Home furnishing companies need to change the existing model from selling products to selling services

According to estimates by home industry experts, the home orders brought by the homes are as high as 100 billion yuan. But this piece of cake seems to be very attractive. Many companies don't feel good when they "eat" it, and even bitter. An housing refers to the housing built by the national “home living (or Kangju) project” (a category of affordable housing).

Why is this happening? Wang Yuefeng, general manager of Haier Group Rishun Home Service Co., Ltd., held the "100 billion home housing furniture orders" held in Houjie recently. Are you ready?" The forum believes that in the face of huge business opportunities in housing, furniture companies will fight for the price. The result is that the company has no profit, the dealer does not make money, the service is discounted, the quality is discounted, and the brand is damaged.

In this regard, Wang Yuefeng suggested that furniture companies must shift from selling products to selling services. They must change the existing “general generation” model, improve service levels through specialized division of labor, and thus improve the overall competitiveness of products. “In fact, it is common practice to outsource services to third-party professional companies abroad.”

Vicious competition for home kitchen cake

Faced with the lingering haze, opening up new markets has become an inevitable choice for furniture companies. The housing project promoted by the national policy has become a new target of the furniture market.

At the 29th Famous Furniture Exhibition, the domestic analysis organization pointed out that more than 34 million sets of urban security housing projects have been started nationwide, and more than 21 million sets have been basically completed, of which 78,100 sets were started in 2012, and 6.01 million sets were basically completed. This means that there will be a large number of affordable housing and small and medium-sized housing units entering the market in 2013. According to estimates by home industry experts, the home orders brought by the homes are as high as 100 billion yuan.

The cake in Anju is really big, no doubt. "This cake seems to be very attractive, but many people don't feel good about eating it, and it may even be bitter. Why is this? We should first look at the current industry situation." Wang Yuefeng believes that facing huge business opportunities Each furniture company is mainly engaged in the "economic" card, and has been working hard to price the furniture package. Prices range from 50,000 yuan to 30,000 yuan and 10,000 yuan, and even more have launched a package of less than 5,000 yuan. The final result is that the company has no profit, the dealer does not make money, the service is discounted, the quality is discounted, and the brand is damaged.

Why do most furniture companies fall into this vicious competition? Wang Yuefeng believes that the reason is actually very simple, because most furniture companies are still focusing on selling products, but not on services. Here we have to talk about the existing business model and service system of furniture companies. At present, most of the domestic furniture companies are in the “general generation” mode. The “general generation” here refers to the factory to hand over all the work after leaving the factory to the dealers, including the direct impact of logistics, product installation and maintenance. The link of brand reputation. In fact, in this mode, no one will pay attention to after-sales service. The manufacturer has already given the service fee to the dealer, and will not invest again; the dealer will not invest more in the service from his own interests. In this way, with the continuous improvement of service costs, dealers have outsourced services to the “road guerrillas”, and the quality of service is difficult to guarantee, let alone to be competitive.

Wang Yuefeng concluded that the needs of users of Anjufang are economical and affordable furniture, but most enterprises only seized the cheap and lost the guarantee of products and services. The root cause is the current generation model of “sales + service” in the industry and the service system that relies entirely on dealers.

Every spring, the investment promotion activities of home furnishing enterprises have become active. Various investment conferences and domestic and international exhibitions have also been in full swing. The market competition for home furnishing enterprises in the new year has also begun.

When it comes to partners, they often pay attention to brand characteristics. At present, the quality of household products on the market is similar, the prices and styles are similar. It is not the best way to attract franchisees by price advantage alone. Only by continuously strengthening the brand characteristics and forming a brand advantage can we attract more franchises. Business, and play a good role in maintaining.

For home furnishing enterprises, it is necessary to strengthen brand building, including two aspects: first, strengthen product independent research and development capabilities, develop new special products, and maintain brand highlights; second, strengthen corporate brand culture construction, and use corporate culture to unite more power. Form a long-term stable customer base.

Actively cultivate and communicate in a timely manner

The author believes that the active cultivation and timely communication after the investment promotion is a necessary lesson to enhance the confidence of the cabinet franchisees in the brand. However, this homework is often overlooked by companies.

Many home furnishing companies believe that franchisees only value hardware support, such as enterprise products, store funds, and advertising investment. However, many franchisees also pay attention to soft support such as service concepts and marketing techniques provided by enterprises. Many franchisees have a certain amount of time in the company when they cooperate with the company. However, it is difficult to grasp how to better sell products and make the store profitable. Therefore, enterprises should pay attention to support and input in this part and strengthen The actual marketing training, actively cultivate the franchisees, and communicate with them in time to ensure the normal connection between the company and the franchisees, enhance the franchisee's self-hematopoietic function, and avoid franchisees to choose "job" due to various psychological factors.