Core tip: Whether it is Shunde furniture or the Chinese furniture industry, a new change is needed to change the current state of weakness. Some industry experts believe that the regulation policy of the property market is not going to happen overnight. The furniture industry not only needs to be mentally prepared for a protracted war, but also needs to find a new way out.
"The industry's major reshuffle has become the most heard topic in the second half of this year." A Jin told the "First Financial Daily" that the market has changed a lot in the past two years. Only companies with strength, selling points, and good marketing models can survive, and companies that cannot keep up with market changes are slowly disappearing.
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Whether it is Shunde furniture or the Chinese furniture industry, a new change is needed to change the current sluggish situation. Some industry experts believe that the regulation policy of the property market is not going to happen overnight. The furniture industry not only needs to be mentally prepared for a protracted war, but also needs to find a new way out.
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A few steps along the national road from Lecong to Longjiang, you can see the advertising signs of several furniture factories. According to locals, furniture companies that can build an advertising sign on the Shunde National Highway have an annual turnover of at least 10 million yuan to have capital to do so. In Shunde, there are a large number of such enterprises, and there are many factories that have existed for more than ten years. Before 2000 , furniture factories built in Shunde basically made money. "At that time, as long as you opened the factory, there was basically nothing wrong." Chen Sheng, a veteran of the furniture industry, said that there was no need to open a store or find a dealer. Cars from all over the country were queued up at the factory door to grab the goods. "At that time, the gross profit can definitely exceed 50% , but now it can't. It can be guaranteed to be 20% ."
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According to reports, the gross profit of board wood furniture is about 20% , and the solid wood is slightly more expensive. The gross profit is about 20% to 30% , and the net profit is generally about 5% . And the profit of doing processing is less, and the gross profit has been capped at 15% .
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The furniture industry will meet the ceiling when it reaches a certain scale. It is understood that many large furniture factories in Shunde area will choose a diversified development model when they reach a certain scale. For example, funds flow into steel, fabric, real estate, credit and other fields, and the furniture industry will account for less and less of the entire company.
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However, relevant persons of the Guangdong Furniture Association said that the per capita consumption of furniture in China is far from the level of developed countries in Europe and the United States, and there is still much room for market development. In the future, the competition in the furniture market will no longer be a competition of pure manufacturing capabilities, but will involve product development, marketing, branding, communication, management and other aspects.
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Furniture industry observer Zhang Yuncheng believes that the industrial chain of the Foshan furniture industry cluster is relatively complete and the distribution efficiency is high. However, the overall level is not strong enough. To fundamentally reverse the decline, we should focus on developing brand strategies and cultivating influential big brands, so as to accelerate the industrial upgrading of the entire region.
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In August this year, Shunde Furniture Association launched Pan-Home Furnishing Alliance, Shunde Furniture Brand Alliance, and Raw and Supplementary Materials Alliance. This move was interpreted by the outside world as a way to enhance the influence of Shunde's furniture brand through high-quality brand groups to gain more market power.
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During the interview, the reporter found that although the general environment is not good, a small number of enterprises in Shunde still maintain a relatively stable development status.
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A top fabric sofa brand in Longjiang has found a new development path through channel innovation. The brand does not open stores or find distributors. It completely passes the channel to the hands of top interior designers, flows products to the market through designer works, and then gives designers a certain business commission. According to the person in charge of the brand, through the preliminary market inspection, they found that in terms of sales of high-end furniture products, the interior designer often has the most say. "For example, when designers design model houses, hotels, villas, and government offices, we put our products into them. The probability of target consumers being impressed is much greater than the chance of successful shopping guide sales." The official revealed. By taking orders from designers, hundreds of millions of dollars in sales can be made in a year. Through designer channels, it can not only ensure stable sales of products, but also enhance the brand's influence.
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In addition, Lecong's furniture marketing manager believes that it is also a good way to share risks through the development of multiple channels. In general, the multi-channel model mainly includes: domestic + foreign, direct-operated stores + distributors, private brand production + OEM, etc. "What we do is mainly the dual channel development model of domestic + foreign." In recent years, the brand has increased its national distribution while also taking into account the development of foreign markets. "We have always stressed the international perspective of product design. March each year, in September, a few days after the show, exhibitors foreigners more than the Chinese people." The brand's sales of about 200 million yuan a year, of which overseas sales The amount accounts for three quarters of total sales. The person in charge of the brand revealed that this year, the Japanese market alone received tens of millions of yuan in orders, and the South Korean and Dubai markets also performed well. In addition, the brand has also begun to adopt a multi-channel development model in the domestic market, "mainly dealers, supplemented by direct stores."
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Zhang Yuncheng believes that although other enterprises focus on the domestic market, the multi-faceted development channels can effectively share risks. After undergoing this round of industry reshuffle, the threshold of the furniture industry will increase and the development will be more standardized. Enterprises with strength and advanced ideas will gain more market opportunities.
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