Fifteen years ago, attracted by the lucrative profits, many people flocked to the plate furniture; fifteen years later, panel furniture became an important home category to stick to the mainstream of the major stores. In the past fifteen years, the panel furniture industry has experienced tremendous changes from development to development and prosperity. Nowadays, due to low production threshold, serious product homogeneity and low profit margins, it faces development bottlenecks. The problem that panel furniture companies have to think about.
The rise of the industry
Around 1995, when traditional solid wood frame furniture dominated, a number of furniture companies began to specialize in the production of modern style panel furniture. At that time, the enterprises from the south to the north, their plate-type production equipment, main raw materials, hardware accessories must rely on imports, the enterprises that really touch the doorway and can continue to set up factories are rare. Officially due to the industry's initial development, fewer brands, the market is in short supply, the earliest batch of enterprises that made panel furniture have achieved fruitful benefits.
With the first batch of successful Pathfinders, the companies that followed the example will continue to linger. An industry insider, Mr. Xue revealed: "In 1997 and 1998, some brands such as Guangming and Huahe came to us to seek cooperation and hoped that we would do their foundry. They visited the factory, inspected the technology, and later because of some If the specific matters are not settled, they will be gone. But it turns out that they came to the stone and asked for directions. Soon the new products will be listed."
The direct reason for these companies to wait to produce panel furniture is to make money quickly and profitably. Mr. Xue told reporters that at the beginning of his store in Yuquanying Oriental Home Furniture Plaza, the sales per month could exceed one million. One million years ago, it was definitely a shocking number. It shows that the profits that companies get from them are also very impressive. Because of this, the team of panel furniture companies has grown year by year, reaching its peak in the late 1990s and early 2000s.
Competitively fierce profits
In the big wave of the development of panel furniture, it has become a brand in the industry. Nowadays, in the major supermarkets, there are more than a dozen panel furniture brands in the north, and some brands in the South have more than 20 brands, occupying most of the furniture showrooms.
Compared with more than ten years ago, the entire panel furniture production industry has undergone an essential transformation: the production technology of panel furniture is becoming more and more mature, and the market has been transferred from the seller's market to the buyer's market. Most of the main raw materials produced have been domestically produced, and the production is transparent. The profit is reduced. If the development result of fifteen years ago was that domestic furniture drove some foreign furniture out of the Chinese market, today's competition is a ruthless civil war, and enterprises are based on market rules to survive the fittest.
With the increasing number of panel furniture brands, the phenomenon of product homogenization has become increasingly serious. In addition, last year, the home furnishing industry suffered from the global financial crisis. Many export-oriented furniture enterprises fought in the domestic market. The plate furniture industry was fiercely competitive and forced to fight. "Price war". Especially during the May 1st and 11th holidays, the 8.8 fold and 10% discount bottom line of previous years has fallen to 7.8 fold and 20% this year. There are some mainstream brands involved in low-price promotions, and the profits of enterprises have shrunk significantly.
At the same time, the expensive rents at home stores further diluted the profits of panel furniture companies. According to industry sources, the average storefront of a panel furniture needs to be more than 250 square meters, and the monthly rent should be at least 100,000 yuan. In other words, a store must earn more than 100,000 a month to survive. It can be seen that the money for making plate furniture today is much more difficult than it was 15 years ago.
Looking for differences to open up the blue ocean
When the entire panel furniture industry is lamenting that profits are too thin, many companies have begun to look for the blue ocean. Knight's panel furniture has come out of a different path – aiming at the 80s and creating a changeable panel furniture. Consumers can make a variety of choices and combinations in color, structure and function according to their own preferences, to meet the individual needs. According to Nettle, this kind of changeable furniture can at least lead the industry for five years. This year, Green Island Furniture launched three new products for different groups, such as “White Collar Lifeâ€, “Treasure Hall†and “Loveâ€, in order to operate misaligned with peers.
“Plates make money fast, but if everyone always eats in a bowl, there will be no food for one day.†Chen Xiaotai, chairman of Baiqiang Furniture, led the company to take a different approach from the murderous Red Sea. The end-positioned panel furniture Oufulai also introduced solid wood furniture and leather sofas, reducing the risk of competition in the field of panel furniture.
In the view of the Secretary General of the Beijing Market Association, enterprises should study the consumer market and misplaced operations in order to achieve long-term development. "If everyone does the same thing, one or two people can really succeed, and the rest are all foiled." Liu Chen suggested that panel furniture companies should innovate in product, marketing, management, etc., and develop out of differentiated development. the way. Zhu Changling, vice chairman of the China Furniture Association, also believes that the development concept of panel furniture should keep pace with the times and fully research and develop the individualized needs of consumers, such as providing customized services and online shopping methods, to fully exploit the potential of the panel furniture industry.
Joystar Electrical Appliances Manufacturing Co.,Ltd , https://www.fscnjoystar.com