The importance of dealers in the furniture industry
Furniture dealers are well-versed with the dynamics of indigenous markets, and that makes them indispensable
First of all, I would like to congratulate you for being a furniture manufacturer. You, and many other furniture manufacturers like you, are do-gooders as furniture is an indispensable part of our lives. Furniture reflects the persona of those who use it, whether they’re homemakers, entrepreneurs, artists, or working professionals. I believe that as a furniture manufacturer your contribution to the society is noble.
And I’m sure that you acknowledge that your success in the furniture market hinges on your dealers. Well, that’s what separates a noble furniture manufacturer from others. Furniture dealers are the backbones of the industry as they keep a watch on the pulse of the market. They know the nitty-gritty and nuances of clients’ changing tastes, preferences, and requirements.
If your dealers are spread across geographies, then you are one of those fortunate furniture manufacturers who can constantly evolve in accordance to endemic likes and dislikes. Honestly speaking, the importance of a furniture dealer begins from the point you set up your manufacturing unit, and amplifies with each and every client that you win. Your furniture dealer or a channel partner is your representative in a highly competitive market.
Now the onus is on you to maintain a healthy and fruitful association with your furniture dealer or channel partner. The reason I’m saying this is because you are not the only manufacturer trying to woo them. There are many in the fray, and all it takes is a monetary or a prestige lure for alliances to flip. I’m sure you wouldn’t want that to happen. Nothing will prick your conscience more as a furniture manufacturer than to see your channel partner switch loyalties.
So, let’s spare some thought on why dealers are so important in the furniture industry.
Why should you appoint furniture dealers?
As I said earlier, you manufacture furniture and your furniture dealers craft your success in a highly competitive market. Here are some benefits of a furniture dealership that you as a manufacturer would admire.
- Market Expansion
Your furniture manufacturing unit was established with hard-earned money, and you may have even borrowed funds from the bank, money lending institutions, or even a venture capitalist. Of course, you want the best returns-on-investment (ROI); don’t you? I’m wondering why I’m even asking that! Better ROI will come from different sales channels that you establish.
And when it comes to market expansion, a furniture dealership is unparalleled. The bigger you’re your furniture dealer network, the higher your goodwill and profitability. With furniture dealers, no market or territory is tough to conquer. That’s why global furniture brands stress on any opportunity for an expansion of their dealer network.
- Endemic ins and outs
Wherever your furniture dealers are located, they keep a watch on the indigenous market pulse. Local buying patterns, tastes, and preferences are at their fingertips. Though it doesn’t mean that you should not study a particular market before entering it, having a dealer base that’s spread across various regions keeps you acquainted with the market dynamics.
Secondly, furniture dealers that operate in a particular market and region do have personal relations with many buyers that comprise project developers, hoteliers, corporate houses, architects, interior designers, and homeowners. These are all vital characters in your success script. As a furniture manufacturer, your top agenda is more sales, and a furniture dealer or a channel partner plays a major role her.
- Cost Savings
How does a dealer network save costs? Well, it does so by eliminating the need of huge investments in setting up retail stores in different areas, cities, and regions. Company-owned retail outlets are an option, but it’s always advisable to establish a dealer network that’s already in the furniture retail business for a long time. I’m sure that the applicators these dealers have can do a good justice to your furniture items such as tables, chairs, desks, desk chairs, recliners, standing desks, and sofas.
How I see it is that as a furniture manufacturer you should invest more in your infrastructure and technologies. Machinery used in making furniture is expensive and does evolve periodically. So, instead of channelising funds only towards ‘company-owned-retail-outlets’, you should rather seek more dealerships. You’ll be glad to know that many furniture dealers have vibrant online sales portals as well. What else do you need?
- Earning Goodwill
This is vital for a new furniture manufacturer as a well-known indigenous furniture dealer cashes on the goodwill earned through years of dedicated service. In my opinion, promotion of a furniture brand can get an energetic boost if a manufacturer joins-hands with someone who’s known to provide excellent services and after-sales support.Well, even reputed furniture manufacturers can stay ahead of competition by appointing famed channel partners. How they wish to market their furniture items through a dealer can always be brainstormed over a discussion, but remember that goodwill is guaranteed through a strong furniture dealership network.
- Better Sales
I have personally seen some furniture manufacturers who excel at dishing out novel and classy furniture. But they have able to get a better grip over the market through their channel partners. And that’s because dealers and channel partners are stalwarts when it comes to sales. Their sales teams meet customers day-in and day-out, and closing a deal is merely a cakewalk for them.
Manufacturers too have sales teams but it’s more feasible for them to focus on selling to dealers rather than end-users. I feel that by following this approach they can solely focus on volumes of production and capacity utilisation. Needless to say, trade partners buy in bulk as compared with individuals.Conclusion
The importance of dealers and channel partners in the furniture industry will continue to remain intact. The industry thrives on a sound dealer network, and as major stakeholders, furniture manufacturers should continue to work through this channel. It’s a win-win proposition.