The furniture market is deeply immersed in the price war

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The most adjective that appears in the furniture industry today is "stern". Looking at the trend of the entire furniture industry in 2012, abroad, the European debt crisis, new environmental standards in Europe and the United States and changes in exchange rates have compressed the export market for furniture external demand to become smaller and smaller; , Increased labor costs and shrinking profit margins have brought severe tests to furniture companies.

Furniture lacks innovation and profits fall severely



As a special market with "low attention", the furniture industry has relatively low consumer awareness of its brands and products. It is not obvious how the products differ from product to product and between brands. What's more, our domestic furniture companies, both in terms of furniture products and furniture brands, lack originality and uniqueness. Furniture industry product line of the prevalence of "ism", plagiarism is serious, many furniture manufacturers did not have a design team, send espionage copying original works, a little face-lift on the market. In terms of brand, there is a lack of accumulation and forging. There are many "brands", but there are few situations in which "brands" are deeply rooted in people's hearts.

Furniture market conditions around the country, the number of promotional activities to increase this year, sales guise is a common phenomenon. Many first- and second-tier brands are expanding their headquarters' event support team in order to support furniture dealers to carry out various promotional activities. Some furniture companies will not hesitate to invest a lot of labor costs to form a special activity department; some furniture companies will transfer the management function of the regional manager from the original new dealer to the development of the event, and the number of activities initiated will be used as the assessment of the regional manager One of the elements. Distributors who are used to being "sits business" are also aware of the urgency of the situation, and have taken action one after another, regardless of whether they can do it or not, they have all started to "go offshore" to start activities.

All kinds of activities in the furniture industry , no matter whether they are dressed in bargain-hunting, alliance, group buying, gathering and other different coats, in addition to testing the organizer's event organization ability and publicity, in fact, the competition is still a The most basic point is "price".

Under such a big pattern, the contradiction between product homogeneity and brand homogeneity in the channel is quite prominent. The dimension of competition among furniture dealers will inevitably become quite single, and the price becomes the only major sword that can be cut to competitors. However, "killing one thousand enemies and self-impairing 800". The end result of this vicious competition, is the general decline in the furniture industry and a general increase in the cost of marketing margins furniture industry.

Furniture sales plunge into price wars, fatigued by falling profits



The above-mentioned pressures faced by furniture manufacturing enterprises have erupted together and transformed into downstream channels, which naturally evolved into a deterioration of the competitive environment of furniture marketing. In order to maintain survival and sales in a tight market, many furniture manufacturers have to enter the market successively in a price war to start "small profits but quick sales". Many first-line brands have not hesitated to put down their bodies, and joined the desperate melee in a price cut that surprised the industry.

The furniture market this year's dazzling array of group buying activities, mall promotions and bargain-hunting activities has reached an intensified level. In the hypermarkets of a prefecture-level city, there was no such phenomenon as the high flow of people on weekends. It turned out that the city had about 5-6 various promotional activities this weekend, which absorbed most of the passenger flow outside the venue, resulting in a "customer source vacuum" in the store. However, these furniture dealers who are actively involved in "events" do not seem to benefit much from it. Many dealers complained that the activities were more and more, the sales team was short of staff, and the employees were constantly struggling to face the challenge, corresponding to higher management costs, salary costs and various advertising inputs. Although some successful activities can grab a batch of orders for the store, because the competitive price cuts are too fierce, the phenomenon of "more orders are received, less money is made" appears. Some dealers lamented that in fact they did not want to take so many orders, because there were too many orders, and they did not earn much money, but the amount of after-sales service and quality disputes became larger.

Differentiation of core furniture products wins customers' purchase identity



The furniture market now has another peculiar marketing phenomenon. First of all, this kind of marketing activity does not significantly take price reduction as the appeal point. In fact, according to the author's understanding, some insignificant third- and fourth-tier brands can also achieve an event transaction price of more than 200 yuan per square meter through such sales activities; some second- and third-tier custom wardrobe brands can complete the event. Price to a higher level. Distributors are generally satisfied with the sales margin of such activities. In addition, compared with the current situation of large passenger traffic and low signing rate in many activities, the average signing rate of such activities is generally maintained at 70-90%, which can be said to be a miracle of terminal promotional activities.

The first characteristic of this activity is the differentiation of core products. The organizer first played the "health and environmental protection card". What is pushed to consumers are the wardrobes and other custom furniture products made by these two furniture brands with Wanhua zero-formaldehyde and fragrant board; while the conventional MDF and particle board products have become the foil of the event, or Gimmick products.

Different from the general promotional activities with "singing and screaming", this kind of activity puts more emphasis on in-depth customer communication. Generally, the knowledge of zero-formaldehyde furniture products will be arranged and the experience of zero-formaldehyde furniture products will be arranged. Through detailed and vivid on-site methods, customers will understand the value of "zero-formaldehyde furniture" to families and families. The customer's purchasing behavior is based on this cognitive and emotional communication. Customers fully understand and appreciate the value of products, naturally understand the different value of this product and ordinary furniture products, so they are willing to pay more money to consume such products. This is the fundamental reason why this kind of activity can achieve a very high on-site signing rate and a very low regret rate.

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