Furniture factory store, a new model that was forced out?

As more and more brands begin to focus on the factory store, does this mean that the sales model that had emerged four or five years ago will set off a new storm this year?

New products are placed in the factory first

“If you don’t see the products you like in the store, you can go to our factory to see if there will be a group purchase meeting next week.” When Mr. Dong purchased the furniture, the sales staff in the top 100 furniture stores gave Such a proposal, "Participating in the factory group purchase will not only be a concession, but also can see the production process of the purchased furniture, and more importantly, there are more product lines that can be seen in the factory."

The reporter learned that since the beginning of the year, the top 100 furniture has already engaged in a number of “factory group purchase meetings”. This month, the new product release link was moved to the “factory store”. According to the staff of the top 100 furniture, the three newly launched sets of the Black Forest Original Ecology Series, the Xindebao Series and the Harry Wooden House Navigation Series are currently not available in the home store. "Because there is no place."

In recent years, furniture brands have paid more and more attention to the experience when they are setting up exhibition halls. They are striving to arrange the atmosphere of the store. Because it can not be simply placed, so most of the well-known furniture brands such as Ronglin Home, Qumei Furniture, and non-same furniture, almost all face the phenomenon that a store in the store is difficult to accommodate a full line or multiple product lines.

It is understood that the well-known home stores such as Real Home, Red Star Macalline and so on give a first-line furniture brand with a store area of ​​about 200 square meters to 300 square meters. This type of store can only accommodate 2 to 3 stores. In the product range, it is almost impossible to display all the products in this brand.

“In order to make better use of the limited space of the exhibition hall, when the company is in the cloth store, it will arrange which series of products to enter according to the difference in the positioning between the stores and the consumption level of the surrounding residents.” Chen Xiaotai, president of Baiqiang Furniture, said that what consumers see in the store is only one or a few series of products of the company, not the whole picture.

Letting customers see the full range of products under the brand is the original intention of Chen Xiaotai to create a “factory store”. Baiqiang Furniture has a production base covering an area of ​​about 180,000 square meters in Shunyi. Chen Xiaotai specially opened up a double-deck space of nearly 4,000 square meters. As the brand's flagship exhibition hall, the brand's seven series of products can be seen here. To.

Was it forced to open a factory store?

In fact, compared to the factory store, the outside world may be more familiar with Chen Xiaotai’s opening in the Euroway independent store near the Blue King. However, the essence of the current factory store is that the Eurowell International Home Pavilion was focused on displaying the various imported furniture brands they represented. Today's factory store, in its double-storey exhibition hall covering an area of ​​4,000 square meters, displays all of its own furniture products designed, developed and produced by the brand.

From an independent international store to today's factory store, what kind of thinking change has Chen Xiaotai experienced? Does this indicate that they will shift their focus back to their own products in the future?

Chen Xiaotai’s statement is that whether they are shop-in-stores, independent stores, or factory stores, they all have their own living space, and there is no problem of substitution. It is naturally not a transfer.

However, it is speculated that with the advent of the market winter, the problem of overcapacity becomes more and more prominent. When enterprises face more and more uncertain factors, it also indicates that it is more and more difficult for independent stores that have been huge and need to pay high capital costs. do. In their view, it is more like a “passive choice” for companies to open factory stores.

In fact, today, more than one hundred, not only in the field of furniture, many front-line home brands such as the iconic floor have a product display area in their factory. Although they have different opinions on the term “factory shop”, from the perspective of store function, they all carry functions such as national agent visits, cooperative customer visits, customer visits and media visits, and some companies will The factory store is used as a training base for store sales staff, and the comprehensive utilization rate is very high.

According to the brand's own words, the market is changing fast now, and the product update iteration is very fast. Some products do not adapt to the market, so they must be adjusted immediately. Every wave of new products goes online, which means they have to start receiving a new batch of agents, so the factory store has been very popular.

“When the factory shop just entered the people’s field of vision, the customer is not very accepting.” But Chen Xiaotai believes that consumption is a process that needs to be guided slowly. After a year of adaptation, consumers begin to accept factory stores. The signing rate of factory stores can now reach more than 95%."

The factory shop is a thousand good, but one thing can't escape at all - far. Because of the remote location, both agents and consumers spend a lot of time. Why should companies go farther and set up stores in factories instead of opening big stores in stores?

According to industry sources, the current rental prices of store outlets are very different, and the prices of different shops in the same store are not the same. “The average rent of a home store with a certain brand awareness is about 6,000 yuan per square meter per year. If you want to open a store with an area of ​​more than 1,000 square meters, the single rental cost will cost at least 600,000 yuan per year.” Insiders pointed out that for factory stores, because it is the company's own factory, there is no rent problem. Their operating costs are mainly composed of personnel expenses, utilities and depreciation expenses of the store, and the sum of these expenses is much lower than the rental cost of the store.

No modern factory can't open factory shop

Companies that do not have a certain size and strength cannot make factory stores. Some insiders said that the factory store model seems to be a good copy, but it is not easy to copy. The key is that the company is not willing to invest money.

Without the accumulation of funds of the order of 100 million yuan, the "factory shop" is empty talk. "I want to do the factory store, and don't mention the product technology problem for the time being. It is difficult to realize that there are not hundreds of millions of funds." Lu Ping (pseudonym), a veteran of the industry, said.

“The premise of opening a factory shop is that the company dares to open the factory to others. If the smell in the factory is pungent, it is difficult for consumers to buy it.” In Chen Xiaotai’s view, the premise of opening a factory store is to have an advanced equipment. With a certain scale of modern factories, "With the strictening of Beijing's environmental protection standards, the environmental protection costs of products have become higher and higher, and the complete set of water-based paint equipment has invested more than 30 million yuan. 50,000 square meters of solid wood furniture. The factory building, plus 50,000 square meters of panel furniture + soft furniture integrated plant, does not count as labor costs, investing 100 million yuan in a single factory."

For the balance and trade-off between independent stores and factory stores, Chen Xiaotai said that if he meets the right opportunity in the future, he does not rule out the possibility of opening an independent store in the city. He said that whether it is a factory store or an independent store, they will hardly replace traditional sales channels in the short term. For companies, these different types of stores only play a new marketing role, all in order to increase sales. .

Or become a new trend in the future?

It is reported that the factory has been relocated to the Tiantan furniture of Hebei Dachang, and there may be plans to open a factory store in the future. It is reported that they have reserved at least 2,500 square meters of space for the product display in Hebei Dachang.

In addition, the Bohai Furniture Industry Park, led by the chairman of the lovely furniture company, Huang Chichen, also plans to build a cluster factory.

“When we did the research and planning of the whole park in March and April 2015, we have already included the factory store. At present, we are still in the stage of industrial clustering. Only a few companies have started construction of the plant. It is expected that next year. In August, there will be dozens of companies' factories that can be put into production.” Huang Chichen said that their plant design and the design of the entire park are planned according to the style and function of industrial tourism.

Just like Niulanshan Erguotou, Yanjing Beer, hand-fruit and vegetable drinks and top 100 furniture applications for industrial tourism projects, the future of the Bohai Furniture Industry Park is the same route.

Although industrial tourism is an old concept, Huang Chichen believes that they can sing their old plays.

"As a manufacturer, we must first meet the dealers to understand the basic needs of the products, so we will build a product exhibition hall of at least 1000 square meters in the industrial park. After satisfying the dealers, we will consider whether we can meet the enterprise at the same time. Retail demand, so industrial tourism can achieve twice the result with half the effort." Huang Chichen said that modern urban people's understanding of tourism is gradually changing. “In recent years, functional tourism has begun to be popular with everyone.”

In order to enrich the contents of the park, Huang Chi has also planned to add DIY furniture in the park, so that visitors can not only see the production process of furniture, but also participate in the design themselves.

"The rise of factory stores is not so much a trend, it is better to be forced out by the market in the cold winter." Lu Ping said that for consumers, factory stores mean low prices or even reserve prices, which is considered to be the initiative of manufacturers to make profits. "But in fact, this is a last resort. The purpose is not related to destocking and grabbing the market." Lu Ping also pointed out that for enterprises, the factory shop is a "double-edged sword" in a sense. .

Factory stores, independent stores or online stores are all aimed at enriching the brand's sales channels, and at the same time of resource integration, the fundamental purpose of increasing sales and promoting growth.

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