As China's solid wood furniture industry base recognized by China Light Industry Federation and China Furniture Association, our city has always occupied its own place in the furniture industry at home and abroad. However, in recent years, especially since this year, the domestic and foreign markets have been affected by the recession and the sharp rise in the cost of labor and raw materials. Imperative.
"Small profits but quick turnover" is no longer feasible
The rapid development period of Dalian furniture industry appeared in the late 1990s. Since then, the output value of the entire industry has increased at a rapid rate of about 17% per year. By 2008, the output value reached about 12 billion yuan. However, with the outbreak of the international financial crisis, the growth momentum has been contained, and the output value is still hovering around 12 billion yuan.
On the one hand, the scale of the industry has not been further expanded. On the other hand, the cost of labor and raw materials has risen sharply, and the profits of enterprises have been continuously diluted. In this case, the furniture production enterprises in our city reduced the scale of production and reduced the output moderately. According to industry insiders, because of the support of orders, Dalian's furniture industry has followed a development path of "small profits but quick sales". However, with the decline in orders in the past two years, many companies have experienced overcapacity problems. Companies can only shrink the front and cut off some of the excess capacity.
European debt crisis real estate regulation furniture industry "snow" adds "frost"
Over the years, Dalian's furniture industry has been dominated by foreign trade exports. There are thousands of large and small furniture manufacturing enterprises in the city, including more than 200 large-scale enterprises, and almost all of them have foreign trade export business. However, with the outbreak of the European sovereign debt crisis and the sluggish recovery of the US economy, the demand in foreign markets has declined significantly. The Secretary-General of the City Furniture Association said that the service life of foreign furniture is relatively short, and many families will replace new furniture in about three years. However, as the economy deteriorates, they bid farewell to this consumption model and the frequency of furniture replacement is greatly reduced. It also has a significant impact on the city's furniture exports.
The domestic market has also declined rapidly in the past year or two. In order to curb the excessively rapid rise in housing prices, the state has increased its control over the real estate market, and various purchase restrictions have been introduced. The furniture industry can be said to be one of the industries with the highest correlation with the real estate industry. In China, furniture is generally purchased only when new houses are renovated. The entire domestic furniture demand market declines synchronously with the decline of the real estate market.
Pay attention to brand building and change profit model
Regarding how to deal with the cold winter of the industry and spend the "shuffle period", relevant experts said that enterprises must focus on brand building while further reducing various costs and expenses.
Looking at the production and processing of export orders in the past, companies do not need to consider brand promotion and product sales. But now a large number of processing enterprises are facing transformation and must face the market in person. In this process, the establishment of the brand is the primary issue. The Secretary-General of the Municipal Furniture Association believes that the furniture industry has entered the stage of brand consumption. This is not to say that consumers are blindly pursuing brands, but what lies behind the brand is quality, service and other aspects. Therefore, building up your own brand is essential to gain consumer recognition. Brands will become an important weight for companies in this round of industry reshuffle.
In addition, marketing costs can be further reduced through e-commerce and other models, which will also have an important impact on the future development of the enterprise. Now, the popularity of online consumption in various fields is getting higher and higher, especially by the 20-45-year-old furniture product major consumer group. Therefore, furniture companies must quickly adapt to this emerging business model of online shopping. Marketing channels will further reduce costs such as store rents and occupy a broader market.
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