Question 1: How far can e-commerce go?

E-commerce is growing rapidly, but its limitations are becoming more apparent. It’s not a solution for every problem. No single large e-commerce company can completely replace traditional distributors across the country. The furniture industry, which has low market concentration and high growth potential, is moving toward a distributed, multi-center e-commerce model that leverages its unique strengths. While e-commerce poses a challenge to traditional business models, the extent of this threat isn’t as severe as many believe, and the impact won’t happen overnight.

The best way to deal with this challenge is to give equal attention to both traditional and digital methods. This isn't as complicated as people think. E-commerce is just a tool that anyone can use effectively if they understand how to apply it.

Question 2: Where are the main sources of retail profits?

Furniture retail margins are shrinking. So where will the main profit drivers be in 2015?

Three key areas stand out: premium from high-end design, brand value, and service-based profits. High-end designs can command higher prices due to their uniqueness, and customers often don’t question the cost. For example, some one-of-a-kind products on the market tend to sell confidently at premium prices.

Brand value comes from trust and recognition. While few brands in China can command significant premiums, those that resonate with consumers—whether through quality, craftsmanship, or after-sales support—can still capture a loyal customer base. Some brands may not be well-known, but they have built strong reputations through consistent performance and service.

Service-based profit is another important source. Simply selling products offers limited returns, so retailers should explore new revenue streams like premium after-sales services. High-end furniture often requires maintenance, cleaning, and other specialized services. These services not only generate income but also build long-term customer loyalty. Services such as delivery, installation, repair, and replacement of parts are all valuable additions to a retailer's offerings.

Question 3: Will the size of retailers expand or shrink?

Overall, the scale of retailers won’t shrink—it will grow, but the number of physical stores will likely decrease. Online retail will replace some brick-and-mortar shops. Therefore, 2015 remains a tough year for traditional retailers. However, the transformation won’t happen too quickly, and the market will shift gradually and smoothly.

Those who survive will be the ones who combine the strengths of both online and offline channels. A business that can successfully integrate physical and digital advantages will be the true winner in the market.

Question 4: Which brands can survive?

2014 was a difficult year for panel furniture companies, with many struggling or failing. However, some companies that focused on design, production efficiency, and sales effectiveness managed to not only survive but also thrive.

In 2015, solid wood and mahogany furniture brands will face a market shake-up, and consumer preferences for panel furniture will become more rational over time.

Brands that can survive in 2015 will likely have several key traits: a strong focus on design, quality, brand awareness, quick responsiveness to market changes, and a commitment to high-end positioning.

Question 5: How do dealers profit from the Internet?

There are many ways to monetize the internet. The most effective and cost-efficient method is to fully utilize the power of information sharing. Retailers should use online platforms to publish sales content widely. Second, building proper channels and maintaining communication with customers can help attract new clients through referrals. Third, creating independent online platforms allows businesses to showcase their image and build a positive impression among consumers.

Question 6: What are the new characteristics of the new generation of consumer psychology?

According to census data, 227 million young people born between 1986 and 1995 are replacing older consumers at a rate of over 20 million per year. The youth-driven shift in the consumer market is becoming increasingly evident. So what are the main traits of this new generation of buyers?

This group values authenticity, personalization, and experience. They are tech-savvy, socially conscious, and demand transparency. Their purchasing decisions are often influenced by social media, peer reviews, and brand ethics. Understanding these trends is essential for businesses aiming to connect with them effectively.