The traditional furniture industry is facing the impact of the Internet, and it has only just begun in winter!

After the first two years of solid wood furniture fire, various brands have also developed solid wood product lines, and the major stores have also concentrated on expanding the proportion of solid wood furniture, European and American furniture museums have also opened. With the development of the economy and the improvement of consumption levels, solid wood furniture has become more and more popular, which has led to the elimination of panel furniture. This is the judgment of the industry ignorant, custom furniture belongs to the subcategories of panel furniture, custom furniture The popularity of the year indicates that consumer demand is evolving to a personalized one, which is the future trend of the entire industry.

Solid wood furniture has always belonged to the high-end niche demand in the furniture industry. From the characteristics of expensive wood furniture (such as mahogany, rosewood), monotonous style, and difficult to make styling, it does not meet the trend of fashion consumption of the young consumers. It is generally loved by middle-aged and old customers. Not getting more and more popular. In fact, most of the so-called solid wood furniture promoted by merchants today is fake solid wood furniture, that is, the furniture surface is covered with a layer of solid wood veneer or the frame is solid wood furniture. The so-called solid wood furniture is more and more popular because of solid wood furniture. In the consumer's perception, it represents environmental protection and safety, and the banner of solid wood furniture can attract more users. The veterans boldly predicted that if the furniture industry had the next collapse, it would be the fake solid wood furniture, because they still could not solve the contradiction between the consumer demand and the supply chain.

Foshan furniture companies posted notices at the door of their factories and closed down, and this is just one of the collapses in the Guangdong furniture industry. Since the beginning of this year, not only many small and medium-sized furniture companies have not received orders, but some well-known brands have also been rumored to be on the verge of bankruptcy. Huayuanxuan, a panel furniture brand that failed to attack the IPO twice, was also thrown away by a large amount of funds, causing its supply chain to break. Although Huayuanxuan denied the bankruptcy, it admitted that there was a “funding dilemma”. At the same time, Fuzhidao Furniture, which was ranked in the forefront of the Shenzhen furniture industry, also reported that its production line workers had stopped working due to arrears of about 10 million yuan in wages. Prior to this, Shenzhen Huaren Industrial Co., the parent company of the well-known brand “Bailan Mattress”, posted a notice on the door of its factory and declared that it had closed down. The announcement said that due to the current sluggish real estate industry, the furniture enterprises were in a difficult situation and suffered more. In terms of influence, Huaren Company suffered serious losses due to poor management and management, and only chose to close down.

The same days as furniture brands are not good at home sales in the circulation, they are not good this year. According to media reports, in the investment conferences of the furniture malls such as Red Star Macalline and Real Home, they never had to pull up dealers. But this year, dealers are basically not profitable, and these malls have begun to show their enthusiasm to dealers. There are indications that the furniture industry is welcoming an unprecedented winter. According to the data of the Ministry of Industry and Information Technology, in the first half of 2014, the main business income of China's furniture manufacturing industry was 328.21 billion yuan, a year-on-year increase of 12.9%; the total profit was 17.63 billion yuan, an increase of 17.3%; the total tax revenue was 9.88 billion yuan, an increase of 15.0%. Far below the average of more than 30% in previous years, for the entire furniture industry, if the real estate market can not pick up, perhaps winter has just begun.

Why are they falling?

As a pillar industry of the national economy, the real estate industry has a very long industrial chain and involves many industries. This round of macroeconomic regulation and control, the real estate industry has already seen a turning point. In August this year, the real estate sales area fell again by 12.4%, the real estate sales area in the first 8 months. The decline was 8.3%, and the growth rate of real estate investment also slowed for several months. As a downstream industry in the real estate industry, the home industry is the industry that can feel the warmth and warmth of the real estate industry. The downturn in the upstream real estate market is clearly the most direct cause.

In addition to the downturn in the housing market, the industry's own problems can not be ignored, this round of bankruptcy mainly appears in the category of finished panel furniture. In that year, plate furniture was popular, and all the big stores were the world of panel furniture. The reason for the hot sale is that the style of the panel furniture can be shaped and the colors are diverse, which can meet the needs of young consumers with fashionable and beautiful furniture. In the media reports, the reason for the closure of the finished furniture was blamed on the oversupply of panel furniture and the homogenization of products. This actually only sees the appearance of the industry, and it reflects the collective dilemma faced by the traditional industry in the entire B2C era, that is, the huge conflict between the consumer demand and the supply chain.

The current finished furniture industry is very similar to the apparel industry and is a high inventory industry. The products are not customized according to the needs, but the company organizes the supply chain to produce the products according to the previous sales performance and the prediction of the future consumption trends. The result is that the enterprises need to undertake huge procurement, warehousing and inventory. Equal cost. When the market environment is good, the supply of products is in short supply, and the contradictions are not prominent, but when the market environment deteriorates, the blindness of this model is exposed. The supply chain is still organizing production, the storage inventory costs are rapidly accumulating, the capital chain is continuously exhausted, and the front-end consumer demand is drastically reduced, eventually overwhelming the entire enterprise.

The huge conflict between consumer demand and the serious deviation of the supply chain is only one of the reasons. The more important reason is that enterprises fail to adapt to the rapidly changing consumer demand. In the past few years, due to the continuous growth of the upstream real estate market, the finished furniture industry is also in a period of rapid barbaric expansion. When the company is in rapid growth for a long time, it will lose its basic judgment on the market. The change in consumer demand is manifested by ignorance and even Indifference, failed to adapt to the trend and timely adjust product and marketing strategies.

In the past few years, the furniture industry has emerged a new category, custom furniture industry. This industry is representing a revolutionary trend in the industrial age of shifting from manufacturers to consumer rights, namely C2B. Contrary to the finished furniture category, it is customized according to the needs of consumers and produced on demand, which reduces the cost of inventory storage and transportation. In addition, because the products in this industry are tailor-made and unique, once sold, they cannot be returned. Therefore, the general rule of the industry is that customers must pay the advance payment first, which ensures the stability of the capital chain. Customized furniture can best impress consumers. Style, color, size, price, etc. can be customized according to the requirements of consumers. This is an incomparable advantage of finished furniture in the industrial age. Custom furniture is the iconic industry in the C2B era. For the first time, it achieved the replacement of consumer rights. The result is that the custom furniture industry has occupied more than 20% of the furniture market in just a few years, and this proportion is still rising rapidly. Among them, the industry leaders such as Shangpin Home Furnishing have maintained a high-speed growth of more than 50% for many years. This is a victory in the C2B era.

This time, the collapse of the furniture industry also reflected the fragility of traditional furniture companies in the operation of channel construction and management, marketing networks and other operations. As an industry insider said in an interview, “Because in the first- and second-tier cities, many brands rely more on the dealer’s own operations. The services provided by the headquarters to the dealers are limited. Even when the company opened, no one passed. In the field, there have been some cases where the market has not gone to a business manager for three years." On the one hand, the company is seriously lagging behind in channel construction and management. On the other hand, it has failed to comply with the migration of household consumers from offline to online. The flow of traditional home store channels is gradually being eaten by the Internet. This is already undeniable fact. In order to continue to develop in the future, home furnishing enterprises must restructure their sales channel system and establish a new channel system that can adapt to consumers and e-commerce platforms. To cultivate a group of dealers who can embrace the Internet and the company can adapt to the development trend of e-commerce should become the long-term strategy of the company.

As for the dilemma faced by the traditional furniture industry today is the collective epitome of China's manufacturing industry. Without the Internet, its predicament may come later. The arrival of the Internet era has accelerated the reshuffle of this industry. This ancient line needs too much change, and the core of this change is the return of carpenter spirit, respecting users, and maximizing products to meet the individual needs of each user.

The article is edited by http://sz.gojiaju.com/Suzhou Home Network.

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