A few days ago, Asia-Pacific Media, a well-known media in the pan-home industry, held a high-quality brand regional investment conference in Changsha, Hunan Province. The results of this investment promotion conference were remarkable and highly recognized by the industry. Compared with the past, the China Merchants Association has two characteristics: First, the number of exhibitors has reached 43 historically. Although there are also many first-line super brands, a large part can only be regarded as a regional brand, or The second-line brand; the second is that the China Merchants Association is held in Changsha, but the number of Changsha dealers attending the conference is less than one-fifth, and there are nearly 1,000 dealers from prefecture-level cities or county towns. This fully shows that dealers in prefecture and county-level cities are more concerned about second-tier brands.
Dealers and second-tier brand companies hit it off
Regarding the characteristics of the China Merchants Association, Secretary-General Chen of the Changsha Furniture Association said that in a city like Changsha, the furniture market is fiercely competitive, operating costs are increasing, dealers’ profit margins are gradually shrinking, and they need higher agency prices. The brand or foreign brand can guarantee the profit. However, as the emerging markets in the prefecture-level cities, the competition is not too fierce. The consumer's spending power is not too high. The high-end furniture products are too high for the general consumers to accept because of the overall high price. The price of second-line brand products is relatively low. Within the scope of purchasing power of consumers in prefecture and county-level cities, it is normal for the market prospects to be favored by dealers. Moreover, with the continuous improvement of consumption power of local and county-level markets, terminal profit margins Can also be guaranteed.
Secretary-General Chen also stressed that the new government has decided on the development strategy of new urbanization. At this time, it is the prime time for the land occupation and county-level market. The second-line brand that wants to become bigger and stronger will naturally seize this opportunity to expand its own. Distributors of market, county and city-level cities and manufacturers of second-tier brands can be said to be hit at this stage.
Second-line brands are more likely to be recognized by consumers
Mr. Tan, a distributor from Changde City, Hunan Province and Jiamei International Home Life Plaza, believes that second-tier brands are more likely to be recognized by consumers in local, county-level cities and even rural markets. This aspect is because the product price of the second-line brand is in line with the consumption level of the city and county-level cities, which is more acceptable; on the other hand, consumers in prefecture and county-level cities have already had certain brand recognition. Not interested in miscellaneous products, but the first-line brands are a bit high, and the second-line brands just meet their brand needs. Mr. Tan also said that if the first-line brand can not provide some products with high cost performance, both practicality and reasonable price control, local and county-level dealers will not consider to represent these brands.
Investment in second-line brand risk is small
Mr. Huang, who opened a furniture supermarket in Wujiang Building Materials City in Loudi City, Hunan Province, believes that the risk of investing in second-tier brands is relatively small.
Mr. Huang said that the operation of the first-line brand, manufacturers put forward very high requirements for the dealer's storefront, and some even asked to become an image store or flagship store. The size of such storefronts is several hundred square meters. In the off-season, the sales amount is not enough to pay rent and labor costs. The dealers with insufficient strength are really difficult to bear. The second-line brand has fewer requirements for dealers. Many brands do not require dealers to open specialty stores. They can be sold in other stores with other brands. If you invest more than 100,000 yuan, you can add a lot of products. The risks assumed are much smaller. The author believes that the new urbanization as an important engine to expand domestic demand has become an important strategy for China's current economic development. Undoubtedly, the new urbanization construction will bring a new “cake†to the pan-home industry, and the main battlefield of the new urbanization will be in the local, county-level cities and rural towns and villages, which will lead the second-line brands and dealers to get rid of the front line. The city and the first-line brand "blood kill", comprehensive layout, county-level market and rural market, open up another beautiful world.
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