In this epidemic, Wuhan was closed and the country was on holiday, and all offline stores had a huge impact.
The rent has to be paid, the loan has to be repaid, and the salary has to be paid. This is the biggest challenge faced by all offline entity owners. Among offline entities, one industry is often overlooked by consumers, and that is the home building materials industry. why? Because consumers buy home building materials products less frequently, they usually go shopping only during house renovation.
How can the home building materials industry save itself under the epidemic? With this question, I deliberately consulted Teacher Zhang Hongmei. She is a pan-home retail consulting trainer, providing consultation and training on the transformation of large home business model, new retail, and store efficiency improvement for many listed companies and brand enterprises. She is a practical expert in the industry. Below I will share with you my experience of consulting from Teacher Zhang.
— 1 —
Help
Let me talk about life-saving advice first.
The so-called life-saving is to survive anyway. Which day you can live is a simple math question: how much do you spend if you do not open a business each month? How much money do you have? What is the life-saving advice for the home building materials industry?
Ensure that the cash flow can last until at least the end of May. why? All companies need to ensure cash flow if they want to survive. Why does the home building materials industry have to last until at least the end of May? This is because the sales nodes in the home building materials industry are very obvious.
If there is no epidemic, February and March are peak sales seasons for grabbing orders and doing business. Terminal retail stores will launch two major promotions: a good start and a large-scale promotion on 3.15.
And May is the peak season for decoration. Therefore, the life-saving advice for the home building materials industry is that the cash flow can last until the end of May at least. Those household building materials companies with relatively tight cash flow, seeing that there is no income now, their expenditures will not decrease, and the cash flow will definitely not be able to support the end of May. What should they do? It can be considered from two aspects,
he saves and saves himself. What is he saving?
It is to find the help of partners. For example, for a home furnishing store in a store, you can try the following 3 suggestions: 1. You can find the store and ask if it can reduce rent. If it is a branded furniture store, Red Star Macalline, Golden Harvest Lotte, Daon, etc. can be rent-free for 1 month, and Fulma is free of rent for 60 days. 2. You can also try to ask whether the brand dealer you are acting for the furniture product has a business activity that can help you bear some expenses. Brands such as Gold Medal, Xilinmen and other brands bear one-month shopping guide salary for dealers; Oppa 1 billion, Man Wah Holdings 700 million, Weishang Group 600 million, and Hao Laike 100 million business support plan. 3. You can also find out whether the local government, industry and commerce have tax reduction measures. and many more. After talking about his rescue, let’s talk about self-rescue measures. I have compiled the following 5 points for your reference. 1. In order to allow the cash flow to last until the end of May, after your comprehensive assessment, you can also seek financial support to tide over the difficulties with short-term loans. 2. Suspend opening new stores and reinstall old stores before the end of May. 3. You can quickly clear inventory at cost through platforms such as WeChat, e-commerce, and live broadcast, and withdraw funds. 4. Communicate with employees and adjust wages from February to May. Entrepreneurs who do this are reminded to fully communicate with their employees, clarify their interests, and frankly point out that if they do not do this, the company will indeed not survive and gain employees' understanding. 5. In the end, if the above measures still do not work, some stores with less passenger flow will have to be temporarily closed first and personnel will be reorganized. Talents are your most precious resource to regroup after the epidemic is over. Therefore, even if you close the store, you must protect the talents you have cultivated so hard.
— 2 —
Cure
After talking about the life-saving advice for home building materials companies, let's talk about treatment advice.
Assume that your company's cash flow has been sufficient to support the end of May.
At this time, we will come to treat the disease again.
The purpose of treatment is to allow our income to exceed expenditure and generate profits even under the epidemic.
This is a cure.
Under the current circumstances, how does the home building materials industry treat diseases?
That is, how to make income greater than expenditure?
You might think this is impossible.
Because we mentioned at the beginning that most transactions in the home building materials industry are done offline.
No one goes to the store now, what else can I do?
It's not bad to live, let alone make money.
In fact, in the current extraordinary period, we still have a lot of things we can do. Maybe we can increase some income. Even if it is not profitable, at least we can reduce some of your losses and keep your market share.
Next, I will give you my suggestions from two aspects of customer acquisition and transaction, hoping to give you some inspiration.
— —
Let me talk about getting customers first. I'm brave enough to share 3 suggestions with you.
1. From offline customer acquisition to online + offline omni-channel customer acquisition.
Use digital tools such as WeChat groups, WeChat + Mini Program Mall, live broadcasts and short videos, and smart shopping guides "Ding Ding + Hand Tao" to efficiently carry out online sales.
2. From lagging in customer acquisition to the front of interception.
What is delayed customer acquisition? What is the interception front?
Lagging customer acquisition means contacting the customer after the house is closed and when it is about to be renovated, and before the closure is to contact the house before the house is handed over.
I suggest you, during the epidemic, check the local communities delivered in the second half of the year, reach the owners in advance through the community community operation model, and lock orders in advance through community community exclusive services + group purchase discounts.
3. From catching new customers to repurchasing old customers and fission, catching new customers and attracting traffic.
Let's talk about transactions.
For example, some companies in the home furnishing industry reported that they obtained a large number of orders through some online activities.
But it didn't take long for me to regret it, and the chargeback rate was extremely high.
why?
Online deposits are mostly 100 yuan or 200 yuan. Compared with decorating homes, the threshold is extremely low. In online activities, it is easy to place orders due to the atmosphere.
After careful consideration and comparison, the customer feels that the value does not satisfy him, so it is normal to charge back.
When customers purchase home furnishings, they not only need high-value, practical and environmentally friendly products, but also save time, worry, and money.
At this time, simply using promotion to drive the transaction appears thin. It is recommended to transform to a dual drive of promotion + high value-added services to win the trust of customers.
In short, during the epidemic, it is necessary to obtain online customer transactions, collect deposits in advance, and reserve orders. After the epidemic is over, focus on offline installation and delivery services.
— 3 —
Health
Finally, we talk about health advice.
If an enterprise wants to go long-term, it needs to maintain a strong body. After the epidemic has passed, companies have returned to the right track. At this time, for the home building materials industry, it is necessary to consider taking good care of the body and starting health preservation. What are the health recommendations for retailers in the home building materials industry?
First, transform from a distributor to a service provider. Under the traditional model, especially standard products are purchased with the left hand and shipped with the right hand, in addition to installation and after-sales problem handling, dealers with no added value will inevitably be eliminated. What does it serve for the home building materials industry? The pain points and concerns of consumers are the focus of corporate services.
Pre-sale: free home inspection service, free consultation on decoration related matters, free design plan, etc.;
sale: provide related products, hydropower positioning service, cross-construction docking service, etc.;
after-sale: in addition to 24-hour response to after-sales questions, free aldehyde test, free Clean, free maintenance, etc. Only service can increase the added value of products and win orders. Only high-satisfaction service can win repurchase and referral of old customers, and continuously improve reputation and market share.
Second, improve efficiency and reduce costs through optimized management. For example, upgrading stores to digital stores, standardizing business processes, and so on.
Third, attach importance to personnel training and improve human efficiency. As mentioned earlier, talent is your most precious resource for regrouping after the epidemic is over, and your core competitiveness. Therefore, we must pay attention to personnel training.
Final words
Save life, cure diseases, and keep in good health. Finally, I would like to thank Mr. Zhang Hongmei for his suggestions. From these three aspects, we help you analyze how the home building materials industry should survive this crisis. Although it is a crisis, don't be anxious and face it optimistically. And another advantage of the home building materials industry is that decoration is just needed after all, it is impossible not to install it after buying a house. Under the epidemic, demand has only been suppressed. After the epidemic, it is likely to increase explosively. So, what is most important to you now? Say it three times. Live at least through the end of May, at least through the end of May, and at least through the end of May. Before the end of May, every penny you can earn may be extra. Come on. Under the epidemic situation, the whole country is on holiday and customers in front of the store are not happy. This winter is a bit cold for many home building materials companies and distributors. But winter will definitely pass. At that time, the strong who survived will reap the whole spring. After all, all great companies are children of winter. I wish Wuhan and the epidemic will end soon. I also wish you, through winter, usher in spring.
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