Furniture store management upgrade: five strategies to improve store performance

Since 1995, the gradual formation of the consumer market and the rising national economy have accelerated the development of the Chinese furniture industry. These 15 years are a good time for the development of China's furniture industry. The inflation of housing prices and the concept of advanced consumption has driven consumers' purchasing power to unprecedentedly high. Correspondingly, furniture companies have increased their production lines, and a variety of furniture stores and furniture stores have sprung up everywhere. Since 2006, the volume of these stores has become larger and larger, and there are more and more brands. International chain home supermarkets have also begun to enter the domestic market. The pace of integration of Chinese furniture products into economic globalization has accelerated, rising at a rate of 28% per year. Now, all this has become a rush. In fact, many furniture stores have been struggling before the start of the global financial crisis in 2008. The sales of single stores in many chain furniture stores have already fallen by a factor of two, the store closure has accelerated, and the opening of new stores has slowed down. Hongfu Furniture, which has nearly 100 stores in dozens of cities across the country, is an obvious example. Since the real estate market turned cold in the second half of 2007, the situation of Hongfu Furniture has become increasingly rampant: on the one hand, real estate transactions in first-tier cities have fallen sharply by 50% to 80%, which has led to a sharp decline in sales of Hongfu Furniture; Some real estate markets in second- and third-tier cities are on the rise, but because these consumers have low requirements for furniture, they can use them to the forefront of high-cost red furniture, which has led to losses in many of their stores. However, the difficult time and even the severe economic downturn may also be a good opportunity to win more customer loyalty, increase productivity and consolidate market position for furniture companies. Shanghai Dongfang Marketing Management Consulting Co., Ltd. has done a research on more than 40 relatively large-scale stores of Hongfu Furniture, and combined with the consulting experience and research of Dongfang Zhi for many years, how to explain to the executives of Hongfu Furniture Respond to the downturn and how to get out of the doldrums and become stronger. After working with Dongfang Zhi, Hongfu Furniture found that they still have a lot of opportunities to achieve growth and increase productivity, and the opportunities are even beyond their imagination. And they don't need to make "big-bang" changes to their entire business model. They only need to change some business strategies slightly, and they can take advantage of these opportunities to achieve a significant increase in store performance. Strategy 1: Open another door Whenever a difficult time comes, the company's managers will instinctively rush to launch a whole host of new measures, such as extending store opening hours, implementing new staffing, changing incentives, and redeploying Shopping space, launching promotional offers or special promotions, even closing and reorganizing some stores, changing operating modes and so on. However, if managers can't see where the store's market share and profitability are, then all these various measures will be ruined and unable to generate waves. Especially when resources suddenly become scarce and companies are eager to get the highest return from these resources, these measures are not worth the loss, and the company will be brought into desperation. For example, since the real estate market began to decline in the second half of 2007, the entire home furnishing industry has also suffered. By the end of 2008, when the global financial crisis broke out, the sales of the entire furniture industry fell by an average of 30%, while the furniture of Hongfu Furniture The data is down 47%. However, just at this time, many problems left by Hongfu Furniture in the enclosure movements of the past few years began to focus on the explosion: the cost is high, and the madness of the stores developed between 2005 and 2007 is indigestion. , began to make ends meet. In order to solve this problem, business managers must truly understand their products and those who purchase these products, and make a careful and targeted response accordingly. Dongfang Zhi called this "open another door", that is, those who have not purchased your product yet, but who may purchase your product in the future open a door they are willing to go. Customers who are loyal to your competitors are not yours at the moment and you can't get them in the future. You don't have to waste time and resources. Those who are still loyal to you during the downturn are your hardcore customers. You want Think of them as your first valued customers, you can't do anything that affects their consumption of your products; those who are neither loyal to your competitors nor loyal to your consumers, you need to actively open another for them The door." Maybe, these people used to account for less than 20% of you, but if you can open another door they like to walk, they will account for 30% of your share. Let us take Hongfu Furniture as an example. When Hongfu Furniture was just starting, there were a large number of loyal customers. These people have a soft spot for it, for the simple reason that the Hongfu Furniture Store gives customers the experience they like – tailor-made personalized service, and a comfortable furniture experience atmosphere (especially those who are smiling and kind) The storefront shopping guide is very attractive.) However, with the rapid expansion of stores, tailor-made personalized services have become ineffective. Many shop assistants who have been in a hurry to get up and train have turned customers who have come to Hongfu Furniture Store to go to competitors. This virtually “closes another door that can receive more business”—rejecting consumers who are neither loyal to Hongfu furniture nor loyal to other brands. Although Hongfu Furniture still has some old customers to take care of its business, it is too limited. So, how can companies "open another door" to undertake more business to improve the performance of the store? There are many ways: managers can according to the furniture category, local market spending power, consumers' habits and ways of buying furniture, Even the situation of competitors to determine how to "open another door." With the help of Dongfang Zhi, Hongfu Furniture Manager studied the customer's mentality towards Hongfu Furniture, and found the non-loyal consumers who bought the red furniture among the early users, mainstream users and recent users. Another way to "door." Regardless of the method used, Dongfang Zhi always sees that when furniture stores expand their market share, two-thirds of the opportunities exist for consumers who have no fixed brand loyalty, that is, by "opening another fan." "Door" has the opportunity to increase two-thirds of the business. At the same time, Dongfang Zhi also found that more furniture stores are focusing on that one-third of the business. This explains why the promotion method used by managers is of little effect when they want to improve store performance. So, when a plan doesn't work, it's one more, one after another, and it's not effective. Conversely, if the furniture store manager can find a real way to “open another door”, it will not fall into this vicious circle. The measures they launch may be more effective, or at least they will know more clearly. Implement an effective promotional program. When studying the Hongfu furniture store, Dongfang Zhi found that the study furniture in Hongfu Furniture Store was favored by young consumers who loved fashion and affordable. It was their must-see (or even mandatory) furniture every time they entered the store. product. However, the intensified competition eventually caused its sales to plummet, which in turn caused a great blow to the overall store performance. Red Fu furniture managers can't agree on the countermeasures: Should we adjust the product structure of the store, or increase the investment in brand promotion, or carry out some special promotions, or try some other measures? In order to find out the problem The answer is that Dongfangzhi Marketing Management Consulting Co., Ltd. used the Internet to conduct a large-scale survey conducted by the panel, and analyzed the customers according to the category of Hongfu Furniture and the market of the location of the store to determine which consumers passed the “ Open another door" you can fight for, where do they shop, what they bought, and what the motivation for buying. Dongfang Zhi found that those customers who are loyal to Hongfu Furniture are mostly “consumers who feel fashionable, have personality and value to buy”. Therefore, Dongfangzhi project team has reached a consensus that the opportunity to upgrade Hongfu Furniture stores lies in Attract those who are “fashionable in everyday life”. These fashionable people will come to the Hongfu furniture store, but there are no more furniture that makes them desirable. Therefore, consumers who buy furniture here are not as good as those who buy elsewhere. For example, in a city with an IKEA (view map) store, these consumers have left the Hongfu furniture store and transferred to IKEA for consumption. This made the manager of Hongfu Furniture realize that if you can absorb some of the expenses of this fashionable person, the existing sales and profitability of Hongfu Furniture Store can reach twice as much as previously thought. Moreover, as long as some changes are made to certain parts of the overall service, such as furniture product classification, store environment and spatial planning, etc., it can attract more specific customers. Later, in the case of two declines in the sales of rivals, Hongfu Furniture achieved a flat result of single store sales, and some stores also achieved sustained and steady growth, thus consolidating the market position of Hongfu Furniture and slowing down. The impact of the rapid decline of the overall furniture market triggered by the financial crisis has affected them. Strategy 2: Filling the gap in the store In the survey of Dongfang Zhi, most furniture stores have many potential customers who could spend more money in the same furniture store, and the challenge for the store is How to induce customers to do so. This is easy and easy to say, and it is difficult and difficult to say. It's easy because the furniture store only needs to provide the furniture and services that these customers want; it's difficult because the furniture and services that these customers want are not the ones that the furniture store currently offers. In order to make up for this store gap, the furniture store manager must get rid of the gradual optimization method of “simple addition and subtraction on the basis of last year”, even if this method has been used by enterprises in the past years. Such store openings may be presented in a variety of forms: for example, the furniture store's product portfolio, storefront service level, in-store environment, or brand positioning itself may have gaps in supply and demand. As far as Hongfu Furniture is concerned, the rapid increase of new stores and the emergence of more competitors have caused a huge gap in experience for its customers. Their expectations for Hongfu Furniture are far from the actual experience. In the in-depth study of Hongfu Furniture Store, Dongfang Zhi learned that some people think that it is not worthwhile to go to Hongfu Furniture Store for a bookcase; some people think that most of the furniture products of Hongfu Furniture Store are generally designed, but they go there just to It is not worth buying a piece of furniture; some customers say that the tailor-made delivery time of Hongfu Furniture is too long, and those furniture products are not all tailor-made; some customers say that Hongfu Furniture is a big shopper. No longer polite to customers as they were before. The gap between supply and demand in these store gaps not only explains why Hongfu Furniture Store has grown rapidly, customers have changed their doors, bought furniture from their competitors, and also revealed how Red Fu Furniture can change this situation. In order to enhance the competitiveness of the furniture store, the manager of the furniture store must constantly find the store gap and find ways to heal it to win the biggest store performance. Only in this way can furniture stores gain market share and make up for some of the inevitable sales losses – when loyal customers tighten their wallets. However, according to the observation of many furniture stores and furniture stores by Dongfang Marketing Management Consulting Institute for many years, there are not many furniture stores or furniture stores to do so.


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