The development history of panel furniture in the past 15 years

During these fifteen years, the panel furniture industry has undergone great changes from the rise to development and then to prosperity. However, it is now facing development bottlenecks due to low production thresholds, serious product homogeneity, and low profits. Panel furniture companies have to think about the subject.

 

 

The rise of the industry

 

Around 1995, when traditional solid wood furniture was the mainstream, a group of furniture companies began to specialize in the production of modern-style panel furniture earlier. At that time, enterprises from the south to the north had to rely on imports for their plate-type production equipment, main raw materials, and hardware accessories. Enterprises that really touched the door and could continue to set up factories were rare. Officially, due to the rise of the industry, there are fewer brands, and the market is in short supply. The earliest batch of panel furniture companies have achieved substantial benefits.

 

An industry insider Mr. Xue revealed: "In 1997 and 1998, Guangming, Huahe and other brands came to us to seek cooperation and hoped that we would do their OEM. They visited the factory and inspected the technology. Later, because of some If the specific matters are not negotiated, it will be gone. But it turns out that they came to ask for directions, and soon the new products will be launched. "

 

The direct reasons that make these companies can't wait to produce panel furniture are quick money and huge profits. Mr. Xue told reporters that the sales of a store in Yufangying Dongfangjiayuan Furniture Square could exceed 1 million yuan per month. One million a decade ago is definitely a shocking number, and it can be seen that the profits made by enterprises are also very impressive. Because of this, the team of panel furniture companies has grown year by year, reaching its peak in the late 1990s and early 2000s.

 

Fierce competition and meager profits

 

What has persisted in the wave of development of panel furniture has become a brand in the industry. Today, in the major stores, there are more than a dozen panel furniture brands in the north, and more than 20 brands in the south, occupying most of the furniture exhibition .

 

The production technology of panel furniture is becoming more and more mature. The market has changed from the seller's market to the buyer's market. Most of the main raw materials produced have been localized, and the production is transparent and the profit is reduced. If the development result fifteen years ago was that domestic furniture drove some foreign furniture out of the Chinese market, today's competition is a ruthless civil war, and enterprises will survive the fittest according to market laws.

 

With the gradual increase of panel furniture brands, the phenomenon of homogenization of products is becoming more and more serious. In addition to the impact of the global financial crisis on the home furnishing industry last year, many export-oriented furniture companies have turned to the domestic market, and the panel furniture industry is fiercely competitive and forced to fight. "Price war". Especially during the May 1st and 11th holidays, the 8.8% and 10% discounts in previous years have fallen to 7.8% and 20% discounts this year. There are many mainstream brands participating in low-price promotions, and the profits of enterprises have shrunk significantly.

 

At the same time, the expensive rents in home furnishing stores further thinned the profits of panel furniture companies. According to industry sources, a panel furniture store area generally needs to be more than 250 square meters, and the monthly rent is at least 100,000 yuan. In other words, a store must earn more than 100,000 a month to survive. It can be seen that making money for panel furniture today is much more difficult than fifteen years ago.

 

Find differences to open up the blue ocean

 

When the entire panel furniture industry is lamenting that profits are too thin, many companies have begun to look for the blue ocean. Netlier's panel furniture has gone out of a differentiated way-aiming at the 80's to create variable panel furniture. Consumers can make a variety of choices and combinations of colors, structure, and functions according to their own preferences to meet personalized needs. In Netlier's view, this variable furniture can still lead the industry for at least five years. Green Island Furniture launched three new products for different groups, such as "white-collar life", "tied vanilla hall", and "chief love" this year, in order to manage with its peers.

 

It is recommended that panel furniture companies should innovate in products, marketing, management, etc., and step out of a differentiated development path. The development concept of panel furniture should keep pace with the times, fully research and develop around the individual needs of consumers, such as providing customized services, online shopping methods, etc., and fully tap the potential of the panel furniture industry. (Editor: Peter)

 

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