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The furniture retail industry is primarily driven by dealers, making the key to improving its current state how to effectively manage relationships among all parties involved, aiming for a win-win scenario. At the Home Distribution Industry Development Forum, the Secretary-General of the Suzhou Furniture Industry Association provided an insightful analysis on this issue.
**Dealers' "Sandwich Layer" Status**
(1) **Relationship Between Furniture Stores and Distributors**
At the heart of the relationship between stores and dealers lies the issue of rent. Dealers aim to minimize their rental costs, while stores seek to maximize them, creating an inevitable conflict. This tension is especially pronounced in first- and second-tier cities, leading to a growing trend of dealers relocating. However, despite these contradictions, both sides can coexist and even thrive if managed properly. Strengthening communication, balancing interests, and ensuring mutual benefits are essential for sustainable development. Additionally, dealers can enhance their brand presence through hypermarket promotions, ultimately increasing profits through effective brand distribution.
(2) **Relationship Between Factories and Distributors**
Factories prioritize the number of stores that distributors operate, as more stores mean wider product distribution and faster payments. On the other hand, dealers are increasingly cautious about which products they carry, given the challenging market environment. Many dealers now struggle to make profits, making product selection a critical decision. This creates a hidden but significant contradiction in the supply chain.
(3) **Relationship Between Factories and Stores**
Previously, the relationship between factories and dealers was less intense, as dealers were responsible for their own business. However, some hypermarkets have started collaborating with factories to pressure dealers into opening stores without proper support. As a result, dealers find themselves caught in a "sandwich layer," squeezed from both sides. Not opening a store means no income, while opening one may not guarantee profitability. In some cases, dealers risk being phased out by factories if they don’t move quickly enough, leading to unstable business conditions.
(4) **Relationship Between Stores and Consumers**
Consumer satisfaction is the main factor determining the success of furniture stores. However, promotional activities often confuse customers—offers like “buy 2000, get 1000†raise questions about who actually delivers the products. In most cases, it’s the dealer, yet consumers remain skeptical. The industry suffers from a reputation of being profit-driven, especially after incidents like the Da Vinci scandal. This distrust stems from unethical practices and price wars, rather than the consumers themselves. To restore trust, the industry must unite to curb unfair competition and create a healthier consumer environment.
**Challenges: The "Partial Security" Mentality**
One of the biggest challenges facing domestic dealers is their reluctance to change. Many still rely on traditional methods—choosing a location, opening a store, and hoping for the best. This "partial security" mindset limits growth and hinders the industry's potential. Just as a prosperous nation must expand its territory, dealers must also break free from comfort zones. Fear of challenges and stagnation will only prevent the industry from evolving.
**The Path to Reform and Development: Becoming Knowledge-Based Dealers**
Knowledge is crucial for personal and industry progress. The furniture sector needs continuous learning and innovation from its dealers. First, dealers must elevate their mindset—business is not just about feeding a family, but about building a long-term career. While many dealers have achieved financial stability, true success comes from ambition and the desire to grow. By embracing knowledge and adapting to change, the furniture retail industry can move toward a more sustainable and prosperous future.