The Hong Kong Dynasty Furniture Group (1198.HK) was hit by the media in the past two months to close 2/3 stores nationwide, and there were many problems such as high inventory. In this regard, the silent family members of the dynasty have said in an interview with the Commercial Daily yesterday that the recent media disclosures are not true, but the adjustments have been made in individual cities. The current storefronts have decreased by about 3% compared with the same period last year.
Reduced storefront by 3%
Recently, the media's reports on the furniture store of the dynasty have emerged endlessly. The news also includes the most serious blow to the furniture of the dynasty, which has closed 2/3 stores nationwide in the past six months. Yesterday, the reporter of the Commercial Daily visited Chongqing's major supermarkets and found that the store of the Dynasty furniture is currently only in Beibei. An industry insider who did not want to be named told the Commercial Daily that in the past few years, there were a number of stores in the major stores in the city. At the best time, there were 10 stores in Chongqing, and now almost all have been withdrawn.
Chen Ruixin, the director of the furniture brand of the dynasty, said in an interview with the Commercial Daily yesterday that the company’s closing behavior only existed in individual cities, and this was only the product upgrade and adjustment of the Dynasty’s furniture for some areas.
"The adjustment of some dealers whose operating capacity does not meet the company's cooperation standards is the normal operation of the channel adjustment of the dynasty for more than ten years, and this adjustment is small, which is a normal phenomenon." Chen Ruixin told the Commercial Daily reporter.
“In the past few years, the storefronts were all net growth, but due to the sluggish industry in the past two years, the company’s stores have decreased by 3% compared with the same period of last year,†said Chen Ruixin, director of the furniture brand of the Dynasty.
Just as the media paid attention to the furniture of the Dynasty. The company's share price has soared during this time. According to statistics from the data center of the newspaper, from the beginning of September to the present, the stock price of Dynasty Furniture has risen by 31.08%.
　 On September 23, the Dynasty Furniture announced that the company had early bank loans of 150 million yuan.
Industry growth slows down
The performance report released by the Dynasty furniture in the first half of this year shows that after the severe decline in performance last year, the operating income of the Dynasty furniture in the first half of this year fell by 25%. In this regard, the Dynasty furniture said that due to the domestic economic slowdown, the overall consumption level fell, which caused the company's product sales to be affected, resulting in a decline in performance.
Business reporters saw that in addition to the furniture of the dynasty, well-known home furnishing companies such as Shengxiang, Smick, and Chenglin Sanitary Ware also experienced a decline in sales. Among them, Chenglin Sanitary Ware's net profit fell more than 80%.
“Since 2010, the furniture industry has begun to feel bad.†Ding Hua, secretary-general of the Chongqing Flooring Industry Association and president of the Custom Furniture Association, said that after that, the furniture industry began to move from rapid development to steady growth.
For the decline of the performance of the dynasty, Li Chengda, secretary-general of the Chongqing Furniture Association, said that on the one hand, it was affected by the big macro environment; on the other hand, the business strategy of the dynasty furniture was also problematic. “The product positioning of the dynasty is high-end products, and the price is biased. High, some brands of the same grade have also impacted on it, and its market will naturally be affected."
Some insiders also said that the rise of e-commerce channel has also impacted the traditional business model. Although the current e-commerce operation model of home enterprises is still being explored, the e-commerce channel has already begun to affect the financial report.
Deep
Furniture companies should accurately adjust
For the future layout, the Dynasty Furniture announced in this year's mid-year report that it is necessary to use the government's urbanization to make efforts to enter the third- and fourth-tier cities and towns, and to seize this resource together with potential franchisees.
Ding Hua, secretary-general of the Chongqing Flooring Industry Association and president of the Custom Furniture Association, said that in the current fierce competition in the furniture industry, brand companies can't eat old and dare to innovate. “The consumer market is diversified and personalized. From now on. In terms of market conditions, the former panel furniture dominated the world, but now in Europe and the United States, wood is more and more popular among the public, and furniture companies should be based on the consumption hotspot layout."
"Furniture enterprise 'electric shock' has become an industry consensus." Ding Hua said that since 2010, many furniture companies have begun to explore the furniture industry e-commerce, and have accumulated a certain network customer base, "from the current situation, the whole The e-commerce in the furniture industry is still at the stage of exploration, but with the construction of the e-commerce platform of the home, Meikailong and other stores, and more and more furniture companies have achieved breakthroughs in e-commerce, furniture companies must accelerate the 'electric shock. '."
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