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First-line brand management pressure is high, cabinet dealers switch to second-line

by:Hench Hardware     2021-09-10
The competition situation in the cabinet market has never slowed down, and the production and operation costs of the cabinet industry have shown a tendency to develop in direct proportion to the intensity of competition. In this case, the major domestic cabinet brand distributors are also facing a more severe test, especially under the weight of the high franchise fees, high operating costs, and high operating indicators of the first-line cabinet brands, many distributors turn to Second-tier brands.

   First-line brand agency is under pressure

   Now there are a lot of requirements for the first-line cabinet brand to be an agent, not only for entering the top local store, but also for the store area to be large enough, and the sales index is also quite high. The rent and management costs of top stores are high. If the store area is too large, various expenses will naturally rise, but sales may not necessarily increase greatly. For cabinet dealers who are not strong enough, the operating pressure is conceivable.

   There are even some top-tier cabinet brands that value their strengths and have fewer support policies for ordinary dealers. As a result, the profitability of these agents is not strong and the survival rate of stores is low. This also directly affects the confidence of cabinet dealers.

  Second-tier brands gradually become the first choice for investment

   The operating pressure of first-tier cabinet brands is increasing, and the market share of low-end brands and other brands is decreasing day by day. This provides a good opportunity for second-tier cabinet brands to grab dealer resources. The fact is also true. An online survey shows that since this year, most of the dealers who have changed their agent brands are agents of second-tier brands.

It is a normal market phenomenon for the second-tier cabinet brand to flourish again, and it is also in line with the consumption law. After all, high-end consumers are only a minority, and most working-class people can improve the quality and quality of life by buying second-tier brand cabinets.

   Although the first-tier cabinet brands have certain advantages in added value, their entry barriers make people sigh, and the second-tier brands are now their first choice for investment. If the second-tier cabinet brands can increase their support to dealers and continuously train them to help dealers make profits quickly, the second-tier brands will have unlimited potential.

   It can be seen that whoever supports the dealers more strongly, the dealers will go to whom. The first-line cabinet brands certainly have their brand advantages, but their disadvantages are also very obvious. As the market changes, the second-tier brands are becoming more mature in all aspects, and the gap with the first-tier brands is gradually narrowing. It is inevitable to become the first choice for cabinet dealers to invest.
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