Where is the furniture industry going?

Home has a long history in China. China is known as the state of etiquette. When guests are patronized, they cannot be too cold and must have a bit of taste and grade. The ancient literati emphasized the four treasures of the study and the Tibetan calligraphy and painting to highlight the personal taste. The modern people mainly focused on the home style and looked at the master's cultivation. Home has always been the face of the Chinese. The furniture market is also a rigid demand market. From the domestic market statistics analysis, China's furniture industry has a market of nearly 100 billion US dollars, and it is developing at a rate of 10% every year. In the past two years, the development of China's real estate market has promoted the prosperity of China's furniture industry. With the further advancement of urbanization, the overall market of China's furniture industry will be further expanded. According to relevant statistics, China's urbanization rate is only 37%, far lower than 65% in developed countries. The State Council also has relevant data indicating that in the next few years, China's urbanization rate will be further enhanced.

The times are constantly changing, but the overall changes in China's furniture industry seem to be slower than the times. When the brand comes, China's furniture industry is still working hard in small workshops. When the Internet comes, China's furniture industry is working hard in the factory. When the urbanization is striding forward, the furniture industry is still Do you want to continue to work hard?

Brands must be strong, state-owned brands must be strong

The furniture industry began to take the brand route from IKEA. The reason for the establishment of IKEA was that IKEA founders found that people need to buy cheap and practical to meet the needs of one-stop shopping, so they created IKEA to meet the demand. After decades of development, IKEA has moved away from the founder's purpose – prices are no longer so cheap. This is mainly due to the branded route of IKEA. Due to the positioning of foreign brands in China, the price of IKEA in China is much higher than that of foreign markets, but IKEA's products and raw materials and processing plants are all from China, which is also due to its branding. The biggest asset that IKEA now has is a brand that has been cultivated for decades. This brand is speculated by those who worship foreigners.

On the contrary, China's furniture brands are awakening later, and only a few companies such as the actual home are currently taking the branding route. The branding route of the home is from TV commercials, and its spokesperson is film star Chen Baoguo. Chen Baoguo’s image on TV is represented by integrity and fortitude, which is in line with the green and simple feeling of the home. However, the branding route of the home is very difficult. The main reason is that its audience has begun to stay away from TV commercials. At the same time, people's tastes are more novel and individual. The image of Chen Baoguo is slowly getting out of people's horizons. How to shape the advantages of domestic brands is a problem that the current furniture industry needs to think about.

The advantage of the domestic furniture industry is that the talents and the market are more localized, and the cost performance is higher than the foreign brands. Moreover, from the perspective of policy, the intention of relevant departments to suppress foreign brands is becoming more and more obvious, and it is also a good news for domestic furniture brands. (For example, the People’s Daily issued a document to discuss Apple’s quality door, Starbucks coffee, etc.).

Embrace the Internet and seek market change

The furniture industry and the Internet, which seem to be two completely different fields, how to organically combine it? B2C or 020 is a problem. Let's first study how Suning, a home appliance industry similar to the furniture industry, does it. Suning fully optimizes its industrial structure, with the same price online and offline. This has led to a phenomenon in which second-tier cities are mainly purchased offline, and first-tier cities are mainly viewed offline. The main reason is that people in first-tier cities have more developed network environments and more stores, which is good for watching than the goods, and then go online to place orders. Online purchases can have points or purchases through price comparison software, saving money. For Suning, this move is not allowed. The main reason is that e-commerce platforms such as Jingdong, Taobao, and Tmall are forced to do so. This is a behavior that has to be done by a strong man. In order to achieve its own sales, Jingdong has a good performance on the IPO, and at the same time, the household appliances account for 20% of their sales, and they can completely open their hands to fight the price war. After Suning’s move, there will be a certain decline in Suning’s overall revenue, and the profit margin and profit margin will all slow down, but growth will still be there. Then, will the story of home appliances be copied to the furniture industry? I think this is a complete meeting! Everyone knows that the furniture industry is a violent industry. Often, the price of a set of furniture is more than ten times the cost price. E-commerce companies will sooner or later get involved. This market. From the perspective of Internet development, Amazon is an American e-commerce giant whose furniture sales account for 10% of its sales. Many domestic e-commerce companies are emulating foreign business opportunities, and this market will be shaken sooner or later. The reason why the current implementation is not based on logistics and branding. The home appliance industry is branded, such as Haier refrigerators, Lenovo computers, and US air conditioners. However, the furniture industry has no brand and only a platform. It is difficult to make a good article on the brand. Once a certain piece of furniture is made into a brand, such as the XX sofa, it can be aligned to the line, and the e-commerce will kill the market. Another reason is the uncertainty of the type of house and the reasons for the logistics. From the current point of view, the type of house in our country is uncertain and there is no standard at all. Everyone has a different understanding of the house, and there are certain considerations for the furniture industry to enter the house. China's logistics is currently a small piece of logistics, large-scale logistics such as furniture is difficult to be delivered to the door by quality and quantity, but also involves installation and maintenance (similar to home appliance logistics), it is difficult to be digested in the e-commerce logistics link. solve. In the short term, the furniture industry is not showing signs of being hit by the Internet, but if you look at it for five years, the furniture industry will definitely be changed by the Internet. At the same time, another way to combine the Internet is to buy a group business. Can furniture really not be bought in groups? The author thinks that group buying in home is easier to produce than buying a group, and it is easier to realize C2B. The main reason is that the furniture industry is not a true mass production model. Mass production does not have much impact on costs. The Internet will eventually change the furniture industry!

Sinking and developing two legs - second-tier cities rely on the platform + platform strategy

In the first-tier cities such as Beishangguang, the rise in housing prices in recent years is obvious to all. In 2008, the average price of house prices in Beijing remained at 25,000 yuan per square meter, but in 2013, house prices soared to 75,000 yuan. Beijing's housing prices are already close to the price level, but there is still no slowing trend. However, from the data point of view, Beijing's home purchase rate is declining, indicating that Beijing's furniture growth is also falling. However, the growth rate of home purchases is in second-tier cities, and many people have begun to flee from the north to the city and to the second-tier cities. The pressure on the furniture industry also comes from first-tier cities, mainly in terms of manpower, rent, promotion costs, and so on. Although the economic level of second-tier cities is not as high as that of first-tier cities, more talents and enterprises are aligning with second-tier cities, and the economy is on the upper rail. At the same time, many local governments have begun to introduce some enterprises and talents to settle in, such as Changzhou, Jiangsu. This has raised the standard of living and brought opportunities to the local real estate market. The domestic furniture industry should lay out second-tier cities earlier and occupy market share in advance. International furniture giants such as IKEA are very conservative in their expansion, and generally do not consider the growth of second-tier cities, which is more conducive to domestic furniture companies to enter. The growth of first-tier cities began to drain, and the spring of second-tier cities began to come. At the same time, the cost of a first-tier city store is sufficient for the development of two second-tier cities.

The platform strategy is an issue that every industry is considering, and Internet companies will be more platform-oriented. For example, where to go is a tourism resource platform, Alibaba e-commerce platform. Traditional platforms such as markets. The platform model of the furniture industry can refer to the early Suning and Gome models. The early Suning and Gome were the sellers of electricity. They bought the goods from the manufacturers and sold them to the customers, earning the difference. The manufacturers' money was settled in cash and there was no retention. However, with the expansion of Suning and Gome, the bargaining power began to rise, and it was possible to bargain with the manufacturers. The previous 1000 yuan of home appliances now I have entered a lot of goods, then I will give 980 yuan. This will increase the profit of Suning and Gome, and Suning Gome will take advantage of this extra profit for promotion, which will further increase sales, so that the next time you purchase goods from the factory, you can enter more goods, and you can purchase large quantities in bulk. Negotiate again. When the size of the purchase is expanded to a certain order of magnitude and becomes an indispensable customer of the manufacturer, it is not necessary to give the manufacturer cash. You can arrear the payment, take this part of the payment to make strategic investment, and repeat the cycle, then the store will grow to such a company. The furniture industry can also be like this, the venue is its own, the brand is its own, and it is managed by itself, and the expenses are shared with the merchants when doing the activities. This is the case under the line, and the same is true on the line. Only when it is platformized can it be a big success!

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