Wednesday, December 29, 2010

Furniture industry "to change" large and medium-sized enterprises will face elimination

Recently, the State administration of quality supervision, inspection and quarantine of the 2009 third batch of product quality checks quality notice shows that nearly 30% of the wooden furniture. In the "black list" of unqualified furniture, Guangdong and Sichuan furniture production number of unqualified furniture accounted to all 114 species of non-conforming products 41.2 per cent.

The pain of the "added value"

From 2007, the Chinese furniture industry profits will decline and exports face enormous pressure, has been in promotion of furniture enterprises "Shuffle". Furniture industry experts agreed that the present situation of increased competition, from many of the furniture industry in improving furniture product added value is one of the important weapon.

China furniture Association Secretary Zhang bing is of the view that the lack of big brand is currently China's furniture industry is an urgent need to resolve the problem. She said, after 30 years of development, China has grown into the world of furniture production and export power. Affected by financial crisis, international purchasing power of a sharp decline in the market of furniture. At the same time, the increase in China's macroeconomic regulation and raw material prices, the appreciation of the renminbi and other factors, domestic furniture are facing unprecedented challenges. A large number of furniture enterprises in response from the domestic and international market development pressures, started by export sales to the domestic market. In this case, the brand has become particularly important.

At present, domestic enterprises research and development in furniture design aspects are still more reliant on Europe and the United States import, industry flourishes "borrowed" this not only directly affects the originality of Chinese furniture, China exacerbate the negative image of low price competition, but also not conducive to the cultivation of their own brand.

"Chinese furniture enterprises if you want more home market in the world as it was not possible to rely on low price breakthrough. Not only to rely on high quality, original designs cannot be ignored. "Golden Fuji Corporation Executive Vice President Li said. He further stated that the peer for furniture is currently suffering from "the assault", the most fundamental solutions to improve product design, improving the product added value, and create a strong brand.

This reporter has learned from furniture Association, the Chinese furniture industry in each of the backlog of product value in the $ 30 billion to $ 40 billion. The reason on the one hand the market insufficient demand, on the other hand because most of the low grade of products, styles, unable to form the same market segment.

Mr Lee Foundation believes that the furniture products are not only limited to the value of the original product, should focus on the emotional, personalization, vitality, cultural characteristics, services, and so these can touch, stimulate consumer psychology of emotion, and obtain their satisfaction and loyalty of the value factors, these are the contents of the product added value.

To this end, Zhang bing said, in fact, the Chinese furniture enterprises still have a big space for development, such as the development of children's furniture, nursing home old furniture and eco-friendly furniture, etc. The future of China will increase its own brand and luxury furniture enterprise support, encourage and guide the furniture export enterprises to increase product development efforts, and on the other hand, the business should strive to further strengthen brand awareness.

Efficient integration of industrial chain

"The financial crisis is forcing Chinese manufacturing and continuously improve the internal management. "Del floor Beijing company General Manager, Elisabetta Canalis so told reporters that trade boycott, policy issues from tight so that China's furniture industry activalization extraordinarily difficult.

Elisabetta Canalis, for example, a normal Chair, in Dongguan production cost is $ 9, this Chair to sell $ 10 to the Hong Kong businessman, Hong Kong businessman then changed hands for $ 20 price of selling it to the world's largest retailer, Wal-Mart, and Wal-Mart to chair list price of $ 40 in the United States market. "Made in China" by going into the United States in the millions. In the industrial chain, Wal-Mart to make $ 20, Hong Kong businessman earned $ 10, and Dongguan factory earned just 1 dollar processing fees.

Over the past 10 years or so, the Chinese furniture industry has been in a number of expansion stage, consisting mainly of small but numerous enterprises, these factors have hindered the development of enterprises.

Experts forecast that China's furniture industry in the next five to 10 years will experience a large range of consolidation, a large number of SMEs will be eliminated a few excellent businesses will depend on the brand, size, and other advantages of the AO Foundation. "Chinese furniture enterprises can no longer walk mainly at the expense of resources, the old way must promote their brand towards development on the road. "A furniture industry experts said. This means that the furniture industry must increase product value added efforts.

At present, national processing trade policy adjustments have become inevitable. Many companies are exploring the transformation into a joint venture with foreign or owned forms. As far as the Guangdong foreign trade and processing trade Commissioner Wangtao describes, the industry-oriented policy adjustment is correct, the Guangdong processing trade forms are from the original delegate management of processing, transformation into current feed processing enterprises operate independently, beyond the enterprise to adapt policy adjustment, Guangzhou, Shenzhen and other original headquarters into research and development operations center, production bases overseas transfer.

Fertured events residential decoration Committee Secretary Zhang Yan said, the industry has entered an era of war industrial chain. This was not the product and product competition, not a contest of the company and the company, but rather to the whole industry chain of war. Only the industrial chain of high integration, can we truly achieve furniture industry transformation and upgrading.

Zhang Yan believes that China's furniture industry wants to 5 points, a product design by imitation, copy the changes to the independent research and development and innovation; two is the enterprise by the Ministry of labour-intensive transition to technology-intensive; the third is the management by the extensive to intensive; four are from small enterprises to scale management changes; the fifth is for

The entire supply chain of perfect integration.

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