The general trend is what we call macroeconomics. Macroeconomics is what we must accept. Only microeconomics can make a difference, Tao Bo During the meeting, Zhao Lingyun, general manager of Foshan Exceptional Space Creative Design Engineering Co., Ltd., gave a keynote speech on "Major trends are irreversible, small trends can make a difference". From the perspective of a dealer practitioner with more than ten years of experience, In the context of major trends, how to increase sales through stores, how to improve store operation efficiency, and teach you how to seize the small trends in corporate development!
1. 137 companies out of 1,265 have withdrawn, and there are still companies under the "cool" situation in the industry Obtain greater growth
Mr. Zhao gave data that in the past year, 137 of the 1,265 ceramic companies have withdrawn from the industry. What caused the sharp decline in performance?
First, the overall decline in the real estate market.
The second is the increase in the proportion of finely decorated houses nationwide,mainly reflected in terminal retail dealers performance declined.
The third is that complete decoration, Internet home decoration, and whole-house customization have intercepted terminal retail sales, resulting in terminal The performance was sluggish.
Fourth, the designer channel has become an indispensable and very important channel in the retail industry.However, there are many dealers at the terminal. In the past few years, this channel may not have been well established.
The current sluggish sales of some dealers are related to channels. Of course, the performance here may be for enterprises above a certain size. Who else and what brands are cannibalizing the sales of enterprises above designated size? Small but beautiful companies are also gradually cannibalizing the sales of enterprises above designated size.
Is there any business growth under such bad circumstances last year? The answer is yes, there are three main types of growth companies:
First, channel brand growth;< /p>
The second is the growth of product-based brands;< /p>
The third is the growth of store-type brands.
Mr. Zhao said that although this is the worst era, it is also the best era. In a peaceful era, In the past, the era when you only needed production capacity and the Internet to worry about sales has passed. But at this stage, brand owners, dealers, users, including showrooms, have undergone tremendous changes.
2. Dealers, brands, users, and terminal stores are all changing< /strong>
Dealers - focus on users< /p>
When I was a dealer in the past, when choosing a brand, I paid more attention to its scale, sales volume, and product range. Incomplete, too many production lines, etc., but today's dealers have undergone earth-shaking changes.
Nowadays, it is accepted that you are a single category, or even a single channel, and that you are an OEM , you don’t need a production line at home, I just want a small product, good service, a fair and reasonable marketing policy, and a mutually respectful cooperative relationship, so dealers are also changing, from those who relied on scale to win in the past The next era will undergo earth-shaking changes, and of course all changes will revolve around users.
Users - the rise of the middle class
Mr. Zhao said that the behavior of all merchants is forced by users because users have changed.
The rise of the middle class is no longer satisfied with functions, but pays more attention to the appearance of enterprises. The post-90s generation has become the main consumer group When I was there, I didn’t really like to gamble on prices or shop around in shopping malls, but I liked the pleasure brought by the precise service of the product itself.
Brand business – don’t be big and comprehensive, just have this tone
The brand focuses on hot products, making it small and beautiful, and focusing on products.
In addition to ceramics, products like Xiaomi, NetEase Select, etc. After seeing the sales of Xiaomi, we can see how big our space is. . Xiaomi's sales per square meter is RMB 270,000, with an output value of RMB 270,000 per square meter. The terminal store area of any ceramic brand will exceed 200 square meters, with an average sales price of more than RMB 50 million per store.
At the same time, what changes have taken place among the brands in the ceramic industry? Among them, there are the thinnest ones and the thickest ones. The closest thing to cement, many small brands are quietly happening to cater to today's users. Don't be big and comprehensive. I just want this tune. Can you give it to me accurately?
Mr. Zhao said that today is not an era of blind confidence in brands, but that we need to have brand awareness.
Terminal store - three terminal presentation forms
Mr. Zhao believes that in the future, the ceramic tile industry will be presented in three forms at the terminal.
The first is complete home furnishing. After users change, they become more and more lazy and believe in professionalism more and more. , relying more and more on design, and there is no need to integrate more than 20 categories and run several stores to complete decoration.
The second one is the popular supermarket.In Foshan Taodu, employees know very well that in addition to well-known brands In addition, there are many well-known products, such as the darkest products and the whitest products. This group of people will have a long way to go in the future. Where is the access to the terminal? Is there a possibility? Sex, the decoration cost of a 200 square meter exhibition hall is very low. What is sold here is the blackest, whitest, thinnest, cement and wood grain. They are all the best made by the brand. This sells It’s not about space, it’s about selling elements, designs and solutions. In the future, it may be a 200 square meter exhibition hall. The construction cost may be less than 200,000, but it sells the most popular items in several categories. This is a model that I am more optimistic about. This is only for the ceramic industry, but the principle is the same for the sanitary ware industry and the wooden floor industry.
The third one is the category space. It is a niche category and only serves this small group of users.
3. Where are the opportunities in the ceramic industry? Fight the 3 major battles!
Fighting a value war
Mr. Zhao believes that whether users have a description of the brand, whether they have user portraits, who they want to sell the product to, and when users want to buy it Whether I can think of you or not is the deciding factor. If a user wants to buy something high-end, he can think of you; or if the definition of supplies can think of you. If he can't think of these things, the user can only continue to browse the store, and if he still can't find you, he can only accept the price PK. Because you have not impressed users and let them perceive your elements in advance.
Mr. Zhao emphasized that good products coupled with a good showroom can determine whether you will fight a price war or a value war. . The ceramic industry does not lack gross profit margin, space, or market, but as long as there is a price war, it will inevitably die. Why? Because no matter what method of operation is used, the ceramic industry has five major costs: rental cost, labor cost, channel cost, logistics cost, and exhibition hall depreciation cost, which will basically exceed 45% or even 50%. Therefore, who will die if there is a price war in this industry.
Fighting product sniping war
At the same time, this is also a product sniper war. The product is the weapon, the store is the position, the team is the warrior, and the boss is the general. The ceramic industry is a resource-based industry, and it cannot operate normally solely relying on organizational management. To win this battle, the boss must personally fight. If the boss wants to seize the engineering channel, he must improve the specifications. If the boss wants to be a retail channel, the store must be renovated frequently and become more and more beautiful. This is the characteristic of the industry.
Fighting for resources
Mr. Zhao believes that in the current environment, it is a battle for resources.
For manufacturers and dealers, they are resources for each other. Dealers are resources for manufacturers, and dealers are half resource carriers. Why? Is it half? In other words, whether you can get a good position in the local regional market and how you have a relationship with local designers, these are all resources, and these resources cannot be completed through training from manufacturers in a short time or even a long time. This is not through education. It can be achieved.
But why half? Because there are still many resources in the hands of manufacturers, and the understanding of the brand, including the construction of standard stores and the sorting out of product structures, needs to be standardized. A good product plus a good exhibition hall is slightly better than a good brand. A good brand determines whether it can attract excellent dealers, and excellent dealers determine whether it has local designer channels and whether it has the best store location. A good store and a good location are extremely important, but why can we have a good store and a good location? If a location is beautifully decorated, but the brand is not good, it will not last long.
At the same time, this industry has been attacking e-commerce for more than ten years, and it still goes its own way. We still do it according to our system and our prices. Come and play, the ceramic industry is one of the few pure lands in business today, because it has low attention, high participation, low frequency, emphasis on consumption, and emphasis on service. Every time it consumes tens of thousands, hundreds of thousands, or even millions, and Consumption only once every few years is completely inconsistent with the characteristics of e-commerce.
4. The three major functions of terminal stores and the eight major dealer pain points
Mr. Zhao said that the user did not know what to buy before decorating because he did not know what was available and still wanted to go shopping. As long as there is no storefront, sellers will not have the upper hand, so in the end they still need the storefront. So what role do terminal stores play?
First of all, terminal stores are the windows of the brand. What kind of store you are in, what kind of store you are in, and what kind of location you are in directly determines the brand positioning and grade. It directly determines whether you can attract the best dealers and first-class designers. Whether to attract the most powerful local real estate developers, brand is a window.
At the same time, it is also the user's entrance. All business activities revolve around finding users, including e-commerce in recent years. Why is it difficult for many merchants to do this? It’s just that the cost of finding users is higher than in the past, not that sales have declined. We engage in promotions, store openings, renovations, advertising, designer channels, and engineering channels all to find users. If the same store is in different locations or has different effects, the number of users it attracts will be different, and the conversion rate will be different. It is very clear that the cost of finding users is very different.
The last step is to export the order. The longer the user stays, the greater the possibility of forming an order. The third-party design agency needs to find ways to help merchants and factories complete the hardware decoration.
Mr. Zhao mentioned that he once tried to renovate a 1,000-square-meter store on the first day it opened, which was called the shortest-lived store in history; I also tried to renovate a 1,000-square-meter store for 6 months. The store next door was renovated for only 1 month, and I earned 5 more months of money.
Mr. Zhao proposed that dealers’ pain points are mainly reflected in the following aspects:
In order to solve the pain points of dealers, what do OEM companies like Exceptions need to do?
The first store decoration has a more design sense and improves operational capabilities.
At the same time, we can shorten the construction period and extend the service life of the exhibition hall. Can we extend our exhibition hall to 3 to 4 years through forward-looking design? .
At the same time, products are updated quickly. Can we use new processes to make product replacement easier?
Since I was a dealer more than ten years ago, I have never felt that soft furnishings are needed in exhibition halls. It has progressed to the point where we feel that soft furnishings are very important, and then to me If you don’t know how to design soft furnishings, you can not only sell bricks, but also sell space and soft furnishings to increase your marginal benefits. This is an exception.
In the end, we need to realize that in the future, 80% of the construction will be assembled on site, and 30-50% will be left for the second decoration. This is because assembly brings about a second cost reduction, and this is also an exceptional goal.
5. What does the ceramic tile industry need to do in the future?
Believe that professionalism and taste are the reasons for consumption
I have talked a lot about saving costs and extending the life of the exhibition hall. Saving 200,000 yuan in the ceramic industry is not as good as increasing sales by 1 million yuan, but can it be done again? Save RMB 200,000 and increase sales by RMB 1 million? We sayAny design that is not designed to increase sales and brand reputation is just to attract traffic.
Exception, as a very sentimental third party, often faces embarrassing situations, like this horse from creative , to construction, to completion, it becomes completely different, so Mr. Zhao often appeals, Don’t use your hobbies to challenge others’ ability to eat. Believe in professionalism, products are the carrier, and taste is the reason for consumption.
Being light, fast and beautiful can break through the siege
Nowadays, pragmatism has slowly changed. The requirement for things is not only function, but also pleasing to the eye. Appearance has gradually become a rigid requirement. . Mr. Zhao emphasized that once users’ aesthetics are trained, it will be difficult for them to accept LOW things.
Mr. Zhao took Li Ning as an example. In the past ten years, Li Ning has achieved more than 9 billion yuan, and in three years it has declined by more than 5 billion yuan, with a cumulative loss of more than 3 billion yuan in three years. Then Li Ning came back and only did two things: kill large wholesalers. Being close to the terminal, we must contact users immediately and know them immediately.What do users want? Change the marketing system. The second is to make the product fashionable and trendy enough. Now it is called a domestic trendy brand. In the past, if you had no money to buy Li Ning, you would buy Li Ning when you were poor. Now you like Li Ning but have no money to buy it. It is too expensive. This is the difference between price and value for a brand.
Mr. Zhao believes that the manufacturer is a cloth manufacturer and the terminal is a tailor shop, so the exhibition hall needs to be de-stylized. Now that we are light, fast and beautiful, we can actually break out of the tight encirclement. We do not have to compete for scale or production lines.
Zhao Lingyun shared summary:
1. The market trend is not good, but there are still companies that are growing, focusing on products, and being small but beautiful.
2. Dealers have changed and are more focused on service, certain categories, fair marketing policies, and good cooperation relation.
3. A good brand has a clear brand awareness. Good products + good showrooms can determine whether you fight a price war or a value war.
4. The current industry is a battle for resources.
5. The brand exhibition hall is the window of the brand, the entrance for users, and the exit for orders.
6. Believe that professionalism and taste are the reasons for consumption
7. Three forms of the ceramic tile industry in the future: 1. Complete supermarket; 2. Hot-selling supermarket; 3. category space.
Article source: Zhongtaocheng
