The 1.5 tier cities in the Yangtze River Delta have many universities, profound cultural heritage, strong inclusiveness, and rational consumption... This is "Ning" is the key word for my wife's evaluation of Nanjing. 80% of the hard-decorated houses are large in size, have a wide radiation range, high rental fees and labor costs, good distribution, branch office model... This is another key word in the ceramic industry circle in "Ning".
The first article of the research report at Nanjing Station"Nanjing, is this really the case?" 》In the article, the author briefly summarized the opinions of several people at the Foshan Ceramics Headquarters on the local market, and raised questions, because those can only be regarded as the opinions and thoughts of the corporate headquarters, and the actual research is Purpose and meaning also need a voice from the end.
Is it difficult to do business because of shrinking size?
According to the second article of the Nanjing Station Research Report "Nanjing market is "tasteless to eat and a pity to discard"? The agent disagrees! 》 Rough data: Nanjing’s market has an annual ceramic tile throughput of more than 10 billion yuan.
This data is not surprising at all. "Jiangnan Beauty Land, Jinling Imperial State", Nanjing, as one of the economic center cities in the Yangtze River Delta, is 300 kilometers away from Shanghai, 400 kilometers away from Linyi, and 170 kilometers away from Anhui... Therefore, the real estate development volume in Nanjing has also increased in recent years. However, as a traditional wholesale market center, it radiates a wider area. Logically speaking, ceramic tile sales have no impact, but the proportion of finely decorated houses is increasing.
According to Nanjing native Wang Ping, a Nanjing dealer of Dajiaolu, from the perspective of housing listings, in 2019 The situation is worse than in 2018. In 2018, there were 50,000 to 60,000 rough houses in Nanjing. In 2019, there were only 40,000 existing houses, 50% of which were finely decorated houses. In Hexi, the houses worth 60,000 to 70,000 yuan per square meter were all finely decorated houses. , so we have to go to Jiangning, Pukou District and other places outside the city center to find customers. The biggest impact of this phenomenon on the ceramic tile industry lies in the omitted intermediate link - dealers. It is not only fatal to dealers, but also "fatal to stores, because we are building a platform to serve dealers." , Zeng Jianlei, assistant general manager of Hongyang Home Furnishing Expo Center, once mentioned.
It is understood that even in the higher-end stores of Red Star Macalline and Jinsheng, all products from In the past, there were more than 30 domestic ceramic tile brands, but this has shrunk to only 15 to 20 domestic ceramic tile brands. The newly opened home furnishing mall of Hongyang Commercial Group in a certain area in 2018 only has 3 first-line ceramic brands.
(The most expensive and high-end building materials store in Nanjing)
（ Jinling International Home Furnishing)
It can be said that the market size is balanced in the hands of brands that survive better in the local market. ? Like the brands mentioned above that have stores in high-end stores? For example, what is good in the Wenzhou market are the top three brands? not necessarily. According to unconfirmed data, the brand recognized as the best in Nanjing: Marco Polo has an annual sales volume of 300 million, while others such as Dongpeng, Nobel, and Samit are all around 100 million. 10 billion compared to single digits of 300 million or 100 million, where does the remaining 90% of the market’s annual sales go? The following are some information quotes——
1. "Nanjing's centralized purchasing volume is large, and most of it is done directly by manufacturers. This is more suitable for those with strength. "Manufacturer docking".
2. "The people born in the 80s and 90s will learn about brands through the Internet. If it is not a first-line brand, then they will learn about the cost-effectiveness Consider online and look for fourth- and fifth-tier brands or bricks from Shandong, Jiangxi, and Fujian.”
3. "Nanjing University"In the Hongyang Home Furnishing Expo Center, which many consumers go to, Foshan ceramic brands account for 60% and bricks from other production areas account for 40%."
4. "Nanjing is a traditional wholesale market that radiates to Jiangsu and Anhui. For some projects, polished tiles are still used." .
5. "Second-hand houses and existing houses account for 20 to 30% of the decoration ratio, and they are all used for home decoration and decoration. channel".
6. "Jinsheng International Home Furnishing (Jiangdong Middle Road Store) imported ceramic tiles are relatively mature, with one store a month You can make millions."
7. "The retail market is becoming more and more difficult, and market share will be biased towards big brands and multi-channel operations. brand".
......
In one sentence: Nanjing is large, It depends on how the business is done.
Business is difficult because dealers don’t work hard?
As of May 16, the brands interviewed by the terminal research team at Nanjing Station include Nobel, Gold Medal Asia, Big Horned Deer, Samit, Mona Lisa, Dongpeng, Xinzhongyuan, Asia, General, Eagle Brand, Europe and America, Jinke, Campari, 1916, Xinruncheng... As far as the research team has seen, as long as Any brand dealer who still sticks to the front line of the ceramic industry is trying every means to find a way out for the brand. Even if they are in a conservative "wait-and-see" state, they are only reducing corresponding cost expenditures, and they should open up channels. Give distribution support to the renovated store, they are still doing it.
（ Overview of the brands interviewed on the 15th and 16th)
Of the brands interviewed above, 80% of the local brand operators are from Fujian and Wenzhou, and they are from the same place "It's either the same village or the next village." People in these two places are not only recognized as good at doing business, but also have a relatively strong "countryside complex", and there is a sense of cohesion among fellow villagers. Under such circumstances, the transparency of information is particularly obvious. This is even more so when it comes to the “reputation” of various ceramic manufacturers. The Nanjing general agent of a major brand said: “Dealers look like individuals, but they are actually a group. Which brand We all know how manufacturers treat dealers (do they make money? Do they always say they want to cut off dealers? How strong is the policy support?) ”
According to what everyone said, some dealers have been working on a certain brand for more than ten years, but because it is difficult to change their way of thinking, and the manufacturers do not give them time, they simply change careers if they cannot stand the pressure; and A dealer of a certain brand spent three years working very hard to run the brand in the local area. As soon as it started to show some results, the manufacturer told him to take it back; some manufacturers have always been very strong in the past and replaced dealers at every turn... Brand manufacturers such as this will be included in the "blacklist" after being passed on to ten or hundreds of people. As long as this group of dealers exists, no one will "dare" to take on the "blacklist" in the local area. Made by domestic ceramic brands.
The brands mentioned above may also have ladder-like pertinence. The day before yesterday"Foshan's powerful brand failed in the Nanjing market?" Is it the root cause? 》In the article, there is an analysis of the "embarrassment" of second- and third-tier brands in the Nanjing market. While consumers' brand awareness is gradually increasing, they are also returning to rationality. They may not be superstitious about the "brand" itself and no longer be led by advertising and marketing. However, if first-tier brands are compared with second-tier and third-tier brands, they will still choose first-tier brands. Brands, so what remains unchanged in the local ceramic market are first-tier brands, such as Marco Polo, Nobel, etc. However, if the position of second-tier brands does not have a good operator or model to play a role in the local area, then its existence is basically dispensable. What's more, ceramic brands are still the industry that attracts the least attention from consumers.
Comprehensive overview: If it is not a first-tier brand that has been integrated into the minds of consumers, then manufacturers of second-tier, third-tier brands or below What needs to be more relied on is the strength of local dealers. For dealers who are still "on the front line" to conquer the world for their brands, manufacturers may need to give more encouragement and confidence. In the fan economy, this is also a good way for the brand An important way to establish one's own image among dealersOne of the formulas. What's more, the survival of these dealers after the market reshuffle in the past two years is inseparable from their loyalty to the brand.
Is the branch model depriving dealers of their rights?
Because the high cost is currently the most troublesome problem for Nanjing dealers, according to the known cost data, Let’s calculatethe most conservative operating expenses for a dealer in a year——
The rental fee for a 500-square-meter store (located in the mid-sized market in Nanjing) is at least 500,000 per year, and the rental fee for a 1,000-square-meter warehouse is At least 300,000 yuan per year, and the salary of 10 employees is at least 800,000 yuan per year. In addition to other expenses such as development and maintenance of other channels, the full profit needs to be 3 million yuan. Therefore, if the annual sales volume of a dealer reaches 15 million in a local area, the profit point must be at least 20% to be a profitable state.
However, with the continuous increase in operating costs and the "embropment" of finely decorated houses (collectively purchased), The proportion of retail channels is decreasing. When ceramic tile sales need to be transferred to wholesale or engineering or assembly channels, the profit point may drop sharply to 10%. It is even more difficult for dealers to survive. In this way, continuing to reduce costs, or working hard on various channels that can increase sales and increase profit points, are the current policies of the local economy.The seller can think of ways.
For example, "We are working hard to increase the proportion of retail sales", Chen Deshan, general agent of Nanjing Jinke·IF Modern Tiles express. It has been following the manufacturer for 15 years and is still full of confidence in the market. Even though it only started to develop designer channels in response to Jinke's headquarters strategy a year ago, it has already achieved results and formed a mature "playing method." Regarding the issue of setting up branches for other brands, he was also full of positive energy and expressed his understanding and analysis of the actions of various ceramic manufacturers: When the product lines are too long and warehousing costs become a burden, if manufacturers adopt the management of setting up central warehouses This model, working together with the regional distributor, can effectively reduce the warehousing costs of regional distributors, and can also better serve and manage regional distributors. At least the brand can survive locally. In addition, the Nanjing distributor of Xinzhongyuan Ceramics, which is already very proficient in the designer channel, is more important because of the spirit of continuous learning and innovation of its local brand operator Wu Xiaohui, which is a well-known figure in the Nanjing ceramics industry. Some excellent examples.
（ Chen Deshan, general representative of Nanjing Jinke·IF Modern Tile)
（ Wu Xiaohui, Nanjing dealer of Xinzhongyuan)
1916 Lin Chengquan, general manager of Nanjing Branch, revealed that last year the profit from ceramic tile sales in Hongyang Market could reach 40%, but this year it has been significantly reduced to 40%. 25% (author’s postscript: most brands in high-end storesThe current profit point can still be maintained at more than 40%). Because it is a new brand, it has entered the Nanjing market in October 2017 using a branch company model, with service distribution channels as its core. How to serve? According to him, the branch is responsible for distributor inventory, store design, store decoration, channel development, and event execution. They only need to handle the regular operations of the store. ——This 100% service method is probably also suitable for many brands to lower their profile to serve dealers or distributors.
（ Lin Chengquan, General Manager of 1916 Nanjing Branch)
（ Kong Xiangjun, General Representative of Dongpeng Nanjing)
Of course, for a large and comprehensive brand, better support from the manufacturer may be as Dongpeng Nanjing general representative Kong Xiangjun said: "Dongpeng Nanjing general representative Kong Xiangjun said: Peng established the 'Billion Yuan Club' last year to listen to the opinions of dealers, because manufacturers need to classify dealers and empower them based on their capabilities. When the market is difficult, the role of manufacturers is more obvious at this time, and 'happy families' are always similar. , and each 'unfortunate family' is different, and the local dealers actually have a great responsibility, unless they can all find a better 'in-law'."
◆◆◆
Summary: The Nanjing Station terminal survey has been carried out on the 5th day. What immediately came into my mind was: from ceramics There are so many people who come to "station" in the factory, and some of them are old friends in the industry. They joke that they are the Foshan Gang. "In the future, you will encounter more ceramic manufacturers in the Nanjing market. This is an inevitable result of local development." Zheng Qian, the person in charge of Asia Ceramics Nanjing Branch, said this is the best explanation. However, currently in Nanjing, there are no branch companies that are recognized as successful among dealers. According to the disadvantages of the joint-stock company model, According to Kong Xiangjun’s analysis, “it is ultimately due to the unclear ownership. If this unclear contradiction is resolved, things may be better.” Of course, according to feedback from existing local brand dealers: when the market was good a few years ago, manufacturers could send managers to take charge, but now local brand operations require experienced local dealers and manufacturers. Let’s move forward together.
If it is not a branch company directly managed by the manufacturer, even if it is a joint-stock branch company, it may still be based on The dealer model operates the brand in Nanjing. I believe that what manufacturers want to know most is the dealer’s ideas.
If so——
The terminal research team asked: What kind of brands do dealers like to choose for cooperation?
(Big Horn Deer super wear-resistant marble tile Nanjing dealer Wang Ping )
Wang Ping, a Nanjing dealer of Dajiaolu, replied: If the manufacturer owner is willing to spend money to build a brand, the brand will have a future; the manufacturer is responsible for the region The sales staff are very helpful, efficient and trustworthy; the product quality is guaranteed and the product series is rich, which is more in line with the needs of the designer group. This is also the reason why I chose to be the brand of Big Horn Deer super wear-resistant marble tiles.
…
The above is just a brief summary of the author's thoughts during the research period. I hope readers will give you valuable opinions.
Author: Yi Ya
