Macro analysis of the development trend of China's furniture market

     However, from the perspective of the international furniture industry chain, China's furniture industry is still at the low end of the industry chain, that is, the low end of the smile curve. Product creativity, design, and marketing brands are basically in the hands of Western developed countries such as Italy and the United States. With the help of advanced design concepts and superb production technology, they have occupied the world's high-end furniture market. And China's furniture industry is still in the initial stage of development. On the one hand, the demand for furniture is growing rapidly, and foreign capital and private capital have been invested in the furniture industry; on the other hand, disorderly competition has caused the profitability of furniture companies to decline and the market concentration. The more than 50,000 furniture companies, 80% of small and medium enterprises, financial strength is poor, small-scale production, it is difficult to obtain economies of scale; lack of profitability hampered furniture design innovation and technological progress.
Disordered development has caused excess production capacity and insufficient equipment utilization. Many enterprises of a certain scale have begun to expand overseas, accelerating the development of furniture by accepting foreign orders, but their lack of brand advantage and independent intellectual property rights have also greatly hindered the improvement of furniture export levels, and the added value of products cannot be reflected in manufacturing The phenomenon that the selling price of exported furniture is lower than that of China has appeared. Furniture is highly dependent on outwards. Once the international environment changes, the first thing to bear is exports.
In 2008 , although China's furniture exports reached US $ 26.911 billion, a year-on-year increase of 21.5%. But compared with the increase in furniture exports last year, it still fell by 8.2 percentage points.

        With the emergence of the impact of the international financial crisis on the furniture industry, more and more furniture companies began to reflect on the current production model and marketing methods. Some originally export-oriented enterprises began to transfer to the domestic market, but the immaturity of the domestic furniture market and our understanding of furniture products have hindered the existing development. How to cultivate and develop the Chinese furniture market and create a development model for Chinese furniture, there are still many deep-seated problems that need to be explored and solved. This article wants to put forward some views on the issue of furniture development, for reference for the development of furniture companies.

      Chinese furniture is at a critical stage of development

      Although the growth of Chinese furniture slowed down in 2008 , it is still the fastest growing country in the furniture industry in the world. Compared with the mature furniture industry in the world, China's furniture industry is still in the stage of growth and development. First, there is still a lot of room for domestic consumption of products. Compared with European and American developed countries, China's annual per capita furniture consumption level is relatively low. From the analysis of the data retrieved at present, the average annual consumption of furniture by Americans is US $ 236 , the average annual consumption of furniture by Germans is US $ 371 , the average annual consumption of furniture by Japan is US $ 255 , and our country is about US $ 12 . The share of furniture in the vast rural market is even lower. Due to China's national conditions and population base, we may not be able to fully reach the furniture consumption level of Western developed countries, but with the continuous improvement of people's living standards, the demand for furniture quantity is still increasing. Second, furniture products have not yet met people's demand for cultural life. On the one hand, there are many products and categories of Chinese furniture, but on the other hand, people also think that there are many similar furniture, which can reflect their individuality and meet many different levels of subdivision furniture. Third, the marketing model is not perfect. After hundreds of years of development, Western furniture nations are relatively mature in marketing concepts, brand cultivation, marketing models, and the construction of marketing teams.
Taking the United States as an example, some large enterprises often transfer low-value-added furniture products to China and other countries through OEM production, while focusing on the development of core values ​​such as design and brand network construction. However, domestic enterprises lack well-known international and domestic brands, and the marketing model is relatively simple. The gap between us and the development of international furniture proves that China's furniture industry has not yet reached maturity, and there is still room for growth and potential for development.

      However, in reviewing the development of Chinese furniture, we must also clearly see that Chinese furniture is facing an important turning point. The development strategy that originally relied on low-value-added scale expansion has been difficult to support the sustainable development of Chinese furniture. On the one hand, the changes in the international economic environment have reduced the demand for furniture from major furniture importing countries. On the other hand, the shortage of wood resources and rising labor costs have also made it difficult for some small and medium-sized furniture companies to maintain production. This requires Chinese furniture to re-examine its own development positioning. Take a furniture development path that mainly meets domestic demand and supplemented by exports. Chinese furniture companies will face a comprehensive reshuffle.
A group of furniture manufacturing and sales enterprises that do not adapt to changes in the market will therefore close down. But more companies will pass their own efforts. Improve the core competitiveness of enterprises, complete the upgrading of product industries, and promote the development of China's furniture industry.

      Extending the life cycle of furniture products lies in innovation

      There is such a paradox in the development of China's furniture industry: In general, China's furniture industry is booming and is in a growing stage, but when it comes to furniture companies, they always feel that the competition for furniture is becoming more and more intense. It takes only six months for a product to go from market to shelf . Why some classic furniture styles in the world are prosperous in the market, but Chinese furniture products generally remain in the market for a short time. The reason is related to the general lack of innovation awareness of domestic furniture companies.

     Furniture, as a traditional durable consumer product closely related to people's lives, product satisfaction is consistent with people's aesthetic taste and value pursuit. When people's lives are still full, the use value of furniture is people's first choice. When the living standard is raised to a certain level, people are no longer only satisfied with functional requirements, but also require products to be comfortable, beautiful, integrated with existing housing and environment, and able to reflect their own value. If the furniture is developed according to the original ideas, the audience of the products will become smaller and smaller, and the market life of the products will not be long. And without its own characteristics, by imitating manufactured furniture products, the market life is not likely to last. When a new model is listed, companies will imitate it. Soon, people's sense of freshness and aesthetics will disappear, and the market life of this style will come to an end.

      Why can enterprises continue to mass produce on export? Why are American, Italian, French and Japanese furniture so distinctive? Why do furniture companies like Huari, Yazhen, and Federation have a longer market life? The key is that compared with other furniture of the same color, their products have distinctive characteristics that can meet the needs of such customers.

      At present, everyone has complained about the phenomenon that the furniture industry products are competing to imitate. They pay attention to the intellectual property rights of their products, but they do not respect the intellectual property rights of others. Therefore, it is necessary to create an innovative atmosphere in the furniture industry. As long as everyone starts from their own, China can have a batch of furniture products with Chinese style characteristics and inherent technical content.

      Flexible production will become the trend of furniture development

      Compared with the international market, the characteristics of most domestic furniture production are: placing orders according to customer needs, and do not store product inventory. This type of production method is more suitable for stand-alone and small batch production, but the production efficiency is low and the delivery time is relatively long. And some large-scale furniture enterprises, if they want to follow the existing domestic furniture production process, will inevitably result in idle equipment and empty manufacturing capacity. Can small batches and multiple varieties be produced on the same assembly line? Can the production cycle be shortened? This means that through flexible production, the enterprise's production organization, manufacturing capabilities, and marketing models can adapt to market changes.

      Because the furniture production process, the main function or program is fixed. For example, the wardrobe is composed of several boxes and drawers, and the bed is composed of bed boards and bed frames. The style of the product is reflected in its appearance through various changes in carving and painting. This creates good conditions for the flexible production of wooden furniture products. Most panel furniture is also produced in this way. In fact, solid wood furniture can also be produced in a flexible manner: First, we must standardize some common components according to different room types and ergonomic requirements; then, according to the needs of different users, add exterior finishes or other special multi-functional components. In this way, it can not only improve the utilization rate of equipment, speed up the delivery cycle, but also meet the needs of different users, and achieve the unity of commonality and personality of furniture production.

       In fact, whether domestic furniture can achieve economies of scale is also related to the company's own product positioning and market positioning. In general, furniture products that take mass consumption and use the country as a sales market have a wider audience and a single color The shipment volume is relatively large, which is consistent with the reason that the exported furniture meets the international market and the volume is relatively large. Enterprises that produce high-end or undertake custom-made furniture have a narrow audience, and the sales of single-color products are relatively small.
According to this, can we form
an industrial cluster model of " Zhongxing Gongyue " around the respective market positioning of enterprises , and through professional collaboration, technology will be mutually beneficial. Enhance furniture's ability to radiate to the domestic market. If we say that in the past, we have formed furniture manufacturing bases such as Dongguan, Wenzhou, and Northeast China based on three supplements and one supplement, then through the baptism of this financial crisis, we will urge Chinese furniture companies to pay more attention to product innovation and marketing channel reconstruction. Walk out a path suitable for the development of Chinese furniture.

The Chinese furniture industry has a glorious past and will surely have a brilliant future.

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