How do the turbid enterprises in the furniture market break free from homogenization?

The homogenization of products is serious, and the design lacks innovation. This is the development dilemma faced by China's furniture enterprises in the current survival and development. How to highlight the encirclement and become the gap in the transformation, speed-up and leap-forward development of various enterprises. In what ways can we get rid of homogenization competition, break free from the “homogeneous” muds, and quickly lead the development of peers?

With the rapid development of China's overall economy, the number of employees in various industries has increased greatly, the number of enterprises has risen sharply, technology has been continuously improved, equipment has been updated rapidly, and service and quality have rapidly increased. The furniture industry has also ushered in a new round of rapid development. However, the competition situation in the domestic furniture market has completely entered a fiery hyper-competition. After the active economy promoted the all-round development of society, what followed was the bottleneck of development in the fierce competition - product homogenization. In fact, not only the furniture industry, but also all other industries have a common trend: the phenomenon of homogenization is becoming more and more obvious, and the degree of product differentiation and differentiation time is becoming more and more limited.

The products, styles and colors of products produced and sold by different furniture companies are exactly the same. Some enterprises even have image packaging like twins; before the company developed a new product or new technology, its new products can be operated in the market for several years. Now, once a company's new products are sold in the market, in a very short few months, a large number of follow-up competitors will flock to it, followed by rounds of price wars. The era of cottage furniture has become more and more fierce.

What factors have led to this embarrassing situation? Xiaobian believes that the main reasons are as follows:

Increasing overall costs and increasing risks

The costs associated with raw materials, production and sales are rising, the overall comprehensive cost is rising, and the market threshold is getting higher and higher. The break-even point and key value of the regional market are higher and higher, and the risk is higher. getting bigger. As a result, the risk awareness of the company is constantly improving. As the company develops a new series of products, it needs to invest a lot of money in the early stage, and the whole cycle from research and development to launching the market is relatively long. Moreover, new products may not be successful after they are listed, which also has certain risks. Sex, small and medium-sized furniture companies dare not have the capital to take the risk, they would rather take the follow-up and imitate the hot-selling new products of large enterprises, and make a fortune, and then form a severe market homogenization phenomenon.

The entry threshold for the furniture industry is too low, and the market situation is turbid.

Another main reason is that the entry threshold for the furniture industry is too low: in terms of venture capital, some can only open a furniture factory with a cost of more than 100,000 yuan. If the capital of the venture construction can reach millions, basically you can get the qualifications of some big manufacturers. At the same time, from a technical point of view, enterprises have lower requirements on the technical level of employees, such as sofas, swivel chairs, glass coffee tables and other products. Small enterprises only need several people to process and produce products in dozens of square meters. In addition, the industry has not yet formed a standard to measure whether the company can enter the industry's threshold from the aspects of capital, scale, quality and facilities. Therefore, the entry barrier has become an important factor in the homogenization of the industry. In the past few years, the domestic furniture industry is in a period of rapid development and prosperity. Under the circumstance of market demand and price soaring, furniture companies of all sizes have sprung up, however Many small-scale enterprises that have just been released do not have the functions of independently developing design, marketing, service, reputation, etc., but rely on blindly copying the follow-up, in order to scrape a piece of cake, which leads to the entire furniture industry. Homogenization has intensified.

"Butterfly change" - seeking differentiation to break through the homogenization situation

In the era of homogenization, China's furniture industry has not only homogenized products, but even technology, equipment, marketing management, service strategies and other aspects have begun to enter the era of homogenization competition. When there is homogenization competition between products and markets, competition among enterprises will often evolve into a “price war”. The result of price wars is very cruel, and can even lead to a reshuffle of the entire industry. However, how can our furniture enterprises “butter change” from “homogeneous” silt? This is a major issue that has a bearing on the future of the industry. It is worthwhile for each of our practitioners to work together and deepen the province. Need to find a way to break through – by seeking differentiation to get out of the homogenization dilemma.

In today's highly homogenized products, marketing, channels, markets, etc., if we do not find a breakthrough in the homogenization of the shadow, eliminate the homogenization of various channels and develop a "differentiated" strategic policy, so as to embark Differentiate the road of brand building, otherwise our company is very likely to be cleaned out in the wave of industry reshuffle. Furniture companies can only break through the homogenization situation by improving product quality and service, winning by superiority and taking their own high-end brand routes.

In the early stage of design and development, companies need to continuously improve their brand influence, enhance the originality and novelty of their products, enhance the value of products and extend the life cycle of products. This requires enterprises to increase investment in design and development. Set up its own professional design team, or adopt a model of cooperation with academic institutions and professional design institutions to avoid homogenization of product design and form a new and differentiated product route for enterprises, such as Shenzhen Bosen, a representative company in the south. The LD series products jointly created by furniture and Tuoba Furniture Design Co., Ltd. in 2008 have been very popular since the launch of new products, and have become a model for many small and medium-sized enterprises to follow.

At the same time, enterprises and designers can also develop research and development thinking. Many designers who are engaged in design work in the front line of enterprises should have a deep understanding. The traditional single linear design thinking can no longer meet the product innovation needs in the new market environment, and needs to break the traditional thinking. With the limitation of institutional space, expand the scope of design, grasp the design value from the strategic level, and establish the design thinking method of service innovation, so as to form systematic cognition on the service value and service demand consciousness and method, and construct a new systemic Methodology--Service innovation design, that is, R&D design not only pays attention to products, but also pays attention to users. It truly makes design innovation from the perspective of service, breaks the tradition and stands out.

In the production and processing stage, enterprises can improve product quality by introducing professional technical talents, updating processing equipment, improving raw material quality, and strengthening product testing, so as to form a high-quality image in the market and consumers, leaving a good reputation. It lays a solid foundation for the survival and development of the company and also provides a reliable guarantee for the later sales service. In addition, it can also assist dealers to take the brand route by strengthening store design, sales management, talent training, promotion and other aspects in the marketing process.

However, the fundamental of differentiation is the core competitiveness of the enterprise, that is, what kind of products the enterprise is best at. In fact, the difference between differentiation and originality is not the same. The most important thing in the manufacturing industry is to make the products better. Therefore, the positioning of furniture enterprises on the road of differentiation must be accurate, and can not be relegated. For example, if a company produces products that are good for sale, it is not necessarily good to sell a product of the same quality and the same amount, or it is equally popular when it is placed in other people’s shopping malls. This means that people may be Differentiated strategies such as business philosophy, corporate culture, credibility, and service functions on the differentiated route are superior.

As we all know, there must be many commonalities in the same industry. Whether it is product design, marketing methods, operating procedures, etc., there will be homogenization. However, in today’s highly homogenized, especially in the period when the furniture industry is facing severe challenges and challenges, we Every enterprise should establish its core culture, core products and core connotations. Others can only imitate the form of products and methods, and its intrinsic quality and deep cultural heritage cannot be imitated at all. These are furniture enterprises. Seeking differentiation and getting out of the core competitiveness of homogenization and real “butterfly change”.

[Every time I see this box, I feel very, very, happy, and it is like a huge candy, and its colors seem to lead me back to my happy childhood"a customer said to Miss Zhang, who is in charge of the designing. [When I open the box, I find the box is full of candies. It is the best gifts I`ve ever received, and the packaging is that interesting and cute" ,she continued.

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ANSHAN JIASHUN ARTS AND CRAFTS CO.,LTD , https://www.jhwls.com