In the increasingly competitive custom home furnishing industry, distributors who "co-prosperity and coexist" with brands are also under pressure to increase the elimination rate.

At the recent general meeting of shareholders, Sogal proposed to adopt the last elimination system of dealers in 2021, with the final elimination ratio clearly at 6%-8%, aiming to promote the survival of the fittest by dealers. According to the financial report data for the first quarter of 2021, Sogal's cabinets, wooden doors and other dealers totaled about 2751. According to the elimination rate of 6%, there are about a hundred dealers that have dropped out.

Due to the particularity of the home furnishing industry, dealers have always been a force that cannot be ignored for enterprises. More than half of the sales of some custom home furnishing companies come from dealers. Therefore, distributors are the key to the continued growth of sales of enterprises for major fixed enterprises. However, with the increasingly fierce competition in the home furnishing industry, home furnishing enterprises have gradually improved their performance and requirements for dealers to strengthen their market competitiveness.

This is not the first time Sogal has proposed "survival of the fittest" against dealers. Beginning in 2019, Sogal mentioned optimizing dealer strategies; in 2020, under the impact of the COVID-19 epidemic, the company has also optimized a batch of last dealers. However, with the last elimination system implemented this year, Sogal will further refine the proportion of elimination.

In recent years, as competition in the industry has intensified, the industry has set off a battle to optimize distribution channels. In particular, in 2020, which is hit by the epidemic, the reshuffle of custom home furnishing dealers is accelerating.

Take Oppein, which was the first to implement an optimized dealer strategy, as an example. Oppein has publicly stated clearly that it will eliminate 6%-8% of its dealers every year, and continue to refine the regions and categories of agents for dealers with insufficient capabilities, such as regions ways such as being compressed, categories being compressed, new agents, etc., will be eliminated if they fail.

The number of closed stores is the most intuitive embodiment of optimizing the dealer strategy. Taking the four leading domestic enterprises in the custom home furnishing industry as an example, the data shows that from 2017 to 2020, the total number of Oppein stores will be 6311, 6708, 7062, and 7112, respectively, and the expansion is gradually slowing down.

The number of Oppein distributors differs depending on the sub-brands. Among them, Oppein cabinets and Oppein will reduce their dealers by 65 and 146 respectively in 2020.

In addition, in addition to implementing dealers'  "survival of the fittest" measures, Oppein also plans to pilot lower-level distribution under the original dealer system, which is currently only in a local area.

The number of franchise stores of Homekoo will reach 1,557, 2,100, 2,327, and 2,235 respectively from 2017 to 2020. There will also be a reduction of 92 in 2020.

Although the total number of ZBOM stores reached 1,759, 2,363, 2,827, and 3203, showing a rapid expansion trend, in 2020, the number of cabinet and wooden door dealers will only increase by 1 and 48 respectively.

Different from the above three, Sogal has optimized some dealers, but the total number of stores still shows a positive growth. During the same period, the number of Sogal stores reached 3,175, 3,710, 3,873, and 4,409, and its Sogal, SCHMIDT brand distributors expanded to 152 and 125 respectively.

It is not difficult to see that at the moment when the expansion of the industry is gradually slowing down, leading companies are also surviving the fittest with distributors.

Some insiders pointed out that behind the optimized management of distributors, the industry has gradually bid farewell to rough growth and entered the track of refined operation. Obviously, when the competition among home furnishing enterprises is fierce, the reshuffle of dealers is also accelerating.