downturn, the impact of this excess is magnified. Stores and merchants simply fight against the rent problem, and the final result may not have a winner. The "landlord" is bound to lose more.
"Even if the rent is low, but you open more stores, the business will still be dispersed, the cost pressure is still huge. If you do not sell goods, the store zero rent is also losing money." Shen Yaojun believes that the current housing market crisis caused by the housing market crisis The number and area of ​​the store should be controlled, and even the area can be considered. Not only should the store reduce the area, but also do diversified operations. Merchants should also consider reducing the area and improving the efficiency of the square meter without affecting sales.
Also holding this view is Wen Shiquan, chairman of Yifeng Furniture. “Enterprises should slim down and do the subtraction at an appropriate time. Choose to go lighter. If you sell more, pay more rent. If you sell less, you will pay less rent. Is this also called market competition? Practice hard to develop yourself and grab opponents’ orders. Pushing competitors to the cliff, we will survive, this is the market competition." According to Wen Shiquan, Yifeng has changed five stores from big stores to small stores at the end of 2011, the scale has been reduced a lot, and the square meter effect has also A lot has improved.
For the wave of "landlords" games in the industry, industry insiders said that factories, dealers, and stores are all alliance partners in the interest chain. Everyone is playing a game of interests, but the distribution of shares will be based on The power of the party changes. But when the chain of interests is threatened, everyone will eventually compromise and make concessions. This round of market shuffling has no winners and losers. The end result is that everyone is guaranteed to live and develop.
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