Five weaknesses that constrain the development of the furniture industry

According to market research, the increasingly fierce market competition has brought new challenges and opportunities to the furniture market. In addition to the expansion of capacity, the furniture market is gradually showing the development characteristics of product diversification. However, with the development of the industry, various existing problems are increasingly presented, and will hinder the further development of the industry.

First, business management issues

Everything is done by people, from the development of the most upstream patients to the sale of products at the terminal. In terms of large-scale research and development, some people say that there are not many engineers in the furniture industry who have independent innovation capabilities, and more are products that are improved. Therefore, enterprises lack core technology products. In terms of management, the furniture industry is still in the primary management stage, lacking. Management talent.

The furniture industry is a traditional manufacturing industry, and its technical requirements are not high. So far, the folk "carpenters" still play a leading role in furniture manufacturing in economically backward areas. Many furniture companies have come from such workshop-style furniture manufacturing, and then gradually expanded their scale and added machinery and equipment. It is because of this way that some furniture companies are very extensive in management. The extensive management method leads to the lack of pertinence, operability and execution. The organizational structure and function positioning of the enterprise cannot be reasonably clear, the management level is more, and the management efficiency is very low.

The competition of furniture companies is reflected in the competition of details, and the nuances show the effort. The details affect the quality, the details reflect the taste, the details show the difference, and the details determine the success or failure. The precious value of detail lies in creativity and is unique. In modern society, people are pursuing higher and higher, and the furniture market pays attention to fine management. The details often reflect the professional level of the enterprise, highlight the inherent quality of the enterprise, and improve the product quality of the enterprise.

Second, a single sales channel

At present, furniture is mainly sold through the furniture market, building materials market, and specialty stores. The operation mode of franchise stores is the direction of furniture chain management. At present, Chinese furniture manufacturers generally adopt the franchise method for the needs of brand marketing. This is a direction, but due to the lack of effective operation methods, the real success is not a lot; due to the lack of stronger distributors, many furniture The product cannot penetrate into the second and third tier markets, resulting in heavy reliance on home sales for sales and the inability to achieve faster development.

Third, the cost of furniture

In the first half of this year, the price of timber has increased by 30%, and the prices of raw materials have continued to rise, especially for plates, sponges, paints and hardware accessories. According to statistics, China’s total timber imports in the first quarter of this year have increased significantly, with a total import volume of 7.7 million cubic meters, totaling more than 130 million US dollars, an increase of 37% in both quantity and total amount compared with the same period last year. 60%. In the rise of raw materials, the price of furniture raw materials has been running at high levels for many years. Domestic furniture companies are currently facing the dilemma of rising raw material prices and imported furniture wood. For many furniture companies, how to reduce procurement costs is a big problem for them.

The most effective way to reduce procurement costs is to purchase in bulk, obtain relatively low raw material purchase prices with larger purchases, and establish satisfactory partnerships with suppliers to shorten procurement intermediate channels and reduce costs. In addition, you can reduce the loss of raw materials by increasing the utilization rate, or seek new low-efficiency materials as a substitute.

Fourth, homogenization problem

At present, furniture has entered the Red Sea competition in many aspects such as raw materials, technology, technology, design, packaging, terminal display, shopping guide, promotion, etc. The homogenization is quite serious, and each other plagiarizes the design styles of the same industry. The price war, the promotion war, and the advertising war come and go. However, in terms of product design and development, there is a lack of leading design ideas and concepts, lack of excellent design teams, and unwillingness to invest in basic research and development, resulting in a thousand stores, product styles are similar, and the design style is like a phenomenon, resulting in The added value of the product and the brand image are not high, which affects the further sustainable development of the company.

The product has a short life span, rapid replacement, and lacks classic, best-selling, and long-selling products. A product is often only available for six months from the time of listing to the next. Compared with some international furniture, it is often prosperous in the market, while Chinese furniture products are generally not retained in the market for a long time. The reasons are blind development of domestic furniture companies, lack of R&D management and system planning, Guide the market.

Fifth, regional restrictions

There are a number of national brands in the furniture industry, but there are also many regional brands. Due to geographical or financial constraints, these brands need to consume a lot of manpower, material resources and financial resources from regional brands to national brands.

Up to now, many companies in the furniture industry have broken through the region to expand on a large scale. Furniture companies continue to infiltrate into the interior, breaking the regional restrictions to a certain extent, and regional brands have effectively penetrated the national market. However, the national market layout of most furniture companies is only extensive, and only stays at the "point". In Chengdu, Beijing, Shanghai, Guangzhou, Chongqing, Qingdao, Fuzhou and other cities, it sells well, but other regional markets appear to be more difficult. The extension of county and township networks in key markets needs to be further strengthened.

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