"Ten Big Truth" Reveals the Status Quo of China's Furniture Industry

Since the development of China's furniture industry, the market is unpredictable, consumer demand is changing with each passing day, and industry competition is rising. The industry changes caused by this are also one after another. Under this circumstance, only by recognizing the development situation of the industry, furniture companies can better grasp the opportunity and achieve the development goals of the enterprise.

Therefore, more and more industry people often make some unique industry situation analysis according to the development of the industry. But despite this, not all furniture people can understand the current state of the furniture industry.

Integrate the development of the furniture industry and present it to everyone in the most intuitive way: “Ten Big Truth” reveals the status quo of China's furniture industry. After reading it, you will understand!

1, the furniture industry profits are thinner than the blade

A few days ago, a report released by a research institute showed that the average wage of China's manufacturing industry has exceeded that of Latin America except Chile, and has reached about 70% of the level of certain euro zone members. This is a positive feedback from China's economic development. It is also a visual manifestation of a significant increase in manufacturing labor costs.

It is understood that in the past ten years, China's labor cost has increased by 2.7 times, private enterprises' financing costs have exceeded the bank's benchmark interest rate by more than two times, and logistics costs are twice that of developed countries. Both labor, raw materials and business operating costs have risen sharply.

Therefore, the cost issue has become a problem that many small and medium-sized enterprises are troubled. Along with the intensified competition in the industry in 2017, under the influence of the “price surge” and the industry reshuffle trend, corporate profits have been cut again, even thinner than the blades!

Some companies ridiculed themselves: "It’s better to tell a little story in the capital market for a lifetime of hard work!"

2. "Three big mountains" and "four highs and four lows"

In recent years, furniture companies have generally encountered “three big mountains”, namely “the iceberg of the market, the mountain of financing, the volcano of transformation”.

In the development and growth of enterprises, furniture enterprises also face the problem of “four highs and four lows”: high labor costs, high financing costs, high tax burden, high institutional transaction costs, low product quality, low technical standards, and brand recognition. Low, low corporate integrity, seriously restricts the competitiveness of China's furniture industry.

3, do not want to innovate, do not dare to innovate, or even innovation is not as good as "copying new"

Without technological innovation, there is no rise of furniture companies. Chinese furniture companies have long been immersed in the industry atmosphere of low-price competition and small profits but quick turnover. Many enterprises do not want to spend huge amounts of money, manpower and material resources to innovate, nor dare to innovate, or even Innovation is not as good as “copying new”, which leads to serious homogenization of products in the industry, resulting in a lack of innovation in the Chinese furniture industry, long-term retention at the low-end manufacturing level, and international influence stagnating.

Nowadays, the competition in the furniture industry is intensifying. Innovation is the inevitable return of the survival of enterprises. To improve the competitiveness of furniture enterprises, enterprises need to face the importance of innovation first. Secondly, they are willing to invest, establish the goal of long-term development of enterprises, and prevent plagiarism. Form a good innovation competition model in the industry.

4, does not protect intellectual property, innovation is an empty talk

The development of furniture enterprises needs to improve the market access mechanism. It is necessary to deeply understand that innovation is an empty talk without protecting intellectual property rights!

At the same time, furniture enterprises should pay special attention to the protection of intellectual property rights of enterprises, pay attention to the application of enterprise production technology and product patents, resolutely crack down on infringements, protect the independent innovation achievements of enterprises, and create a good environment for enterprises to be innovative and dare to innovate.

5, can not "just listen to the stairs, not see people down"

The cost control is especially important for the development of a company. This is especially true for furniture companies. Only when the cost reduction actions are implemented can enterprises better manage their burdens, and they can’t just listen to the stairs and not see people. Come down."

6, the brand is the name of the enterprise

Brand building is an important part of expanding effective supply and promoting structural reforms on the supply side. Furniture companies must attach great importance to it.

At present, China's manufacturing brand market has low recognition and weak competitiveness. There are only 31 of the world's top 500 brands and only 7 of the top 100 brands. In the furniture industry, there are few leading companies in the market, and many small and medium-sized enterprises in the industry have always been an industry problem. Paying attention to corporate brand building is a compulsory course for furniture companies to be strong and to go abroad.

7, can withstand loneliness, can withstand the temptation

To achieve a brand is a long-term and arduous process. It is necessary to carry forward the entrepreneurial spirit of innovation, persistence and responsibility as the main content. It can withstand loneliness, withstand the temptation, down-to-earth and dedication!

To this end, furniture companies must do the following two things: First, we must vigorously strengthen the construction of national technical standards, improve product recognition, visibility and reputation, and constantly create high-quality products with differentiated competitive advantages. Second, we must strengthen the building of integrity and lay the foundation for brand credibility.

8, imitation of inferiority has become a tumor affecting Chinese brands

The unevenness of products in the furniture industry is a problem that enterprises are deeply hated but difficult to solve. Imitation of inferior products affects the reputation of the company and affects the development of the entire industry. Therefore, many companies now attach great importance to product quality and strive to remove the fake and shoddy cancer.

To combat counterfeiting, furniture companies must resolutely put themselves out of their own, let the fake and fake sellers pay a painful price, restore consumers' confidence in "Made in China", and more conducive to the entry of furniture products into the high-end application market.

9. Dispose of "zombie companies" as soon as possible

Zombie companies are debt-ridden companies that are hopelessly revived and are on the verge of bankruptcy. Zombie enterprises are different from enterprises that are in trouble due to problematic assets. They can quickly return to life. The characteristics of zombie enterprises are the long-term and dependence of “blood-sucking”. If they have been lingering, the negative impact of the industry may be more.

There are many small and medium-sized enterprises in the furniture industry. It is inevitable that some enterprises with operational difficulties will be able to deal with “zombie enterprises” as soon as possible. It is the common responsibility of every enterprise in the industry to resolve overcapacity. Only by cleaning up them can they make room for high-quality products. Resources and market space promote the healthy development of the industry.

10, reform can not rely on slogans, innovation can not rely on packaging

At present, the fierce competition in the furniture market and the upgrading of the industry are poised for growth, and it is extremely urgent to enhance the competitiveness of the entire industry. However, it is not easy to break through the development of the industry. In this regard, enterprises must deepen enterprise reform, base on enterprise innovation, optimize the internal structure of enterprises, and reduce unnecessary cost of enterprises. As a result, furniture companies can grow and help the industry upgrade.