Where are you in the future furniture industry?

In recent years, I've had the opportunity to interact with furniture dealers from various regions. Each has different product categories and financial capabilities, but they all share a common sentiment: "running a business is tough," and the underlying message is that "every dealer takes risks." Furniture manufacturers also face their own challenges, complaining that production costs are rising, shipment volumes are hard to guarantee, and their final profits might not even be as good as those of the dealers. Meanwhile, stores often express frustration, blaming "the dealer's short-sightedness" when things get exciting. It seems that the surface of the furniture industry is full of contradictions, giving people the feeling of "laughing on stage, crying behind the curtain." Beyond mutual blame, the difficulties in the industry are real, and internal adjustments are taking place amidst conflicts and complexities. Whether we like it or not, major changes are inevitable. As someone who has been closely following the furniture industry for many years, I’d like to explore what the future of this industry might look like, and how today’s players could play a role in shaping that future. **Furniture Manufacturers Becoming Brand Suppliers** It may not be accurate to say that manufacturers will lose their manufacturing roles entirely in the future. The law of survival of the fittest applies here too. After several rounds of consolidation, only a few furniture companies will remain, and their business models will become more clear-cut. Manufacturers can be broadly categorized into two types: 1. **Branded Companies** – These firms have their own brands, and their products are sold under these names. While there are many such companies today, the ones that survive in the future will be different from the majority of current "unknown" brands. They will have built strong reputations, diversified channel models (from direct stores to franchises and wholesale), and may either operate their own factories or use contract manufacturing. Some will focus on high-end positioning, while others collaborate with designers to innovate through style. 2. **Unbranded Companies** – These are essentially the current foundries. Although they lack brand value, they still have market demand, especially as global costs rise. Many domestic foundries may move to Southeast Asia or Africa, while some will stay in remote areas—though the latter group will shrink significantly. **Furniture Retailers: Can They Build Their Own Brands?** For years, many furniture dealers have admired foreign retailers, seeing them as true "channel masters." The author believes China’s furniture model will eventually evolve toward a more advanced structure. Some dealers may indeed make the transition to branded retailers, but only a few will succeed. Two main categories may emerge: 1. **Self-Sufficient Retailers** – These will act as exclusive regional partners for brands, operating franchise stores or authorized retail outlets. 2. **Private Label Retailers** – Many dealers, after accumulating capital, may choose to create their own brands, producing goods through foundries and selling through their own channels—mirroring the European and American model. **Distributors Shifting to Brand Retailers** As an essential part of the furniture channel, distributors will need to transform. With fewer brands, traditional store models may no longer be sustainable. When brands gain recognition, they often choose more efficient channel models, reducing their reliance on traditional furniture stores. Chain stores, in particular, have the potential to transition into brand retailers. By purchasing products and reselling them under their own brand, they can smoothly shift their platform and strategy. **The Future of Furniture Retailers Looks Bright** In the future, manufacturers will either produce themselves or focus on branding and distribution, outsourcing production to foundries. Dealers will become multi-faceted retailers, and some will even join brand sales. Ultimately, furniture retailers may end up being the big winners of the industry. While predictions come with risks, the goal is to spark discussion among industry professionals. Let’s continue to explore and grow together. For more insights into China’s furniture industry, visit the official website of Xianghe Furniture City.

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