The domestic and foreign difficulties of the furniture sales market seek the road of development

In recent years, the impact of the financial crisis has not completely subsided, and the national real estate regulation and control policy has once again brought the furniture industry into a "winter". Under the environment of unpredictable and heavy resistance, the furniture industry's export enterprises and domestic enterprises are envious of each other, not more beautiful than anyone, but wondering whether the other party's difficulties are less than their own, thus deducing A furniture version of the contemporary "Siege" story.

Domestic sales: difficult to shrink in the market, fierce competition

In the domestic market, more and more furniture companies feel the pressure of survival. Specifically, the pressure comes from two aspects.

First, the downturn in real estate transactions caused the market to shrink.

Since the country issued a series of real estate control policies last year, the momentum of excessive domestic housing price growth has been curbed. Especially in recent months, housing prices in many cities have begun to loosen. However, from the perspective of consumption, housing consumption is "buy up, not buy down." Therefore, after housing prices were forced to fall, people's mentality of holding currencies on the sidelines became more firm. This year's "Golden Nine Silver Ten", whether it is Beijing, Shanghai, or other provinces and cities, the housing market is sluggish, and the transaction volume is pitifully low. Even more terrifying is when will this situation continue?

For the furniture industry in the downstream of real estate, the "freezing" of the real estate market also means that the consumption of the furniture market is shrinking. In major home furnishing stores, more and more dealers are complaining that the market is not good, sales have dropped significantly, and some dealers have been forced to switch. Some manufacturing companies are considering whether they should sell their products abroad. After all, there is no "restriction order" in foreign countries.

The second is the unprecedented fierce competition in the buyer's market.

For the current domestic furniture market in China, competition is unprecedentedly fierce. In the case of a shrinking market, furniture products produced by furniture manufacturers have not decreased. This has led to the domestic furniture market becoming a buyer ’s market, and furniture companies have to compete to grab consumers.

With the advent of a new round of economic crisis, this competition has become more and more cruel. Market consumption is sluggish, and companies can only compete to drive down prices in order to survive, sacrificing profits from all aspects to compete for consumers. As profits are getting lower and lower, many companies can only find another way out, which has also become a direct reason for some furniture companies to switch or go abroad.

Export: It is difficult to have no brand, the exchange rate risk is great

While domestic furniture companies feel the pressure of survival, export furniture companies are also under pressure from all parties.

Most of China's export furniture companies specialize in OEM for foreign brands, producing finished products or accessories, relying on cheap labor and earning hard money. These export enterprises, strictly speaking, are only foreign order processing enterprises. They do not have their own brands, but only produce and process according to the orders of foreign customers. Most of the profits are earned by foreign buyers, and they can only earn a small part of their hard work. Money, and may at any time have to make financial compensation to customers due to production delays or product failures.

In addition to production, for many export companies, the most unpredictable issue is the exchange rate. Often the product is still being produced, but the exchange rate of some foreign currencies against the renminbi has changed, so that the originally profitable contract eventually lost money because of exchange rate issues. This also prevents many export companies from taking orders and doing business only with familiar customers

. In recent years, the renminbi has continued to appreciate, the European and American economies have fallen into a downturn, and export sales have encountered greater resistance. This has forced many export companies to turn to domestic sales and enter the fiercely competitive domestic sales market. Objectively speaking, the difficulties faced by foreign-to-domestic enterprises are much greater than those for long-term operations in the domestic market.

Domestic companies want to go out, and foreign companies want to come back. One by one, it reflects the complexity and change of the furniture industry and the international and domestic environment, and also makes the furniture people fall into contemplation. When the domestic and foreign markets are sluggish, the furniture industry can only survive in the unpredictable market only by practicing its internal skills, transforming and upgrading, and taking the road of brand development.

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