The emergence of group buying is actually another emerging performance of furniture dealers in promotional activities. Although group buying is currently popular, in fact, group buying still has many drawbacks. Industry insiders believe that group buying is only a special phenomenon and is unlikely to become a future. In the mainstream consumption model, group buying will naturally disappear when the profiteering disappears. The emergence of group buying more shows that there is a larger profit margin in an industry. It is understood that 10% to 15% of the 40% gross profit of Groupon, the originator of online group purchases in the United States, was obtained by consumers who bought group purchase coupons but did not go to spend.
First of all, the birth of group purchases has benefited from the aggregation effect of the network, especially the social network, but the negative effect of this aggregation effect has gradually become more prominent. In fact, group purchases are a one-time purchase for many consumers, and most consumers prefer to go to a new store to buy bargains instead of returning customers, so it is very difficult for dealers to try to use group purchases for secondary marketing.
Secondly, the excessively low price strategy of group purchases has caused the prices of goods and services of merchants to be greatly lowered, and the situation of "wrong goods" has also occurred from time to time. In addition, low entry barriers and other factors have led to the low level of service of group purchase websites . The other problem caused by this is that the excessive group purchases are violent and the internal management of the dealers is chaotic. This will in turn affect the effect of group purchase activities, forming a vicious circle, and problems are inevitable.
For large-scale durable goods such as Chengdu furniture that consume a large amount of money, consumers generally go to low prices, but if low prices lead to poor products and poor services, the Internet reputation of furniture brands will definitely decline. So the price is a double-edged sword, and group buying is also a double-edged sword. For dealers, group buying as a benefit, the disadvantages of marketing methods are mainly in the following two points:
Group buying strategy of furniture dealers: In fact, it is not difficult to find out from the profit-making method of group buying, the factors that affect the effectiveness of group buying mainly depend on the price, that is, the discount rate. The biggest feature of online group purchases is to provide consumers with products with lower discounts. This is the core value of online group purchases for consumers, as is the sale of furniture products.
Group buying is not essentially an e-commerce, because group buying requires merchants to give up more profits. If merchants do group buying as an e-commerce, obviously it is not a long-term sustainable behavior, and there will inevitably be cut corners or inferiority. Charged phenomenon. For this reason, furniture dealers can only achieve a win-win situation with group-purchase websites and consumers only if they consider group-purchase as a kind of accurate sales agency.
In addition, in the long run, group buying does not meet all the back-office needs of furniture dealers. At different stages, dealers need different forms of precision marketing tools. Group buying is only one of them, so from this point of view, group buying Not an independent business model, but a tool and product to solve some of the dealer's marketing needs.
Furniture dealers may wish to hold such a mentality: I do not require how many orders can be brought directly to me by group purchases. What I am concerned about is the improvement of brand influence through group purchases. In addition, in the process of group purchase, the service level in the later stage should be further improved, especially for the history of low-end Chengdu furniture brands .
Group buying products need to be carefully designed. For furniture companies with traditional channels, not all products are suitable for group buying. Group-buy products must be able to avoid conflicts with existing products in physical stores, and it is best to drive sales of other products in physical stores. For example, the introduction of a bed may lead to the sales of bedside tables and hall cabinets, but the introduction of a sofa may not bring out linked consumption.
For the online sales of furniture, there is no problem of conflict with the original channel, but there is a problem of price competition with countless competitors online. Only by being able to come up with differentiated products for group purchases can we get a higher premium, thus avoid falling into price competition and establish a certain brand differentiation.
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