Furniture companies change the existing general model to sell products to services


Anju Housing referring to the national "housing (or Healthy) Project" and the construction of (belonging to a class of affordable housing). According to estimates by experts in the home furnishing industry, home orders brought by Anjufang are as high as 100 billion yuan. But this piece of cake seems very tempting, many companies do not feel good to "eat" it, or even a bit bitter.

Why is this happening ? The general manager of a home furnishing service Co., Ltd. held the "Hundred Billion Anju Home Furniture Orders" held in Houjie a few days ago. Are you ready ? The result is that the enterprise is not profitable, the dealer does not make money, the service is discounted, the quality is discounted, and the brand is damaged.



In this regard, the general manager of a home furnishing service company suggested that furniture companies must change from selling products to selling services, and must change the existing "total generation" model to improve the service level through specialized division of labor, thereby improving the overall competitiveness of products. "In fact, it is already common practice to outsource services to third-party professional companies abroad," said the general manager of a household service company.



Vicious scramble for Anjufang home cake



Faced with the lingering haze, opening up new markets has become an inevitable choice for furniture companies. The housing project promoted by the national policy has become a new target for the furniture market.



The domestic analysis agency pointed out at the 29th Famous Furniture Fair that more than 34 million sets of urban affordable housing projects have been started nationwide, of which more than 21 million have been basically completed, of which 7.81 million sets were started in 2012 and 6.01 million sets were basically completed. This means that a large number of affordable housing and small and medium-sized commercial housing will enter the market in 2013 . According to estimates by experts in the home furnishing industry, home orders brought by Anjufang are as high as 100 billion yuan.



This cake in Anjufang is indeed very large, no doubt. "This cake looks tempting, but many people do not feel good about eating it, and may even feel bitter. Why is this happening ? Let's first take a look at the current status of the industry." Wang Yuefeng analysis believes that facing huge business opportunities , Furniture companies are focusing on the "economic" brand, blindly fighting prices, have developed furniture packages for Anjufang.

Prices range from 50,000 yuan to 30,000 yuan, 10,000 yuan, and even more, a package of less than 5,000 yuan has been launched. The final result is that the enterprise is not profitable, the dealer does not make money, the service is discounted, the quality is discounted, and the brand is damaged.



Why do most furniture companies fall into this vicious competition ? Wang Yuefeng believes that the reason is actually very simple, because most furniture companies are still focusing on selling products without paying attention to service. Here I have to talk about the existing business models and service systems of furniture companies. At present, most domestic furniture companies are in the "total generation" mode. The "total generation" mentioned here refers to the fact that the factory gives all the work after leaving the factory to the dealer, including logistics, installation and maintenance of the product after sales. The link of brand reputation.

In fact, under this model, no one will pay attention to after-sales service. The manufacturer has already paid the service fee to the dealer, and will not invest again ; the dealer will not invest more in the service for its own benefit. In this way, with the continuous increase in service costs, dealers have outsourced services to "road guerrillas", the quality of service is difficult to guarantee, let alone compete for services.



Wang Yuefeng concluded that the needs of Anju housing users are economical and affordable furniture, but most enterprises only seize the cheap and lose the guarantee of products and services. The root cause is the existing "sale + service" general generation model in the industry and the service system that completely relies on dealers.



Furniture companies should shift from selling products to selling services



How can we switch from the traditional selling of products to selling services, avoiding blindly price ? Wang Yuefeng cited a case related to Anju housing: when the country just launched the policy of affordable housing, various household electrical appliance companies have developed security measures. Low-cost products for the house. Taking a water heater as an example, the price ranges from several thousand yuan to several hundred yuan, and a well-known brand has launched a water heater of less than 500 yuan.

But H home appliance brand did not follow the trend to set prices, but conducted demand research and interaction with a large number of owners. Through interaction, it is found that this group is not only concerned about the price, but also about the reasonable use of space, because the area of ​​the affordable housing is relatively small, if the enterprise can save space for him, he will not care about spending more One hundred dollars.



Therefore, the H home appliance brand has developed a series of service solutions that can save space for users, such as water heaters that can be installed in the corners, and hidden water heaters. As soon as this product was introduced to the market, it was welcomed by affordable housing users, and the price was twice as high as that of its rivals.

This can be said to be a typical case of switching from selling products to selling services, because behind it is professional services. Even in the decoration, it is necessary to provide professional supporting services such as pre-buried pipelines and hidden lifting, and these services cannot be achieved by relying on general dealers. In fact, the same applies to furniture.



"It is not difficult to see from the above case that if a furniture enterprise wants to switch from selling products to selling services, it must change the existing service model and improve the service level through professional division of labor, thereby improving the overall competitiveness of the product." Wang Yuefeng emphasized that in fact Outsourcing services to third-party professional companies abroad is already a common practice ; while at home, such third-party professional service platforms have also gradually emerged. They can not only ensure the quality of services but also help companies significantly reduce their market through outsourcing models. Service cost. (Reporter Luo Linlin)

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