Affected by factors such as the downturn in the real estate market and rising costs, this year's furniture industry is not optimistic, and an industry consolidation is undercurrent. For this possible industry integration, Henan furniture companies can be described as mixed, some enterprises will usher in rare development opportunities, and some enterprises will encounter "ice closure period."

Henan furniture

The furniture enterprises in Henan are mostly small and medium-sized enterprises. After entering 2000, the number of furniture enterprises has expanded rapidly. This aspect is due to the increase in market demand; on the other hand, due to the low barriers to entry in the industry, many people who used to work in furniture companies and sell furniture have started their own factories. These emerging furniture companies Most of them are small-scale enterprises, even family-style workshops, and most of them adopt the business model of “before shop and factory”. In addition, the gradual improvement of supporting enterprises has also provided sufficient conditions for the development and growth of local furniture enterprises in Henan. For example, manufacturers such as plates and hardware have had many in the area of ​​Zhengzhou Putian.

In addition to the largest panel furniture company in the Henan furniture industry, Yabao Furniture is currently filled with red flags in the country, and most of the other companies choose to focus on market operations. This aspect is due to the small scale of the company and the limited accumulation of funds, making it difficult to carry out brand expansion operations. On the other hand, it is also related to the large capacity of the local market in Henan. As a populous province, there are enough consumer markets in Henan to accommodate the vast amount of furniture products. Many operators believe that as long as they do a good job in the local market, they will be able to earn a lot of money.

Market changes, urgent need to break through

In recent years, the Henan furniture market has begun to show variables, which has led some companies to start thinking about market breakouts.

First, the number of local furniture companies has increased dramatically, and the influx of foreign brands has made the Henan furniture market saturated and competition intensified. Yuan Zong of Zhengzhou Coordinate Sofa told the author: “With the sofa as an example, everyone knows that the threshold for making sofas is low. Henan has a lot of low-end sofas. Many small and medium-sized enterprises are pouring into this market, resulting in fierce competition and business changes. It is very difficult to do."

Second, Henan furniture enterprises produce mostly low-end and mid-range products, which also determines that their customers are mostly urban and rural residents with weak consumption power and general consumption awareness. Such consumers are most sensitive to market factors.

The third is the impact of the real estate market. In recent years, real estate prices in Henan have risen rapidly, and now the price of Zhengzhou East District has exceeded 10,000. The rise in house prices has intensified the pressure on homebuyers, causing them to consciously compress the renovation costs, and some even chose to delay the renovation date. In addition, the country's real estate control policy has caused the real estate market to be unclear, and more people choose to hold the currency, which has led to the current consumption of building materials including furniture.

Fourth, factors such as rising prices caused by inflation have also brought variables to small and medium-sized furniture companies. Zheng Zong of Zhengzhou Aijia Home told the author: At present, labor costs, raw material prices, transportation costs, etc. are all rising, which has increased the burden on enterprises. The price increase of products is a difficult choice. On the one hand, the market competition is very fierce now, and the middle and low-end products are inherently price competition due to the homogenization. The random price increase is tantamount to suicide; on the other hand, from the consumer market. In terms of inflation, consumers are also very sensitive to price factors, and it is difficult to accept arbitrary price increases.

Create a brand, grow bigger and stronger

The middle and low-end products are fiercely competitive and the profits are low. The “transformation and branding” has become the choice of many furniture enterprises in Henan. In the interview with Zhengzhou Zhongbo Furniture Store, the author learned that some enterprises have adhered to the branding route in the past few years, transformed into high-end products, and improved their efforts in publicity, product development, enterprise management, etc., and they are on the right track. The occupancy rate has expanded. But to be realistic, transformation is not an easy task. There are still many furniture companies that want to transform, but they are deterred from the high investment in the brand; or they lack the persistence in the process of transformation and fall short. For Henan small and medium-sized furniture enterprises, in order to achieve a successful transformation, we must overcome two major difficulties.

First, we must have a certain amount of funds to accumulate, and we are willing to invest in research and development, manpower, and brand promotion. If you choose to be a brand, you must first spend a lot of money to hire high-end technical personnel, do a good job in product research and development, work on quality, create a distinctive product; secondly, increase investment in the field, machinery and equipment; finally, in the product Publicity and promotion should also spare no effort. Even if these inputs are in place, brand influence is not immediately effective, but a long-term process of persistence.

Second, to cross the threshold of high-end stores. In order to make brand influence, it is necessary to establish a foothold in high-end stores. But now, like the high-end stores like Real Home and Red Star Macalline, it is rare to see Henan furniture brands settle in. Such stores are expensive and have high thresholds, but they are very beneficial to enhance corporate image and brand influence. "In fact, there are quite a few local furniture companies in Henan, and some products can do it, and they can enter these stores completely." A furniture brand dealer said.

Henan furniture enterprises must abandon the previous "small wealth and security" thinking, strive to develop and expand, actively build brands, expand brand influence, in order to win their due status in the future market competition.