Analysis of the business model of the soft furniture industry

The particularity of the software industry's business model is mainly reflected in its sales model. At present, domestic software furniture manufacturers mainly adopt two modes of independent brand sales and OEM sales. Royal carriage software furniture http://hjmc.cnjiaju.com/share

1. Independent brand sales

The independent brand sales model is that software furniture manufacturers rely on their own design and research and development capabilities, create independent sales brands, have independent intellectual property rights, and rely on brand advantages to bring products to market through direct sales, direct sales, e-commerce and other perfect sales channels. Business model. Enterprises that adopt self-owned brands have strong ability to withstand risks and can obtain higher profit levels, but they have higher requirements for design and development capabilities, process technology and sales channels.

(1) Direct mode

Software retail enterprises directly invest, manage and manage various retail outlets, and adopt vertical and unified management methods for each retail outlet. By adopting the sales model of direct-operated stores, enterprises can effectively control marketing channels and implement the development strategy of the company. However, under this model, enterprises need to invest a large amount of their own funds, and the initial operating costs are high.

(2) Distribution model

The distribution model includes two modes: franchise distribution and general distribution. The franchise model refers to the software furniture company granting its own brand and trademark to the franchisee in the form of a franchise distribution contract or agreement, and to the franchisee dealer. Provide personnel training, management and other aspects of assistance; franchise dealers pay the corresponding fees to the enterprise, sell products according to the franchise distribution contract, and bear the business risks; ordinary distribution means that the software home enterprises will sell their own brand products through ordinary dealers. Sales, production companies do not participate in the general dealer's store management, brand promotion, personnel training and other work. The distribution model is conducive to software furniture companies to rapidly expand market channels and expand brand awareness on the premise of less investment.

(3) E-commerce model

The software furniture enterprise cooperates with the e-commerce website to promote the products on the e-commerce website, and the enterprise pays the corresponding fees to the e-commerce website operators, and the business risks are borne by the enterprises themselves. The orders obtained by the software home enterprise through the e-commerce website are sold by the company itself or transferred to the dealers where the customer is located to complete the sale. E-commerce is an emerging sales model for the software furniture industry.

2, OEM sales

The OEM sales model of the soft furniture industry can be divided into ODM and OEM. Among them: ODM refers to the design and development of software products by software furniture manufacturers according to market demand or customer entrustment, and organizes production according to customer orders, and the products are produced by customers. A production method for brand sales. ODM manufacturers are not only responsible for production and processing, but also responsible for design and development; OEM means that software furniture manufacturers are completely produced according to the design and requirements given by customers. The product design and development plan is completely provided by customers. OEM manufacturers only undertake processing and manufacturing tasks, OEM manufacturers The products produced are also sold to the customer's brand. The competition in the soft furniture industry is relatively full, and the industry entry threshold is not high, but it is not easy to stand in the software furniture industry and become the industry leader. The newly-entered enterprises face certain obstacles in competition in terms of sales channels, brands, design and development, and process technology.

(1) Sales channel barriers

The sales channel is one of the important competitive resources of the company. The sales channels of the soft furniture industry include direct stores, dealerships, and e-commerce. Perfect sales channels are the key to winning the market for software furniture manufacturers. The core storefronts of some high-quality business districts have become an important resource for competitors in the industry because of their scarcity. However, the establishment of a systematic sales network covering the whole country or even the whole world requires not only huge capital investment and high operating costs, but also rich experience in channel management. Therefore, sales channels are a major obstacle for new entrants in the software furniture manufacturing industry.

(2) Brand barriers

Brand is a kind of identification mark, a kind of spiritual symbol, and it is a value concept. Upholstered furniture is a durable consumer product, and the brand is an important reference for consumers to make purchasing decisions. With the continuous improvement of consumer tastes, the popularity and reputation of software furniture brands will occupy a very important weight in consumers' purchasing decisions. However, branding is a long-term process that requires long-term investment, construction, management, and accumulation, as well as continued branding and brand image output. For a new entrant, brand building is almost blank. Therefore, the brand will become another major obstacle to the new entry into the software furniture industry.

(3) Design and development barriers

Design and development is regarded as the "soul" of the software furniture industry, which directly determines the quality and market positioning of a company's products. With the increasing personalization and differentiation of consumer demand, original design and independent research and development have become an important driving force and source for the development of software furniture manufacturing enterprises. Facing the increasingly fierce market environment, the individualization and differentiation of products is an inevitable way for software furniture manufacturers to choose. Only by increasing investment in R&D and innovation can enterprises be in an invincible position in the fierce competition. However, the first-class design and development capabilities have experienced the brewing of history and the baptism of the times. Every design innovation reflects a concept and a culture. Enterprises that lack independent and original design lose their vitality for sustainable development. How to have first-class design and development capabilities is a problem that new entrants in the software and furniture industry have to face. Design and development are important obstacles for new entrants.

(4) Process technology barriers

Skillful and exquisite craftsmanship not only provides reliable guarantee for the production of high-quality products by software furniture manufacturers, but also directly affects the production cost of products, which is an important embodiment of enterprise competitiveness. However, skilled and exquisite craftsmanship needs to be formed through repeated experiments and continuous exploration on the basis of years of manufacturing practice. For a new entrant, it is difficult to guarantee the quality of the product and control the production cost without the mature and exquisite craftsmanship. Therefore, process technology is another major problem faced by new entrants.

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