After spending a tight year in 2011, Shunde furniture companies that entered the new year thought they would be better, but the reality is very cruel. The furniture companies that entered 2012 were found to have suffered a “cold winterâ€. In the face of difficulties, Shunde furniture companies have worked hard to improve their own technical level, or to attack the group to obtain more sales channels.
Li De, president of Shunde District Furniture Association, said that in this difficult period, Shunde Furniture Association will help enterprises to transform and upgrade, and further improve the industry level, so as to cope with the increasingly fierce market competition.
Shunde furniture companies have been hit hard
Driving through Shunde Longjiang's famous "Shili Furniture City", people who have just arrived in Shunde are very surprised. There are many large-scale furniture trade cities on both sides of the road. You can choose from a variety of styles of furniture.
As the capital of China's furniture manufacturing and the capital of Chinese furniture materials, Longjiang is the area where Shunde furniture industry gathers. It has more than 2,700 furniture manufacturing enterprises, and the furniture industry employs more than 100,000 people. The annual growth rate of the furniture industry is about 25%. After 30 years of rapid development, Longjiang Furniture is entering a period of strategic transformation.
But this year's Longjiang furniture company feels very depressed. Since the sales of furniture companies have a lot to do with real estate, as the country's measures to regulate and control real estate will continue, this year, Shunde furniture enterprises have once again suffered a lot. Subject to the country's real estate control policies, furniture business is difficult to do a lot. "This is a very direct impact. After the purchase restriction policy came out last year, there were fewer homes to buy, and the purchase of furniture was reduced. This year, this policy continues. Do you think that furniture sales can be better?" .
In addition, due to the impact of the European debt crisis and changes in consumer attitudes of foreign consumers, Shunde furniture exports have also been greatly affected. What makes the furniture industry more indispensable is that a number of new furniture companies in China have begun to take their heads. Nowadays, new gathering places in the furniture industry such as Sichuan Chengdu, Jiangxi Southwest Kang, and Guangdong Shantou have begun to exert their strength, and the furniture manufacturing industry has blossomed across the country.
Insufficient human resources affect the start of construction
For Shunde furniture companies, the more direct impact is the lack of human resources. After the Spring Festival this year, Shunde furniture companies are generally under-employed because of the shortage of manpower. "This is a fact. After the Spring Festival, the entire Longjiang furniture enterprises have started relatively late." Li De, president of the Shunde District Furniture Association, said that the most direct reason is that no one can be recruited. However, from the situation in March, it has already improved, and most of Longjiang furniture enterprises have gradually started production.
Li De said helplessly that the reason for this situation is not due to low wages. At present, the average wage of Longjiang furniture workers is around 3,000 to 4,000 yuan, and there will be a 10% increase every year, but workers are still not found. Li De believes that most of the workers have jobs in their hometowns, so they are not willing to return to Longjiang.
Even if it is able to start work, many companies still face heavy crisis. “The price of the whole furniture has increased by 10% since last year.†Chen Zhengang, general manager of Jiezheng Furniture Co., Ltd. said that it may be a good thing for outsiders to raise prices. In fact, this is a bad thing for enterprises. To know this means that many citizens will consider buying furniture more carefully.
Although many business leaders are still worried, the chairman of the Shunde District Furniture Association, Li De, is still full of confidence. He told reporters that with the advancement of the national urbanization policy, the demand for the second and third-tier markets has grown significantly, and export orders have steadily rebounded, greatly increasing the market confidence of furniture dealers. This is a great advantage for the sales of furniture companies.
"On the other hand, we will also guide enterprises to overcome this difficult time by strengthening enterprise management, open source and reducing expenditures." Li De said that next, the association will also guide enterprises to comprehensively upgrade the entire furniture from the aspects of product structure and raw material structure. The quality of the product.
National brand building center to open sales channels
Shunde Furniture Association has also launched new measures to help companies further develop their markets. “We are cooperating with the company to set up a Shunde Furniture Brand Exhibition Center in the country and directly sell it.†Li De said that by doing a good job in service and logistics, Shunde Furniture’s own terminal will be opened nationwide. All localities, the sales profits are firmly in the hands of enterprises.
It is reported that Shunde furniture is cheap, but because the Shunde furniture enterprises did not do the terminal, most of the industrial profits were taken away by the dealers. For example, the wholesale price of a piece of furniture in Shunde is 5,000 yuan, but after the retailer gets the goods, it is likely to sell 15,000 yuan. However, if a single furniture company goes to a well-known store to sell products, its high rent severely restricts the healthy development of furniture manufacturing enterprises, and the well-known stores are all national chains. The barriers to entry are very high, and it is difficult for small and medium-sized furniture companies to enter the market. .
To this end, Shunde Furniture Association decided to join the group to attack and build Shunde Furniture's own store. Shunde furniture enterprises will raise funds through the enterprise group and in the form of shareholding system. With reference to the business model of domestic furniture chain hypermarkets, the company will gradually establish a chain of specialized sales of Shunde furniture home hypermarkets. The store is directly supplied by Shunde furniture companies, and by reducing the intermediary links, the price and service are more competitive.
At present, the first Shunde Furniture Brand Pavilion has already landed in Suzhou, which is the first collective brand store in Shunde Furniture to break through the local area restrictions and build in different places. Currently, the second brand exhibition center is under construction. Li De revealed that the center will be built in Yiyang, Hunan.
Encourage the merger of micro-enterprises
In fact, Longjiang Town has long recognized the problems encountered in the furniture industry. As early as September 2010, Longjiang took the lead in proposing the integration of the furniture industry. The town leaders repeatedly discussed with the Shunde Furniture Association and led the company to Chongqing, Changsha, Erdos, Xi'an and other places to conduct research on the development of the furniture industry. . According to the accompanying staff of the Longjiang Economic Promotion Bureau, the inspection schedule is very intensive. On the one hand, it is to understand the market everywhere, and on the other hand, to inspire the transformation and development of enterprises. Since then, Longjiang Town has also invited experts and scholars to carry out the transformation of Longjiang furniture industry.
In response to the current difficulties faced by furniture companies, the government is also actively helping. Huang Fennan, executive deputy director of the Economic Promotion Bureau of Longjiang Town, Shunde District, said that many companies have encountered difficulties in financing. The government will do its utmost to help the relatively tight credit.
"Our most important work is still to promote the transformation and upgrading of enterprises." Huang Fennan said that under the current manpower situation, the government is also actively promoting the technological transformation of furniture enterprises, introducing advanced machinery, instead of labor, with as little manpower as possible. Resources for production. This is also a relatively long-term practice. Shunde furniture companies cannot be controlled every year by the strange circle of not being able to work.
Huang Fennan also told reporters that the government has also actively guided the furniture companies to join forces. For example, Zhihao Furniture is mainly for soft furniture. Now they have boarded furniture. Since there is no such channel, Zhihao cooperates with another panel furniture company to sell, which is quite successful. Next, small and micro enterprises are encouraged to upgrade and integrate through mergers. “Some of the micro-furniture companies are actually small workshops. Their output is not high, but they occupy a lot of land resources. We hope that through the merger of these furniture workshops, valuable land resources will be saved and rational development will be carried out.â€
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