Lihao Sofa, known as the " Leather Sofa Leader", is nervous in Beijing's "war" and closed a third of its stores in just two months. When entering the capital in 2008, Lihao Sofa, which claimed to dominate the Beijing market, had 18 stores in Beijing a year ago, and there are 7 existing stores. 60% of the stores withdrew from the mainstream stores and began to flee in Beijing.
Lihao closes shop in Beijing
Lihao Furniture closed three stores in two months, which sounds incredible.
On August 13th, a reporter from the Beijing Commercial Daily found at the Lanjing Lijia Dazhongsi store that the original location of the Lihao sofa store could no longer be found, and it became Gujia Home Furnishing Lazy Boy. Reliable sources said that the Lihao sofa store in Lufthansa Outlet C seating and home will also close the store on the agenda, and will be withdrawn at the end of August.
Lihao official website shows that there are currently 10 Lihao sofa stores in Beijing, including these 3 stores that have recently or will be closed. In fact, Lihao had as many as 18 specialty stores in Beijing a year ago, but now it has closed 60%, leaving only 7 stores.
Magnificent strategic plan fell through
Lihao Sofa is now closing its shop in Beijing, making its grand plan to enter Beijing completely defeated.
In 2008, Lihao, a well-known furniture brand that had galloped in Zhejiang for 15 years, officially entered the Beijing market where brands are gathered. In order to start the first shot, Lihao brought two classic series of new classic tasteism and new fashion pragmatism.
In the same year, Lihao invested heavily in the popular movie star Chen Daoming as its image spokesperson to expand across the capital, claiming to occupy half of the Beijing market. But after only five years, Lihao encountered Waterloo on the road to expansion in Beijing.
When Lihao entered Beijing, it adopted the mode of cooperation between headquarters and agents, that is, when the store was opened, the headquarters and agents jointly funded, shared risks, and shared benefits. However, most of Lihao's stores in the Beijing market continue to lose money, and agents have withdrawn. On August 13th, Chen Xianze, the sales director of Lihao Furniture Beijing, admitted to the reporter of Beijing Commercial Daily: "There is no more market, and of course we have to close the store."
Lack of advantages and failure to go to Beijing
It has a long-standing reputation in Zhejiang, why is it not good to sell in Beijing? According to industry analysts, although Lihao is a "Zhejiang Famous Brand Sofa ", it does not show any advantages in Beijing, where brands are gathered. In terms of brand awareness, it is not as good as the left and right sofas in Guangdong and the Gujia sofa in East China, nor is it comparable to Beijing-based local brands such as iResearch;
In the operation team, the right and wrong are represented by the powerful Kras, the Gu family is directly controlled by the headquarters, and Chen Xianze, who is responsible for sales in the Beijing area of ​​Lihao, comes from an agency company, and the independent operation ability is slightly insufficient;
In terms of management mode, although the headquarters and the agents jointly fund, the headquarters' support is limited. Once the dealers can no longer support, the headquarters is reluctant to take the order alone and can only close the store.
According to industry sources, the closure of the Lihao sofa in Beijing is not over, and it is likely that it will eventually be unable to make up for the loss and have to withdraw from the large furniture market in Beijing. (Jiancheng editor simplified)
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