The survival rule of furniture enterprises in the era of meager profit

The survival rule of furniture enterprises in the era of meager profit

Exports have been blocked for several consecutive years, and more furniture manufacturers have turned their attention to the domestic market. At this time, the domestic economy continued to slump and the influence of real estate regulation and control, the consumption of first-tier cities was obviously suppressed, so many enterprises rushed to the second and third tier cities. However, the expansion of the "Great Leap Forward" has made the competition in the second and third tier cities quickly enter a white-hot stage, and the consumption tension is obviously insufficient. According to industry insiders, the furniture industry has inevitably entered the era of “micro-profit”, and competition has intensified. The survival of the fittest is beneficial to the furniture industry in the long run. However, specific to furniture manufacturers, on the one hand, meager profit, on the other hand, cost Continue to rise, how should they deal with the "low profit" era?

Clear positioning

In the fierce market competition and the homogenization of products, furniture companies must clearly define their own positioning and make a distinctive product and brand culture in order to stand on the market in an invincible position. Give yourself a clear positioning and know whether you are going to the high-end, mid-range or low-end route. If you have the direction, you can go right in this direction. Otherwise, the position of the non-native positioning in the market will be very embarrassing.

As the saying goes, "The water is flowing low, people go to the heights." Nowadays, many furniture companies are eager to move and start to take the high-end route. They hope to have their own place in the high-end market. As far as the current situation is concerned, there are not many successes. Many companies are “losing their wives and folding their soldiers.” If you just want to run, you will naturally lose it. If you don’t have good product quality, you will stare at the high-end market. Nature is not a must.

In addition, some companies have been seeking to enter high-end stores to upgrade their own worth, but this is not necessarily the best way to survive in the meager profit era. The data shows that a large domestic shopping mall opened more than 40 stores in 2010, and the number of newly opened stores in a year is the total number of previous historical periods. Seeing such a rapid expansion, you must think that the furniture industry is booming and prosperous, but it is not. The expansion of the store pushed up the vacancy rate, and the “channel hegemony” also prompted the store rent to “take off”. "For example, the previous monthly rent of 200 square meters is 20,000 yuan, and the profit is 500,000 yuan. Now the monthly rent per 300 square meters has risen to 40,000 yuan, and the profit is still only 50,000 yuan, sometimes not even enough." The common phenomenon is that dealers sigh for a year and the profits are not increasing.

Brand king

Zhang Chuanxi, executive director of the Chamber of Commerce and Industry of the National Federation of Industry and Commerce, said that in the environment of increasing products and fiercer market, consumers are most expecting products with high quality and low price. The price/performance ratio is the focus of their attention. In this era of eyeball economy, the first thing that can win the favor of consumers is the popularity of the product. If it is known, it will have the influence of the brand, without the influence of the brand, and it will not become a well-known product.

In recent years, the brand of furniture industry has become more and more popular, and brand awareness has gradually awakened. Red dot furniture, Senbao furniture, left and right sofas and other companies have also begun to explore on the road of brand. Liu Jingwen, chairman of Red Dot Furniture, said that after the continuous baptism of the market, Red Dot Furniture is increasingly recognizing the value of the brand. In recent years, Red Dot Furniture has begun to start from the selection of raw materials, product quality, style and crafts. Kung Fu, paving the way for the brand road. The hometown of Moriburg also took care of young children from a perspective of holding a system of “solid wood furniture and youth personality shaping” theme forums and other activities, all of which illustrate the awareness and determination of furniture branding.

Consumer brand

Guangdong Furniture Association Secretary-General Jiang Dehui said, branding the ultimate goal is profit and ran to go, we all know that raw materials, rent hikes and human costs, product margins shrink, if it does not add value to products by brand, The profit margin of the furniture industry is difficult to guarantee. The current furniture industry is not a huge profit industry in people's impressions. The competition has reached a feverish level. If you do not rely on brand influence, it is quite difficult for furniture companies to survive in today's market environment. At this stage, who has the courage to feed back a small amount of profits into branding, and when brand value-added plays a role in the market, it is time for brand investment to pay off.

“Now many furniture manufacturers have realized that furniture companies must be branded as mass consumers. In this respect, Red Apple Furniture has set an example.” Jiang Dehui said that in the past, furniture companies were keen to be industry brands to attract distribution. Join and serve the dealers. However, with the intensification of competition in the past two years, small and micro dealers are dead and dying. It can be expected that in the next three to five years, the distribution model will be more concentrated, and the development of the scale of the furniture industry will be directly For the end consumers, directly establish their own mass consumer brand image.

Jiang Dehui said that not all furniture companies realize that they will do this. To do this, enterprises need to have the vision of "small and small profits." He also said that in fact, the development of the furniture industry into the era of low profits does not need to be overly panic, just do what you should do now will be able to stand firm. Because any industry develops into a mature stage, it will enter the era of meager profit, and the era of violence in the furniture industry is gone forever. Enterprises need to be flexible in responding accordingly.

Body Lotion Packaging Tubes

Body Lotion Packaging Tubes,Tube For Body Lotion Packaging,Body Lotion Plastic Packaging Tube,Body Lotion Packaging Aluminum Tube

Yangzhou Guanyu Plastic Tube Co., Ltd. , https://www.tube-packaging.com