The channel is king, the traditional channel of the home industry is no longer effective

The prevalence of the Internet age has almost changed people's lives and work patterns, and the online market is increasingly sought after by businesses and consumers. According to the latest report released by the China Internet Information Center CNNIC at the end of 2010, the number of Chinese netizens reached 420 million, and the Internet penetration rate reached 31.8%, which was higher than the global average of 21.9%. In 2009, the scale of China's online shopping market was close to 250 billion, reaching 248.35 billion, a year-on-year increase of 93.7%. With the increasingly stable growth rate, the scale of online transactions in China is expected to exceed 1 trillion in 2013.

According to an investigation by an authoritative department, from 2010 to the present, 35% of the 420 million Internet users choose to purchase goods online each month.

E-commerce related data shows that China's e-commerce has grown rapidly in recent years, and the consumer market is very large. On the one hand, because the network is becoming more and more popular, the trend of consumption is becoming more and more network-based; on the other hand, it is because of traditional There are many weaknesses in the management and purchase model of the sales channel. The advent of the e-commerce era has become a beautiful flower in the economic transformation of many Chinese home furnishing companies, and has brought the dawn to the pressured home furnishing industry.

The home industry sings the "e-commerce" melody

"Strong channels are good for enterprises", according to the survey, China currently has considerable scale and brand awareness Of home furnishing companies have begun to test e-commerce, and the emerging online sales have opened a huge imagination space for the home furnishing industry in traditional industries.

Whether you are stationed or not in e-commerce, the Internet's huge consumer base is there, only increasing; whether you are concerned or not concerned about e-commerce, competitors with a keen market sense are there to seize the opportunity.

Traditional channels can't be cured

Some brands report that their sales per unit area and efficiency are declining. At the same time, many home furnishing stores are constantly increasing rents, which makes our manufacturers and our dealers reduce their efficiency in traditional marketing channels.

The rise in prices has caused an increase in store opening funds and the associated channel operating costs have made many brand companies unable to afford it. In addition, the recent rent expansion caused by the crazy expansion of the store has made home companies realize that they can no longer put eggs in the same basket , But to find another channel to seek a turnaround. In the era of high costs, the active or passive expansion of traditional channels has brought great crises and tests to enterprises. Therefore, the gradual compression of profits caused by the cost of damage has brought a heavy burden on traditional channels, which is burdensome. Under such circumstances, companies can only take other methods to release sales pressure.

E-commerce and traditional channels are difficult to coexist

E-commerce and traditional channels are supposed to go hand-in-hand with two complementary sales models, but why are many home furnishing companies dared not move in? The reason is that most of the home furnishing companies adopt the mechanism of layers of agents. Under the influence of these mechanisms, prices have already deviated and cannot be unified. This is naturally fatal to e-commerce.

In addition, under the agency system of dealers, manufacturers dare not rush into e-commerce because of the interests of dealers nationwide. The threshold for e-commerce entry in China is very low, but home furnishing companies can't proceed rashly if they want to conduct e-commerce. It relies on the support of a huge dealer system within the home furnishing company. It is necessary to resolve some frictions that may exist in the process of running-in. After all, traditional channels still occupy the mainstream position.

"Successful channels, defeated channels", e-commerce has become the trend of the market, and many home brands can only share this cake in the e-commerce era and gain a foothold in the market only if they recognize this and make full preparations. Ground. The effect of early stage e-commerce may not be very obvious. Its development is indeed going through some stages of break-in, but any emerging things in the early stage of development are only with the smoldering tendency of the weak dawn, and the first one dares to eat crabs. People usually become the people who eat the most crabs.

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