Since the reform and opening up, especially in the past decade, China furniture industry has developed rapidly and has achieved notable results, becoming one of the largest producers and exporters. How will China furniture industry develop in the future? Here, let us discuss the fifteen main themes of China furniture industry development trend.
First, the era of low profit comes
With the increasingly fierce competition in the market and the constant standardization of the marketing market, the profit-making period of the furniture manufacturing industry has passed, and this has led to an era of meager profits. In the past, net profit was as high as 30% to 40%, or even more. Today’s corporate profits are generally only 15 to 20%, and in some companies, the profit of individual products is only 5% to 10%.
The era of meager profits is like a cold current. It makes enterprises that have poor management and high costs, and only have huge living space under huge profits. They are in danger of being eliminated. They are eliminated in the hunger and cold stress. Currently, the Pearl River Delta, the Yangtze River Delta, and Chengdu Many furniture companies in the three major furniture bases went into a state of dormant shock and even went out of business.
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 companies are more clearly positioned in the market. They either rely on their superior strength to occupy the top spot in the high-end furniture industry or occupy the middle and low-end furniture markets with small profits and quick turnover. In this way, it is easy to give full play to their strengths, concentrate their superiority, attack their opponents, and develop themselves.
2, the professional division of labor is more meticulous, leading the coquettish
Furniture production is developing from large and all-round professionalism. Some produce hotel furniture, some specialize in civilian suites, and some specialize in beds. The division of labor is more clear, making the competition in various fields intensified, and their competition quality, price competition, and service are getting more and more intense.
3, lords separatist, each tyrant
Wherever there is a market, there are battlefields everywhere. Therefore, for every enterprise that wants to occupy territory, it is necessary to defeat the competitors first, and companies everywhere will first desperately save their land and drive away the “offenders.” As a result, all the vassals were formed and the tyrants were formed. During this period, the competition is almost yours, so it will be even more cruel, more intense, more courage and wisdom. The battlefield without smoke is more difficult than the occupation of smoke.
Third, differentiated management is the main premise for the survival and development of the company
Due to the limitations of the science and technology content and investment scale of the furniture industry, the “low threshold” of the industry is caused, and the layman easily becomes a “door-to-door Chinese”. Because of the variety of types and styles of furniture, patent protection is more difficult and it also provides opportunities for imitators. Each year, international exhibitions and domestic exhibitions become the classroom for imitators.
If the new products that the company invests heavily in developing are recognized by the market, they will quickly become industrialized and large-scale production. Good products are often short-lived. In the past, the life cycle of a best-selling product was 2-3 years, but now it has been shortened to less than half a year. The homogeneity of the market has caused many large companies to suffer. Consumers in the tens of thousands of square meters of furniture shopping malls were confused by the same style, same color, same materials and the same price of furniture. The homogenized market is eager to differentiate itself.
Fourth, furniture design will go from product design to corporate design
Furniture as a special commodity that comes into the family and close to life is bound to play a personalized role in the trend of modern life. Personalized shaping and emotional cultivation can not be separated from “design.” All kinds of designers have embarked on the furniture stage, and furniture companies have beckoned to foreign and design professionals. Product design, furniture showroom design, furniture layout design, product image and corporate image design talent will become the 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.
Fifty. Green furniture products will become a necessary condition for qualified furniture
Tomorrow “green furniture” will be your ticket to the market. Chinese furniture companies began to reshuffle the market with high quality and environmental protection as the selling point. Joining wto has accelerated the pace of green development of Chinese furniture, exports cannot bypass green barriers, domestic can’t escape the eyes of environmental protection, and Chinese furniture and foreign furniture giants are facing each other face-to-face. However, the foreign barriers to furniture have been erected.
It is understood that the European and American countries, Australia and Singapore, and other countries, the penetration rate of green furniture nearly 100%, Japan and South Korea also nearly 50%, many domestic “qualified” furniture can not reach the Western “green standards”, can only Lost one after another order. With the improvement of the quality of life, Chinese furniture consumers will use green furniture as a prerequisite for “qualified” furniture.
Six. The consumption cycle of furniture is shortening, and the cultural content of furniture products is increasing.
The development of the furniture market has led to changes in consumer psychology. In the past, our furniture was inherited for several generations. The added value of mahogany furniture indicates the longevity of ancient furniture consumption. Our parents have more or less inherited the furniture of their ancestors. Solid and durable are synonymous with furniture quality.
With the development of the real estate industry and the rapid increase in the quality of modern life, fashion has brought European and American styles to the Chinese market, Europe’s classical, Nordic simplicity, and the variety of solid wood, panels, glass, and metal furniture.
Abundant furniture products have greatly increased the range of consumer choices. Changes in fashion have driven changes in consumers’ mindsets. People have begun to pay attention to the popularity of furniture, the consumption cycle of furniture has been quietly shortened, and the cultural content of furniture has gradually increased. The concept of consumption is quietly changing.
Seven, furniture commercial formats coexist, brand stores dominate
The distribution status of the furniture from the basement and the top floor of the major department stores is a supporting role, and it has been decades since the protagonists entered the furniture industry specialization exhibition. Furniture dealers also experienced a transformation from the dealer to the 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 one after another, setting up a stage for displaying products and brand image. Product promotion has been transformed into brand promotion.
Brand independent stores, brand stores, furniture franchise market leading the trend. Furniture traders are struggling to find the best marketing method. However, various marketing methods have their own characteristics and have their own advantages. Therefore, the business content should be valued. However, from the accumulation of intangible assets and the improvement of management, brand independent stores are the most promising among 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 has been customized from small carpenters to development, and it has been developed to go to the franchise market. This is because the housing units we live in are more standardized and specialized.
In recent years, the rapid changes in furniture products reflect the unity of the after-sales service of furniture. The change in the supply and demand relationship in the furniture market requires companies to rapidly change their service technology. From the perspective of product positioning, furniture generally has four stages of development: popularity, differentiation, customization, and personalization.
In recent years, it has become more and more obvious to cater to consumer entities and rights. Consumers are moving from the background to the front desk. Manufacturers of furniture must move from the passive after-sales service stage to the prenatal design stage that actively attracts consumers, incorporate consumer opinions in product design, customize products for consumers, and personalize products.
There is a prominent trend here: dealers have become service providers, selling products to provide services, and creating higher profits by providing services. This personalized service will be completed through a computer network and a common design that is directly involved by consumers. The service competition in the furniture market has risen from a service awareness to a service technology competition.
Nine, knowledge assets and knowledge management will gradually become the main theme of industry management
Knowledge-centered management gradually penetrates all aspects of the company in the furniture industry. From the brainwashing of corporate leaders to brain-pulling and intelligence acquisition from outside the industry, from knowledge-based corporate training to the gradual deepening of corporate technology management, it shows that knowledge in the furniture industry is transforming into assets. Knowledge management is being integrated into all aspects of business management. Investment in knowledge assets and knowledge management is the wisest investment in furniture companies.
Ten. The role of industry associations will be strengthened year by year
China has become the 143th member of wto. Since then, the Chinese government has to follow the wto rules for companies, market surveillance, and Chinese companies’ business management. The government will reduce direct intervention in the corporate market. Industry associations and chambers of commerce are increasingly playing an irreplaceable role.
The furniture industry is a non-protected industry that faces the challenges of its global counterparts earlier than other industries. The world’s furniture brands are quietly eroding the Chinese market. The brand of Chinese furniture companies is still immature and the ability to withstand foreign competition is still poor. How to properly allocate resources? How to reduce internal friction will be an urgent problem for industry associations.
In foreign trade, industry associations will provide information services for enterprises, establish unified procurement distribution channels, and safeguard the interests of the industry. In-house service industry associations will establish industry norms to prevent the vicious competition of enterprises, establish industry professional advisory committees to improve the enterprise’s decision-making ability and industry competitiveness, and establish industry technical schools to train talents for the industry tomorrow.
Eleventh, history of price warfare, quality warfare, brand warfare
Market development laws often have to go through price warfare, quality warfare, and brand warfare. Price warfare has always been a means to be adopted in the sales of middle and low-end furniture products in the field of furniture marketing. Relying on price wars can effectively defeat the opponents and give opponents a fatal blow, but the price war is a short-sighted behavior that defeats others. At the same time, he also hurt himself. As the saying goes, “Killing the enemy three thousand, and losing eight hundred.”
There are also certain limitations to adopting prices and require certain conditions:
1, large output, high efficiency;
2, advanced equipment, advanced management;
3, procurement costs lower than the opponent;
4, there is a strong bonus to support;
- There are smooth direct sales channels to reduce intermediate links.
However, under the above conditions, opponents can quickly copy in the course of competition. They can also buy advanced equipment, they may go for cheaper materials, they may lower their profit targets and pursue small profits and quick turnover. Therefore, the space for price war is limited, and in the end, they can only make their own products. The quality of his work has become less and less important, his crafts have become more and more impractical, his materials have become worse and he has driven himself into a dead end. The TV cabinet market in Chengdu is a good example. Using a price war is actually a process in which a manufacturer kills each other. This is a vicious competition for self-destruction. Of course, in the early days when the market was imperfect, the Chinese often used this method to win.
Quality warfare is a kind of marketing method that relies on good product quality and good service to occupy the market and win customers. In the process of quality warfare, enterprises will inject more cost, and if this burden is passed on, The customers will inevitably cause psychological conflicts among the guests. This is a fatal injury to quality warfare.
Based on the failure of these two marketing methods, the future will be replaced by a brand battle. The brand battle has the following favorable conditions:
- The brand effect makes customers willing to accept their higher pricing.
- Regarding the market positioning of brand furniture, there is a wider profit margin.
- With the continuous improvement of people’s material living conditions, branded products have a broader market than cheap products.
Therefore, in the future of furniture marketing, price wars and quality warfare will be replaced by brand wars, which is also an inevitable trend in the development of the market.
Twelve, whether or not to transfer, or to the development of mechanization
Due to the impact of anti-dumping on export furniture, many companies have closed down production, and some are barely maintaining. Constrained by many other influences, many Taiwan-funded enterprises in Dongguan moved in early years. Some moved to Jiangsu and Zhejiang, and some migrated to Southeast Asia where the labor force was cheaper and lags behind the people in the show.
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 does not exist. Domestic furniture is also not very good, and foreign sales can also be transferred to foreign countries. Domestic sales companies cannot go abroad to produce. There are also some attempts to shift to some places where local policies are better. For example, some companies in Dongguan Houjie moved to Sanshui, but the situation is not optimistic. A furniture production environment and industrial chain that has been formed for many years is not a turn, it is a move. The system engineering that hampered the whole body. It seems that avoiding is not a solution to the problem. At present, the furniture industry only has an industrial revolution.
XIII. Cooperation between brand building and production and operation
In order to occupy the market more effectively, the existing furniture manufacturing and marketing industry will develop towards two poles:
There are companies that specialize in creating furniture brands. They run furniture brands instead of producing products. They do not have factories.
There are companies that specialize only in production. They do not have to think about the market, they do not have to distribute themselves, and they are completely produced by brand operators.
The division of labor between brand building and production and operation has the following advantages:
- The development of the division of labor in the specialized division of labor will facilitate the enhancement and concentration of industry advantages.
- The separation of production and marketing is conducive to focusing on energy and funds for production and brand building.
3, to make production to order type, batch type development, is conducive to achieve planned production.
The separation of the brand from the production and operation may lead to the emergence of foreign brands and domestic production and marketing.
Fourteen, will continue to have giants to integrate the industry
The shuffling integration of the furniture industry is a process in which the survival of the fittest, survival of the fittest, and discomfort are eliminated. There are always some furniture giants in the food chain of big fish and small fish eating shrimp. They even reached a certain tacit understanding and divided up the market, and they came to a situation where they were three feet apart, or the five tyrants of the Spring and Autumn, and the Warring States.
Now that there are many furniture predators in shape, it seems that the furniture market will stage a wonderful drama.
Fifteen, marketing in the design, production, service fuss
When the original furniture was scarce and there was little choice, it was God who sold the furniture. Now that furniture products are flourishing, whoever buys them buys it, and it becomes God to buy furniture. Only when the buyer becomes God will the seller think about the buyer’s feelings and make a little fuss about the buyer.
1, furniture design will be “comfortable” and “practical” direction;
- Chinese and Western cultures will be more integrated in furniture design;
3, return to the original and abstract design will become bright spots;
- The furniture that users install themselves will be more common, and the small furniture with high utilization rate will become the mainstream;
- New furniture materials will continue to emerge;
6, there are mortgage payment methods and other new shipping methods;
- The Internet will be widely used.
In short, as much as possible to vote for the buyer, and turn around the needs of customers is absolutely wrong.
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