In the home textile industry, it's widely known that Mengjie Home Textile had over 2,700 retail outlets in 2012. Fuanna Home Textiles was expected to open around 300 new stores that same year, while Luolai Home Textiles aimed to maintain a net expansion rate of 400-600 stores in 2013. Whether expanding into second- or third-tier cities or opening community-based stores, it seems unlikely that other home textile brands would surpass these three major players in terms of store count.
However, with the rise of e-commerce, the concept of "home textile distribution" has gained momentum. This model could challenge the traditional dominance of large-scale retail networks, turning tens of thousands of individuals into sales agents for the brand. If Ma Yun’s Taobao has created employment opportunities for millions in China, then the distribution model offers a way for those people to access products and generate income simultaneously.
**Home textile distribution may become the next big opportunity for investment and joining.**
As e-commerce continues to grow, some home textile companies have successfully entered the online market, achieving impressive results. Many other brands are watching closely, wondering whether they should follow suit. Concerns about talent shortages, uncertain returns on investment, and conflicts with existing offline franchisees have kept many from taking action. However, entering e-commerce isn’t just about setting up an official flagship store—it’s also a new avenue for distributors to explore.
Although companies like Vikko, Luolai, Mengjie, Boyang, Shengyu, and Mercury have official stores on platforms like Tmall, they’ve also embraced the distribution model, not wanting to miss out on this growing trend. These brands are actively recruiting distributors through Tmall's distribution platform, often requiring sellers to have at least one diamond rating. Notably, Boyang and Mercury rank among the top performers in home textile distribution, with volumes of 2,508 and 1,283 respectively. It’s clear that traditional investment models in the home textile industry are now being redefined online.
**Home textile export companies are shifting toward domestic sales, seeking support through distribution.**
With the decline in the export market, many home textile companies are now focusing on domestic sales. But how do they break into this competitive market? Some choose to follow the existing business models of established brands, but attracting investors has become increasingly challenging. Industry experts suggest that for foreign trade companies transitioning to the domestic market, finding a strategic point of convergence is crucial. The emerging "distribution" model might be the key to helping these companies gain traction quickly.
Home textile distribution involves companies providing product image packages, allowing authorized online sellers to promote and sell their goods. In addition, they offer flexible return policies and reliable after-sales service, which attracts high-quality sellers to help drive sales across the web.
While most home textile brands focused on the first-tier market, some moved early into the second- and third-tier markets and succeeded. When the attention shifted to those markets, others started thinking about community stores. Now, as brands launch online flagship stores, who will take the lead in building a home textile distribution network? Perhaps the next big name in home textile distribution is already on its way.
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