In the pan-home industry, during the first ten years, top-tier brands have dominated with great success. However, in the next decade, second-tier brands are beginning to gain momentum in the mainstream market. High franchise fees, rising operational costs, and strict performance targets have placed significant pressure on first-tier brand dealers. According to recent data, over 40% of first-tier brand distributors have shifted to second-tier brands since last year, and this trend is expected to continue growing.
Many first-tier brand franchisees are struggling with limited profit margins. These brands often require prime locations, large store spaces, and high sales targets. In well-established commercial areas, where occupancy rates exceed 98%, it's increasingly difficult for new stores to find suitable spaces. Moreover, some top-tier brands rely heavily on their brand recognition and offer minimal support to franchisees, leading to low profitability and high failure rates.
The fierce competition among top-tier furniture brands has created challenges for franchisees, while lower-tier brands face even tougher conditions. This situation has made many potential investors hesitant. As a result, second-tier brands are now standing out by offering better support, training, and resources to their franchisees. These brands are not only helping their partners succeed but also building long-term confidence and loyalty.
Second-tier brands are becoming increasingly attractive to investors. With more flexible requirements and stronger support systems, they are gaining popularity quickly. Many dealers believe that while top-tier brands still hold some value, the entry barriers are too high. For future investments in the pan-furniture industry, many are turning to second-tier brands as a more viable option.
As consumer preferences shift, especially among the post-80s and post-90s generations, there is a growing demand for mid-range products that offer good quality at reasonable prices. These younger consumers are more price-conscious and seek practical solutions. Second-tier brands are well-positioned to meet these needs, supported by manufacturers and backed by strong retail strategies.
With favorable market conditions and growing consumer trust, second-tier brands are emerging as key players in the industry. They are gradually taking over the mainstream market and becoming a major focus for both investors and consumers. (Editor: Peter)
Mason Frame,Aura Mason,Aura Frame Mason,Mason Aura Frame
Chuzhou Jincheng Metalwork Co.,Ltd , https://www.jinchengscaffold.com