Recently, Zhongtaojun often hears: Such and such a company has gone bankrupt, such and such a company is being collected for debt, and such and such a company has run away...
I don’t know whether these news exaggerate the depressed atmosphere of the home building materials industry, or whether the depression of the home building materials industry has caused companies to get into trouble. In the past three years, the home building materials industry has been plunged into a wave of bankruptcies, with companies experiencing "numerous casualties and mourning." The Internet army will just sit and eat, and no one will delve into the reasons why they "move away" one by one.
In 2018, a large number of decoration companies such as Apple Decoration, No. 1 Home Furnishing Network, Yilejia Decoration, and Haolaiwu Kitchen Cabinets went bankrupt and ran away. In 2019, as of August 1, 73 home furnishing companies have declared bankruptcy, covering furniture, flooring, wallpaper, doors and windows, ceramics, lighting, sanitary ware, coatings, home textiles and other categories; of which 18 are furniture and 16 are ceramic sanitary ware. There are 7 companies selling paints, paints, and 8 home textiles companies, all of which are small and medium-sized enterprises serving local consumers.
(Pictures from the Internet, deleted if infringement)
What happened to the bankrupt companies?
Talking about the reasons for the collapse of enterprises, a hero who has been taking the blame for decades - "Market Environment" has something to say: "Over the years, I have endured inhuman treatment, no matter which industry I am in During the recession, no matter which company has problems, people always like to use me as a shield. I am really weak, helpless and pitiful.”
How should I put it, Mr. Zhongtao is a fair person, and we must make peace with him if we have any injustice. Is it a "natural disaster" or a "man-made disaster"? Is it "the market wants me to"Destroy it, I have to destroy it" or "I have to finish it even if I cry", we have to start looking for the answer from the enterprise itself.
Business owner: Performance is the most important! Rush the duck!
The success or failure of an enterprise is often inseparable from the decisions of its managers. In order to increase their output value, some companies vigorously support their employees to start businesses and open branches, and expand rapidly and blindly, causing the company's capital chain to break and eventually becoming insolvent.
For example, in the Apple decoration incident in 2018, a large national chain home decoration company suddenly collapsed. Ultimately, it was precisely because Apple Decoration was expanding too fast across the country that in order to increase output value, all important rights were directly delegated to subsidiaries in various locations, which ultimately led to the company falling into a vicious operating predicament.
Corporate employee: I only sign the orders, the service has nothing to do with me!
Seeing the company develop so "vigorously", the employees below are working even harder. The company uses money and interests as rewards, and earns money for every order signed. Naturally, employees feel like they have been given a shot of blood, and they sign the orders as hard as they can.
In order to pursue short-term profits, employees no longer serve customers as their work orientation, but instead find ways to deceive customers every day. If things go on like this, it will directly lead to problems in the final project delivery. The quality of the project cannot meet the delivery standards, the progress payment cannot be recovered, and even compensation for rework and customer complaints and refunds will eventually cause serious damage to the company's profits.
Consumers: Extreme self-esteem and lack of trust
The company affects the behavior of employees. The attitude of employees causes consumers to be self-motivated in the early stage and trust the decoration company too much. When the project is implemented, the self-promotion turns to anxiety, which reacts on the company, forming a closed loop.
Because major decoration companies are constantly fighting to seize the limited market, fighting for service, price, and marketing, customers themselvesThinking that you have absolute "God's vision", blindly believe in the promises given by the decoration company, shop around and choose the company with the most suitable price and best service.
But because at this time, the company's employees were already obsessed with increasing the number of orders signed, and did not pay attention to service details, service projects and other substantive work, which ultimately led to problems in project delivery, customer complaints and other negative news. What was originally a regional engineering issue was promoted and fermented by the media, consumers, etc., and then evolved into a national incident, triggering consumer panic across the country. Collective complaints and refunds have had a huge negative impact on the company's financial operations.
The fusion of the three powers successfully crushed the camel. The company's human, material and financial resources are wasted, profits are getting thinner, product services and quality are getting worse and worse, consumers' trust and satisfaction have plummeted, and the market is not good, the company is even more difficult to move.
How to build a good home decoration channel?
Home decoration is one of the important channels for ceramic tile sales. Faced with frequent news of the bankruptcy of home furnishing companies, terminal dealers are very troubled. How to choose a home decoration company and how to cooperate with a home decoration company are problems they must face and are eager to solve.
Choose to cooperate with local home decoration companies that have certain strength and status
The home decoration industry is a mixed bag with uneven levels, so you should be cautious when choosing to cooperate with a home decoration company. During the visit to the company, Zhongtaojun asked relevant questions. The person in charge of Foshan Shenghua Ceramics had his own unique insights in this regard. He said that when dealers choose a complete assembly company, they should choose to cooperate with local leading companies rather than national expansion companies.
"The mountain is high and the emperor is far away". The national expansion corporate headquarters may not be able to comprehensively and completely take care of the following branches and branches.There may be a serious disconnect between the service package and the headquarters. At the same time, it cannot be ruled out that some branches will relax their self-management due to the relaxation of authority by the headquarters, which increases the risk of dealers cooperating with them.
Headquarters takes the lead to reduce financial risks
In recent years, a popular word in the ceramic industry is terminal empowerment, which is an assistance plan implemented by manufacturers to enable dealers to develop better.
In terms of building home decoration channels, the headquarters takes the initiative to take the lead in home decoration companies, which is faster and more reliable than dealers finding the way alone, and it is also a type of terminal empowerment. In this way, the headquarters promotes dealers to transform into service providers. The headquarters and dealers share risks, which reduces the financial pressure and risks of dealers and ensures their financial operations and basic operations.
Support dealers in terms of services
Being a home decoration channel is all about service. Service involves many things, whether it is products, transportation, personnel, etc., they are all part of this system. No matter what aspect of service support is provided, it must be tailored to local conditions. For example, warehouses should be set up near areas where the home decoration and decoration industries are relatively developed or where demand is relatively large to improve efficiency and facilitate services.
As for product support, it is good to pursue innovation, but you must weigh it before making a decision. The relevant person in charge of Foshan Shenghua Ceramics said: First, if home decoration and retail products are separated, too many quantities will increase the inventory pressure on manufacturers and dealers; second, if the colors of home decoration products change too much and too frequently, It will reduce the credibility of the whole decoration; thirdly, if the home decoration products and retail products are completely separated, when it is decided not to do home decoration, the home decoration products will be difficult to sell.
Therefore, based on the above three points, manufacturers should set up an adjustment mechanism when laying out home decoration channels and make adjustments according to the actual situation. At the same time, the purpose of home decoration should be to pursue quality rather than pursue differences. Fully considering the interests of both manufacturers and dealers is the basis for jointly building home improvement channels.
Business failure is certainly aIt is a sad thing, but everyone is delving into the reasons behind its failure not to reopen the scars, but to dig out experiences and lessons from it, and also to provide some warning to other similar companies or companies that want to cooperate with it.
The general environment is not good. Only by working together to keep warm can we move forward further in the industry and make the industry develop better.
(Original: Squirrel)
