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Dealers "exchange blood" at the end of the year, Chengdu furniture retail terminal market is weak
The Chengdu furniture retail market is currently facing significant challenges. Rising store rents, management fees, and staff salaries are putting pressure on dealers, while an influx of low-cost products from small workshops further intensifies competition. As a result, many small-brand dealers, especially those in third- and fourth-tier cities, have experienced a major "bloodletting" at the end of the year.
Some Chengdu furniture brands have a large number of dealers, but regional market conditions vary widely, making it extremely difficult to maintain stability. When a dealer goes through the early, mid, peak, and decline phases, they are likely to enter an aging period, where innovation and performance start to decline.
At the end of the year, with more consumers rushing to renovate their homes, some Chengdu furniture and building materials manufacturers are eager to replace dealers. According to industry sources, the turnover rate for home dealers could reach as high as 60% by the end of this year. This trend may mean that if furniture or building materials encounter problems in the future, the original dealer who should be responsible might have already left the market.
Many consumers are now struggling with after-sales service issues. For example, Ms. Zhong from Renshou repeatedly called the after-sales service number, only to receive a disconnected call. The merchant had withdrawn from the market, leaving her cabinet furniture—still under warranty—without proper support. She had no choice but to pay out of pocket to find a repair shop for replacement parts.
This situation is not uncommon, particularly in smaller cities like Langzhong, Longchang, and Zizhong. These areas often lack stable management, leading to quick store openings and closures. Su Ding, president of the new Bomei chain group, explained that such instability results in poor after-sales service, with no free repairs during the warranty period and limited access to original parts. This significantly reduces product comfort and lifespan.
Small furniture and building material dealers are reported to experience a 60% turnover rate at the end of each year. During interviews, it was revealed that rising costs and increased competition have made it hard for small distributors to survive. In the flooring industry, for instance, high rental costs, rising labor expenses, and competition from other materials have squeezed profits. Small workshops flooding the market with cheap products add to the pressure. As a result, many small-brand dealers, especially in lower-tier cities, face severe "bloodletting," with some experiencing even higher turnover rates than 60%.
After exiting the market, these dealers often switch industries or become agents for other brands. However, they usually show little concern for the after-sales issues of the previous brands, leaving consumers without proper support.
Manufacturers also play a role in this shift. As key players in converting products into profit, dealers can sometimes hinder growth. Some brands have too many distributors, and market conditions vary greatly across regions, making it difficult to maintain control. To address this, some manufacturers are opening their own stores or restructuring their distribution networks.
One reason for dealer replacement is the natural lifecycle of a dealer. Once a dealer enters the aging phase, their ability to innovate and grow diminishes, leading to reduced market share and sales. To stabilize regional performance, manufacturers may replace underperforming dealers. Another factor is dealers with insufficient capacity who constantly request special policies and higher returns, which can strain the manufacturer's resources.
Overall, the Chengdu furniture market is undergoing a period of transformation, with both dealers and manufacturers adjusting to new challenges. Consumers, however, remain the most affected, facing growing difficulties in obtaining reliable after-sales service.