March 29, 2024

Analysis of the top 10 competitions in the Chinese furniture market

With the rapid development of the furniture industry in recent years, competition in China's domestic furniture market has entered a state of super-competition. Therefore, we must fully realize that: our past success, our past effective strategies and means, in this new marketing state, may not be effective, there should be a sober and sensible; I analyze the competition in the furniture industry is divided into the following There are several major aspects for the relevant people in the furniture industry to make a reference point when making decisions:

Homogenization

In fact, in addition to furniture, regardless of various industries, there is now a common trend: homogenization is becoming more and more obvious, the degree of product differentiation and the time of differentiation is becoming more and more limited: different furniture factories have the same style, same style, same Color, some manufacturers even image packaging like twins; before you developed a new product, or had a new technology, the company's new product can be operated in the market for several years, now you have a new product, as long as the product is sold, Within a few months, competitors immediately followed up, followed by round after round of price wars; we can think of many brand factories like this, and the era of 'cottage furniture' is getting worse.

Increased overall costs and increased risks

Due to terminal intensive, channel concentration, brand concentration, and price increase of marketing elements, our company's operating costs have increased, material costs have increased, advertising costs have increased, access fees have increased, labor costs have increased, logistics costs have increased As a result, the rent of the shopping mall has increased and all these operating costs have increased.

The threshold is also getting higher and higher. The breakeven point of our regional market operation is getting higher and higher, and the risk is getting bigger and bigger. But what is depressing is that the risk is high and the return may not be high. Many furniture companies and specialty stores find that after the market hits, they look very lively. By the end of the year, they will have no money to earn.

Expansion of furniture properties

In the past year or two, we often heard from our peers that: Red Star Macalline is going to develop the market in the place of XX; the house is actually in the city of XX; Jisheng Weibang will open a business meeting in the city of XX; Ouyada is in the place of XX The land has been approved; Jimei has started construction in the city of XX; the local brand of the city of XX has started to attract investment ... . Wait, this smoke-free war is the most sad and terrifying for furniture dealers: when the sales of specialty stores grow slowly, the market is again competed, and the newly opened brand malls will not enter?

According to incomplete statistics, since 2003, housing prices have risen too fast, and people ’s calls for high housing prices have been surging, and the government has begun to strictly control housing prices in terms of macro control. In December 2009, the central government successively released real estate market regulation. signal. The executive meeting of the State Council clearly stated that 'restraining the momentum of excessively rapid increase in housing prices in some cities'. The growth rate of national real estate slowed to about 9% in the first half of this year, and the national GDP growth rate was basically the same as the government's macro control this year; The overall average sales of furniture terminal sales dropped by as much as 20% to 30%; from 2009 to now, the overall growth of China's furniture consumption is around 12%, and furniture malls have mushroomed in the past two years, and the expansion of the national famous brand furniture malls has expanded at a rate of 30% ~ 40%! (The expansion rate of some well-known shopping malls in China is far greater than this figure). The rent of furniture shopping malls has increased by 10% to 15%. The contrast of these figures is far greater than the growth rate of real estate and national economic GDP and the sales growth rate of furniture stores.

Unclear goal

The competitive advantage of any enterprise is dynamic and temporary. The competitive relationship between us and our competitors now, I think it is a close game with high intensity and high confrontation. If you are not careful, you will be overthrown by your competitors.

You have to be diligent, follow the thin ice every day, and aim at the market before you can survive.

Regardless of whether it is the owner of the furniture company or the marketing manager, I have always conveyed this message to me, saying that even dreaming is thinking, what should I do next. In the past, many bosses told me that when they were doing business, they all walked the way, the snake walked the snake road, and went their own way. Can it work now? How do you go? You have to stare at your competitors and see how he goes. The game is getting closer and closer. To make a decision, you need to consult many peers and seniors; whether you open a ramen restaurant or a fashion store, whether you open a large business or make a small face, there are such problems.

Export enterprises enter

In recent years, especially since the anti-dumping of furniture, coupled with the financial crisis of the previous two years, the impact on foreign furniture companies is very obvious. These manufacturers quickly realized that they couldn't rely on foreign sales completely. They had to walk on two legs and export and sell domestically. In the past two years, they started to do the domestic furniture market. Suddenly, there are many brands in the Chinese furniture market, which has made domestic marketers and distributors who have been working for many years a little strange to the concept of many new furniture brands. Of course, at the same time, the domestic furniture market share has also been partly separated.

Furniture exhibitions from all directions

From the furniture exhibitions opened in Guangdong in 1998 and 1999 to the present, it has become more and more well-known, more and more grand, and more and more large-scale; but the flow of people has increased from the beginning of the time range, but now more and more people Less, why? One reason: there are too many cities for furniture exhibitions in the short term: Dongguan Exhibition, Guangzhou Exhibition, Shunde Exhibition, Shenzhen Exhibition, Shanghai Exhibition, Beijing Exhibition, Shenyang Exhibition, Suzhou Exhibition, Xi'an Exhibition, Chengdu Exhibition, Zhengzhou Exhibition, Qingdao Exhibition ..., no wonder many people who come to the exhibition often say this: These days are so tiring! Over the past year, furniture fairs have come one by one. I do n’t know when in the country, so many furniture fairs have emerged unconsciously, and it has gradually achieved the rise of some local furniture companies ’brands.

Marketing and Planning

In these domestic areas, there is still surface competition. If your decoration height is 3 meters, I will be 3.5 meters. For example, if you ask a spokesperson, I will also look for stars. If you use an aircraft for publicity, I will use a remote control balloon for advertising; if you ask for a model, I will Please etiquette; you use Hummer hype and I use Hummer to pick up customers; you find someone to sing, I will find someone to dance ..., these are everywhere in the furniture industry, we next count the furniture industry has asked Stars: Qu Ying, Meng Guangmei, Guan Zhilin, Ge You, Gong Li, Ren Dahua, Xu Fan, Pu Cunxin, Fei Xiang, Carina Lau, Chen Hao, Fan Bingbing, Sun Li, Jia Jingwen, Sun Yue, Li Jiaxin, Chen Daoming, Fang Zhongxin, Zhang Tielin, Lu Yi, Chen Baoguo, Zhang Mi, Mi Xue , Zhang Yan, Tong Dawei, Zhou Haimei, Alpha, Yang Lan, You Haoran, Yang Zi, Zhang Yishan ... .

Regional brand competition

From 2000 to 2007, in a few years, the number of enterprises increased to nearly 70,000, and large and small furniture factories have begun to follow the big brands: registered trademarks, product development, image packaging, etc. to promote their own brands; Not small, but due to the difference in geographic space and large furniture volume, a northern distributor is a local furniture brand in the south, resulting in increased logistics costs and extended delivery and after-sales time. It began to consider whether to be a local furniture brand; also It has formed that the regional brands in the furniture market have sold well in the local area: Northern furniture companies have slowly opened brand awareness in the southern market, and southern furniture companies have slowly opened brand awareness in the northern market. Therefore, in order to maintain their market share, some large furniture brand enterprises set up branches and logistics transfer stations in the north or south of the country.

Talent competition

This is the competition that companies have at the beginning. In order to develop a set of furniture series products, they go directly to competitor companies to dig people (of course, many of them are self-jumping), and when the business owners split up, they even take away A team from one department is common in and outside the industry.

Commercial bribery

In order to enter a good furniture market and a relatively ideal position, dealers or manufacturers directly redeem the important person in charge of the property in private, and find a reason to directly ban the original furniture brand to be entered. This is also an open secret in the industry. .

The difficulties faced by China's contemporary furniture business competition environment will not be elaborated here. However, in the end, it must still be solved by a real industry master, and it is best to be an expert with a comprehensive discipline background. We must not have experts who have the spirit of dedication and precision, but also managers who are based on industry conscience and step by step. . In summary, I personally believe that in the next 3 to 5 years, with the gradual transfer of the furniture industry and the national macroeconomic background, the Chinese furniture industry will usher in the second period of rapid development. This period is mainly not in the expansion of quantity, but in the improvement of quality. The furniture industry will also face new challenges in the next five years. The supply of wood and other furniture raw materials is tight, the price of energy and transportation is increasing, the requirements for environmental protection are strengthened, and the lack of technical personnel and management personnel will be a limiting factor for the development of the industry. . Therefore, the key to applying high and new technology to transform traditional industries and transform the growth mode is to improve the quality of product and marketing innovation.

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