Door Business 2018-sales channels and customer analysis

The crisis affected all regions of Russia, including the south. Moreover, its negative impact is felt both in B2B and B2C sales.

Only the largest network companies are able to survive in the retail trade network. They save on the salaries of employees by hiring students or today's graduates for minimal money. In addition, established relationships with manufacturers help them get the most favorable conditions. If the premises are owned, this also reduces some of the costs.

Companies that have been selling doors for less than five years are not so promoted and are forced to go to the lowest price segment.  Such an exit is imposed by the demand for the cheapest goods. We buy mainly products made of eco-veneer and "economy" veneer, with a film or paper finish. Young companies should not make a margin of more than 40%, and it is also necessary to provide free samples for organizing work.

Russian door manufacturers, as well as warehouses that operate in the middle price segment, are trying their best to retain their customers and time-tested partners. Although some factories are beginning to exchange for partners, which were abandoned by more famous manufacturers. For this segment of the market, standard conditions are needed - a discount on samples of 50% of their cost, as well as a margin of no more than 35% on the entire product. There are other options. You can put up about a dozen samples and slightly increase the prices. And retail stores can be provided with goods for safekeeping until the moment of sale, which, in general, may not be. Retailers don't want to take the risk if the doors don't sell, they want to make a high profit. By the way, the sale of doors in Moscow is one of the few areas where samples are still provided on payment terms, even if not full.

Warehouses in a crisis do not have a sufficient amount of working capital. If earlier sets of doors were available, now they are switching to pre-order. Customers will have to wait from two to four weeks, many are not ready to accept such conditions and go to other suppliers. Many buyers do not see a fundamental difference between the array and artificial turf, which leads to the loss of customers.

Local manufacturers who prefer the manufacture of solid wood doors are looking for any ways to sell their products. For example, one of the companies hired students for the minimum wage and put them in a call center. After they reach potential buyers, the database is already transferred to the hands of more experienced sales staff.

Even manufacturers in the cheapest segment are starting to work under the order, which was not observed before. Eco-veneer and cheap veneer need to be ordered two to three weeks in advance. But small companies are not going to work on such conditions. Cheap doors for sale that cost less than 10 thousand, they want to pick up immediately on the spot. So those warehouses that are ready to provide doors immediately have a great advantage.

Summing up, it can be noted that manufacturers do not work well with designers in the middle and premium price segment. This can fix the situation. You should also pay attention to a narrow specialization, for example, the production of fire-resistant or moisture-resistant models. Sales channels need to be re-evaluated and the sales policy needs to be revised.

Pub date: 2017.06.06