Himfr.com Reports The Furniture Industry Has Formally Entered A Period Of Marginal Profit

Profits era curtain call, this small-stagedin the details determine success or failure. People to
Chinese Furniture, 2000 Furniture 130 billion yuanpursue higher and higher, fine furniture market stress
output value, export 3.565 billion U.S. dollars, until 2007management, and the details can often reflect their
an annual rate of 15% -20% growth, export growthprofessional standards, highlighting the inherent quality
rate of 20% -30%, which is an attractive largeof enterprise, improve the quality of enterprise
market leading business vie with each squeeze ofproducts.
furniture in this sector. Chinese furniture manufacturerShorter product life-cycle
2000 20000 2003 60000 2007, 80000, Beijing sentThe modern consumer demands and product
furniture, Sichuan School furniture, Zhe furniture,diversification of the style choices, with the real
Guangdong sent home furniture, each side, eachestate development and quality of life, the rapid
leading the trend, Chengdu, Sichuan, Zhejiang, Anji,increase of modern, fashionable style of the Europe
Ningbo , Shenzhen, Foshan, Dongguan, the mainand the United States into the Chinese market,
production base of the furniture, furniture companiesEuropean classical, solid wood, plate and glass,
doubling every year, the furniture store business arearattan-style, metal furniture, colorful.
be expanded in tandem with the development of theA great wealth of furniture products to stimulate
market, Beijing unexpectedly home from theconsumer choice, desire, changes in fashion led to
previous one-man show to now more than furniture,changes in consumer attitudes, people began to pay
the city chorus; Shenzhen the seven countries frommore attention to the popularity of furniture,
the Three Kingdoms to emerge as a contender;furniture consumption cycle is quietly shortened
before the city went into furniture, products, single,product homogeneity caused by intense competition,
single vendor, and now into the furniture city, dazzlinga chair trying to conquer the one table trying to
array of products in previous years, soaringconquer the time has slid into the long river of
real-estate all the way, singing along with thehistory, the product replaced faster and faster,
furniture, bought a house, buy furniture, a more thanshorter product life cycles, to the furniture industry
a cow.has brought many challenges, not only the end of the
Real Estate to calm down, and furniture, the slowneed to minimize the flow of inventory, production
growth of total demand and production growth intosite but also a small amount of multi-species
the cup sharp contrast, so did the furniture, sellingproduction. E, coupled with new age groups,
furniture, people feel embarrassed bear, rawespecially the grass is always greener, which features
materials, rising 10,000 yuan products, the cost ofthe one hand, also make furniture, product life cycle
materials used to take 8,000 yuan is needed nowbecomes shorter. The cultural content of furniture, a
8500 yuan, 500 yuan of profits have beengradual increase in Chinese people's consumer
compressed; labor costs rise, 10,000 yuan products,attitudes are changing. At the same time their needs
according to one person per day for the completionchange in speed is even more surprising.
of the previous 40 yuan, is now 60 yuan, 1 yuanFurniture commercial multiple co-exist, the dominant
Profit less 20 yuan management fee increases willbrand Monopoly
lead to profits shrunk 100 yuan; if it is for exportStatus of the circulation of exhibition of furniture
enterprises, export tax rebate down 200 yuan, plusfrom the top department stores in the basement
other costs, so that the calculation of the profitsand play a supporting role, the city developed into
from the previous 10% shrink to 1% -3%, landing onspecialized exhibition of furniture into the leading role
the loss.in marketing mode, a wide range:-operated stores,
Fine management to replace the extensive typefranchises, direct marketing network, channel sales,
managementetc. , based on product features, business models
Furniture industry is the traditional manufacturingcan be different, and many furniture and real estate
industry, less demanding of technical, historical origins,tie-in sales, network marketing, low cost, if they can
since the private sector, "carpenter" to economicallyestablish a good reputation and quality of service, it is
backward areas are still playing the role of furnitureable to attract 80, 90 post-consumer groups. The
manufacturing, hand-crafted furniture workshop-stylefurniture industry has experienced for decades, has
production is still scattered in the private sector,also experienced furniture business to the brands of
many furniture enterprises from such agoods from the stall transformation of the role of
workshop-style furniture, gradually expand the scalepromoter, furniture franchise market flight speed the
of additional machinery and equipment, therefore, indevelopment of China's furniture industry to create a
the management of very extensive, either there isfamous brand, furniture manufacturers have carried
no such an extensive management system, orout the image of business, in order to shape the
system, on paper, the system flip-flop in the lack ofproducts and brand image to build the image of the
specific management practices and means ofstage show, product promotion into brand promotion,
research, relevance, feasibility and implementation ofbrand of independent stores, brand stores in the
the force is not strong, corporate organizationalstores, furniture franchise market, the leading
structure and functions of the position can not beposition.
reasonably clear, more levels of management,Secondary and tertiary markets sold the focus of
management, and inefficient to meet at about thefuture
same on the line, tried to shift out of the question,Furniture, domestic secondary and tertiary market is
wrangling.the future focus for three reasons:
Furniture enterprises to enter the low-profit era, inFirst, a shrinking market. According to the Shenzhen
particular, are doing OEM, OEM business, not be ableFurniture Trade Association of the 50 export
to receive a single, but a single to do, because theenterprises and 10 front-line shops survey data show
cost is too high, the dollar unrest, RMB appreciation,that our combined manufacturing costs increased by
collection cycle is long, in regard to non - profit to be30%, but the export selling price only increased by
made, even at a loss to control the cost of each link8%, the product line increases the rate of the
are valuable. To make full use of raw materials,market is only a year ago rose by 2.6%, higher than
inventory, to reduce the extreme, man-effectivenessthe rate of raw materials rose up furniture range.
of play, purchasing costs, selling costs are hungrySecond, the rural urbanization. Building a new socialist
lower cost control of each process are the profitcountryside, rural urbanization, much of the
growth opportunities.development of two or three markets, China's 1.3
Fine furniture industry management implementation isbillion population, 800 million in rural areas, the per
the first Taiwanese furniture companies, which arecapita consumption of 100 yuan more than in the
Taiwanese furniture companies and meticulousfurniture, is to increase the 10 billion market, China is
management is usually the preferred method is toa large agricultural country it should be the last to
import a professional ERP systems, such as Taiwan l,say, our people living mostly in rural areas, but many
Cambridge, Billy Kazuo F18 by importing furniture ERP,of the family's main income is from agriculture, but
enterprise Fine management to enable enterprises toother industries, or in the field work, in the living
achieve "zero defect", "just in time production" andenvironment, not the placement of many agricultural
"zero inventory" management level. Through thetools, Tsuchiya, Mao housing, brick Kibusa structure is
implementation of ERP, business managementgradually being phased out, reinforced concrete
problems to solve: Supply Chain Collaboration difficult,structure buildings, is now the main living environment
planning and control is weak, slow response, on-timein rural areas, a great demand in the furniture.
delivery of high cost, cost control and accountingThird, the export of furniture to reduce, transfer to
complexity, quality, retrospective detailed issues suchdo more than domestic. As of September 30, 2008
as lack of means. Since 2000, many Hongwith the same period in 2007, export orders, a
Kong-owned, private enterprises have begun todecrease of 40%, in fact, is not a weak market, but
study the Taiwan Furniture Fine management, suchby the sub-prime crisis, the impression that the West
as Zhongshan Four Seas, Shenzhen Wei An, andundermined the confidence of sellers, and this
other famous furniture enterprises.information needs 3-5 years to restore or even
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