As the saying goes, "One side of water and soil support one side", Zhejiang is located in the middle of China's geographical location and on the east coast. The beautiful scenery is the geographical feature of Jiangsu and Zhejiang, which makes the personality of Zhejiang people blend the delicateness of southerners and the boldness of northerners. Because there is water, the people of Jiangsu and Zhejiang are full of spirituality, and the water is soft, especially the water in the south. Speaking of people from Jiangsu and Zhejiang, one obvious characteristic is cleverness, frugality, and pragmatism. What comes to mind is a gentle and relaxed life. These qualities are most suitable for business.
Due to Zhejiang's unique cultural characteristics, consumption in the Zhejiang furniture market has the following characteristics:
Characteristics of Zhejiang furniture consumers
1. Consumers in Zhejiang choose furniture very carefully and pay great attention to the quality of furniture.
2. The lives of people in Zhejiang are becoming more and more westernized. In recent years, newly-built houses usually coexist with Western-style rooms, especially the younger generation loves furniture that reflects their personal style. Furniture styles are becoming more diversified and custom furniture is becoming more and more popular. Consumers choose their own furniture sizes , Colors, materials, and shapes to suit your own preferences, more and more people have consulted interior design companies to purchase appropriate furniture.
3. According to the statistics of the Zhejiang Provincial Aging Office, the population of people aged 60 and above in Zhejiang Province has exceeded 10% of the total population and entered an aging society. The aging population has always been at the forefront of the country. As of the end of 2008, there were 729.38 million people aged 60 and over in the province, accounting for 15.56% of the total population, an increase of 308,600 or 4.42% over the same period last year. The aging and aging population of Zhejiang Province has entered an accelerated development stage. It is expected that by 2020, the population of people aged 60 and above will reach more than 11.2 million, accounting for more than 20% of the total population. In recent years, with the economic and social development and the general improvement of people's living standards, long-lived elderly have increased year by year. This means that the demand for health-related furniture continues to grow. This has created conditions for furniture companies to open up the market for auxiliary furniture and health beds for the elderly.
4. The office furniture market favors products that are automated, occupy less space, are easy to combine, and are safe and comfortable. People in Zhejiang have a good entrepreneurial spirit, and micro office home office (SOHO) is becoming more and more popular in Zhejiang. The multi-functional, compact, and suitable home furnishing office furniture market is booming. However, there is no office furniture specifically for this kind of demand, which provides the possibility of subdivision of office furniture and provides good conditions for small enterprises planning to enter the Zhejiang office furniture market.
5. Young people prefer leather to fabric sofas (60% of the decoration is made of leather, and the popular colors are light black, brown, light yellow and brown).
6. Due to the gentle and leisurely life of Zhejiang people, they are very good at making full use of the limited space. Those storage cabinets, storage racks, wall cabinets, etc. that can be freely combined according to the size of the house and the size of the items are more popular. Generally, the compartments in the house are used for multiple purposes. For example, the living room can be used as a family gathering, dining, study, and bedroom. The extra furniture items are usually stored in the cabinet or moved, so the furniture used is small , Simplified, multifunctional furniture and storage furniture that is convenient for collecting clothing and miscellaneous supplies.
7. Simple and natural modern furniture has replaced the classical furniture with complicated design and become the mainstream taste.
8. Traditionally, people in Zhejiang buy furniture every time they encounter major events in their lives, such as marriage, childbirth, school enrollment, entering the society, moving to a new home, or remodeling a house. In recent years, the demand for replacing furniture has also increased.
Sales channels of Zhejiang furniture
In Zhejiang, since the vast majority of furniture manufacturers and retailers are small and medium-sized enterprises, the whole furniture production and sales process depends on the wholesaler ’s support, so the weight of the furniture wholesaler is particularly important. The services and support provided by furniture wholesalers include: merchandise promotion, product planning coordination, information collection and provision, a comprehensive collection of furniture types, commodity storage, a small number of multiple distributions, loans, financing, repairs, and replacement of old ones, etc. It has the function of avoiding and diversifying risks.
The existence of wholesalers, of course, has a positive and indispensable role. On the other hand, it also makes manufacturers and retailers less independent. Planning, sales and marketing activities are often restricted, so they cannot adapt to the rapidly changing competitive environment. In particular, there are serious restrictions on product selection, selling price, and purchase channels. In addition, due to the multi-level wholesale structure, the purchase cost and the final selling price have increased significantly, which has created a good opportunity for foreign furniture to enter the Zhejiang market.
The sales channels of Zhejiang furniture have been simplified and diversified in recent years, but the basic model is still from manufacturers to wholesalers to retailers. This model does hinder the entry of foreign furniture into the Zhejiang market, but this sales structure has Its certain background and importance, its distribution links are very close, and the way of sample exhibitions and outsourcing is also very different from Guangdong and other places. For example, people in Zhejiang generally do not decide on specific purchase contracts or annual transactions in the furniture exhibition venue, but after the exhibition, the sales person visits customers everywhere to finalize the transaction. In recent years, the trend is that manufacturers often invite customers directly to their Product negotiation room to negotiate the transaction.
In addition, Zhejiang household furniture and office / contract furniture have different promotion methods and sales channels, which are described as follows:
1. Sales channels of residential furniture The sales channels of furniture in the Zhejiang market have always maintained the basic structure of manufacturers to wholesalers to retailers, but real estate that is closely linked to furniture sales include developers, underwriters, and property management units. There are also agents, wholesalers and retailers in the industry, and the direct sales of furniture companies are overlapping and very complicated. In recent years, this traditional structure has undergone major changes. Some have tried to get rid of the wholesale link with "no middleman sales", and some manufacturers have sold directly to consumers. Overall, the entire furniture sales channel has been broadened .
Regional furniture wholesalers are the core of Zhejiang's furniture sales system in recent years. Their responsibility is to find furniture manufacturers and launch products to the consumer market. During the period of high economic growth, furniture manufacturers established a production and sales system under this structure. The size of manufacturers has increased, and the strength of retailers has also increased. The sales methods have improved with the improvement of transportation systems and the rapid development of network communications. As the scale expands, furniture manufacturers begin to try to get rid of the shackles of the old model, and some manufacturers have engaged in direct wholesale. But until now, due to the fact that the size of general manufacturers is still small, they still have to rely heavily on wholesalers and their support to retailers; and retailers also rely heavily on wholesalers to provide warehousing, distribution, product information, goods collection and Sales support services. Many large retailers use the services of wholesalers to reduce risks. Although a small number of retailers deal directly with manufacturers, most of them still purchase through large wholesalers who deal with real estate agents.
In addition, many large-scale manufacturers set up sales companies to directly conduct sales business. For example, Gujia Craft is a very typical method.
Large-scale furniture chains have also used their strong sales capabilities to expand direct purchases, and spontaneous chain stores have also established a joint purchasing organization with a wholesale nature. In order to adapt to the emerging trend of direct sales or direct purchases, furniture wholesalers began to use efficient and information-oriented sales systems to strengthen their traditional position, and actively expanded their advantages in retail areas such as sales, bidding, and housing construction to form a monopoly. The furniture retail industry is also facing the challenge of diversified sales channels. Large retail stores, home building materials markets, discount stores, mail order operators, and home related industries are all actively entering the field of furniture wholesale. Small and medium-sized furniture stores often face difficulties in these competitions.
The transformation of the Zhejiang furniture sales and retail system structure has provided great opportunities for foreign furniture. It has also led specialized wholesalers and retailers to consider purchasing directly with foreign furniture suppliers. This measure not only affects the price of furniture, but also provides consumers with More choices.
2. Sales channels for office / contract furniture
In the Zhejiang market, furniture contracting business has grown rapidly in recent years, and imported furniture has also performed better in this field. Such contractual bidding must be negotiated and collected during the construction or public facility planning stage, and only designated bidders can To participate in the bidding, the winner must deliver a large amount of furniture and provide after-sales service within a short period of time. Suppliers interested in obtaining contracts need to consider sending permanent professionals in Zhejiang to collect information and establish an authorized manufacturing or other production system in Zhejiang, otherwise they must cooperate with Zhejiang furniture manufacturers or distributors to enter this Market area.
Future development and suggestions
With the rapid development of Zhejiang's economy, the rapid growth of Zhejiang's furniture imports has also accelerated the internationalization of Zhejiang's furniture market. At the 7th China International Home Furnishing Spring Exhibition, more than 700 merchants from 28 provinces and cities in the country, as well as the United States, Germany, Spain, Vietnam and other countries filled the six exhibition halls. "We, 6 people, more than 10 sets of furniture, drove 5 days with 2 big trucks from Vietnam to Ningbo." Mr. Zhu of Vietnam Meiyue Trading Co., Ltd. told reporters at the booth of Hall 3 yesterday that they were The company pulled its products to Ningbo for the first time. Nearly 20% of Vietnam ’s total foreign trade exports are furniture, while China is Vietnam ’s largest exporter of furniture, especially mahogany furniture, of which 90% is exported to China. Because most of the local processing is rough, merchants in Fujian, Zhejiang, and other places in China often buy goods from Vietnam, and then finish the processing and put on their own brands, and the price can increase several times. The reporter found that in addition to Meiyue Business, there were five or six exhibitors of wooden crafts and furniture from Vietnam, also making their first appearance in Ningbo. They hoped that Vietnamese specialty products such as rosewood furniture such as rosewood and agarwood handicrafts could take the opportunity to introduce these competitively priced products to consumers in Ningbo and even Zhejiang.
Looking at the overall situation, due to the huge potential of the Zhejiang market, it can be asserted that the future competition will be an international competition. In order to seize the opportunity in the competition, we must carefully study the demand of Zhejiang furniture market and the situation of competitors.
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