In 2012, the national pan-home industry was hit by different degrees. As a high-end luxury goods, mahogany furniture, although it has investment value, but still can not get rid of the influence of the property market, the market is bleak. In Beijing, many mahogany stores have seen the withdrawal of manufacturers, or the transformation of the entire store. In the face of a bleak market, rising production costs and high store rents, how should companies adjust their strategies between dealers and stores to protect their own interests and benefit each other? The cost of the enterprise rises, how to break through In recent years, the price of raw materials for rosewood has increased year by year. Although there has been a slight decline at the end of 2011, it is still at a high level. This will undoubtedly increase the cost pressure on enterprises for small and medium-sized enterprises that are short of funds. On the other hand, the shortage of excellent technicians and the general increase in wages of workers have become a problem of rising production costs that enterprises cannot avoid. For a large number of mahogany companies in Beijing, due to the direct use of direct sales, store rents have become a big problem. With the popularity of the property market in the past two years, store rents have generally increased. Although the current property market has experienced price declines due to policy regulation, in the commercial leasing market, prices have not risen. A store manager of the Gushengfa Redwood Store told the author that the rent last year was more than 3 yuan per square meter. Now it has risen to more than 4 yuan, and now the monthly sales are not enough. While facing the pressure of rising raw materials, wages and rents, SMEs will also face difficulties – financing difficulties. The shortage of funds for SMEs will be concentrated in the next year. To solve these problems, only the sales volume will be increased and the funds will be withdrawn. But when all kinds of costs are rising, the only thing companies can do is to work on the channel. The market is sluggish, dealers want to exit More than half of 2012, for the redwood dealers, the situation will be even more severe in the second half of the year. The author found in many redwood stores in Beijing that many dealers have been unable to hold back and have been dismantled. For the dealers who persisted, it is still unknown whether the market will improve in the future. Ms. Zhang, a redwood dealer outside the city, said that she can only insist on two or three months at most, and the market downturn has already stretched her. High store rents, staff expenses, and manufacturers’ stamping notices have made her store unsustainable. In the circulation link, dealers are basically vulnerable groups. They are unable to bargain with the store, and it is difficult to get more support from the company. But they are an important part of corporate development and market prosperity. When the market is sluggish, dealers want to make money, and they must do a good job between the company and the store. Producer channel associates may appear In view of the current market downturn, some stores in Beijing give manufacturers a certain discount on rent. Rain???? The Redwood branch always told the author that the sellers currently give them a discount of about 20% on the rent; but he is worried that once the market improves slightly, the discount on the store will be cancelled. The author also believes that this preferential policy is not sustainable. Because of the large environment, the operating costs of enterprises and distributors have not been alleviated, and the price of products cannot be lowered. Consumers will not benefit any more, and the sales volume of manufacturers will not be effectively improved. Both the direct operation and the franchise mode have their own shortcomings, and they will inevitably encounter many thorny problems in the operation of the regional market. The direct mode is relatively risky for manufacturers, and it is more complicated to manage branches, offices, and direct stores in different places. The franchise model is affected by the strength of the franchisees, brand awareness and other factors, which is likely to cause a weak development of the regional market. At the 9th China (Zhongshan) Redwood Classical Furniture Exhibition, we were at the "ASEAN Redwood City" booth and seemed to see a new channel model - the Redwood Joint Venture is about to appear. Joint venture can achieve a win-win situation The so-called joint venture, that is, the production enterprise and the channel dealer (distributor or store) combine the respective advantageous resources of the two parties to form a community of interests and operate the regional market together. This can be a regional alliance between the company and the distributor, or it can be a cooperation between the manufacturer and the store, or a joint investment by the three parties. Taking the joint sales of producers and professional stores as an example, the manufacturer is responsible for supplying the products, and the store sets up a sales area, which is jointly sold by the store salesperson and the supplier salesperson, and agrees on the rights distribution, the responsibilities and obligations of the respective parties, and the two parties. Profit settlement according to the agreed proportion. The ultimate goal of the joint venture is to reduce operating costs, expand market share, obtain return on investment from dealers, share profit sharing in stores, and buy affordable products from consumers, ultimately achieving win-win results. We know that many large-scale clothing companies and stores currently use the joint venture model. Whether this model can be successfully copied to the mahogany furniture industry, we will wait and see. Product categories of Daypack Backpack, we are professional China manufacturer of all kinds of Bags, Polyester Daypack Backpack, Fashion Daypack Backpack for young people. It is a great daypack backpack for school, dating, shopping and traveling in daily life. Adjustable shoulder straps of dayback backpack for extra comfort, it is casual enough to wear for everyday use. It is a general daypack backpack. We have cooperated with many famous brands all over the world. We can do OEM or ODM for our customers. 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