The Survival Rule of the Domestic Furniture Industry in the Era of Meager Profit
2024-10-28 10:00:33
With the changes in the entire economic environment, the furniture industry has also experienced difficulties in recent years, the rise in micro-costs, and the control of the country’s macroeconomic policies. These have had an unavoidable impact on the furniture industry, and the furniture industry has gradually entered a “micro-profitâ€. era.
Recognizing the situation from the international point of view, the impact of the United States continued anti-dumping policy on Chinese wooden furniture, (tax rate is 43.23% to 216.01%, the implementation of the tax deferment is still five years) the furniture export outlook index is all the way down. In the domestic market, the economic downturn coupled with the impact of real estate regulation, the furniture consumer market is relatively sluggish. At the same time, it is affected by inflation, prices have risen in an all-round way, furniture production costs have risen unavoidably, and manpower and material resources are under greater pressure. This is undoubtedly worse.
Exports have been blocked for several consecutive years, and more furniture brands have turned their attention to the domestic market. When it was not in time, it happened to meet eight countries. Consumption in first-tier big cities was obviously suppressed, so furniture companies had to shift their targets to domestic Second and third tier cities. Many companies are rushing to the beach and the consumption tension of second and third tier cities is also insufficient. This “Great Leap Forward†type development has obviously exacerbated the degree of competition in second and third tier cities, but this trend has become irreversible. Industry insiders expect furniture retailing. Expansion will continue to be the long-term face of the entire furniture industry. However, this cannot be said to be a bad thing. This process of survival of the fittest will be beneficial to the furniture industry in the long run, and it can be a long-term driving force for industry growth. .
Clearly positioned in the fierce market competition and product homogeneity, furniture companies must be clear about their positioning and make a unique product and brand culture in order to stand out for the market for a long time and give themselves a clear understanding. The position of the company is to define whether it is to take the high-end, middle-end, low-end routes and have the direction to go right in this direction. Otherwise, the position of unorthodox positioning in the market will be very embarrassing.
As the saying goes, “The water flows down and the people go to high places.†Nowadays, many furniture companies are just around the corner and they are starting to take the high-end banner to take the high-end route and hope to occupy their own place in the high-end market. There are successes and failures in this. At present, there are not many successes. Many companies have lost their wives and have broken soldiers. When they just learned to walk, they would naturally fall unscathed. The quality of their products is always good for their eyes. Essentials.
In addition, some companies have been seeking to enter the high-end stores to enhance their own value, but this is not necessarily the best way to survive in the micro-profit era. According to statistics, Red Star Meikailong has opened more than 40 stores in 2010 each year. The number of new stores opened in a year is the total number of previous historical periods. With such a rapid expansion, you must assume that the furniture industry is flourishing and prosperous. In fact, the expansion of store sales has pushed up vacancy rates, and channel hegemony has also prompted store rentals to “take off.†"The previous monthly rent of 200 square meters was 20,000, and the profit was 500,000. Now, the monthly rent for every 300 square feet has risen to 40,000, and the profit is still only 50,000. Sometimes it is even less." Therefore, the common phenomenon is that dealers sigh. One year is busy and the heads are busy and the profits do not increase.
The term "expanding" in the direction of firmness has seen a high frequency in the furniture industry in recent years. From the expansion of the store to the promotion of the market, it is related to expansion. With the further advancement of the New Deal in the property market, the market of first-tier cities such as Beijing, Shanghai and Guangzhou has shrunk sharply. This has forced some of the furniture companies to open up new trails and open up new markets. Thus, the second and third tier cities have become their primary hunting grounds. This also to a certain extent forced the "Great Leap Forward" of the store.
Along the line, more and more well-known brands have entered the second and third tier markets. For SMEs, the pain of the market squeeze is far less than the mental torture. If you want to enter the second and third tier cities, you can't compare the brands of other people, even the original occupies. The market share of the third- and fourth-tier cities has also become precarious, for fear that people will be robbed of their jobs on any given day. Because under this situation, no one can guarantee that the expansionary force will not sink further into the third and fourth tier cities. How can it be better to keep the construction site?
Under this situation, whether it is a small or medium-sized enterprise or a large company, the market will always be strong and weak, and if you want to keep your own territory, you must make continuous progress and enrich yourself. For enterprises with insufficient strength for the time being, they should not be overly frightened or blindly move toward higher and larger markets. Instead of taking such a risk-taking panic, it is better to calm down and recognize themselves: What role do I play in the market? Where is the future? What is the direction? Where is my cake? The more critical it is, the more important it is to look for your own direction and to continue unswervingly.
The brand Wangdao has gradually increased its products and the market has become increasingly fierce. What consumers are most looking forward to is the high quality and low price of their products, and their price/performance ratio is their focus. In this era of eyeball economy, the first thing that must win the favor of consumers is the popularity of the product. The popularity is no doubt closely tied to the brand of the product. With reputation, it is equivalent to having a brand influence, no brand influence, and no possibility. Become a well-known product.
In recent years, the brand voice of the furniture industry has become more and more high, and brand awareness has gradually awakened. Therefore, many companies have begun to explore the brand road. After the market continues to be baptized, more and more companies are aware of the value of the brand. They have begun to work hard on the selection of raw materials, product quality, style and craftsmanship, and are well-positioned for the brand's road. Some companies also advertise advertising at all costs, and celebrity endorsements. All these efforts have stated the consciousness and determination of the famous furniture company branding.
The ultimate goal of brand building is to run away with profits. Everyone knows that raw materials, rents, and labor costs have risen in an all-round way. The profit space bureau of products has shrunk. If it does not rely on brands to increase the added value of products, the profit margin of the furniture industry will be very difficult. Guaranteed. Now that the furniture industry is not the huge profits in the people's impression, the competition has reached a level of enthusiasm. If you do not rely on brand influence, it will be very difficult for a furniture company to survive in today's market environment. At this stage, whoever has the courage to nurture a small amount of profits into the brand building, when the added value of the brand plays a role in the market, it is time for the brand investment to return, but to do this requires the company to have " "Learning small profits and seeking the overall situation" vision.
In fact, the development of the furniture industry into the era of meager profits, there is no need to panic, just do what you want to do now will be able to stand firm. Because any industry develops to a mature stage, it will enter the era of meager profits. The era of violence in the furniture industry is over. Enterprises need to make appropriate responses and flexibility.
Recognizing the situation from the international point of view, the impact of the United States continued anti-dumping policy on Chinese wooden furniture, (tax rate is 43.23% to 216.01%, the implementation of the tax deferment is still five years) the furniture export outlook index is all the way down. In the domestic market, the economic downturn coupled with the impact of real estate regulation, the furniture consumer market is relatively sluggish. At the same time, it is affected by inflation, prices have risen in an all-round way, furniture production costs have risen unavoidably, and manpower and material resources are under greater pressure. This is undoubtedly worse.
Exports have been blocked for several consecutive years, and more furniture brands have turned their attention to the domestic market. When it was not in time, it happened to meet eight countries. Consumption in first-tier big cities was obviously suppressed, so furniture companies had to shift their targets to domestic Second and third tier cities. Many companies are rushing to the beach and the consumption tension of second and third tier cities is also insufficient. This “Great Leap Forward†type development has obviously exacerbated the degree of competition in second and third tier cities, but this trend has become irreversible. Industry insiders expect furniture retailing. Expansion will continue to be the long-term face of the entire furniture industry. However, this cannot be said to be a bad thing. This process of survival of the fittest will be beneficial to the furniture industry in the long run, and it can be a long-term driving force for industry growth. .
Clearly positioned in the fierce market competition and product homogeneity, furniture companies must be clear about their positioning and make a unique product and brand culture in order to stand out for the market for a long time and give themselves a clear understanding. The position of the company is to define whether it is to take the high-end, middle-end, low-end routes and have the direction to go right in this direction. Otherwise, the position of unorthodox positioning in the market will be very embarrassing.
As the saying goes, “The water flows down and the people go to high places.†Nowadays, many furniture companies are just around the corner and they are starting to take the high-end banner to take the high-end route and hope to occupy their own place in the high-end market. There are successes and failures in this. At present, there are not many successes. Many companies have lost their wives and have broken soldiers. When they just learned to walk, they would naturally fall unscathed. The quality of their products is always good for their eyes. Essentials.
In addition, some companies have been seeking to enter the high-end stores to enhance their own value, but this is not necessarily the best way to survive in the micro-profit era. According to statistics, Red Star Meikailong has opened more than 40 stores in 2010 each year. The number of new stores opened in a year is the total number of previous historical periods. With such a rapid expansion, you must assume that the furniture industry is flourishing and prosperous. In fact, the expansion of store sales has pushed up vacancy rates, and channel hegemony has also prompted store rentals to “take off.†"The previous monthly rent of 200 square meters was 20,000, and the profit was 500,000. Now, the monthly rent for every 300 square feet has risen to 40,000, and the profit is still only 50,000. Sometimes it is even less." Therefore, the common phenomenon is that dealers sigh. One year is busy and the heads are busy and the profits do not increase.
The term "expanding" in the direction of firmness has seen a high frequency in the furniture industry in recent years. From the expansion of the store to the promotion of the market, it is related to expansion. With the further advancement of the New Deal in the property market, the market of first-tier cities such as Beijing, Shanghai and Guangzhou has shrunk sharply. This has forced some of the furniture companies to open up new trails and open up new markets. Thus, the second and third tier cities have become their primary hunting grounds. This also to a certain extent forced the "Great Leap Forward" of the store.
Along the line, more and more well-known brands have entered the second and third tier markets. For SMEs, the pain of the market squeeze is far less than the mental torture. If you want to enter the second and third tier cities, you can't compare the brands of other people, even the original occupies. The market share of the third- and fourth-tier cities has also become precarious, for fear that people will be robbed of their jobs on any given day. Because under this situation, no one can guarantee that the expansionary force will not sink further into the third and fourth tier cities. How can it be better to keep the construction site?
Under this situation, whether it is a small or medium-sized enterprise or a large company, the market will always be strong and weak, and if you want to keep your own territory, you must make continuous progress and enrich yourself. For enterprises with insufficient strength for the time being, they should not be overly frightened or blindly move toward higher and larger markets. Instead of taking such a risk-taking panic, it is better to calm down and recognize themselves: What role do I play in the market? Where is the future? What is the direction? Where is my cake? The more critical it is, the more important it is to look for your own direction and to continue unswervingly.
The brand Wangdao has gradually increased its products and the market has become increasingly fierce. What consumers are most looking forward to is the high quality and low price of their products, and their price/performance ratio is their focus. In this era of eyeball economy, the first thing that must win the favor of consumers is the popularity of the product. The popularity is no doubt closely tied to the brand of the product. With reputation, it is equivalent to having a brand influence, no brand influence, and no possibility. Become a well-known product.
In recent years, the brand voice of the furniture industry has become more and more high, and brand awareness has gradually awakened. Therefore, many companies have begun to explore the brand road. After the market continues to be baptized, more and more companies are aware of the value of the brand. They have begun to work hard on the selection of raw materials, product quality, style and craftsmanship, and are well-positioned for the brand's road. Some companies also advertise advertising at all costs, and celebrity endorsements. All these efforts have stated the consciousness and determination of the famous furniture company branding.
The ultimate goal of brand building is to run away with profits. Everyone knows that raw materials, rents, and labor costs have risen in an all-round way. The profit space bureau of products has shrunk. If it does not rely on brands to increase the added value of products, the profit margin of the furniture industry will be very difficult. Guaranteed. Now that the furniture industry is not the huge profits in the people's impression, the competition has reached a level of enthusiasm. If you do not rely on brand influence, it will be very difficult for a furniture company to survive in today's market environment. At this stage, whoever has the courage to nurture a small amount of profits into the brand building, when the added value of the brand plays a role in the market, it is time for the brand investment to return, but to do this requires the company to have " "Learning small profits and seeking the overall situation" vision.
In fact, the development of the furniture industry into the era of meager profits, there is no need to panic, just do what you want to do now will be able to stand firm. Because any industry develops to a mature stage, it will enter the era of meager profits. The era of violence in the furniture industry is over. Enterprises need to make appropriate responses and flexibility.
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