New challenges for furniture companies in 2011: supply exceeds demand and consumers are becoming more rational

The main theme of the national policy in 2011 is to expand domestic demand, boost consumption, steadily advance the urbanization process, curb excessively rapid rises in housing prices, and increase the construction of low-rent housing and affordable housing. Judging from this general environment, furniture, as a large number of durable consumer goods, this year's market demand will continue last year's development, the overall trend is more optimistic. However, opportunities and challenges are at the same time. How will the Chinese furniture market change in 2011? What challenges does the company face? The reporter interviewed Zhu Changling, chairman of the China Furniture Association.

Capacity is greater than market demand

Zhu Changling, chairman of the China Furniture Association, pointed out that the renminbi will continue to appreciate, and the pressure on enterprises will continue to increase as labor, transportation, and material costs continue to rise. In the face of cost pressures from all quarters, it is difficult for companies to raise product prices. Because the production capacity is greater than the market demand, the price increase will only lose some customers. 'In 2011, a group of SMEs will be struggling. Although the market is good, your products will not be sold.'

Overcapacity is one of the reasons why furniture cannot be sold. In recent years, the market construction of the furniture industry has been relatively rapid, and the market area has increased significantly. The expansion of stores has made competition in the domestic market more intense. Due to the large amount of social funds and working capital, the number of furniture dealers increased and the number of dealers entering the stores increased, so the stores also increased, which caused the prosperity of the stores. However, the increase in dealers does not mean that there is so much market demand. Facts have proved that the growth of market demand is not as fast as that of stores.

In addition, 'The real estate situation in 2011 will also have a greater impact on the furniture industry. 'Zhu Changling pointed out that this year the government will continue to introduce policies to curb rising housing prices and crack down on speculators in the market. Although it is a fight against speculative buying, the overall sluggish real estate market will also reduce consumers' desire to buy a house. 'However, opportunities are accompanied by challenges, and the country's policy of increasing affordable housing will give the market a room for growth in 2011. 'Zhu Changling said.

Consumers are becoming more rational

In terms of terminals, current consumers are increasingly calm and rational. If there is no comparison, you will not easily pay for it. 'The market in 2010 was not good. We have been looking forward to the May Day Golden Week from the beginning of the year, however, the sales are not as good as we imagined. We are looking forward to the coming of the 11th National Day, but waiting for a National Day that is colder than ever. Holiday promotions are getting harder and harder to do. 'Lecong sales staff in a furniture store complained to reporters.

The reporter interviewed some consumers. They said that they are now raising prices, their daily expenses are getting bigger and bigger, and they have no spare money to buy furniture. Zhu Changling said that under the general environment of consumer inflation, consumer behavior will be more rational. As a result, the ability of low-income households to purchase furniture is reduced, and their desire to buy is reduced. In 2011, furniture sales may experience a low tide.

However, this low tide is mainly concentrated in the low-end market. High-end furniture is not greatly affected by the market. Zhu Changling analyzed that now consumers are increasingly pursuing famous brands, and no longer takes price as the sole guide. The service quality, brand awareness and reputation of products are more important factors for consumers. This is full of challenges for the furniture market where Volkswagen brands are missing.

Furniture safety production requires higher

In addition, Zhu Changling told reporters: 'Now the overall society and the world have higher requirements for the safety, health and environmental protection of furniture, not only requiring product environmental protection, but also requiring production safety. '

Hidden dangers in production safety have always been a major problem for furniture companies. Recently, the reporter took advantage of the interview to enter the production workshop of a factory in Longjiang. From opening, drying, tenoning, assembling, painting to packaging, dozens of processes are carried out in an orderly manner. However, in the dozen minutes the reporter visited, a pungent smell was very uncomfortable. According to its staff, because many boards are pressed with wood chips, layers of adhesive will be applied during the pressing process. Formaldehyde is generally present in adhesives. The uncomfortable smell is the smell of formaldehyde. This is how the product formaldehyde exceeds the standard. 'Workers stay in the workshop all year round, wouldn't that cause occupational diseases? 'Faced with reporters' questions, the staff member said that basically all factories are like this.

It is understood that in mid-July 2010, the State Administration of Safety Supervision issued the "Notice on the Administration of Hazardous Substance Hazards in Wood Furniture Manufacturing Enterprises." Call on enterprises to improve the safety of the production environment. 'Whether the enterprise can improve the safety, health and environmental protection issues, to what extent, this will be related to the survival of the enterprise. Zhu Changling said.

Relevant data show that in 2010, only about 15% of brand enterprises and large enterprises had great growth. Most SMEs had stable or negative growth. The word "boil" can be used to describe the mood of enterprises last year. 'In the early stages of development, our business succeeded in ignorance, but it does not mean that ignorance will continue to be as successful. Enterprises are faced with an urgent need for upgrading and transformation. If you do not upgrade, it is likely to be eliminated by the market. 'Zhu Changling said. Speaking of how to transform, Zhu Changling pointed out that enterprises should shift from input expansion, capital expansion, plant expansion, and equipment expansion to improving labor output capacity, increasing product added value, reducing costs, and establishing a brand development model.

The current market competition is becoming increasingly fierce, and the furniture industry has entered a new development period. There are many unpredictable and unknown factors in this new period. Faced with known and unknown challenges, are furniture company bosses ready?

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