Research and analysis of the development strategy of China's furniture industry in 2012

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At the beginning of the 21st century, China's sustained high economic growth promoted the prosperity of consumption, and real estate became hot, making the focus of investment continuously irrational to the real estate industry and driving the overheated development of the furniture industry. In order to promote the healthy development of the real estate industry, China launched a series of real estate regulation and control policies in 2010, and the furniture industry also entered a period of adjustment, and the growth rate slowed down significantly. In a downturn, this year has been a year of decay by economists. However, under the adverse circumstances, there are still three major business opportunities in China's furniture industry this year.

The fall in house prices has released rigid consumer demand. As real estate regulation continues, many real estate companies have to cut prices to stimulate housing consumption, and those with rigid housing needs will wait and see to buy. Some insiders pointed out that in March of this year, the housing transaction price will drop tentatively, and the price reduction will be further expanded by May, and another price climax will be entered in September. Every time the housing transaction price drops, there will be rigid consumers buying houses, and it will bring a small increase to the furniture market sales.

Hotel furniture consumption. It is understood that with the rapid development of China's tourism industry, the demand for furniture in leisure resort hotels has grown rapidly. From January to March last year, the number of star-rated hotels opened in China reached 43, with a total of more than 11,454 rooms. Experts pointed out that the next few years will be a golden period for the accelerated development of China's hotel industry, and the demand for hotel furniture will increase exponentially.

Safe furniture consumption. The affordable housing project launched by the state is also a big cake this year, and small and medium furniture companies must spare no effort to fight for it.

Five strategies for furniture companies to win In the case of slowing industry growth and intensified competition, how to seize the limited business opportunities lies in the strategies that furniture companies choose. Generally speaking, our state-owned enterprises are not suitable for adopting scale expansion strategies this year, but need to adopt the following strategies according to their own characteristics.

Cost leadership strategy. Only by continuously reducing product costs and operating costs, and making their total costs lower than their competitors, can domestic companies take the lead in the competition. In this respect, an effective cost management mechanism needs to be established. On the other hand, it is necessary to strengthen the cooperation with raw material and component suppliers to reduce the price of raw materials, or to integrate raw material production into the business scope of the enterprise through joint and mergers and acquisitions, and get rid of the supply of raw materials The dependence of businessmen to achieve the purpose of reducing costs.

Support dealer strategy. Household enterprises must strengthen the control of dealers, and encourage dealers to expand channels to increase sales through survival of the fittest and in-store sales training. The more difficult the times, the more small and medium-sized enterprises need to send charcoal in the snow, giving their dealers greater support and maintaining volume growth in a weak market. At the same time, home companies should ensure the market appeal of the main brands, reintegrate products internally, and maintain appropriate product breadth and depth.

Strong joint strategy. After 30 years of development, China's furniture industry has not yet produced a monopoly brand or a leading brand. Many companies have been in primary competition, but through joint development, they are still the future development trend. For many small and medium-sized home enterprises with limited financial strength, it is a good way to achieve product complementarity and resource integration through strong cooperation between brands to improve market competitiveness.

Transformation priority strategy. Although innovative products can take the initiative in the market, it must be treated with caution for small and medium-sized household enterprises, because the development of new products requires more time, material and financial resources. On the contrary, small and medium-sized home enterprises should be transformed on the basis of drawing on mature brand products, so that they do not need to increase capital investment significantly, and can achieve good results.

Differentiated, multi-channel expansion strategy. Domestic enterprises should make full use of their own strengths, based on innovation and marketing capabilities, and carry out multi-level expansion in the field of differentiated consumption and supporting processing. For example, the Jiaxing store under Ruitu Bedding has strengthened cooperation with local hotels under construction, expanding the brand's market share in the local area, and even the local health club chain has become its partner.

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