Along with traditional channels to open up the store rent, store operating costs continue to rise sharply, the physical distribution channels furniture industry is facing the challenge of high costs. 'Channel is king', channels are strong, business thrives. However, in the era of high-cost channels, active or passive expansion of the traditional sales channels, it may bring new risks and challenges.Lounge Chairs Egg Chair Swan Chair Barcelona Chair Ball Chair Eames Lounge Chair Bubble Chair Panton Chair Corona chair Chaise Lounge Chair Womb Chair Basculant Chair LC1 Eames La Chaise Wassily Chair Ovalia Egg Chair Pratfall Chair Hans J Wegner Style GE 290 Chair Eames Rocking Armchair Ox chair Wegner Shell chair Charles Rennie Mackintosh Hillhouse Chair Rohe Chaise Longue Eero Aarnio Pony Chair Tomato chair Focus 2 Chair Eileen Gray Bibendum Chair PK22 PK20 Heart Cone Chair Verner Panton Cone Chair Garden Egg Chair Coconut Chair Eames Molded Lounge Chair Eames plywood lounge chair Saarinen Ring Executive Chair Saarinen Executive Chair Egg ball chair Hanging Eero Aarnio Eye Ball Chair Half Dome Chair Acrylic Hanging Eye Ball Chair Redesign Bubble Chair Egg Shape Acrylics Chair Fiberglass Armchair Pastil Chair Thomas Chair Pratflall Chair Cup Lounge Chair Vanity Fair Chair  Dining Chairs Tulip Chair Eames Side Chair Tulip Armchair Eames plywood dining chair Brno Flat Chair Nimitz Side Chair Armstol the chair Costes Chair Eames Molded Plastic Armchair Barrel Chair Ant Chair Seven Series Chair Eames Molded Dining Chair Eames Plastic Chair Tulip Arm Chair Eero Aarnio Arm Chair Eero Aarnio Cup Chair Juliana Armchair Saal Dining Chair Wishbone Chair(Y Chair) Bucket Chair LC7  Office Furniture Eames Office Furniture Eames Office Chair Eames Aluminum Office Chair Eames Low Back Softpad Chair Eames Style Aluminum Office Chair Eames Softpad High Back Office Chair Charles And Ray Eames Office Chair Eames High Back Mesh Office Chair Eames Low Back Aluminum Office Chair-Mesh Eames Management Lounge Chair Eames Aluminum Executive Lounge Chair Eames Soft Pad Group Side Chair Eames Group Aluminum Management Chair Eames Aluminum Group Side Chair Eames Mesh Low Back Office Chair Meda office chair Eames Conference Table Eames Meeting Table Eames Round Table.

Love and hate are intertwined, this is the business of furniture manufacturing and distribution of a vivid portrayal of the attitude of the channel.

Shop year after year of rising costs

Currently open in the home store in the floor of a 150 square meter store at least 50-60 million investment, if the shop when coupled with advertising and promotional activities, the cost of 100 million is required. In the furniture out of the city about a 300 square meter store, the initial cost of investment in the hardware (including slotting allowances, store decoration, sample purchase) to take 70 million! 'Said General Manager of a furniture, shop costs rising year after year is an indisputable fact.

Not just shop costs, in fact the operating costs of the existing traditional channels also rose sharply. General manager of a furniture that stores the one hand, the rent rose; the other hand, by the effects of inflation, the wages of store employees, a substantial increase in commission also constantly; plus logistics and transport costs, the cost to the average channel 15% -30% of the rate increase.

Beijing is the mainstream of building materials stores the minimum monthly rent per square meter of not less than 300 yuan, some stores even more than the 500, plus shop fitting, on the samples, personnel, utilities costs, etc., of a month without dozens of stores million in sales certainly lose money. If both the creation of more than ten, twenty stores, then the investment will be enormous business risk will be even greater.Modern Classic Furniture China Furniture Designer Furniture bauhaus Furniture shenzhen Furniture china Furniture suppliers Metal Furniture Leather Furniture Fabric Furniture Wooden Furniture Glass Furniture Firberglass Furniture Acrylic Furniture Eames Office Furniture Eames Office Chair Artichoke lamp Barcelona Chair Eames Lounge Chair Egg Chair Isamu Noguchi Coffee Table Womb Chair Tulip Table Le Corbusier LC2 Sofa Eames Aluminum Office Chair Swan Chair Knoll Sofa LEM Piston Stool Ball Chair Eames Low Back Softpad Chair Chaise Lounge Chair Saarinen tulip oval dining table Bubble Chair Tulip Chair Eames Style Aluminum Office Chair Eames Softpad High Back Office Chair Le Corbusier LC3 Sofa Barcelona Daybed Corona chair Panton Chair Charles And Ray Eames Office Chair Kubus Sofa Barcelona Bench Eames stool Marshmallow sofa Eileen Gray End Table Basculant Chair LC1 Eames High Back Mesh Office Chair Nelson Platform Bench Eames Side Chair Eames La Chaise Barcelona Coffee Table Eames Low Back Aluminum Office Chair-Mesh Tulip Armchair Wassily Chair Eames plywood dining chair PH Artichoke PH lamp.

Three factors pushed into channels

In the industry view, the main reason for pushing the cost of three channels, the most important of which stores rent. It is understood that the rental of furniture stores rose fast in recent years, it is an indisputable fact. Anonymity of the furniture business executives said in an interview: furniture store is a form of commercial real estate, the property itself, the cost of new stores opened in inflation, while furniture store operating costs increased year by year, in addition to the strong store position in recent years, the annual rent has more than 10% of the rate of increase.

The continuous improvement of operating costs is another reason for high costs caused by channels. China has already entered into the era of high wages, almost all of the furniture business operations of its channels in a substantial increase in labor compensation, which also led to increased operating costs of the channel. Now the market is very competitive, for the terminal, the excellent staff is the core of scarce resources. In order to keep people, high-wage, high commission is that the enterprises had to do. Furniture, professional consulting marketing agency - Chairman of National Wealth ZHAO aspect that the era of high wages, business channels, the hard cost of human operators will continue to rise.

Expansion of supermarkets is a disorder can not be ignored. Professional Children's Home Furniture Cool Man Yang Tao, chairman of the view that many of the city is currently home store volume has nearly saturated, and even the phenomenon of excess, for enterprises, not only the shop costs, if the store management is not good, close, then, companies to bear high losses. ZHAO Fu aspect in the country, chairman of view, the transition home store expansion, the layout of some cities in the irrational, the nature of commercial real estate boom that occurred at home stores, and businesses will have to be expanded to pay for home, business channels of natural increase.

The rise of new channel model will

The traditional physical channels, the furniture industry has become a double-edged sword.

Furniture industry a high degree of free competition, is a fully market-oriented industry, so the face of the accumulation of competition, many companies are Bong channels for Wang, construction and management of the channel regardless of the cost to put on. The industry believes that competitive advantage can not upgrade to high-cost channels, the cost, otherwise you will 'as also channels loser channels'.

Furniture industry is a typical channel of distribution brand is stronger than manufacturing brand of industry, for the average consumer is concerned, they tend to only remember where they are buying the furniture and building materials, so relying on the traditional channel model home stores, naturally with the store rents rising operating costs and push channels. Professionals believe that the existing traditional channel model in which, furniture manufacturing and distribution companies is difficult to have a say. In addition, the furniture industry are too many levels of the traditional channel model, the regional distributor, distributor provincial, municipal agents, county agents, the products are layers increases, the final prices and real prices have been a great deviation, to foot the bill eventually passed on to consumers.

History has proved that things can not hang in a tree. Current furniture companies have begun to realize the original there is the traditional channel model flawed, many companies have started building the diversification of channels, which in addition to the furniture store separate from the shop, the network channel is currently one of the most talked about emerging channels. New network marketing, online store for the furniture industry, traditional industry opened a huge imagination.