Q: How does the new normal furniture company develop?

answer:

In 2016, the furniture market continued to be deeply adjusted, with oversupply and fierce competition.

According to the data from the China Furniture Association, the unbalanced development of the industry has become a prominent feature. Large and medium-sized furniture companies have a better development trend. Most small and medium-sized enterprises lack core technologies, do not have brand management, and have poor anti-risk capability and weak profitability. Some SMEs have not met the environmental protection standards, counterfeit plagiarism and other issues. They have faced difficulties in both domestic and foreign markets, and some SMEs and small and micro enterprises have been forced to close down.

Under the new normal, the transformation and upgrading of enterprises is the only way. What is the key to the transformation and upgrading? In the face of more stringent environmental constraints, many small and micro enterprises can continue to survive? How to survive? Before the arrival of New Year's Day in 2017, the Hebei Provincial Furniture Association invited a number of experts and scholars, and industry insiders to put forward the perspective of the pulse furniture industry and put forward viewpoints on the path of industrial transformation. “Internet Plus,” green development, and smart manufacturing have become the consensus of everyone.

The "big but not strong" situation needs to be changed

Zhu Changling, chairman of the China Furniture Association, said that 2016 was a time when the contradictions in the furniture industry were concentrated and the entire industry experienced major tests - the decline in exports, slow growth in domestic sales, accelerated adjustment of industrial structure, continuous improvement in environmental protection requirements, continued tax reform, and economic downturn. Increased pressure, changes in market demand and so on. The industry changed from high-speed development to high-speed development, and industrial restructuring continued.

“The fierce competition, overcapacity, serious homogeneity, and lack of innovation are the real problems faced by the furniture industry. Significant changes in consumers’ lifestyles and consumption patterns have also brought new demands to the industry.” Professor Liu Xiaohong of the Shunde Vocational and Technical College said. “At present, especially for finished furniture companies, the cost remains high, and productivity pressures, inventory pressures, and investment returns have fallen into difficult development problems. Some companies are still waiting to be treated because they are away from customers, and the production system is difficult to handle the market for many varieties and small batches. Demand and other issues have become prominent, leading many companies to face the problem of a shrinking market."

Li Fengyi, chairman of the Hebei Provincial Furniture Association, said: “This year, the growth rate of furniture production and sales in Hebei Province continues to slow down, and exports have increased slightly.” The Hebei furniture industry is still in a bottleneck period of development, lack of design innovation, serious product homogeneity, and marketing promotions. There are large areas of problems such as similarities, declining sales per unit area, and increased vacancy rates; the government’s unprecedented environmental protection, rising labor costs, and greater pressure on companies. However, some companies such as Bluebird and Huari continue to maintain a good momentum through technological transformation and the implementation of the “Internet+” strategy. Dongming, the House of Actual, the Red Star Meikailong and other major chain stores frequently open new stores, relying on their brand advantages to continue to expand. Under the condition that the development space is squeezed, many companies have launched marketable products with enhanced R&D and innovative design to show their talents in the market, such as Pearl and Huangbang.

Li Fengxi said that despite the current increase in the profitability of China's furniture companies, the added value of products has further increased. However, the furniture industry has already bid farewell to the high-speed development stage and entered a new transition period. In the past, the rough development model could no longer adapt to the current industry development situation, and the industry was under great pressure. The situation of “big but not strong” needs to be changed.

Make good use of "Internet +" online sales will be the main battlefield

In the two and a half years since its establishment in June 2014, it has opened 500 stores in succession and will open 300 stores in 2017. The goal is to open 1,500 stores. The rapid development of the company's cabinets has attracted industry attention.

"One of the reasons we were able to expand quickly was the realization of digitalization." Yu Xiaomin, chief operating officer of Smy Cabinets Co., Ltd., said, "After 90, we have become our main customers. People below the age of 35 have purchased 55% of our products. The characteristics of mobile phones, networks, social media, we dare not digitize it? We must be able to attract consumers digitally from the beginning.”

As for the importance of "Internet Plus," Zhou Xuen, chairman of Langfang Huari Furniture Co., Ltd., has a profound experience. “There is no way for China’s current orders to become full.” Zhou Xuen said: “For the moment and in the future, online is the biggest exposure and marketing position, and we must make good use of 'Internet+'.”

Xu Wei, director of the first research department of the Macroeconomic Research Department of the Development Research Center of the State Council, believes that the Internet has made positive progress in smart manufacturing, greenization, personalization, and differentiation, and we have seen the hope of this industry transformation. In the industrial Internet, our current production terminals have accumulated a large amount of data. This kind of data is an asset called a data asset. If we add industrial interconnection and use the Internet and the Internet of Things to link people together, there is a lot of room for future development.

The furniture business is getting harder and harder. Losses, bankruptcies, and turnovers are common occurrences. In particular, small and medium-sized enterprises, as large companies and large brand channels gradually sink, the impact has been significantly increased. Full competition will inevitably lead to an increase in brand concentration, and some companies will be eliminated or become a reality.

"Face and actively respond to market reshuffling." Li Fengxi said that no matter how harsh it is, we must face it calmly. At the same time, we must maintain full confidence in the market. The huge consumer market of over a billion people and the far-not-stop pace of urbanization guarantee the bright prospects of our industry. As long as we identify market demand, improve design and innovation capabilities, and strictly control costs, Many companies will become “evergreen companies” in our “evergreen industry” and will continue to prosper.

The transformation and upgrading of environmental protection in the furniture industry has been launched in an all-round way. Only early planning and real investment are really the only way to lay out enterprises in accordance with the national ecological civilization construction strategy.