Home shopping malls sweeping furniture companies to move northward

In 2011, the furniture industry was a difficult and difficult year. Enterprises, stores and dealers across the country had to adjust their original strategies and seek new opportunities. Overall, in the past 2011, although the local furniture industry in China has a small size, the overall disk is not as good as in previous years.

Consumption: Anemia of the thorn tree

If you make a metaphor, you might like to compare the 2011 furniture consumption to an "anemia thorn tree." In 2011, the crazy expansion of stores and the lack of household consumption made China's furniture terminal store operations enter an unprecedented "anemia" state. The terminal dealer could not even find a full leaf, but could only find a sharp spike, which stabbed the nerves of each furniture man.

In the export market, since the financial crisis in 2008, China’s furniture exports have been badly hurt and have never recovered. In the post-crisis era, unfavorable factors such as high foreign trade barriers, lower domestic export tax rebate rate, and appreciation of the renminbi have made China's furniture exports worse. In the domestic market, a series of unfavorable factors such as increased real estate regulation and control, inflation, and reduced industry reputation have slowed the growth of sales in the furniture market. Some enterprises, stores and dealers with weak financial strength and insufficient brand influence have already withdrawn from the market, while other large-scale enterprises, stores and dealers have played the game of “occupying the mountain”. Regarding the availability of sales, I have been expanding from a frenzy."

What makes China's furniture industry stunned is that foreign brands such as ASHLEY, NATTUZZI, and NOVEL enter the Chinese market. The strong financial resources behind these brands are enough to make them compete with any furniture company in China, and rapidly expand in China and become a market. protagonist. In addition, other industry giants in China have also rushed to the domestic home furnishing industry, such as Vanke Eslite, Taobao, Midea, Gree, etc., and become cross-border operators, further increasing the competition in the domestic market.

The two-way emergency of domestic sales and domestic sales tells us the fact that Chinese furniture is about to enter a smooth, rational and standardized track after 30 years of rapid expansion. The exposure of the Da Vinci incident and the introduction of solid wood furniture production standards are the projection of this trend. In 2011, various hard extrusions that were not conducive to the development of the furniture industry made the furniture industry have to be passively updated. The old "steam home train" has been overwhelmed, and the new "maglev train" will replace it. At the time of the departure of the new train, it can only be a group of merchants with rich purses, advanced ideas and professionalism; those who are cold, old-fashioned and out-of-the-box will be abandoned by this train. This is a new world, a world of rules, ingenuity, and financial resources. It is not a simple game that can be played without a single enthusiasm.

Channel: sweeping expansion

The author has to use the word "sweeping" to describe the direct, crazy and unscrupulous when the hypermarket expands. Up to now, there are at least 1,000 furniture stores with an area of ​​over 10,000 square meters. Take Chengdu as an example. In 2011, the newly opened store area exceeded 1 million square meters. In 2012, the newly opened store area may exceed 2 million square meters. Among the expansion crocodiles, Red Star Macalline, Real Home, JSWB, Yuexing and other chain stores opened an average of 5 stores in 2011, each with an area of ​​more than 100,000 square meters.

In the hands of the expanders, the huge axe of funds is used to open up a piece of hot land in the bustling city, and to build a store that is more luxurious than a five-star hotel, so that those local small stores are self-sufficient. For the small market, the competition with these “broad” people can only be a dead end. The only way out is to turn to the low-end market or the personalized market segment that the “broad” people disdain. The reason is very simple: the small store can't sell furniture for three months, and the operator may have to tighten his belt to live; and those big stores can "live another five hundred years" even if they sit on the mountain. This is the essence of the market: money is the territory, it is the control, it is the popularity, it is everything!

At the same time as the expansion of traditional stores, the development of new channel models has become a major focus of the furniture industry in 2011. Whether it is the big home model of Dafuhao, the customized service of Shangpin home decoration, the cultural industry service of cool residence, and the online mall service of Linshi Wood, it is the transformation and innovation of traditional marketing channels. With the continuous development of new channels, the fate of traditional dealers is facing unprecedented challenges, and may have to transform to terminal logistics or service providers in the future.

Enterprise: Modern version of "Journey to the West"

After the increase in factory rents and the pressure of the coastal developed cities to “cage the birds for change”, there was a lure of western development. Many coastal furniture companies have shifted the manufacturing process to the west, and staged the modern version of “Journey to the West”. In this context, Henan, Sichuan, Yunnan, Hubei and other places have heard the wind and moved, and have established production bases to meet the distant "God of Wealth". Huazhong Furniture Industrial Park, Chengdu Furniture Industrial Park, China Furniture Southwest City, Chongqing Furniture Industry Park, Anhui Suzhou East China Furnishing Industrial Base, Henan Xinyang International Home Furnishing Town... All local governments have shown their efforts to become the new map of China's furniture industry. protagonist. Judging from the current situation, this play has not yet entered a good environment, and there are certain problems in the operation and management of industrial parks everywhere. How to learn from the old bases such as Guangdong, Qikou and Xianghe, and achieve high-efficiency operations with unique positioning is an in-depth exploration of these emerging industrial parks. Under the main theme of migration to the west, in 2011, furniture companies from all over the world began to seek other ways to improve their market control. The following four trends are worth noting:

First, some enterprises join the ranks of channel competition, opening independent stores, self-operated stores, direct sales stores, warehouse stores, community stores, and involved in designer channels and online marketing channels. These companies often try multiple channels at the same time, and divide the soldiers several times to achieve the best market results.

Second, some enterprises have begun to get involved in the production of products in other fields, that is, they are involved in the so-called "big home" trend. Ceramic giant crocodile Dongpeng upgraded “Dongpeng Ceramics” to “Dongpeng Tiles and Sanitary Ware” to open up the sanitary ware market outside the ceramic tile; the flooring brand Ruijia simplified “Ruijia Flooring” into “Ruijia” and developed outside the floor. The whole wardrobe, wooden doors and wallpapers; nature launched the wallpaper brand outside the floor; the icon launched the beautiful poetry wardrobe and Ruibao wallpaper brand outside the floor; the furniture giant “Gujia Craft” changed its name to “Gujia Home” to jump out of the sofa. Territory, to expand the overall home.

Third, the enterprises have joined hands to cooperate with each other, such as Sichuan, Guangdong, Zhejiang and other places, trying to shape the image of regional brands and expand the national influence of local furniture. Fourth, the company is promoting the brand effect and promoting it.

I have spared no effort to make a big deal. For example, in March 2011, Mousse and Huayi Brothers launched a “Star Advocating Healthy Sleep” campaign in Dongguan. More than ten stars including Alan Tam, Li Zongsheng, Zhao Wei and Chen Chusheng gathered together, and the publicity effect can be imagined. At the end of 2011, Gujiajiao had a huge investment of 48.2 million yuan, and won the bid of 10 seconds and 2 units after the CCTV1 news broadcast.

Throughout 2011, in the overall situation of slowing market sales growth, the furniture industry staged a crazy tragicomedy, which made people laugh and sigh, and the outlook for the furniture market, which is not optimistic in 2012, is much more. A bit of worry. Of course, there are always some furniture people who are brave in exploring, and will explore the glorious temple of the furniture industry with a sincere gesture that touches us. Based on this, 2012 is still worth our expectation.

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