Three-four-line cabinet market difficulties and opportunities

The positioning of the investment market in the cabinet market is based on the development status and potential of the regional market. There is no fixed pattern. The first-line investment promotion policy of cabinets is different from the second-line investment promotion policy. What is the current situation of the three-four-wire cabinet market? As far as the current economic situation and the country's policy support are biased toward the third- and fourth-tier markets, such as the absence of major policy changes or the rapid spread of new technologies with counter-trends, the overall cabinet industry is basically developing upwards in the third and fourth lines.

Three-four-line cabinet market difficulties and opportunities

Third- and fourth-line market definition: county-level and town-level markets. Such description and classification are actually not accurate, because the level of economic development is uneven, so under this definition, the performance of the three or four lines in different regions will be different. Here, the Jiangsu-Zhejiang area is used as a reference, and the market is better. Where.

The current situation of the third and fourth line cabinet market:

1. The middle and low-end consumption is the mainstay, and the high-consumption population is lost to the high-end market;

2. The volume of single store is low;

3, local formal processing is less, mostly for foreign processing, local assembly for more;

4. The resident rate of well-known brands in the industry is low;

5, the store decoration is not optimistic, the operator is less professional;

6, the consumption capacity is not low, the consumer knowledge is lacking, easy to guide;

7, more husband and wife stores, Xiaofu Yi'an thoughts dominate the mainstream;

8. The management method is single, and the phenomenon of shop sales is more serious;

Obviously, with the above listed conditions, the mid-end brand cabinets will have a relatively large development space. But how to enter the third and fourth line market?

Several important points affecting the investment promotion policy of cabinets:

Three-four-line cabinet market difficulties and opportunities

1. Normal investment expenses and whether there are any unreasonable charges;

2. Brand geographical restrictions;

3. Brand awareness and influence;

4. The scale and professional level of the enterprise;

5. Support for franchisees;

6. Product quality, product selling point, supply price and profit rate;

7. Brand development potential;

8. The profitability and influence of the star store in the sample market;

Returning to the current situation of the third-four-line cabinet market: the single-store volume is low; the store decoration is not optimistic, the operator's professionalism is poor; the husband-and-wife store is more, and the small rich and immediate thinking is dominant. Cabinet investment companies are not only trying to figure out the market opportunities, but also to solve problems and solve the shortcomings of the market - everyone can see the opportunity, but not everyone is willing to solve the trouble, this is the real opportunity.

For these three points, how do investment companies do it?

Reduce investment levels and increase single store volume.

Among the several points of the investment policy, there is little influence on the geographical restrictions of the brand in the third- and fourth-tier markets (the basic body is a “small place”, and the production of a small scale has a big impact. In most cases, it will focus on a number of well-known places in the north, Guangzhou, Zhejiang and Zhejiang. Brand awareness and influence here we choose to ignore (the kitchen cabinet industry for consumers, only Europa is a real brand, the rest are industries) Well-known brands or regional brands have little effect on consumers' consumption choices. The focus is on regional operations. At present, most of the investment is based on the ambiguity of “flickering”. Of course, it does not mean that it is not important. The lower the level of the market, the lower the level of attention to the fourth, seventh, and eighth points, they prefer to become a trading relationship or dependency. Therefore, the first, fifth, and sixth points have become relatively important factors. The key point here is to explain that from the perspective of rationality, the eight points are very important.

Three-four-line cabinet market difficulties and opportunities

In actual operation, it will encounter difficulties in attracting investment: the transaction volume is low. If the investment cost of opening a store is too large, the cost recovery cycle is too long, which is obviously an unwise investment choice, so the franchisee is not willing to save money. For example, A Jun invested 500,000 yuan to open a store, and normally sells 6 sets of kitchen cabinets per month. The gross profit of each set is 3,000 yuan, 18,000 yuan per month, and 11 sales months per year but 200,000. Left and right gross profit, remove all expenses (rental, tax, sample depreciation, where wages are not counted) generally account for 30% of gross profit, only 140,000 - seems to look good, but the actual situation is that the investment required 3.5 years In order to recover (if the deposit interest rate is included, it takes 4 years to recover), after this cycle, the image of the store should have been replaced, and it needs to be re-invested in the decoration (the general sampling cycle is two years), so A Jun Always investing, it seems to have been making money, but there is always no money in the wallet.

How to solve?

How can we make more money and make more money? This is not a problem that can be solved by various so-called "free decoration fees, free of charge, free of sample fees" - as we all know, this is just a beautiful investment gimmick. The kitchen cabinet investment enterprises also need to start from internal strength and make a sufficiently strong investment and maintenance system and profit system to maintain competition in the third and fourth line markets.

Three-four-line cabinet market difficulties and opportunities

The specific operation method must be different according to the company's situation, but it is nothing more than the following ways:

1. Carry out sample layout and minimize investment level on the premise of ensuring the effect of the exhibition hall;

2. Provide a strong profit model and profitability – once again: the profit model is not fixed, but is designed according to the actual situation of the regional market;

If you do not make the corresponding changes, even if the investment is successful, there will be a serious fly or a low survival rate.