The decline of the furniture of the dynasty: do not buy a large-scale retreat of the star account store

Several Chinese traditional furniture were placed in the entrance and exit of the building materials store. The eye-catching "special price" card showed its falling value. Even if the background is Lin Zhiling's sweet smile, it is difficult to conceal its neglected situation. This is the current dynasty. Furniture. Compared with the domineering in the domestic furniture industry, the recent decline in its performance and the massive retreat of physical stores are embarrassing.

Close shop, clearance

Like most furniture and building materials companies, the Dynasty furniture suffered the most serious blow since its listing. In the face of a serious decline in its performance, its management team, like other industry players, attributed this to the "industry downturn."

According to relevant persons who know the inside story, the furniture of the Dynasty has almost shut down two-thirds of the country's stores in the past six months, and its performance report released in the first half of the year shows that after the severe decline in performance last year, the furniture of the Dynasty was opened in the first half of the year. Revenue fell by 25% year-on-year.

"This is the cornerstone of the transformation of the furniture industry." Pan Shouzheng, an observer in the furniture industry, said that companies have turned to e-commerce, and dealers have begun to re-select their brands, so there has been a massive closure of physical stores.

However, unlike other domestic furniture brands, the dynasty furniture cuts off a large number of stores not because of the transformation into e-commerce, but because the store is losing money, and the dealers give up.

On September 16, Zhou Zhe, the manager of the Yiyiyuan store, who specializes in mahogany furniture, told the new financial reporter in the black cattle city road of Heibeicheng Road in Hexi District, Tianjin. The store where she was located was still a royal family furniture more than a month ago. The products of the Dynasty furniture are now placed at the intersection and are on sale. The new financial reporter saw in the direction she pointed out that the products involved in the promotion were the most traditional Chinese furniture. The person in charge, Ma Yuqin, said: "Part of the modern furniture of the Dynasty furniture has already withdrawn from Tianjin. Currently only Chinese furniture is available. ."

Although the store manager of the dynasty furniture Hanyu store argued that “there is no part of the exit, there is still a part of the furniture city in Tianjin.” But she said that modern furniture only has a sofa and a small number of wardrobes.

In addition to Tianjin, there have been reports from the media that the furniture of the Dynasty has been fully retreated in Beijing and Chengdu. In March and April this year, it delisted in some cities in the country. In Beijing, the original 24 stores quickly closed. 15; in Chengdu, the original 11 stores closed and contracted into 5, and the dynasty in Chengdu only had a business area of ​​about 2,000 square meters. Not only closed stores, but some dealers even “was owed wages”. Some dealers said that "the royal family furniture will be closed down."

“The stores are getting bigger and bigger, the fees are getting higher and higher, and the dealers are unable to pay the rent, so there will be a very obvious process of closing the store.” Pan Shouzheng said.

Because of the closure of the store, problems surrounding the customs clearance and inventory of the royal family have also occurred from time to time. According to reports, when the furniture of the Dynasty was removed from a store in Chengdu, one of the bed frames sold for only 1280 yuan, and the cost price was insufficient. In Tianjin, when a dealer recommended a wooden sofa style to a new financial reporter, faced with the price tag, when asked if it was possible to discount, she asked how much you bought? It means that the more you buy, the cheaper it is. Not long ago, the furniture of the Dynasty was reported by consumers as the price difference of the same product even reached more than 10,000 yuan, which was called the price system chaos by the media.

As for the inventory problem, some industry insiders have indicated that they have been highlighted since last year. According to the 2012 interim results of the Dynasty Furniture, the total revenue for the first half of the year was 498 million Hong Kong dollars, down 30% year-on-year, and net profit fell 89%. Inventories rose from HK$255 million in the first half of the year to HK$347 million, an increase of 18.42% year-on-year and a 36% increase from last year. Although the head of the furniture of the dynasty has said that the inventory of 347 million Hong Kong dollars has been digested by 16% in the first half of the year, it is difficult to fully digest the inventory from the situation of the demise of its stores and the meager operation of the stores.

Regarding the inventory, the new financial reporter has also repeatedly called the official furniture of the Dynasty, but has not been able to get a reply.

Once the "Whampoa Military Academy"

Dynasty furniture and federal furniture have been referred to by many industry insiders as the “Whampoa Military Academy” in the furniture industry. In their view, these two relatively early furniture brands have cultivated a generation for this industry because of the rapid expansion ten years ago. Another generation of "furniture people."

However, the industry regrets that the performance of the Dynasty's furniture in the past two years has continued to decline, and there has been a wave of withdrawals across the country, making them feel that the former "Whampoa Military Academy" has declined.

"The situation of the store, the loss, the dynasty may be more serious than the federal." In Pan Shouzheng's impression, the furniture of the dynasty has always been a model of "conscience in the industry". “Whether it is opening a factory, asking for a spokesperson, or developing new products, the dynasty belongs to the pioneers,” he said.

Twenty years ago, at that time, the domestic furniture industry was still in the most primitive stage. The furniture of the Dynasty was built at the factory in Xi'an, Shaanxi, which broke the pattern of the handicraft workshop in the furniture industry.

“At that time, the furniture industry was still the 'factory stage', meaning that as long as you open the factory, the products can be sold.” Pan Shouzheng said.

Sure enough, the new factory was only put into production for two years, and the royal family had to find a new factory. The expansion of the production area means the expansion of the market. In the following years, the eucalyptus series and the Golden Knight Platinum series products, which have been put on the market by the Dynasty, have led the industry trend and have been in good shape for many years.

It was also at that time that the dynasty established a dealership of over 1,000 people in the country. This team had always made the performance of the dynasty furniture in the forefront of the furniture industry sales list.

According to industry sources, the new financial reporter described the situation at the time, the dealers of the Dynasty may initially have only a few hundred square meters of stores, but after a few years, most of them grew into a hypermarket with tens of thousands of square meters.

"It can be said that the dynasty raised a large number of dealers, and now includes some famous furniture practitioners, all from the dynasty." He said that although there are already some parts of the dynasty's losses and other brands, "this is not Everything is going to make money."

Sleepy in the whole category

The decline of a huge furniture brand can always cause reflection in the industry. Is the resignation of its former CEO Ma Minghui in 2012 leading to the decline of the “Ma’s Dynasty”, or is it now the overall downturn in the home building materials industry?

In this regard, Pan Shouzheng believes that neither is. The departure of Ma Minghui is not the root cause of the decline of the furniture of the dynasty, because when he was in office, the furniture of the dynasty has already seen a sharp decline in performance. As for the decline of the home building materials industry, "it is even more nonsense," he said. Looking at the semi-annual report of 15 listed companies in the first half of the year, only 4 of them experienced negative growth, and the remaining 11 all went up straight. Even Sofia [3.09% of the fund research report] saw an increase of 48.07% in the first half of the year.

"This shows that this industry is in a rising phase." Pan Shouzheng said. According to his observation, through the development of nearly two decades, today's furniture industry has entered the "mental marketing stage." In the first decade, the furniture industry was in the “factory stage” and “sold as long as it was produced”; ten years ago, the furniture industry changed with the development of the economy and entered the “market stage”, ie With the right channels, you can sell them. This is also the reason why Red Star Macalline and Real Home have been hot in the past few years. “At that time, the investment manager of Red Star Macalline was particularly proud, and the merchants were asking them to enter.”

In these two stages, the Dynasty furniture was once the leader in the industry.

However, entering the "mental stage", the original model of the royal family furniture seems to fall behind.

“Now, when a brand can represent a category, it means that the brand is very valuable, and the closer and clearer it is, the more valuable it is.” Pan Shouzheng told the new financial reporter, such as Haier, that it has been 20 years. Whenever we think of Haier, the first thing that comes to mind is Haier's refrigerator and washing machine, but in fact, Haier is still doing the whole home appliance, and it is difficult for consumers to say it all at once.

"This is the drawback of developing the whole category. When consumers buy, they can only remember the top few in the industry of a certain category, such as sofas. They may think of the left and right sofas and the Lihao sofa. The wardrobe may suddenly come to mind. The Sophia wardrobe," he said, "and the furniture of the Dynasty has been developing its own full-class furniture for decades. Every year, different brands and different varieties are introduced. It is only by the spokesperson to promote it. Consumers have long since bought it. ."

In fact, just at the beginning of this year, in order to expand the product line, the Dynasty furniture has also ruined the British royal sofa "DURESTA" and Italy's top home brand "TRECI". Since then, it has also acquired the domestic high-end furniture brands such as “Li Li Yuan” and “Qiao Chi”. Not only that, the Dynasty Furniture has also hired an international consulting company to carry out strategic research, and has developed a number of brands such as the “Sati Sofa”, which is mainly engaged in high-end “Easy Square”, and the above-mentioned actions indicate that the Dynasty’s home Private is still transforming into multi-branding.

“For companies, resources are very limited. Just like snoring, you may be invincible in the Eastern Front, but when your opponents attack at the same time, you may not be able to cope. So, in the face of increasingly competitive furniture market The whole category model is really backward.” Pan Shouzheng said that in the same area, the more resources invested, the greater the chance of success, but look at the products of the Dynasty furniture, beds, cabinets, sofas, including this year’s new Did the introductions reach their expectations? The times are really different.

However, he also said that if the dynasty furniture wants to transform now, it is too late, because the "family" is thick and rich, as long as they are willing to give up some products that are not selling well, and keep a few popular items, the chance is still very good. big.

In addition to the outdated model of the whole category, the head of the furniture mainstream magazine Luo also believes that its overall layout has problems: “As a well-known brand, the dynasty has an elegant and valuable name, but the main product is the lowest value-added panel furniture, in the first-line market and Compared with enterprises in Guangdong, there is no advantage; in addition, it is completely defeated in the contest between the second and third tier cities and the main competitor Chuanpai furniture.” He also said that the products of the dynasty furniture were defeated in the competition only on the surface. On the deeper level, it is its improper positioning, strategic mistakes, and management confusion.

Do not buy star account from 2003, please invite international famous movie star Guan Zhilin to be the image spokesperson. In 2008, please come to Hong Kong movie star Liu Jialing, a phrase "Tong Chaowei's favorite furniture, the dynasty furniture knows", repeatedly raised the public opinion frenzy; Lin Chi-ling, the furniture of the dynasty has never been soft when it comes to spokespersons.

However, the first two times because the domestic furniture industry asked for more spokespersons, the dynasty has gained peers and improved performance, but today Lin Zhiling has not been able to reverse its decline. According to the first half of the annual report of the Dynasty Furniture, the revenue of the Dynasty’s furniture in the first half of the year was only 290 million yuan, down 25.30% over the same period last year. Moreover, its massive withdrawal from the store also occurred in the first half of this year.

From the observation of Pan Shouzheng for many years, the celebrity endorsement has been a means of marketing for furniture companies. "Celebrity endorsements can make enterprises have a high reputation", but today's popularity does not mean that customers must buy your things.

"What is the significance of Lin Zhiling's endorsement of the dynasty's private ownership? Everyone buys a product of the dynasty's furniture instead of buying a spokesperson." He said, "Of course, consumers need to have spokespersons to buy products, but that was in the channel stage, everyone did not have spokespersons. This method is more useful, but now the spokesperson has been everywhere, and it does not highlight the uniqueness of the brand."

In his view, today's enterprises still have to do their own advantages. During the "Ma's Dynasty", almost most Chinese people knew that to buy furniture, there is a good choice called "Royal Furniture." But today, many people buy high-quality items, they will not remember who you endorse, but go back to find the most famous brand.

“Many furniture companies are still launching different categories, but more and more people will find that the sofa series has the right and left sofas to compete with you. The wardrobe series has Sophia to compete with you. No matter which series, there are more professional manufacturers and you. Competition.” Pan Shouzheng told the new financial reporter, “The product itself has become the second attribute, because there are so many companies that have good products, and the products are not good. The products are not necessarily successful. The different stages must have Different strategies."

Nowadays, some people in the industry believe that the decline of the furniture of the Dynasty represents the end of the "Guangdong model" of Chinese furniture. But Pan Shouzheng and other industry people said that its decline is that he did not recognize the situation at hand. Although the goal of signing Lin Zhiling as a new image spokesperson is to improve the brand image, inject fashion and trend, and make the brand image gradually younger. However, compared with the traditional Chinese style of the Dynasty furniture, the two are difficult to integrate.

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