Inside and outside the furniture, the injured company is looking for transformation and innovation.

Under the global economic downturn and the double-sided attack on domestic real estate regulation , the days of furniture companies are really bad. In order to get rid of the decline in performance, furniture companies are also looking for new ways. Export-oriented furniture companies have changed their direction to domestic sales. In order to find new profit growth points, some furniture companies are looking for innovation in the sales model, hoping to gain a share in the e-commerce field.

Export to domestic sales

Furniture is a typical export-oriented industry, with annual exports accounting for nearly one-third of the total. However, with the global economic downturn, coupled with rising raw material prices and labor costs, manufacturing advantages have gradually weakened, and furniture exports have been hit hard. Under the influence of factors such as the decline in overseas orders, foreign anti-dumping policies, and expectations of RMB appreciation, some furniture companies engaged in export business in the Pearl River Delta and the Yangtze River Delta have turned their main markets to domestic sales.

The insiders pointed out that the advantage of export-oriented furniture enterprises lies in the huge production scale and efficient production and processing capacity. In the face of the decline in overseas orders, enterprises can choose to produce OEM products for local famous brands or imported brands sold in China. Since the demand for these brands is generally large and the sales volume is guaranteed, the transformed furniture enterprises can give full play to the advantages of production capacity.

However, there are joys and worries. Export orders usually require each pen to be profitable. However, after switching to domestic sales, furniture companies need to open up the market. In the market cultivation period, they have to invest mainly, so that the furniture enterprises that export to domestic sales are short-term. It is difficult to benefit. The products exported are mainly designed for the needs of overseas consumers. After turning to the domestic market, it is very likely that there will be unacceptable conditions and it is difficult to cater to the preferences of domestic consumers. Therefore, domestic furniture companies have to change product designs to cater to the needs of domestic consumers. In addition, the regulation of the property market has affected the total demand for domestic furniture, which has made the furniture enterprises have a hard time. After the export furniture is squeezed into the domestic market, it will undoubtedly make the competition in the domestic furniture market, which was originally sluggish, more intense.

Fortunately, from recent data, furniture exports have shown signs of recovery. According to customs data, the export growth rate in May rose sharply from last month, up 15.3%, an increase of 10.4 percentage points from the previous month. The export growth rate of light industrial products accelerated sharply. The export value of furniture in May increased by 55.9%, and the growth rate increased by 33.6 percentage points from the previous month.

Minister of Commerce Chen Deming said that although China's import and export data has rebounded in May, the trend is still to be observed. Affected by factors such as the European debt crisis, China's foreign trade situation is still relatively grim.

The data shows that one of the 12 furniture listed companies suffered losses last year, and the net profit of six companies declined year-on-year; the performance of the first quarter of this year showed an accelerated decline, four companies suffered losses, and the net profit of nine companies declined year-on-year. Judging from the semi-annual performance forecast, as of now, there are 8 companies that have announced performance forecasts. One of them is uncertain, one company has lost money, two companies have been reduced, and four companies have increased slightly.

Entering e-commerce

In the face of the sluggish domestic furniture market, the sales of major furniture companies in the first half of the year have shown varying degrees of decline. Many domestic brand furniture companies have to adopt “closed shop” measures to reduce expenses, while some enterprises have started to move. The idea of ​​opening an "net shop". The reporter learned that Tesco Mall, Jingdong Mall and other e-commerce platforms have attracted many furniture brands such as Qumei Furniture, Nick Aijia, Federation, Disney and so on. In addition to selling in Tmall Mall and Jingdong Mall, Nick Aijia will also enter the Aibo Chaos Line Experience Hall and undertake rental business in the Bangjia rental store. And the purchase of furniture is not only sold through Tmall Mall, but also established its own online shopping platform website.

Like the physical store, the furniture on the e-commerce platform is a big price war, and the discount is attractive. However, China Securities Journal reporter found in the e-commerce platform such as Tmall Mall and Jingdong Mall that the sales of furniture are not very optimistic. Except for a few products, the sales of most products are low, and the sales are better than the products with high discounts. According to industry insiders, these behaviors of furniture manufacturers are actually only changes in sales methods, and they are still fighting price wars, and the final result of price wars will undoubtedly reduce the profits of furniture manufacturers.

In addition, Red Star Macalline will also enter the e-commerce market, its e-commerce platform "Hongmei Mall" will be launched in the near future. At the same time, Red Star Macalline e-commerce strategy is also exposed for the first time: the existing merchants and brand resources of Red Star Macalline will be transferred online, and online merchants will be expanded through e-commerce service providers, including the best-selling products of Tmall Home Furnishings. Will gradually introduce Red Beauty Mall.

It is understood that in recent years, China's e-commerce has developed rapidly. The 2010-2011 China E-Commerce Development Report shows that the total domestic e-commerce transactions in 2011 reached 588 million yuan, a year-on-year increase of 29.2%. The insiders pointed out that the current number of e-commerce companies is growing rapidly. In view of the e-commerce market economy revenue, the number of enterprises growing and the scale, e-commerce development is the general trend. However, as the e-commerce competition enters the stage of incandescence, the survival of the furniture e-commerce platform will be under pressure and there will be polarization. Coupled with too many "brands" of online branded store products, it will also hinder the development of furniture companies.

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