On July 3rd, Chengdu International Convention and Exhibition Center, the 14th Chengdu International Industrial Exhibition Center was very crowded. The “2013 China Home Industry Development and Change Summit Forum†held by the International Conference Center, which is a few hundred meters away from the venue, seems to be somewhat “coldâ€. The delegates pointed out in unison that the furniture industry is currently in a dilemma - the Chinese furniture market is shifting from oversupply to oversupply, overcapacity is becoming more and more prominent, and industry "shuffling" is inevitable.
In the era of excess, how does the furniture "Chuanjun" break through?
excess
Manufacturers can cut one-third, and the store is half more
Furniture “Chuanjun†faces an ever-changing domestic and international market.
In China, the recovery of the real estate market in the first half of the year made the furniture industry gradually recover from the “cold winter†of house price regulation. He Yongzhen, manager of Sichuan Qianlong Furniture Region, said that although many consumers are still on the sidelines, sales of the company in the first half of this year are much better than the same period in 2011.
However, the competition in the furniture market is becoming increasingly fierce. Wang Ke, president of the Guangdong Furniture Industry Association, believes that there is no problem in reducing the size of the current furniture factory by one-third. "The furniture industrial park also has a trend of overheating development. Such a large industrial park may recruit a leading enterprise to come in and give Good condition, but look around me."
Furniture companies also face an excess of stores. According to statistics from the China Furniture Association, according to the industry standard of 10,000 square meters, the annual sales of 100 million yuan, last year, the furniture and building materials industry achieved annual sales of about 200 billion yuan, 20 million square meters of store area to meet market demand, but currently The total area of ​​domestic home stores has exceeded 40 million square meters, with 50% of the store area being oversized.
In Chengdu Shuangliu, Qingbaijiang, Xindu and Other places, millions of square meters of furniture stores abound, industry insiders estimate that within two years, Chengdu has, under construction and already planned furniture stores will reach 20 million square meters The scale of the German furniture store is only 5 million square meters.
Wang Xuemao, president of the Sichuan Furniture Industry Chamber of Commerce and chairman and general manager of Chengdu Bayi Furniture Co., Ltd., also said that although the furniture in Sichuan was built earlier because of the market, the self-operated market was built more widely and distributed. Consumers are also relatively accurate, but in general they still face oversupply, and many furniture are unsalable. "At the beginning of the store, we can promise a period of free rental period, free decoration exhibition hall and other preferential conditions, but it took a long time to know that the store is not a pie but a trap. Many stores will focus on investment rather than later operation. On the other hand, the loss of the withdrawal is very large," said a person in charge of a furniture company in Sichuan.
What about foreign markets? Statistics from the Sichuan Chamber of Commerce for Import and Export of Furniture show that in 2012, the output value of furniture in Chengdu exceeded 70 billion yuan, but the export was only over 100 million US dollars. "And most of them are single-piece products such as mattresses, and the quantity is small. Wait." Wang Xuemao said. "The international furniture market is getting worse and worse. Furniture is not a spot cash transaction, but it is paid for a period of time after delivery. It faces pressure from both inflation and the appreciation of the renminbi," said Feng Junhong, marketing manager of Chengdu Fanton Furniture Co., Ltd.
Way out
Transforming and upgrading, seizing new consumer groups
In the leadership of entrepreneurs and industry associations, transformation and upgrading has become a key word.
Wang Xuemao's 600-mu commercial land in Wenjiang, the first phase of investment of 1.2 billion yuan, to create 150,000 square meters containing a thousand different areas and styles of "home", officially opened in 2014, the total investment will reach 6 billion yuan, covering the land The area is 606 mu, and the total scale after completion is over 1 million square meters. "Catch the personality needs of the 80s and 90s, the past home store form can not be satisfied," Wang Xuemao said frankly, in such a large-scale investment in the era of excess, "the pressure is high, there are risks, but innovation always has to be done. â€
Feng Junhong said that the most important thing to do for domestic sales is to put the quasi-market. When it entered the Chengdu market in 2009, there were still relatively few high-end furniture American furniture, which made it grow at a rate of about 60% per year. However, Wang Xuemao believes that the most important advantage of the Sichuan furniture industry is the sales network in the second and third tiers. More needs to grasp the tastes and needs of the peasant workers in the new urbanization. “These are huge rigid demands.â€
Zhang Yun, director of planning and planning of Emperor Standards, also believes that the potential of the second and third-line furniture market has not been fully released. “We invite a dedicated design team to adapt to this demand.†Zhang Yun said that the company has now fully expanded its product line and enhanced its brand image. Realize transformation and upgrading.
Zhu Changling, chairman of the China Furniture Association, observed that custom furniture has been on the rise in the past two years, and personalization has become a trend of development. In order to integrate the style application of furniture into the overall decoration style, consumers are no longer satisfied with the mass production of furniture products. This requires furniture companies to change with the trend, follow the consumer's mentality to transform, and pay attention to the unique design and craftsmanship of the product.
Wang Ke also made a move. "Furniture companies need to be stronger and bigger, bigger and more risky, and they must be gradual. The market is limited. When you do it, the bubbles that actually come with you are blind. When the expansion, the crisis has already been buried."
For furniture companies who are keen on e-commerce, Wang Ke advises to calm down. "Furniture is a durable consumer goods, needs experience, e-commerce also needs distribution, installation, after-sales service problems, physical stores can not be taken lightly. Backbone companies can take the lead in doing some flagship stores Independent store."
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