Cost Trend(Product Care and Use Instructions)

Building Materials Circulation Coping Strategies _ 8/6/2008

In recent years, housing hot stimulating the popular building material industry growth. According to statistics, over the past five years building materials industry grew at an average rate reached an average GDP growth rate of 2-3 times, the annual growth rate of Decoration market is up to 30 percent. Evoked tremendous market potential influx of a large number of competitors, increased competition, the continuous emergence of new access roads and building materials industries competition and therefore circulation pattern great changes have taken place, and building materials manufacturers are facing a severe test, such as the retail market, "Popularity "Last year, stores decreased efficiency of distribution, such as the increasingly difficult to survive. To this end, it should be a serious analysis of the evolution of building materials flow direction and trends, think calmly access to the manufacturers change the short-term impacts and long-term implications and systems, a scientific concept of coping strategies, a comprehensive adjustment plants, of both the strategy, and even according to the environment changes in the marketing of a comprehensive transformation of access and integration. Only in this way can we rush in the "pathway revolution" before the arrival of competitors in the rush to complete the adaptation of the pathway, and ultimately become a "pathway revolution" in the "big winner."
 
First, access revolution to move our "cheese": materials flow analysis of trends in the field of development and evolution
1, with the field of decorative building materials "Super Terminal" (large supermarket) and the rise of rapid development, market power is gradually being transferred to the super retail terminals, the traditional role of wholesale and retail outlets has declined markedly. Although building materials stores in the Chinese mainland but in two or three years time, but its "everyday price," "one-stop shopping" and "unconditional return", "one-stop service" concept has been deeply embedded in much consumption favoured. Building materials and the rise of supermarkets it is bound to cause the rapid development of the field of decorative building materials circulation of a large "revolution." So far, there are at least five more supermarkets enterprises claimed that in three to five years in the Chinese mainland into more than 50 stores, such as Britains B & Q, the Oubeide Germany, the United States domestic warehouse, Swedens IKEA , the beauty of Huating France, in the East China native homeland Homemart, home and so on, these are the building materials and circulation of "super predators", which the United States the worlds first domestic warehouse, the European First, the worlds third - British B & Q. If these supermarkets to run a business expansion plans are expected to implement, then three to five years after the building materials stores will account for 30-40 per cent of the retail share. In fact, the European building materials retail stores account for more than 90 per cent share in Shanghai, supermarkets started two to three years has also been home building materials accounted for 40-50% of the retail share. Particularly since last year, and building materials have been the flames of war from the supermarket in east and north China and other central cities such as Shanghai, Beijing and other fuel to the center of the South China cities such as Guangzhou, Shenzhen, there are a number of supermarkets has been in Guangzhou, Shenzhen settled. Some single-store business area over 10,000 square metres of local building materials supermarkets have begun in some second-tier of the prefectural-level cities have emerged, such as same-store sales area of 10,001 1,000 square meters of Dongguan "China and the United States show" Building Materials Supermarket (City Branch) will be in the beginning of the end of March this year, business, "US music" in Dongguan, the other two large supermarkets and building materials on the 10 professional franchise is in full swing to build them. Burning to the war and inland provinces and cities in economically developed of the prefectural-level cities is also sooner or later. The building materials market in full swing before, but also eager for Haier, in June 2002 in Germany and Oubeide signed a joint venture agreement, the new company has a registered capital of 180 million euros (about 1.387 billion Hong Kong dollars) to co-branded "OBI - HAIR "(Oubeide - Haier) in the construction of 10 building materials stores 100, Chinas building materials to build the leading brand in circulation.

2, decoration companys brand campaign in full swing, "guerrilla" type of construction teams increasingly narrow market, consumers in the overall decoration effects tend to spend more and more consideration "buy" formal, decorative brand protection company from the renovation design, material procurement, to the construction of the "package", decorative building materials company became an important area of the distribution of power. The formal purchase a large quantity of decoration companies generally tend to wholesalers or manufacturers in the large-scale procurement, decorative building materials retail market "popular" increasingly short. Many retailers have lamented markets have become increasingly short, the business increasingly difficult. In fact decorative building materials in recent years the annual double-digit growth rate is still above. Therefore, the market is not growing short, but rent-traditional building materials retail markets have become increasingly short.

3, in parts of a "fine," a policy to increase the proportion of direct procurement, and misuse of the building materials market retail business. Based on the investigation of building materials traders know, the business, some of the decorative materials sales of 30-40%, and along with a "fine" is the promotion of policies, the ratio still rising.

4, shrewd businessmen have been aware of the no longer "Shouzhudaichan" and started to carry out in-depth plot and direct marketing promotion interception, but also snatched away a considerable part of the building materials market retail business. For example, an authors former leader, several million investment in a residential district of Dongguan opened an area of about 70 square ceramic shop, by using the "floor-sweeping" With the promotion accounts for about 15 percent of the area of the ceramic consumption , the average monthly turnover of up to 15-20 million, the peak could be more than 300,000 yuan. Moreover, the district another five ceramic shop. Thus, the promotion and promote community well interception, but also fresh materials can be 20-30% of the retail market.
 
5, in the traditional retail terminal building materials and decorative works by direct purchase companies, supermarkets, direct sub-district interception and fresh off 60-70% of the market circumstances (above analysis, the proportion may rise because the works direct procurement ratios are likely to rise, supermarket sales in the last few years is no doubt that the rapid development), the traditional distribution areas (such as brand stores) increased competition: the building materials market - the more the old market expansion greater operating businesses and brand stores explosive growth, and a bit of strength in building brand stores, building materials manufacturers in particular access point-of-sale hardware inputs (such as store decoration) generally increased, the flow of people was serious "dilution" , single-store sales and profits to drop, the risk increased, the prevalence of the "beautiful store does not take the goods, not to make money". According to our survey, many ceramic enterprises in the last year the number of stores has increased considerably, while sales of the same period has not increased significantly. Shenyang in the northeast, we had also discovered a brand Ceramic 1,000 square metres of shops enterprises, the worst, when sales actually less than 10,000 yuan, access can be seen from this crisis.
However, building materials manufacturers in the areas of software access inputs such as training, management of the investment is still generally not paid enough attention to. Through the strengthening of the traditional distribution channels in the software development and refinement of management, traditional distribution channels can still be as a new, as large!
 
More than the status quo and development trend shows that if building materials manufacturers simply that the number of terminals and hardware investment, it is difficult to achieve an ideal performance. In order to obtain satisfactory performance, and building materials manufacturers need to implement access transition, and steering at the same time, help the distributors to achieve the transformation of functions and capabilities.
 
Second, how to become a pathway "revolution" in the "big winners" - decorative building materials sales channels, the basic orientation of restructuring and strategic thinking to manufacturers.
In order to adapt to changes in the field of building materials in circulation, both companies need to implement the restructuring of sales channels to enhance the development of new channels and grasp, and at the same time the implementation of the transformation of the traditional distribution channels, to achieve the "West-Eastern-are also" . Of the course of action:

1, from a single plane change for a variety of distribution channels simultaneously access the three-dimensional pathway. Building materials manufacturers in particular traders need to build access roads are: engineering sales channels, decoration company sales channels, building materials supermarket sales channels, residential quarters to promote access. Manufacturers the necessary organizational and personnel to enhance the project, supermarkets and other business services, support and overall planning and coordination, dealers necessary to develop a professional project area, the supermarket, Decoration Company sales team.
 
2, a single change in the sales model for the stores under the strict control of the intensive and extensive distribution. Do not rely too much on stores, extensive use of zones to increase network density corner, at the same time effectively lower the threshold of joining with the terminal operational risks. The loss of the stores have not give up easily, can be transformed into zones corner shop. But it needs attention, with the intensive implementation of strict control of the market in particular is to strictly control the prices match. Control the market and the premise is to eliminate credit, otherwise it is difficult to effectively contain the downstream distributors. At the same time supporting the best monthly profit distributors return system, so once found to be in breach of market rules, such as the dumping of low-priced to ensure punishment of the project. For example, the abundance of the one in a city distributed without credit under the strict control of the market prices in the urban laid more than 300 retail outlets and annual sales up to more than 2,400 million, the market share of over 60 % Libangqi It is also intensive construction of retail outlets in China to ascend the lead paint industry; good wife is relying on its drying rack intensive drying rack set China market 50% of the market share, sales of a single species break 200 million yuan. Ceramic manufacturers in the current sales and market share of long-term access to a breakthrough on one of the main reasons is that excessive reliance on the stores and market protection, with the terminal operational risks joining the threshold too high, no broad mobilization, the development of various forms of distribution (such as Shop, shop area, roasted seeds and nuts shop, several convenience stores, etc.), low density networks. New source of the operation of the market although not precise, is not a product of the best, but by virtue of its multi-brand set up intensive, but easily sit down at the China and the world at large ceramic "boss" of the top position. Despite intensive control would improve the market difficult, but successful cases (such as the abundance of parts dealers) that, good control and intensive market is not confrontational. One of the two necessary for the circumstances intensive far than the single-shop quality and "end protection" even more important.

3, in the supermarket business for the opening of materials management, it is necessary to strengthen the study on the operation of supermarkets and attention, and still less can resist exclusion, because as long as consumers like, no business can stop the emergence of this new type of Form and Development the. Marco Polo tiles began last year to establish a professional services supermarket sales team, to cooperate with the supermarket, when supermarket sales reached tens of millions of dollars, total sales accounted for nearly 10 per cent of some supermarkets-store sales of up to 1 million yuan, , more than a lot of the regions total distribution sales. For some strong brands, as long as the master of the supermarket and communication, negotiation and cooperation are needed for the law to deal with the supermarket may not be as difficult as you imagine, the supermarket on the impact of the original network is not perhaps as serious as imagined. In order to carry out cooperation in the supermarket and services, it is necessary to change distributors comprehensive distribution function as a regional distribution services. In order to change the ideological concepts of dealers and understanding to help dealers function and the ability to achieve the restructuring, manufacturers need in the transition before the transition to the dealer and provide the necessary training and guidance to enable them to supermarkets rather than boycott supermarkets, and to Society needed for the operation of supermarket business, learn effectively with the supermarket negotiations and cooperation. The type of construction materials supermarket chain with a cross-regional characteristics, therefore, the manufacturer of building materials necessary for trans-regional supermarket chain a unified development, unified contract, unified management, regional distribution settlement, otherwise, the order of the market will lead to serious confusion, the traditional distribution networks and the impact of this damage can be avoided.

4, to strengthen the traditional distribution channel input software, network terminals from a single focus on the number of changes in competition for hardware and software on the competition, such as access management level of competition, the level of training pathway competition, the ability of terminal sales and marketing competition, access members (dealers) competition in the quality of the staff, quality of services and access competition.

5, the pathway from extensive management to the fine, systematization, and policy and regulation changes. In order to ensure access policy, the implementation of the system, enterprises and organizations from the necessary personnel to strengthen the access system, the supervision of the implementation of the policy.

6, traders will have to focus on resources, and strengthen their own core strengths and core competencies, improve the professional level. To that end, large manufacturers to change the past of a single regional approach to the distribution of resources according to dealers, the advantage will be able to work, decoration, supermarkets and traditional distribution network development and management of separate mandates, to ensure that the points specialized sales channels, development and refinement of management. Only in this way can we ensure that the dealers will not change in the pathway of resources, capacity can not be focused on training and strengthen its core competencies and advantages, the dealers will be able to withstand major changes in the "right to life" is a test, which manufacturers access big changes can continuously improve our adaptability and security.
In addition, as manufacturers, in the strengthening of the transformation of the traditional sales channels at the same time, we should also further strengthen product quality, cost management, and strengthening brand shaping and dissemination, otherwise, due to the uncertain quality of products, price is not competitive, brand Rally reject the supermarket was not enough.

                                                                                 Data:2008-2-1 10:31:13 Hits:15