Efficient and low-cost processing is the death of furniture export

As a continuation and derivation of the 2008 financial crisis, a new round of crisis has now arrived, bringing new difficulties to various industries around the world. The dilemma of China's furniture export is the projection of this international situation in the industry. Therefore, in order to solve the difficulties of furniture export enterprises, it is necessary to discuss it in the overall situation of global development.

European and American consumer overdrafts make it difficult for China to export

The new round of globalization crisis is rooted in the excessive overdraft caused by excessive consumption in developed countries in Europe and America. This kind of advance overdraft is mainly based on mortgage loans. It penetrates into every corner of the market in developed countries in Europe and America. While promoting market prosperity, it also accumulates huge hidden dangers. From the insolvency of the Icelandic government to the foreign debts of Greece, Britain, France and other countries exceeding 80% to 100% of GDP, the reasons can ultimately be attributed to advanced overdraft.

Developed countries in Europe and the United States will not hesitate to pass the hazards on to the developing countries in order to lift the danger of the overdraft. On the one hand, through a large number of international capital borrowing, financial policies, exchange rate means, the funds of other countries are plundered. On the other hand, using the advantage of money, by exporting cheap products, while depriving the profits of the enterprises of the exporting countries, it is also difficult to increase the export of other countries through anti-dumping in order to obtain greater benefits. Because the deep problem of advanced overdraft is difficult to solve in a short time, the predicament of China's furniture export enterprises will be difficult to break through in the next few years.

Low-cost processing is the export of dead knots

From the scale of enterprises, production equipment, processing technology and management level, many furniture export enterprises in China are still very strong, such as Qingdao Liangmu Group, Haiyan Wood, Beiyuan Furniture Source, Dongying Shenghui Wood, etc. If it is fully loaded, the annual output value can reach more than 1 billion yuan. These companies have rich experience in exporting and have also achieved good returns.

The author has interviewed many export companies, and their consensus is that export sales are better than domestic sales. First, batch orders are easy to organize production, high efficiency, and easy to control quality. The second is the docking mode specification. In addition to being able to grasp the trade rules more macroscopically, the comprehensive quality level of foreign customers is relatively high, and the integrity is good, so there is no need to worry about the arrears of settlement.

However, corporate orders are in the hands of a few foreign merchants, which is unfavorable for the long-term development of enterprises. For export enterprises, efficient and low-cost production is the strength of the enterprise, and it is also the dead end of the enterprise. Now, the dilemma faced by export enterprises is dragged down by this export mode in some aspects. Therefore, companies need to find a new way out.

Building a brand is the only way

Most of China's export-oriented enterprises appear in the face of processing. Although the export volume is large, the profit is very low. Therefore, the central government proposed to change the export structure and improve market competitiveness. Specifically, it is to change the situation of “making a wedding dress for others”, to create an internationally competitive brand, and to expand the export market with brand strength. The export of European and American enterprises is taking the strength of the brand route, and its export is not only an extension of the strength of the enterprise, but also an embodiment of the national competitiveness. At present, some enterprises in China have also embarked on the export route of this powerful brand. For example, Haier Group's initial export is mainly based on processing, and the export price is lower than the domestic retail price. In the later development, Haier based on its own brand advantage, and developed a product based on the destination market, and switched from passive export to active export. From being recognized to being respected, it found a way to export with the strength of the brand. .

Judging from the current situation of China's furniture export enterprises, there has not been a strong brand with international influence, and it is impossible to exploit the brand strength to open up the international market. China's furniture export enterprises rely on the micro-profit model of OEM processing or export subsidies to survive. In the long run, this mode of export not only consumes domestic resources, but also does not help the furniture exports to become bigger and stronger, and is also detrimental to the development of enterprises. Export companies can only open up foreign markets if they are self-reliant and create influential private brands.

Domestic sales are heavy, taking into account export sales

In the context of the continued sluggish international market, many companies are beginning to seek to open up the domestic market. Since 2008, Qingdao Liangmu has gradually expanded its domestic market and achieved a successful transformation. Although Qingdao Pingdu Beiyuan Furniture Source Co., Ltd. maintained its export, it set up Beiyuan Yinghui Furniture Co., Ltd. to set up domestic sales and open up the domestic market. Yongyi Wood, Xingyu Wood, etc. also began to intervene in the local market.

After many export companies enter the domestic market, their marketing channels are becoming more and more abundant. For example, some companies have achieved fruitful results in the expansion of engineering single channels. For example, Rongrongxiang Wood has originally exported wooden doors to foreign countries. Now, relying on the opportunity of the country to promote hardcover houses, it has completed the supporting projects for several real estate projects in Qingdao. Haiyan Wood has also cooperated with other companies to complete the supporting furniture project of the Crown Hotel in Langzhong.

For export enterprises, it is a more secure strategy to neither abandon the original export market nor target the domestic market. After being transferred to the domestic market, export companies need a process of expanding channels and adapting to the non-standard domestic market. In this process, export companies need to make efforts to improve the brand's popularity, establish a marketing network, and adjust the product structure, in order to achieve the success of the transformation.