The export situation is grim, the furniture industry is shifting to domestic demand

According to the latest statistics from the customs, in November 2011, the exports of furniture and parts were US$ 3.988 billion in the month; from January to November, it was 33.858 billion US dollars, up 14.7% year-on-year.

However, this bright figure has not laid a strong shot for furniture manufacturers. At present, most furniture manufacturers are generally bearish on the export situation next year. The growth rate of the industry this year is expected to drop significantly from last year.

“When it was time, export sales were the dominant output of the Chinese furniture industry. In 2008, the financial crisis made many companies realize the importance of the domestic demand market, and when they turned their hair, they encountered the current adjustment of the real estate industry.” According to Yuan Weidong, founder and executive editor of "True Love? Furniture TIME" magazine, the Chinese furniture industry has concentrated almost all the problems that the industry transformation may encounter during these three years.

Chen Baoguang, vice chairman of the China Furniture Association, believes that the current economic situation is unprecedentedly complex, and that furniture companies need to spend more time focusing on research changes and constantly innovating products, operations and services in order to survive and develop.

The export situation is grim

The European debt and US debt crisis continued to spread. Strict real estate regulation and control policies such as “National Ten”, “National Five” and “National Eight Articles” followed, and domestic furniture companies were not doing well.

Du Zehua, chairman of the Federal Reserve Board of Directors, told the newspaper on the 16th that his company’s sales revenue in the past few years has increased by double digits, but this year it has fallen to single digits. "Before the Spring Festival, everyone is still stubborn, and once they enter the off-season, they may not be able to hold back." He expects that the furniture industry will have a bankruptcy after the Spring Festival next year, not only the dealers but also the manufacturers.

Luo Jiyu, executive director of Jane Eyre, who runs furniture stores in the second and third-tier markets, shares the same feeling. “Furniture sales have encountered great challenges this year, so we’ve started to settle in from December 6th. Ten percent off, and the manufacturer warmed up to tide over the difficulties."

Zhao Xiao, a professor at the School of Economics and Management of Beijing University of Science and Technology, believes that China will have the lowest growth in 10 years in 2012. “The growth in the past 10 years is no less than 9%, even above 10% on average, but it will definitely not reach 10% next year. Even the possibility of breaking 9% is very large."

“In the past, China was actually a country that gained the most benefits in globalization. We depended on external markets to survive. In the past, Guangdong took the lead in exporting the country, using the international market, and taking advantage of external opportunities.” Zhao Xiao believes that in today’s world Under the economic situation, the external developed markets have collapsed. "I still want to use the double-digit export growth to drive the growth of China's economy every year. This road has reached the end of history, and there is no such big market to tolerate."

Taking the Guangdong furniture industry as an example, after more than 30 years of development, the Guangdong furniture industry has formed industrial clusters such as Dalingshan, Houjie, Zhongshan, Sanxiang, Shunde's Longjiang, Lecong, and Shenzhen Longgang.

According to Wang Ke, president of the Guangdong Furniture Industry Association, the Guangdong furniture manufacturing industry has experienced three transformations and upgrades. "1983 is the first transformation and upgrading of Guangdong furniture industry. Its symbol is the introduction of our woodworking machinery, which has opened the pace of the production of panel furniture and the transformation of the traditional furniture industry in Guangdong. The second time was in 1999, we held an export work conference. This has opened up the process of Guangdong's furniture industry to fully expand exports. This year is also a very important part of the third transformation and upgrading, and this transformation and upgrading will be the whole industry, all-round progress."

“In the past, our exports to the United States reached 21% in 2006, and now it has dropped to 16.8%. The exports to the rest of the world have risen to 56.4% now.” Zhao Xiao believes that China’s export structure is more diversified, which is like furniture. An export-oriented industry is a big bright light in the dark.

"Inward" confusion

In fact, it is not new for furniture companies to pass "inside" from "outside". After the financial crisis broke out in 2008, it accelerated the development of this process. However, furniture companies that have been doing OEM production have to switch to the domestic market, but they are struggling to face problems such as brand building and channel construction.

In Yuan Weidong's view, the Chinese market environment has undergone fundamental changes. “From the past seller market to the buyer market, consumers have gradually become the dominant force in controlling the market. The development of information technology has fully satisfied the individualized and diversified needs of consumers. At the same time, the entry of multinational retail groups has More advanced management methods provide better customer service and retail competition on a higher platform, which forces the furniture industry to change and innovate in order to win the living space."

Wang Jianbin, chairman of Chengdu Mingzhu Group, believes that when the economic environment is not good, furniture companies should increase their investment in brands. "This is not an advertisement. It also includes education for employees and training for dealers. The improvement of product quality and efficiency are all for quality."

It is worth noting that the Da Vinci fraud incident that took place this year has caused the furniture industry to fall into a crisis of confidence. At the same time, in the channel construction, the manufacturer-store-distributor traditional furniture chain, the dealer is still the most vulnerable part. At present, more and more small and medium-sized dealers have already felt the pressure of rising channel costs. Many people are basically in a situation where they are trying to maintain or even continue to lose money.

“90% of enterprises and even 99% of enterprises are not suitable for independent stores, and they are suitable for hypermarkets.” Zhong Wenhua, chairman of Haodi Furniture, said that independent stores not only need a large brand and strong economic strength to support, but also products. Very rich, so independent stores can be built in the third to fifth grade markets, but it is very risky to build independent stores in big cities such as North, Shanghai, Guangzhou and Shenzhen.

In recent years, with the rise of e-commerce, online shopping has become another way out for furniture companies. In Taobao Mall's November 11th annual sales promotion of 3.36 billion, four of the home industry entered the TOP100 merchant order of the day, and Taobao Wood, the largest furniture brand of Taobao, has only been established for five years. It has already achieved sales of over 100 million yuan.

“The furniture industry is now in a state of dilemma, and the channel cost is so high. So many furniture companies say that they want to sell solid wood furniture, but the largest sales volume of Chinese furniture is plate type.” Wang Zhiquan, general manager of Kuba Mall, believes that with the future crowd structure The sales of changing layout furniture will become larger and larger, and because such products cannot be sold under the expensive rental cost channel, e-commerce will have an advantage.

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