With the rapid development of furniture industry in recent years, the competition in China furniture market has entered an ultra-competition state. So we should fully realize that our former success and effective strategy and means may not be workable in this new marketing situation, we should be clearheaded and rational.
The homogenization is obvious increasingly, the degree and time of product differentiation is becoming limited: different furniture factories have same style, design and color, even the image packaging of some manufacturers seems like twins, and next is the price war round after round.
As the price of terminal intensivism, channels concentration, brand centralization and other marketing elements increasing, the operating costs of enterprises also have increased. The threshold is increasingly high, the breakeven point and key value that we operate in regional market is getting higher, and the risk is growing. High risk may not lead to high returns, many furniture companies and specialty stores seem very busy after they have laid a good foundation for the market, but in fact they have earned very little money when doing account in the end of the year.
Now, the integrated growth of China furniture consumption is about 12%, while furniture shopping malls are like bamboo shoots after a spring rain in these two years, the expansion rate of well-known brand furniture mall is between 30% and 40%! And the rental of furniture mall has increased 10% to 15%. The contrast of these figures is far more than the GDP growth rate of real estate and national economy and sales growth rate of furniture specialty stores.
In recent years, especially the anti-dumping and the financial crisis two years ago have influenced furniture export industry obviously. These manufacturers quickly realized that they can not completely depend on exports sale, they should learn to walk with double legs that is export sale coming with domestic sale, they started to develop domestic furniture market in recent two years by product development, image packaging, marketing plan, attending exhibitions, market promotion and so on. Many brands suddenly increased in China market result in domestic marketers and dealers who have many years experience are not familiar with the concept of new furniture brand, of course part of domestic market share is divided.
Dealers or manufacturers who want to have a relatively good position in furniture market will privately give red packets to the important principal that invited by property, and find a reason to directly withdraw the original furniture brands who will join in, this is a open secret in the industry.
In a word, in my opinion, China furniture industry will usher the second rapid development period in the next 3 to 5 years under the big background of the furniture industry gradual shift and national macro-economic. The task of this period is not primarily the amount expansion, but the quality improvement. Funiture industry will face new challenges in the next five years such as the tight supply of wood and other furniture raw materials resources, the increased price of energy and transport, the strengthening of environmental requirements and the shortage of technical staff and manager, which are all restrictions for industry development. Therefore, enterprises should transform traditional industry with high technology and change the mode of growth, and the key is improving the quality of product and marketing innovation.
