The profit declines the capital chain breaks Chongqing furniture dealers start the "life-saving" battle

According to a survey by the reporter, the delay in the supply of Qumei Furniture Chongqing store was mainly due to the break of the capital chain due to various reasons. On the afternoon of October 10, the manufacturers, dealers and stores "three-party talks" negotiated solutions. In fact, Qumei Furniture is not a case. Since the beginning of this year, the overall home market has been cold, and sales in the past Golden Week have generally not met expectations. Industry insiders told reporters that under the dual pressure of economic downturn and property market regulation, the days of local dealers in Chongqing are not good, and the situation of withdrawal and closing of doors has occurred. The break of the capital chain is just the tip of the iceberg of the dilemma of home manufacturers and dealers.
Event Qumei furniture dealers capital chain breaks a few days ago, netizen "sun67482003" posted on the Internet said: Chongqing Qumei furniture dealers do not ship the goods, the store does not assume responsibility, consumer complaints have no door. The netizen said in the post that he bought Qumei Furniture in mid-June, and now he has not received the goods in a few months.
On October 10, in response to the situation described by netizens, the Commercial Daily reporter interviewed Liang Haipeng, the Chongqing dealer of Qumei Furniture. Liang Haipeng explained that two years ago, he and another shareholder partnered to win the Qumei Chongqing distribution rights. In August this year, the partner shareholders suddenly withdrew their funds and transferred to other projects. They could not afford to pay for the goods themselves, which led to consumption. It is difficult to pick up the goods. Although the shareholder divestment caused the capital chain to break, he is raising funds to solve it. Liang Haipeng also repeatedly stressed that "I have not run the road."
According to the reporter of the Business Daily, Qumei Furniture Chongqing dealers have closed 3 stores in Chongqing, and nearly 80 affected customers in Chongqing, involving an amount of about 1.2 million yuan.
In response to the break of the capital chain, Beijing Qumei Company quickly responded. The Commercial Daily reporter contacted Qumei Furniture Headquarters yesterday and learned that Ouyang Han, the manager of the company's Beijing business department, had made a special trip to solve the problem.
According to the reporter of the Business Daily, yesterday afternoon, Qumei Furniture Chongqing dealers, Qumei manufacturers and a number of stores began three-party talks and negotiated solutions. A person familiar with the meeting revealed that the relevant stores and manufacturers have expressed their attitude, and the manufacturers will jointly fund the products to ensure that the products are in place and protect the rights and interests of consumers.
Ouyang Han also said in an interview with the Commercial Daily that after communicating with the store, there is already a preliminary solution: for customers who have paid the deposit, they can directly transfer the balance into the manufacturer's account, and pick up the goods accordingly; For customers, Qumei Furniture will clear all the samples of several stores to ensure that consumers can get a refund. However, the above informed sources revealed that 90% of consumers do not want to return.
The person in charge of the planning department of Hongxing Meikailong Nanping Store also said that although the Qumei incident was caused by the dealers, the consumers were “very hurt”, but the Red Star Macalline will be responsible for the consumers.
Wanjia cabinets in the industry: The store has been reduced by half. The president of the Chongqing Cabinet Association, the general manager of the famous home furnishing brand Wanjia cabinet, told reporters yesterday that the overall market sales situation is not good this year, according to the market situation, Chongqing 6 The number of home stores has been reduced to three. "Now the business is not good, labor costs and rent pressure are very high, so the stores with poor performance will be closed, and the funds will be returned, so that enterprises can survive the industry's winter as soon as possible." Yan Mingsheng said.
Yan Mingsheng said that the customer base in the home market has decreased significantly this year, especially for low-end customers. During the golden week of the past, the sales promotion of the store did not receive the expected results, and the sales volume decreased by about 3% compared with the same period of last year. “Although the raw materials and labor costs have increased this year, the price of the products has only been adjusted according to the cost, and there is no obvious price increase. The whole market environment is not good, we can only find a way to deal with it. In addition to the compression store, we also passed Strengthen employee training, strengthen sales management, increase product differentiation, and control cost-stable customers." Yan Mingsheng said.
Pinzhi Furniture: The industry's profit margin has fallen sharply. He Yong, head of Chongqing Pinzhi Furniture Co., Ltd. told the Commercial Daily yesterday: "This year's sales situation is very general, which can be seen from the relaxation of some large-scale stores to enter the home brand. I can also see. Personally, first-tier cities are particularly pessimistic, and second- and third-tier cities are better. As far as the Chongqing market is concerned, the main urban area is not as good as the districts and counties."
He Yong said frankly that five years ago, the profit rate of the home industry was around 20%, and this year it has dropped to about 10%. “In Chongqing, the competition among the home products is very fierce. Not to mention that foreign brands have entered Chongqing competition one after another. There are countless local furniture factories in Chongqing. There have been statistics that it has reached 5,000. So many Manufacturers can only survive by playing a price war."
According to reports, the current sales network of Pinzhi Furniture is mainly laid in Chongqing, Yunnan, Guizhou, Sichuan, Shaanxi, etc. In the main urban area of ​​Chongqing, there are currently more than 10 stores facing the difficulties due to the low threshold and the property market regulation. It is said that the plight of the home industry in the past two years, the ultimate reason is that the threshold of the furniture industry is too low, there is a big problem in itself, and once the economic downturn occurs, all the contradictions will erupt.
Yan Mingsheng said that in the current economic downturn and the continuous regulation of the property market, the home building materials industry was first affected, and the immediacy and rigid demand weakened, further exacerbating the consumption crisis in the home industry. Every year, the increase in the rent of pavements, the disguised control of the unified cashier in the store, and the increasing cost of purchases make furniture sellers as thin as ice. "The most important thing now is to survive. How many stores are not so important, the important thing is to let every store survive, first save the money and then gradually profit." Yan Mingsheng said.
On the other hand, in the household industry, which is dominated by the private economy, the market-oriented characteristics of full competition are very obvious. When the overall demand in the market is strong, the degree of market competition is not terrible; once the market shrinks in demand, the cruelty of industry competition will emerge. Since 2011, the regulation of the property market has led to a sharp decline in the demand for building materials and furniture in the downstream industry. The price war and the marketing war have been staged.
In this regard, Ding Hua, president of the Chongqing Custom Furniture Association, said that the competition in these years has filled the categories and categories, and it is difficult to differentiate the products on the market. Once demand falls, the problem of overcapacity will be highlighted. Ding Hua believes that the future competition must be comprehensive strength, including factory scale, brand awareness, product quality control and service guarantee, etc., which aspect of "squatting" will not work.
Some insiders said that the continued downturn in the market will lead to a reshuffle of the industry, and some home furnishing companies with weaker overall strength will either shut down and turn around.
However, in response to the problem of the capital chain break of Chongqing Qumei dealers, most people in the industry believe that this is only a very rare situation and will not become a common phenomenon.
Zhou Jing, general manager of Chongqing Daya Home Building Materials Market Co., Ltd. said that there is almost no problem with the furniture chain. The investment in entering this industry is not big, mainly the decoration fee and the rent of the facade. Then, it is to look at the order and let the manufacturers produce. Basically, there is no shortage of funds. "And now the industry is more cautious, dealers will not blindly expand. Therefore, dealers with capital chain problems can certainly be their own reasons." Zhou Jing said.
Dealing with low-cost channels such as e-commerce, Zhao Mei, general manager of Zundi Furniture, told Business Daily that the era of lucrative furniture dealers has passed. In the face of today's difficulties, furniture dealers must lower their expectations for profits. However, as store rents continue to rise, distribution pressures are increasing and profits are slipping, furniture dealers who are struggling to support have to find another way out. Low-cost channels such as e-commerce, independent stores, and community stores have become new channels that dealers admire.
Mao Lizhong, the general manager of the annual red mahogany furniture, which invested 2,000 square meters of mahogany independent pavilion in Weibei this year, said that the store size of the brand in the hypermarket is reduced, and the furniture store is opened into the community, using products and services. Attracting consumers; setting up independent stores, upgrading brands, these new channels are the most effective way to save themselves.
Some insiders believe that the emergence of e-commerce is an effective way to avoid rising costs, and its "far more than the advantages of retail stores" is being recognized by the industry. "As far as I know, there are already some manufacturers and distributors in Chongqing who have tested e-commerce or joined the integrated home building electronics store." Ding Hua said.
Consumers remind consumers that they should refuse private transactions. Ding Hua, president of Chongqing Custom Furniture Association, said: “Consumers should buy products at regular stores, pay at stores, and do not trade privately. In this way, if there is a problem, the store will share responsibility.”
It is reported that the store and the merchant are in a lease relationship. As long as the consumer consumes at the store and signs a purchase and sale contract, the store should protect the legitimate rights and interests of the consumer. If there is a problem with the dealer, the store is responsible for the consumer and meets the customer's pick-up or refund requirements.
Zhao Zhan, a special researcher and lawyer of the Intellectual Property Center of China University of Political Science and Law, told the reporter that the consumers who buy products at the store are the sales contracts signed with the store. The store should bear direct responsibility to the consumers who paid the deposit or the full amount.
“If the consumer and the dealer trade privately, the problem is more complicated. First, there is a contractual relationship between the dealer and the store, the store has restrictions on the dealer, all the contracts and payments go through the store, and the dealers privately trade to the store. Constituting a breach of contract; secondly, the consumer and the dealer sign a purchase contract, and the payment is not available after the payment, which is the dealer’s default to the consumer. The consumer may first negotiate with the dealer, otherwise the claim may be based on the law. However, if the dealer is registered as a company, it will have a limited liability in the law. Once the capital chain breaks, the consumer may not get the full amount."

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