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China Ceramics Network News (Author: Hong Xiaochun) The helpless sigh from the dealer: If we move again, I will stop doing this business.
"If the warehouse is relocated again, I will stop doing this business." This is what a dealer in Shanghai said to the research team last year; in July this year, during the terminal survey [Wuxi Station], the research team visited China Storage When the market (which closed on September 30 this year), many merchants in the market revealed to us: Once the Zhongchu Market is dismantled, at least 30% of people will no longer be in this business; in Suzhou, "relocation" has always been a local Ceramic tile dealers have a headache. They are experiencing frequent moves. The more they move, the more they move to more remote locations, but the rents rise higher and higher...
With the vigorous development of the national economy, various places are vigorously developing and constructing. In first- and second-tier cities, almost every inch of land is at a premium. People engaged in the building materials industry can deeply feel that their markets, warehousing, and logistics are almost completely out of reach. No matter where you go, you can't escape the hand of someone with the word "dismantle". You can imagine how stressful it is to be a ceramic tile dealer.
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Beijing:As of now, due to reasons such as "dispersing non-capital functions", Beijing has "dislocated" more than 300 markets and logistics centers. The home building materials markets that have been shut down or demolished include (incomplete statistics): Daxing Xinghua, Wuhuan Zhonglian, Guanghui Weiye, Jixing Deyi Home Plaza in Daxing District; Wulicang Huandao Furniture City in Shunyi District; Shijingshan District Yulu Commercial Building; Luxinjiayuan Building Materials Plaza, Jingkai Hardware Market, Haomeite Home Furnishing, Huilongguan Julongcheng Building Materials Market, Daxing Yinghai Building Materials Market, Dayang Road Building Materials Mall, Shijingshan Longze Building Materials Market, etc.
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Shanghai: Evergrande Building Materials Market was founded in 1997. According to the author’s understanding, Evergrande Building Materials Market covers an area of 800 acres, including a business area of 80,000 square meters and a storage area of 120,000 square meters. square meters. There are more than 1,400 operating households in the market. The business model is mainly wholesale, supplemented by retail. The annual commodity transaction volume reaches about 3.5 billion yuan. This building materials wholesale trade distribution center in Pudong area will cease operations on April 15, 2017.
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Wuxi:The Zhongchu Building Materials Market was founded in 1992. If we want to discuss whether Wuxi had the Zhongchu Market or the Xihu Road Building Materials Business District first, it is tantamount to I’m wondering which came first, the chicken or the egg. In this market, there are more than 100,000 square meters of stores and ceramic warehouses, and there are more than 300 large and small mid-range, high-end and low-end ceramic tile brands. It is the market with the lowest rental cost on Xihu Road. Just this year, the Eden Garden of this mid- to low-end ceramic tile brand also announced its official demolition at the end of September. According to the author's visits to many local merchants, they all said that once they walk out of the door of China Reserve, the cost will at least quadruple.
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Suzhou:Before 2000, the building materials business district in Suzhou Hengtang was still dominated by small shops along the street in Jinwu Decoration City. In 2000, the first Suzhou building materials store across the road - —Jia Leju opened, and now there are more than a dozen building materials stores in Hengtang area. In early August this year, the China Ceramics Network terminal research team went to Suzhou and saw that the original Old Gold House Market had been demolished and razed to the ground.
When building materials stores are closed and relocated, the businesses in them are most hurt. Although some local government departments will relocate merchants, most merchants suddenly lose their place and must find a new foothold on their own. The policy broke the protective layer of rental costs and broke up the original business circle. Those "vulnerable groups" who survived the "earthquake" can still survive in the market with no hope of recovery. how long?
When we go to those old building materials markets, we can often see that some ceramic tile merchants still retain the traditional model of front stores and back warehouses, wholesale, and mom-and-pop shops, and the age of these merchants is middle-aged and elderly. , has been selling bricks for decades, and has no intention of letting his children accept the business.. Therefore, once the market is dismantled, half of the people are ready to stop and take care of themselves for retirement, while the other half who have no leisure time will only find a low-end building materials market to continue doing "small business." Changes such as corporate operations, agency brand tiles, entering high-end stores, etc. are not within the scope of their consideration.
The farewell to the old market and old warehouse is the end of the old era of the ceramic tile market, and it is the inevitable result of adapting to urban development. It would be a pity if ceramic tile dealers allowed themselves to be submerged by the torrent of time.
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A sincere message from the brand owner:Please stay, we will face it together.
When the Chinese nation faces compatriots who suffer from natural disasters, the rescue method is: if one party is in trouble, all parties will provide support; then, what kind of response strategies do brand owners make when facing dealers who suffer from relocation "natural disasters"? Woolen cloth?
1. Brand endorsement assists in entering high-end chain stores
Wuxi’s European and American ceramics are located in the Zhongchu Market, which is about to be demolished, and are currently preparing to move into the newly built Easyhome on Xihu Road. The author learned that there are many ceramic tile merchants in the Zhongchu market who want to stay on Xihu Road, which makes the location of the Juranzhijia ceramic tile store very tight, so the selection of ceramic tile brands is also very strict.
The manager of Wuxi Europe and America is a second-generation Tao born in the 1990s. She told the author: "If you want to have long-term development in the future, you must build a good brand, so it is very important to enter a high-end store, when there are so many When big brands competed with us for store quotas, I was very lucky that I represented Europe and the United States.”
▲The newly opened marketing center of Suzhou Dongpeng Ceramics
2. Fulfill the promise of providing subsidies for store construction and decoration
In the terminal market, dealers’ investment in building and decorating a store each time is close to one million, no matter how small it is. If the store needs to be relocated, it is tantamount to adding another store."Heavy bleeding", at this time, if the manufacturer can promise to provide subsidies to dealers and actually fulfill them, the dealers will definitely regard this manufacturer as a relative.
The author asked a question when chatting with people at the corporate headquarters: Where does dealers’ loyalty to a certain brand come from? The answer I got was: “If the promises made by the headquarters can be fulfilled, dealers You can definitely feel that wereally regard them as our own.”
Therefore, when everyone knows that the market is difficult, there are still many dealers who are willing to invest in building and decorating stores. In fact, the manufacturer's commitment has inadvertently transformed into the confidence of dealers.
3. Set up a central warehouse to share the warehousing pressure for dealers
Warehousing problems are like a vicious cycle: Stocking → products not selling well → backlog → rising warehouse costs → reducing warehousing area → less stocking of hot-selling products → becoming more and more difficult, distribution From time to time, business owners have to face warehouse relocations to make matters worse. Imagine spending high rents to store warehouses full of "zombie goods" and having to transport these zombie goods when moving. Fei, it’s difficult for anyone to be satisfied.
Dealers under the pressure of this mountain are in a state of extreme thirst for central warehouses, but there are only a handful of companies that can maturely implement them. At present, Yinuo has 10 warehousing centers across the country; Jiajun earlier planned to set up 33 warehousing bases across the country; and the chairman of Runtao Ceramics, because he had been a ceramic tile dealer, was very considerate of the difficulties of these people and proposed shared warehouses concepts and focus on research.
"Nothing is difficult except for those who are willing to do it"
This sentence is very suitable for ceramic tile manufacturers and ceramic tile manufacturers in the current environment.Dealers encourage each other. Don't forget human nature: as long as there are comrades in the same boat, you won't give up easily.
China Ceramics Network’s terminal market research [Fuzhou Station] is in full swing! On the afternoon of August 17th, the terminal survey "One City, One Activity" Fuzhou Station will be held in the conference room on the 7th floor of Building C1, Sanhuan Haisheng Store, Xiyingmen Building Materials and Furniture Plaza. For more exciting content, please stay tuned!
