Three development trends of China's furniture industry

- Feb 02, 2020-

As the global economy recovers and people's living standards continue to improve, more and more people are paying attention to furniture. Throughout the past 10 years, China's furniture industry has experienced a period of rapid development. During this period, the development of the furniture industry was mainly based on volume expansion. A complete industrial system with relatively complete categories and international standards was established initially. Furniture products have met the needs of people's lives and the needs of the international market.

In the next 5 to 10 years, in the context of the international furniture industry transfer, China's furniture industry will enter a second period of rapid development. Modern technological progress promotes the increasingly large-scale production of furniture. The drastic changes in costs and prices will quickly break the original competition pattern. The introduction of automatic production lines will inevitably increase the investment in fixed assets, and will inevitably reduce labor costs and production efficiency. Production becomes possible. In the new stage of industrial development, the competition and upgrading of the furniture industry will become inevitable.

Facing fierce competition, what kind of sustainable development path should Chinese furniture companies take? This is a strategic issue of great concern to our industry. Mr. Huang, the person in charge of Melaleuca Furniture Network, which focuses on furniture online shopping, analyzes that the Chinese furniture industry will definitely experience large-scale and large-scale industrial integration in the next five to ten years. A large number of small and medium-sized enterprises will be eliminated, and a few outstanding companies will rely on brands , Quality, service, scale, etc. stand out in the industry. In the future, the Chinese furniture industry will develop in three directions: refinement, scale and branding.

streamline:

The furniture industry is a traditional manufacturing industry with low technical requirements. So far, folk "carpenters" still play a leading role in furniture manufacturing in economically backward regions. Many furniture companies originated from such workshop-type furniture manufacturing, and then gradually expanded their scale and added machinery and equipment. It is because of this approach that some furniture companies are very extensive in management. Extensive management methods have led to poor pertinence, operability, and poor execution. The organizational structure and functional positioning of enterprises cannot be reasonably clear, there are many levels of management, and management efficiency is very low.

The competition of furniture companies is reflected in the competition of details, and the subtleties show the effort. Details affect quality, details reflect taste, details show differences, and details determine success or failure. The precious value of details lies in creativity and being unique. In modern society, people are pursuing higher and higher, the furniture market pays attention to fine management, details often reflect the professional standards of enterprises, highlight the inherent qualities of enterprises, and improve the quality of enterprise products.

Scale:

Looking at China's furniture industry, we find that regional agglomeration is becoming increasingly apparent. At the same time, we also find that China's furniture industry is still dominated by SMEs. The concentration of the industry is very low. At present, no company has a market share of more than 1%, and large furniture companies are few in the country. This is a double-edged sword. Furniture companies with industry advantages take advantage of this good development opportunity to set sail and move forward. However, small businesses that are poorly managed and weakly competitive will face doom.

In recent years, the construction of some furniture company factories and industrial parks has accelerated. With the advancement of production technology and the introduction of advanced production equipment, large-scale production in the furniture industry has become inevitable. The continuous expansion of the production capacity of furniture companies will inevitably lead to a substantial decline in product prices. With the increase in labor costs and the lack of skilled workers in the furniture industry, the profit margins left by SMEs will be smaller and smaller, and a large number of Gradually fade out of the market.

Branding:

Consumer furniture consumption concept is changing from quantity consumption to quality consumption, and the brand era of furniture consumption is coming. People's requirements for furniture are not simply functional needs, but also the need for beautiful decoration, but also the need to show individuality. With the development of the domestic economy, people's lives have undergone fundamental changes, and people's needs for furniture must also develop in the direction of health, environmental protection and brand.

As consumers deepen their understanding of furniture products, more consumers will establish a brand concept of furniture consumption, pay more attention to the aesthetics and artistry of furniture, and pay more attention to the high quality of furniture consumption and service enjoyment. With the intensification of competition, many companies pay more and more attention to packaging. From product competition to brand competition, more and more companies are playing billboards through public media. Companies with a poor brand image and limited technical and financial strength will increasingly be at a disadvantage in the competition.