Home Textile Enterprises Operating Performance Uneven, How To Break Through?

Roley home textiles, fuanna

And Meng Jie home textiles is the leader of China's home textile industry. On the one hand, they are the top three occupying rates in the 800 billion home textile market of China. On the other hand, the rapid development of home textile industry in recent years has made them the "meat and potatoes" in the market.

However, the announcement shows that in recent years, the number of raw materials and labor costs has been rising, and their operating performance has been uneven in recent years.

Many people speculate that this phenomenon is due to the most difficult time in the home textile industry, or the cyclical fluctuations under the macroeconomic regulation and control of the country?

No matter what happens, the formation of industry competition pattern is an unavoidable situation in the home textile industry.

When an industry ends at a period of rapid growth and enters a mature stage, how can enterprises stand in an invincible position and stand out in the increasingly fierce competition?

Channel construction and pformation

Looking back at the development process of home textile industry in recent decades, it is easy to find that channel construction is the main driving factor for the rapid development of home textile enterprises.

Even today, the concept of "channel is king" still applies to all home textile enterprises.

At present, the channels of home textile enterprises include department stores, specialty stores, supermarkets, hypermarkets, electronic commerce, wholesale markets, group buying and many other forms. Most home textile enterprises adopt the mode of "direct business + Affiliate", and quickly seize the market by building channels.

The channel plays an important role in the current home textile enterprises in China, mainly based on the following points:

1. China's market is wide and uneven.

After 30 years of development since the reform and opening up, the home textile industry has gradually formed a 123 line market with Chinese characteristics.

In the first-line market, because of the higher income of residents and the higher demand of consumers' brand and individuation, the department stores and the comprehensive shopping plaza are the largest channels for the home textile industry. The sales of supermarkets and stores are relatively smaller than those of the two or three line market, and the living space of the wholesale market in the first tier cities is increasingly narrow. For the two or three line market, home textile sales are relatively small in department stores because of less department stores.

The more the wholesale market is in the lower market, the more viable it is.

2. the information in the domestic market is more asymmetric than that in the foreign market. This causes the consumption of home textile products to have strong regional characteristics. Which brand will take the lead in developing channel construction will have strong competitive advantages in this area.

For example, Luo Lai, a well-known market, is mainly distributed in East China, Northeast China and North China; fuanna is mainly in Southern China; Meng Jie is mainly in the central region.

3. with the development of economy, consumers are gradually entering the era of consumer experience: consumers not only attach importance to the functional benefits brought by products, but also increasingly pay more attention to the spiritual value and consumption experience of products or services they buy and consume.

Under the condition that product quality and function benefit are the same or close, consumer experience becomes the key factor of value determination, and is also an important basis for consumers to make purchase decisions.

The different consumption channels directly lead to different consumption experiences, for example, the consumption experience of department stores is much higher than that of other channels.

Channel construction has made rapid development of home textile enterprises in the past decade.

Fuanna is the first domestic textile franchisee mode. In 1995, Shenzhen fuanna used the franchise chain store mode to expand the channel.

The leader of home textile industry channel construction is Luo Lai home textile, and Luo Lai home textile adopts the compound marketing mode of "franchise + direct camp", among which the franchise is

This mode of marketing helps the rapid expansion of the channel. The sales scale of the company has expanded rapidly, and its growth rate has far exceeded that of its peers, until it becomes the leader in the industry.

By the end of 2011, there were 2371 entities in various types of stores, with a net increase of 286 in 2011 and a leading industry in channel building capacity.

In recent years, the channel pformation represented by electronic commerce has led to another rapid development of the home textile industry.

The reasons can be summed up as follows: first, the standardization of home textiles is high and the size standard is not necessary to try on like clothing. Secondly, home textile products are light goods, especially suitable for express delivery. Finally, consumers have a certain discernment for the characteristics of home textiles, such as fabric and filling, and can be identified through network introduction.

The above characteristics determine that home textile enterprises are particularly suitable for the development of electronic commerce. In recent years, the development of home textile e-commerce has proved this point.

In particular, it is represented by Bo Yang home textiles. In 2011, the sale of Bo Yang home textiles reached 800 million yuan, of which e-commerce sales amounted to 300 million yuan, and online sales have been approaching the trend of offline sales.

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In 2011, Taobao double eleven promotion day, sales of the top eight brands accounted for three home textiles, of which sales of Bo Yang home textiles exceeded 40 million (refreshed the 20 million record created in 2010), and fuanna and mercury home textile sales exceeded 20 million.

In order to catch up with the trend of e-commerce, home textile enterprises have increased their investment in the field of e-commerce, such as Luo Lai, Bo Yang and so on, have set up an independent e-commerce operation department or an e-commerce operation subsidiary.

If we analyze the operation mode of the home textile company which has already carried out e-commerce at present, there are mainly two kinds of operation modes at present: one is to separate from the entity brand, and to create a brand new pure e-commerce brand, such as LOVO of Luo Lai; two is to adopt the way of parallel network marketing with entity brand.

E-commerce, which is also popular now, is developing rapidly, but it is also facing a series of challenges: how to balance online and offline, price control on the Internet, the unclear source of online stores, and the damage of brand image. How to solve these problems determines whether the e-commerce of home textile enterprises can develop healthily in the future.

Multi brand precision marketing

Since 2001, the home textile industry has been in the initial stage of brand leadership. The franchise mode has been implemented in the home textile industry, and enterprises have been engaged in horse race enclosure, focusing on the construction of the channel and the initial establishment of the home textile brand.

As the gap between different brand channels is getting smaller and smaller, consumers' brand awareness of home textiles has also taken shape. Although the loyalty of domestic consumers to home textile brands is not high at present, with the fierce competition, brand has more and more influence on consumers' purchase.

At present, there are many domestic textile enterprises in China's market, and the homogeneity competition of home textile products is serious.

There are many brands of home textiles that consumers can choose, and there are tens of thousands of goods that consumers can choose. Consumers are also worried about how to choose among huge quantities of goods.

How can an enterprise stand out in the fierce competition? The positioning theory holds that consumers can only accept limited information, and consumers can not hold so many brands in their minds. Enterprises must make their brands occupy a favorable place in the minds of customers. Enterprises must establish brand positioning that can be accepted by customers in the market, and then lead the internal operation with this positioning, so that enterprises can get differentiated competitive advantages and brand premium.

Other enterprises can copy your products or copy your operation, but they can not copy in the minds of consumers.

At the same time, once consumers locate a brand in the mind, it is extremely difficult for consumers to change the positioning.

Therefore, Trout, the father of positioning theory, opposed price war, opposed brand extension and promoted the precision marketing of brand operation.

The industry recognized that one of the main factors of the success of Roley's home textiles is "multi brand precision marketing".

Positioning theory is one of the best examples of practice in China.

Roley home textiles has long recognized that there are "ceiling" in home textile brand, no matter in consumer groups, channels and sales volume. There is a big market risk in single brand operation. Brand must be divided into layers to occupy high, medium and low market. It is difficult for single brand to eat the whole market.

In order to occupy more market segments and achieve sustained and rapid growth, the brand of lahome is a benchmark of brand operation, and also takes the multi brand management as one of the core competitive strategies of the company. It is a leader in the industry by cutting and occupying the market through multiple brands and seeking greater market share.

This strategy also helps Luo Lai to target and cover a wider segment of the market to meet the preferences of different consumers with multi brand width and product line depth.

At present, Luo Lai has formed an international, multi brand matrix composed of 15 professional home textile and household brands, which are authorized, authorized and independently created.

Among them, Yolanna, Zucchi, Sheridan and other brands attract the high-end crowd. Shang Ma Ke and Lacasa and other fashionable low-grade brands adapt to the mass market. Luolai.Kids focuses on children's market. What's more valuable is creating an independent network brand LOVO, KA channel brand emperor Xin.

The product structure of Roley's home textile multi brand matrix is also very rich. Besides the traditional bedding, it has introduced the largest professional towel manufacturer Christy in Europe, the high-end bathroom brand Graccioza in Portugal, the European household fragrance leading brand Millefiori, and the high-end fragrance care brand.

In 2008, the US technology sleep brand SLIIP was launched. The market positioning of each brand is clear, which meets the needs of consumers' diversified personality needs and high-quality lifestyle.

Moreover, the synergy effect of multi brand strategy in consumer, channel, R & D and supply chain provides a strong guarantee for long-term sustained growth of the company.

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Integrated supply chain

There are many similarities between the home textile industry and the clothing industry.

Domestic garment industry, whether channel construction or brand operation, is more mature and competitive than the home textile industry.

Competition among garment enterprises is not only important in channel, brand, product, and even supply chain, but also determines whether an enterprise is invincible.

Then, with the maturity of home textile industry, will the supply chain become the focus of home textile enterprises?

Home textile products are seasonal, and the fashion elements of home textile products are more and more personalized and diversified.

At present, home textile enterprises will adopt the order meeting mode, that is, the order production mode. At the same time, because of the relative standard of the home textile products and the relatively uniform fabric, the turnover of home textile products is obviously more than that of the garment industry. At the same time, due to the rise of e-commerce, the order production and inventory production mode exist simultaneously in the home textile industry.

This puts forward higher requirements for sales forecasting, and how to improve accuracy is the problem that enterprises must face.

As consumers pay more attention to the fashion elements of home textiles, the depreciation rate of home textile products will accelerate. If goods are in stock this year, there will be a huge discount in the next year. So how to improve the digestibility of current goods to reduce inventory is very important.

An important aspect of improving the digestibility is to increase the circulation efficiency of goods in the sales network, and fully realize the reconfiguration of goods in the sales network, so that the best sellers will not be out of stock, and the salable products will expand the sales scope.

However, the complexity and diversity of domestic textile industry channels and the long production cycle of fabrics make it even more demanding for home textile supply chain.

Facing the challenges mentioned above, it is an inevitable choice for home textile enterprises to establish a market-oriented responsive supply chain.

Efficient supply chain system requires effective management and coordination of all important links in the supply chain, including product design, development, procurement, production, warehousing, logistics, promotion and sales, to ensure product supply meets the actual market demand, to establish a market oriented fast response production mode, to respond quickly to replenishment orders and to fast distribution to terminal stores.

Home textile industry leaders are increasing their input to the supply chain, hoping to create a market-oriented supply chain system.

For example, Roley's home textile company put forward the goal of achieving tens of billions of sales in 2016. For this reason, Roley spent huge sums of money to build an efficient and collaborative integrated supply chain system, including establishing a strong and perfect information management system, improving information monitoring, data analysis and decision-making ability, providing strong support for the upgrading of supply chain capabilities, and establishing the company's competitive advantage in the industry.

Sum up

China's home textile enterprises are moving towards maturity. From the beginning, they focus on channel construction to multi brand precision marketing, from multi brand precision marketing to now pay attention to the upgrading of supply chain operation level.

The continuous improvement of home textile enterprises, in turn, has led to the development of China's home textile industry.

Home textiles

We must quickly break through in the above fields so as to take the lead in the new industry development trend and competition pattern.