How do the capital chain crisis frequently evade the operating risks of furniture companies?

Furniture and home improvement market cited questions from outside the industry

A few years ago, the mahogany furniture brand that rushed into the market with “selling by the pound” was even red, and this time was really “red”. First, consumers complained about the above complaints. Later, there were rumors that "even the Tianhong red capital chain may be broken", and the first two days were exposed by CCTV.

In fact, even Tianhong’s problem was not long ago. As early as September 2010, even Tianhong Furniture exposed the problem. Even Tianhong Redwood Furniture unveiled a poster titled “Waxing PK Paint” in nearly one hundred directly operated stores, which triggered a “waxed” and “painted” process in the market, which triggered the “Poster Gate” event. . At the 3.15 party held by Tianjin Radio and Television on March 14 this year, even Tianhong was exposed again due to non-delivery and no refund. In addition, if you search for Baihong in Baidu, you will find that a few years ago, many consumers "spoken" on the Internet and even delayed the delivery of the sky.

Furniture is so, home decoration never let people stop. A few years ago, some media reported that at the beginning of the new year, the rumors of escape of a foreign company's nephew, which was based in Beijing, caused the owners to go to Beijing to collect debts. These incidents once again pushed the operating model and development prospects of furniture companies and home improvement companies to the public's vision, causing questions from outside the industry.

The capital chain break is equal to the company's abortion

From an industry point of view, cash flow is the lifeblood of furniture companies. Like all the phenomena in other industry companies, at any time of the year, the company has funds to account for all expenses, so as long as the company guarantees cash. The flow is stable and can operate normally. However, once the capital chain breaks, it is overnight that the company collapses.

In 2014, the collapse of the capital chain left some companies on the verge of losing money or even closing down. In 2014, Totem Baojia was shut down due to the break of the capital chain, and the incident of leaving a butt debt to allow the actual home to handle also made many people speechless. On December 12 last year, the ultra-comfort international home flagship store was robbed. The 12-year-old imported furniture sales platform was closed down. The reason was that the ultra-comfortable inability to repay the huge usury was insured by the creditors. On the first day of the super comfortable store goods being robbed, the leading house of Jinan Ouyada Home Plaza suddenly heard the news that “the boss was running the road”. Since then, many stores across the country have been closed down, and the general manager has lost contact. Leading show home mainly agents such as Italy, the United States and other first-line home brands, its agent of high-end brands as many as 60, but because the funds can not keep up, the follow-up development has become a bubble.

Choosing a brand is the key

Liu Chen, secretary-general of the Beijing Branch of the Beijing Market Association, said that with the continuous development of the modern circulation field, the requirements for circulation carriers and platforms are getting higher and higher. "In some of our original markets, the functions are relatively simple, and there is only one trading function, and this is far from being able to meet the requirements of consumers." Yin Chao, secretary general of Jingpai Furniture Association, said that there are some companies with market awareness and brand influence in the market. In terms of controlling product quality, it is an important part of management. Generally, the probability of quality problems is small. “The safer the bigger the store, the more familiar the brand will be better than the unknown.”

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