Domestic and foreign sleepy furniture sales encounter bottleneck

In recent years, the impact of the financial crisis has not completely subsided, and the national real estate regulation and control policy once again brought the furniture industry into the "cold winter." Under the unpredictable and heavy resistance environment, the exporting enterprises and domestic sales companies in the furniture industry are envious of each other. It is not who is more beautiful, but whether the difficulties faced by the other side are less than themselves, thus deducting one. The furniture version of the contemporary "besieged city" story.

Domestic sales: difficult to shrink in the market, fierce competition

In the domestic market, more and more furniture companies feel the pressure of survival. Specifically, the pressure comes from two aspects.

First, the downturn in real estate transactions has caused the market to shrink.

Since the country issued a series of real estate control policies last year, the momentum of excessive domestic housing prices has been curbed. Especially in recent months, housing prices in many cities have begun to loosen. However, from the perspective of consumption, housing consumption is “buy up and not buy down”. Therefore, after the housing prices are forced to fall, the attitude of people holding the currency is more determined. This year's "Golden September and Silver 10", whether it is Beijing, Shanghai, or other provinces and cities, the housing market is sluggish, and the transaction volume is low. Even more frightening is, when will this situation continue?

For the furniture industry downstream of real estate, the “freezing” of the real estate market also means that the consumption of the furniture market is shrinking. In major home stores, more and more dealers are complaining that the market is not good, sales have dropped significantly, and some dealers have been forced to change careers. Some manufacturers are considering whether they should sell their products abroad. After all, there is no “restriction order” abroad.

Second, the competition in the buyer's market is unprecedentedly fierce.

For the current domestic furniture market in China, competition is unprecedentedly fierce. In the case of shrinking markets, the furniture products produced by furniture manufacturers have not decreased, which has led to the domestic furniture market becoming a buyer's market, and furniture companies have to compete in order to grab consumers.

With the advent of a new round of economic crisis, this competition has become more and more cruel. Market consumption is sluggish, and companies can only compete to lower prices in order to survive, and sacrifice profits from all aspects to compete for consumers. As profits are getting lower and lower, many companies can only find another way out, which is also the direct reason why some furniture companies want to change or go out.

Export: difficult to be brand-free, exchange rate risk

At the same time that domestic furniture companies feel the pressure of survival, export furniture companies are also under pressure from all sides.

Most of China's export furniture companies specialize in contracting foreign brands, producing finished products or accessories, relying on cheap labor, earning hard money. These export-oriented enterprises are strictly just foreign-order processing enterprises. They do not have their own brands. They only produce and process according to the orders of foreign customers. Most of the profits are earned by foreign buyers, and they can only earn a small part of their hard work. Money, and may have to make financial compensation to customers at any time due to production delays or product failures.

In addition to the production process, for many export companies, the most unpredictable is the exchange rate issue. Often the product is still in production, but some foreign currency exchange rates against the renminbi have changed, making the original money-making contract, and finally lost money because of the exchange rate problem. This also makes many export companies dare not take orders, only to do business with their own familiar customers.

In recent years, the renminbi continued to appreciate, the European and American economies have fallen into a downturn, and export sales have encountered greater resistance. This has forced many export companies to turn to domestic sales and plunged into the highly competitive domestic market. Objectively speaking, the difficulties faced by export-to-domestic enterprises are much larger than those of long-term enterprises in the domestic market.

Domestic companies want to go out, and export companies want to come back. Once and for all, it reflects the complex and changeable environment of the furniture industry and the international and domestic environment. It also makes the furniture people fall into meditation. At a time when the domestic and foreign markets are in a downturn, the furniture industry can only survive the unpredictable market by only practicing hard work, transforming and upgrading, and taking the road of brand development.

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