Floor companies tap the profit store channel to sink the second and third tier cities

Chengdu, as an important business distribution center in the western region, the floor and building materials market in these two years is not destined to be calm, roughly calculated, the number of large-scale floor building materials stores is extremely impressive. However, the market capacity is limited, and fierce competition will follow. The channel will sink to prefecture-level cities and even county-level cities, becoming an important means for businesses to open up markets.

Competition in building materials stores intensifies Chengdu consumers will calculate

In the Chengdu market, the competition between stores is obvious, and the competition targets and level competition between stores and stores have been constantly upgraded. The stores have come up with their own magic weapons to compete for the market. It can be said that they are naked and hardworking, especially at the end of the year, they are unswervingly playing big promotional cards, and they are struggling to fight.

Once and for all, the attractive promotion policy, whether the Chengdu consumers buy it? The relevant person in charge of the Red Star Macalline analysis: Chengdu consumers will be accounted for, different from Beijing, Xi'an and other places. For example, in Beijing or Xi'an to do a promotional campaign, to buy a 10 yuan product at a price of 1 yuan, to snap up the queue may be thousands of people, Chengdu is not. “Chengdu consumers will calculate this. How much will it cost to buy a product of 1 yuan? How much time will it cost? If the cost of investment is about 10 yuan or more, Chengdu people will basically not come.” According to the person in charge Statistics, similar activities attract Chengdu consumers and traffic can be about one-third of Beijing and other places. Indeed, Chengdu's leisure lifestyle has made Chengdu people “calculate”, and the long-term promotion model of the store has also cultivated a large number of savvy consumer groups.

Mining profitable market channels to sink second and third tier cities

In the case of sustained economic slowdown, the consumption potential of Chengdu market is limited, regardless of whether the floor building materials store or the enterprise needs to find more ways to win more profits. Zhang Jun, the general manager of Southern Home Furnishing, admitted that the days of furniture and building materials enterprises in 2012 were “not good”. Enterprises with sales of more than 50 million can only be “safe transition”, and enterprises with poor management will be eliminated in the market. "This is a cruel competition and a natural market survival rule. Enterprises and stores will be tested in such a big environment. Seeking market breakthroughs is the key to everyone's survival." In terms of the current market situation, the economic environment The effect of the test began to appear: R&F and Mercure have already gone to the sky, and Jiufeng International Home has been silent for a long time... Stores and companies have begun to look for new "profit growth points", two or three layers must be ideal. Market space.

In July of this year, Sichuan Furniture Import and Export Chamber of Commerce led the company to build its own furniture store, set up the first Sichuan brand home direct sales center Shenxin Taifu International Home Expo Center in the southern county of Nanchong City, and set the market to the county level with the concept of direct sales. Dozens of companies in the city, such as the city, all-friends furniture, southern homes, and good landscape furniture, are bound to infiltrate the channels into county-level and even rural markets. The Langdu International Home Expo Park, which was invested and built by the company in Deyang, was also opened in July this year to realize the transformation of the business model. According to relevant sources, Red Star Macalline, which is closely targeting domestic first- and second-tier cities, will open stores in Sichuan's second-tier market next year, and is currently actively deploying in Neijiang, Zigong and Xichang.

In fact, from the perspective of macroeconomic analysis, China's urbanization growth rate still has a lot of room for growth, especially in the central and western regions and second and third tier cities. Today, second and third tier cities have become important profit growth points for many first-tier housing companies. As a real estate downstream industry, home building materials are also keeping pace with the rapid development of the second and third laps to tap the local consumption potential.

Throughout the construction of Sichuan building materials, the sales channels of stores have not only shifted from provincial capitals to prefecture-level cities, but prefecture-level cities are also infiltrating into county-level cities, showing a step-down sinking pattern. This seems to imply that the entire market format is taking place. Great change. Some enterprises that have been focusing on first- and second-tier cities have gradually slowed down the pace of channel sinking and opened up land in second- and third-tier or third- and fourth-tier cities. In these emerging markets, stores and merchants are also exploring new revenue models to capture more market share.