Financial Crisis Promotes Three Changes in the Adjustment of the Furniture Industry

Steel-wood furniture has become the new darling of the market, foreign companies have joined the domestic market and the awareness of consumer brands has been further enhanced... In the face of the international financial crisis, the domestic furniture industry is undergoing many new changes. Looking at the overall situation in 2009, how the furniture industry actively responds to changes in the financial crisis, how to seize the opportunities in the changes and lay a good foundation for the next year's development is becoming the focus of attention within and outside the industry.

The furniture market presents three major changes

The Guangzhou International Furniture Fair, which is known as the "Asian Home Trading Center", was held as scheduled. More than 2,000 furniture companies participated in the exhibition, hoping to find more business opportunities in the downturn brought by the international financial crisis. At the same time, as a barometer of the domestic furniture industry, this session of the furniture fair is also particularly concerned about the industry.

Among the many types of furniture exhibited, steel-wood furniture is particularly concerned by merchants and visitors. “Although the overall share of steel and wood furniture is relatively small, the growth rate is the fastest among the three types of furniture. In the future, China's furniture market will form the pattern of solid wood, panel and steel-wood furniture.” According to Bai Jianfeng, president of Elvis Furniture, the manufacturer of steel and wood furniture.

In fact, steel-wood furniture has been quietly popular in many cities throughout the country. In recent years, a “simple wind” has been blowing the home market. Experts in the industry believe that this “minimalistness” will continue to be popular in 2009, and furniture products represented by steel and wood furniture with simple structure and free design just reflect this. This new fashion trend, so steel and wood furniture will become the hot market in 2009.

On the other hand, the increased competition in the domestic furniture market has also caused widespread concern in the industry. Participating experts believe that due to the financial crisis, some export-oriented furniture companies will increase domestic sales, which may lead to more intense domestic furniture market competition or even a price war. According to customs statistics, China's exports of furniture and parts worth US$3.63 billion in January-February this year were down 13.6% from the same period last year. Among them, the scale of exports in February contracted sharply. The current month's export value was only 1.19 billion U.S. dollars, which was the lowest monthly figure since March 2006.

At the same time, experts believe that the competition in the domestic furniture market will further promote the brand's concentration. Consumers will pay more attention to the brand, and the domestic furniture industry will accelerate the reshuffle this year in the context of the international financial crisis.
Enterprise: Innovation is still the core competitiveness

The current financial crisis is not so much an impact on the Chinese furniture industry. It is better to say that the financial crisis has exposed the problems accumulated by the industry. Lack of brand, imitation of plagiarism, and low-price homogenous competition are common problems in the furniture industry in recent years.

“A lot of companies are afraid of innovation, and they always believe that it is a big investment that must be huge. In fact, small reforms are innovations. The benefits to customers are also innovations. Innovation also includes invisible parts such as operational processes and performance management. There is too much room for business to break through.” Bai Jianfeng said, “Elvis insists on the development of steel and wood furniture, but does not involve in the field of solid wood and panel furniture. This is our company’s own business innovation. We always pursue this segmentation. The market has an advantage in innovation.” Benefiting from this strategy, in the face of the financial crisis in 2008, Elvis’ sales increased by 40% in contrarian conditions, and the number of directly operated stores in China reached nearly 300.

According to experts from the Beijing Forestry University, the model of mass production in the world is not suitable for the furniture industry. Furniture consumption is individualized and diversified consumption, rather than mass consumption, and different products should be produced to meet the needs of different consumers. Specializing in precision is the future direction of the company.

Industry: Take advantage of timing to set sail against the wind

In fact, the financial crisis also brought adjustment opportunities to the domestic furniture industry. Some furniture companies have reflected that talents are now easy to find and promotion costs have been reduced by half.

At the same time, people in the industry believe that in the past five years, the furniture industry has developed at a double-digit rate, but such rapid development cannot be maintained. In the past few years, the furniture industry was in the first phase of its pioneering period, that is, the expansion of volume, and now it has entered the second phase of the initial phase of the initial phase of development. It has not been feasible to win by volume. Therefore, this financial crisis can just promote the development of the second period of entrepreneurship.

Zhu Changling, vice chairman of the China Furniture Association, believes that the Chinese furniture industry should make full use of the current situation and accelerate the adjustment of industry and product structure. The first is to adopt a strategy of going global and continue to develop the international market. The second is to cultivate and create brand products with Chinese independent intellectual property rights, and to increase the added value of Chinese furniture products. The third is to directly adopt international standards for production and realize the internationalization of furniture standards. Fourth, it is necessary to establish an early warning mechanism for the furniture export trade, understand the new issues that arise in the furniture import and export trade, and take timely measures to deal with it.

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