The store "Great Leap Forward" expansion furniture traders seek development

Although according to industry data, the Chinese furniture industry still has a 30% growth in 2010, this furniture company, which has been in the forefront of the outside world, has a rising price and labor force at the end of 2010. Costs, renminbi upgrades, export trade barriers, real estate regulation, and malformed expansion of stores have become difficult, and many furniture screams in the industry forum can not help but say 'the market is too cold, the industry is difficult'. "Great Leap Forward" expansion: zero contradiction unprecedentedly worsened in 2008, 2009 and 2010, with the keyword expansion of furniture stores is expansion, expansion and expansion, the word expansion has become the main theme of the development of home stores. Red Star Macalline has more than 40 stores in 2010, and more than 30 stores have opened. The number of stores opened in a year is the sum before 2010; at the same time, in 2010, Yuexing Home proposed the “Hundred Stores Plan” and actually The family also issued a statement in the second half of the year, and in the next five years, the family will expand to “100 stores”. Not surprisingly, in 2011, the home store will continue the "old tone" of 2010: expansion! Indeed, before the furniture pattern has yet to be finalized, the “scale” wins the “single bridge” that leads to the throne of the throne. “Fast fish eat slow fish” is the first to be reflected in the home store: not to achieve chain, no barbaric expansion, it is destined to become “solitude.” Not expanding, it means shrinking, meaning that it will be overtaken by opponents. "Suning" and "Gome" in the "next door" are living examples. Whose "land is big", who is the "boss". The massive expansion of the store should have represented the prosperity of an industry. However, the reality is that the circulation of furniture mainly depends on the sales model of hypermarkets. As the price of real estate in China rises, the rent of hypermarkets rises and the sales of furniture sellers Costs are becoming more and more difficult to load, and store expansion has further pushed up the vacancy rate. The days of furniture companies are getting worse every day. The first-line dealer of a furniture brand calculated the account for the reporter: 'In the past 200 square meters, the monthly rent is 20,000, the profit is 500,000; now 300 square meters, the monthly rent is 40,000, the profit is still 500,000', a large number Furniture dealers have increased investment burdens, increased operating costs, falling average profits, and even losses. According to the survey of the Ningbo Furniture Chamber of Commerce, the sales performance of a single store of the same brand has generally fallen sharply compared with previous years, generally falling by 20%-30%, and the serious has reached 60%-70%. The whole industry is in an awkward situation. : Dealers - busy for a year, profits are lower than in previous years; furniture real estate developers - the store is everywhere, there are few well-run stores; furniture manufacturers - production capacity has increased, but not sold. Liu Yongkang, chairman of Conraden Furniture, said bluntly: 'After October 2010, the industry seems to have entered the freezing period. The sales performance of most furniture companies is not good. From the perspective of industry conscience, even if the existing store area is reduced by half, The common people can still buy good, even better furniture; the current ecological environment of the furniture industry is not good, and the interests of everyone in the entire industry chain will be affected. ' Furniture manufacturers survived: "Poor and rich differentiation" is becoming more and more serious. The economist Lang Xianping, who is known as the 'private father of private enterprises,' said at a recent furniture forum: 'Chinese furniture companies have 70% of production capacity, but only 29%. Consumption power. It is not product innovation that has really promoted China's furniture exports over the years. It is a large volume. Chinese furniture has a serious overcapacity. If it does not export, the Chinese economy will immediately disintegrate. Although this remark is somewhat alarmist, according to the reporter, after experiencing the export recovery in the first 11 months of last year, the number of orders from foreign furniture buyers in Europe and the United States began to decline, resulting in some furniture in the Pearl River Delta. Export factories have reduced their scale of staff; a Beijing furniture company also said on Weibo: 'After October, Beijing home building materials decreased by 80% compared with the same period last year. 'There is a lot of situation in the furniture industry. At the same time, the living conditions of furniture manufacturers have also fallen into the realm of ice and fire, and the polarization between rich and poor has become increasingly serious. The orders of large and medium-sized enterprises are in good condition, and there is no obvious decline. Instead, they are replaced by old and new years. The company worked overtime to work harder. Other small-scale furniture companies, mainly foreign trade, face another situation: they are trapped in rising raw materials, their bargaining power is reduced, and there is a loss of orders. Especially after the cancellation of the 'three to one supplement' in the coastal area, many suppliers of materials and accessories in the furniture industry have withdrawn, and the export tax rebate has dropped, making it difficult for enterprises to continue production. A well-known furniture enterprise owner in Dongguan told reporters that 'Since the financial crisis, Dongguan Dalingshan has two furniture companies closed every day.' Conclusion: If the crazy expansion of furniture stores is in the good situation of the home furnishing industry, then with the overall downturn of the market environment, the living environment of furniture companies is deteriorating, and what are the reasons for the continued expansion of furniture stores? What is hidden behind the expansion? Is the market becoming saturated or the market is huge? Is the demand of operators, the needs of channel providers, or the strong desire of market consumers? Who can answer these questions?

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