The "15 main melody" of the development trend of the furniture industry

First, the era of meager profit is coming

With the increasingly fierce market competition and the constant regulation of the marketing market, the period of profiteering in the furniture manufacturing industry has passed, and it has entered a meager profit era. In the past, pure profits were as high as 30% to 40%, and even more. Today's enterprises generally only have 15 to 20% of profits, while in some companies, profits are only 5% to 10%.

The meager profit era is like a cold current. It makes those enterprises that are poorly managed and costly, and only has a living space under huge profits, facing the danger of being eliminated. They are eliminated in the hunger and cold, and now, the Pearl River Delta, the Yangtze River Delta, and Chengdu Many furniture companies in the three major furniture bases have entered the state of dormant shock and even went out.

The supported enterprises must rely on improving internal management, improving quality and reducing costs to regain development opportunities; they must rely on further adjustments in production and marketing to inject new impetus.

Second, the market competition is more intense

The intensification of market competition is mainly manifested in three aspects:

1. The production and marketing of various grades of furniture products have appeared “giant”.

In order to better adapt to the changes in the market, more and more enterprises are more clearly positioned in the market. They rely on their superior strength to take the lead in high-end furniture, or to occupy the middle and low-end furniture market with small profits but quick turnover. In this way, it is easy to develop your own strengths, concentrate your strengths, attack your opponents, and develop yourself.

2, the professional division of labor is more meticulous, leading the way

Furniture production is being developed by large and omni-directional specialization. Some produce hotel furniture, some specialize in civilian suites, and some specialize in beds. The division of labor is more clear, which makes the competition in various fields intensify. Their quality, price, and service are getting more and more heated.

3, the princes are divided, each side

Where there is a market, there is a battlefield. Therefore, for every enterprise to occupy the territory, we must first defeat the competitors, and local enterprises will first desperately save their own territory and drive away the "come offenders." Therefore, the princes were formed, and each side was divided. During this period, the competition is almost alive and dead, so it will be more cruel, more intense, and more courageous and intelligent. The battlefield without smoke is harder to be more exciting than the smoke.

Third, differentiated management is the main premise of the survival and development of enterprises

Due to the limitations of the technology content and investment scale of the furniture industry, the “threshold” of the industry is relatively low, and the layman can easily become the “doorkeeper”. Because of the variety of furniture and styles, patent protection is more difficult, and it also provides opportunities for imitators. Annual international exhibitions and domestic exhibitions have become imitators' classrooms. New products that are heavily invested by enterprises will be quickly industrialized and scaled as long as they are recognized by the market. Good products are often short-lived. In the past, the life cycle of a best-selling product was 2 to 3 years, but now it has been shortened to less than half a year. The homogenization of the market has made many big companies miserable. In the tens of thousands of square meters of furniture stores, consumers are dazzled by the same style, the same color, the same materials and the same price of furniture. The homogenized market is eager for a recipe for differentiation.

Fourth, furniture design will move from product design to corporate design

Furniture, as a special commodity that enters the family and is close to life, must play a personalized role in the modern life trend. Personalized shaping and emotional cultivation are inseparable from “design”. All kinds of designers have stepped onto the furniture stage, and furniture companies have waved to talents from foreign and design colleges. Product design, furniture showroom design, furniture layout design, product image and corporate image design talents will become a shortage of talent in the furniture industry. The furniture industry is slowly moving from designing products and designing stores to a higher level of design life.

5. Green furniture products will become a necessary condition for qualified furniture.

Tomorrow "Green Furniture" will be your entry ticket to the market. Chinese furniture companies have begun to reshuffle the market with high quality and green environmental protection. Joining the WTO has accelerated the pace of green development of Chinese furniture. Exports cannot be separated from green barriers. Domestically, they cannot escape the eyes of environmental protection. Chinese furniture and foreign furniture giants are facing each other face-to-face. However, the green barriers of foreign furniture have been built up. It is understood that the penetration rate of green furniture in Europe and the United States, Australia and Singapore is nearly 100%, and Japan and South Korea are also nearly 50%. Many domestic “qualified” furniture can only reach the “green standard” of the West. I lost one order after another. With the improvement of the quality of life, Chinese furniture consumers will regard green furniture as a prerequisite for “qualified” furniture.

6. The consumption cycle of furniture is shortening, and the cultural content of furniture products is increasing.

The development of the furniture market has driven changes in consumer psychology. In the past, our furniture was able to be passed down for generations. The added value of mahogany furniture indicates the long-term consumption of ancient furniture. Our fathers have inherited the furniture of their ancestors more or less. Solid and durable is synonymous with the quality of furniture. With the development of the real estate industry and the rapid improvement of the quality of modern life, fashion has brought European and American styles into the Chinese market, European classical, Nordic simplicity, solid wood, panel and glass, metal furniture. Rich furniture products have greatly increased the range of consumers' choices. The change of fashion has driven the changes of consumers' mindset. People began to pay attention to the popularity of furniture. The consumption cycle of furniture is quietly shortening, and the cultural content of furniture is gradually increasing. The consumption concept is changing quietly.

Seven, the furniture business format is multi-existent, the brand store is the leader

The circulation status of furniture has played a supporting role from the basement and top floor of the department store, and it has been going on for decades to enter the professional corner of the furniture city. Furniture merchants have also experienced a shift from a vendor to a brand promoter. The rapid development of the furniture franchise market has created a famous brand in the Chinese furniture industry. Furniture manufacturers have carried out image management, creating a stage for displaying products and brand image, and product promotion has been transformed into brand promotion. Brand independent stores, brand stores, and furniture franchise markets are leading the way. Furniture traders are struggling to find the best marketing method. However, all kinds of marketing methods have their own characteristics and have their own advantages. Therefore, we should value the business content. However, from the perspective of the accumulation of intangible assets and the improvement of management, the brand independent stores are the most optimistic in the industry.

Eight, furniture customization and personalized service will be more popular

The development of furniture products is a process of customization to industrialization. Its development experience is from the customization of small carpenters to the franchise market, because the housing units we live in are more standardized and specialized. In recent years, the rapid changes in furniture products have contrasted the singularity of furniture after-sales service. The transformation of supply and demand in the furniture market requires enterprises to rapidly change in service technology. From the perspective of product positioning, furniture has roughly four stages of development: mass, differentiation, customization and personalization.

In recent years, the embodiment of catering to consumers' main bodies and rights has become more and more obvious, and consumers have moved from the background to the front. Furniture manufacturers must move from the passive after-sales service stage to the pre-production design stage of actively attracting consumers, integrating consumer opinions into product design, customizing products for consumers, and personalizing products. There is a prominent trend here: dealers become service providers, selling products into service offerings, and creating higher profits by providing services. This personalized service will be done through a computer network and a common design that is directly involved by consumers. Service competition in the furniture market has risen from service awareness to service technology competition.

Nine, knowledge assets and knowledge management will gradually become the main theme of industry management

Knowledge-centered management gradually runs through all aspects of the enterprise in the furniture industry. From the brainwashing of the knowledge of business leaders to the brains and wisdom of buying wisdom from outside the industry; from the knowledge training of all employees to the gradual deepening of enterprise technology management, the knowledge is positively transformed into assets in the furniture industry. The management of knowledge is being incorporated into all aspects of business management. Investment in knowledge assets and knowledge management is the smartest investment for furniture companies.

X. The role of industry associations will be strengthened year by year.

China has become the 143th member of the WTO. Since then, the Chinese government has acted in accordance with WTO rules on enterprises, market surveillance and Chinese companies' operations, and the government will reduce direct intervention in the corporate market. Industry associations and chambers of commerce are playing an increasingly irreplaceable role. The furniture industry is a non-protective industry that faces the challenges of the world's peers earlier than other industries. The world's furniture brands are quietly eroding the Chinese market. China's furniture business brands are still immature, and their ability to withstand foreign competition is still very poor. How to rationally allocate resources? How to reduce internal consumption will be an urgent problem for industry associations. In foreign trade, industry associations will provide information services to enterprises, establish unified distribution channels, and safeguard industry interests. In the internal service industry association will establish industry norms to prevent vicious competition of enterprises, establish professional advisory committees of the industry to improve the decision-making ability and industry competitiveness of enterprises, and establish industry technical schools to train talents for the industry tomorrow.

XI. Historical changes in price wars, quality wars, and brand wars

Market development rules often have to go through price wars, quality wars, and brand wars. The price war has always been a means of selling in the middle and low-end furniture products in the field of furniture marketing. The price war can effectively defeat the opponent and give the opponent a fatal blow, but the price war is a short-sighted behavior that defeats others. At the same time, he also wounded himself, and the so-called "killing the enemy three thousand, self-destruction eight hundred."

There are certain limitations to adopting prices, and they are required to have certain conditions:

1. Large output and high efficiency;

2. Advanced equipment and advanced management;

3. The procurement cost is lower than the opponent;

4, there are strong bonuses to support;

5. There are smooth direct sales channels to reduce intermediate links.

However, under the above conditions, in the process of competition, opponents can quickly copy. They can also buy advanced equipment, may look for cheaper materials, may lower their own profit targets, pursue small profits but quick turnover, therefore, the space for price war is limited, and ultimately, only their own products The quality is getting more and more unrecognized, the process is getting more and more rudimentary, the materials are getting worse and worse, and you are driving yourself into a dead end. The TV cabinet market in Chengdu is a good example. The use of price war is actually a process in which manufacturers kill each other. This is a vicious competition of self-destruction. Of course, in the early days of market imperfections, Chinese people often win in this way.

Quality warfare is a marketing method that relies on good product quality and good service to occupy the market and win customers. In the process of quality war, enterprises will invest more cost, and if this burden is passed on to The customer will inevitably cause psychological conflicts between the guests, which is a fatal injury to the quality war.

Based on the failure of these two marketing methods, the brand war will be replaced in the future. Brand warfare has the following favorable conditions:

The brand effect makes customers willing to accept higher pricing.

As far as the market positioning of brand furniture is concerned, there is a broader profit margin.

With the continuous improvement of people's material living conditions, brand products have a broader market than cheap products.

Therefore, in the future of furniture marketing, price wars and quality wars will be replaced by brand wars, which is also an inevitable trend of market development and improvement.

12. Do you want to transfer or develop to mechanization?

Due to the anti-dumping effect of export furniture, many companies have closed their doors and some are barely maintained. Restricted by other factors, many Taiwan-funded enterprises in Dongguan have been shifting in the early years, some have moved to Jiangsu and Zhejiang, and some have moved to Southeast Asia to be cheaper and more backward than the countries in the exhibition.

With the continuous reduction of land resources, the new labor law was promulgated and implemented in 2008, and the original low labor advantage of the furniture manufacturing industry did not exist. Domestic furniture is also not good, and export can be transferred to foreign countries. Domestic sales companies cannot go abroad to produce. There are also some attempts to transfer to some places where local policies are better. For example, some enterprises in Houjie, Dongguan have moved to Sanshui, but the situation is not optimistic. A furniture production environment and industrial chain formed over the years is not a turn, it is a move. Systematic engineering of the whole body. It seems that escaping is not a solution to the problem. At present, furniture companies only have an industrial revolution.

Thirteen, brand building and production and operation division of labor cooperation

In order to more effectively occupy the market, the existing furniture manufacturing and marketing industry will develop to the two poles:

There are companies that specialize in building furniture brands. They operate furniture brands instead of producing products. They do not have factories.

There are companies that only specialize in production. They don't have to think about the market, they don't have to distribute it themselves, and they are completely produced by the brand operators.

The division of labor between brand building and production management has the following advantages:

1. To develop in the direction of refinement of professional division of labor, to facilitate the enhancement and concentration of industry advantages.

2. Separation of production and marketing is conducive to concentration and capital for production and brand building.

3. The development of production to order type and batch type is conducive to the realization of planned production.

To achieve the separation of brand and production operation, there may be cases of foreign brand building and domestic production and marketing.

Fourteen, there will continue to be giants to integrate the industry

The reshuffle integration of the furniture industry is a process of survival of the fittest, survival of the fittest, and elimination of discomfort. In this food chain of big fish and small fish, small fish eat shrimp, there are always some furniture giants in the air. They even reached a certain tacit understanding, divided the market, and came to a situation of three-legged or the Spring and Autumn Five Commandments and the Seven Kingdoms of the Warring States.

There are already a lot of furniture predators in shape, and it seems that there will be a wonderful drama on the big stage of the furniture market.

Fifteen, marketing on the design, production, service to make a fuss

When the original furniture was scarce and the selectivity was very small, it was God who sold the furniture. Now the furniture products are blooming, whoever buys the one who buys it, and the furniture bought becomes God. Only when the buyer becomes God, the seller will think for the buyer and think for the buyer.

1. Furniture design will develop in the direction of “comfortableness” and “utility”;

2. Chinese and Western cultures will be more integrated in furniture design;

3, return to basics and abstract design will become a bright spot;

4. Furniture installed by users will be more common, and small furniture with high utilization rate will become the mainstream;

5. New furniture materials will continue to emerge;

6, there are mortgage payment methods and other new delivery methods;

7. The Internet will be widely used.

In short, try to invest as much as possible, and it is absolutely not wrong to turn around the needs of customers.

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