Is the diversification of furniture products a pit?

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Nowadays, there are more and more independent stores in the home terminal market. A dangerous signal is that many companies have started to follow the trend. There is also a more dangerous signal than this. Many companies think that opening a big store is a product line extension and diversifying products. Then, congratulations, welcome to the diversification of product diversification! deep! deep! deep!

Who lost the soul in the face of product diversification

First of all, we must make it clear that the ratio of products in independent stores is not as simple as the diversification of product series.

According to market research, the actual operation of many independent brands has shown that as the size of a single-brand independent store increases, the output of a single-square meter does not increase but decreases. It is not the size of an independent store. The bigger the better, the bigger the advantage.

The decline of many companies is to die on the road of diversified product development. The diversification of furniture brands, a little discomfort will have a great impact on the company.

The most direct impact is that with the development of brand product diversification, consumers' perceptions of brand management categories will change constantly.

For example, a big brand of the sofa brand, with the development of its plate, solid wood, Europe and the United States, custom and other furniture categories, the original consumer's cognitive label is the sofa category. With the diversification of several years, consumers' perception of the brand is not a sofa, but it has become blurred. I don't know what the main product category of this company is.

If the diversified categories of the company are not well developed, then in the process of diversification, it will inevitably consume the basic knowledge of the brands that the consumers have accumulated over the years.

That is to say, in the development of the big store model and the development of multi-category products, the company has lost the watermelon from sesame seeds.

For example, Gu Jia, the current path is diversified. Gujia Craft Leisure Sofa is the category label when it rises and is the benchmark for the industry. Later, in diversified development, Gujia Craft was changed into “Gujia Home”. In 2016, I found that many of Gujia’s terminal stores were changed from “Gujia Home” to “Gujia Craft”.

Chuanpai furniture has also had many cases of such return in the past two years!

This may be the necessary cost of the industry's big brands on the road to diversified development. In the future, you may see "Gujia Craft", Gujia Home (Independent Store), Gujia House Customization, Gujia Home Sleep Center, Gujia and Home Textiles in more places. Do you know?

I am more optimistic about the diversified development model of the family, and the terminal presentation form is also diverse. Gujia does not open a large independent store, and the independent stores are mostly around 1,000 square meters. The survival rate of Gujia's dealers is one of the best in the industry and the most stable. Perhaps from these phenomena, you can see what is going on.

Now there is such a phenomenon in the terminal market. Some brands of Chuanpai Furniture have transformed the previously independent single-brand stores into multi-brand independent stores. Why is there such a situation? It is because many independent stores in Sichuan have increased their output with the increase in storefront area. The profitability of dealers has not decreased but has declined.

Whether it is the single-category focus or the diversified development of multi-category is the problem that should be considered before the big brands in the industry open the independent store model. Rather than opening a big store to blindly diversify products!

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