At present, China's furniture manufacturing industry is being attacked by internal and external problems. Under the impact of the financial tsunami, many export enterprises have transformed themselves into difficulties in domestic sales. However, since the end of last year, in addition to the continued shrinking of export orders, the domestic market has also experienced a sharp decline, which directly led to the negative growth of the first quarter of the company that maintained growth last year! People in the Guangdong furniture industry expect that the first half of this year will be the toughest period for the furniture industry. In the case of overcapacity, if domestic and international orders continue to decrease, it is not necessary to rule out a new round of “closing tidesâ€. The furniture industry is in a must.
Consumers need more affordable products in a depressed environment
In such a fierce market competition, cost control is a heavy topic for furniture companies. The house is too expensive. After buying the house, the consumer's wallet is hollowed out. Therefore, when the owner buys furniture, he always hopes to find good and cheap products, and the whole furniture industry is facing rising raw materials, rising labor costs, and selling rent. A series of direct problems such as rising and the indirect effects of real estate regulation. Therefore, for furniture manufacturers, in the current market environment, how to reduce costs and ensure that products are put into market operation, provide consumers with affordable products. The issues that need to be considered and resolved the most.
The rising cost of the furniture industry and pushing up the price of the terminal market is theoretically reasonable. According to the analysis of supply and demand theory, the rise in product prices will definitely trigger market changes. The first thing is the price change, and the price change will inevitably Lead to changes in demand. In general, in extreme cases, demand will drop dramatically. Therefore, in the issue of price increases, the furniture industry has been extremely cautious. Most companies will not choose to increase the price of the original product. Instead, they plan to re-price the new product and directly add the cost of the increase. .
However, this arrangement of digesting costs can only be regarded as a technical arrangement and does not bring about a strategic change in the furniture industry as a whole. Despite the relatively complicated structure of the furniture market, consumers who purchase high-end furniture made from imported wood are inflexible in price and will not give up or reduce consumption due to price increases, but the price increase of some low-end furniture products is common. Consumer spending suppression is obvious.
Therefore, it is far from enough to rely solely on raising prices to digest market costs. Some measures are needed to fundamentally solve and respond to changes in this market. Only in this way can enterprises be guaranteed to have core technologies and capabilities to cope with market changes. In order to stand firm and stand in an invincible position in the market. The author combined the interviews with relevant industry experts to integrate the following ideas:
First, material replacement and new materials should be used to address raw material price increases.
This measure is called “killer†for dealing with the price increase of raw materials, and it is more thorough and competitive than relying on product price increase to digest cost. For example, a timber price increase, we can consider the use of other materials to replace, but the premise is to ensure that the product quality is not lower than the original, in fact, some companies in the market have begun to realize this point, and began to take this step. According to the survey this year, the sales of artificial panels on the market have risen against the market. It is confirmed by the information that the mid-to-high-end splint has maintained a very good sales performance in the first quarter. After entering the market in April, the market has further improved, and there is a rare occurrence of “Xiaoyangchunâ€. "The trend."
This also shows that many companies can intuitively think of materials to replace this solution. After all, many people understand the principle of "not hanging on a tree". Besides, the innovative application value of raw materials is not just to cope with rising The price is also due to the innovation of materials that can promote the continuous upgrading of products and continuous innovation, which is one of the important missions of new materials and alternative materials. Of course, when it comes to raw materials, in addition to adopting new substitutes, it is of course necessary to strictly control the production process in terms of cost control, to eliminate waste and inefficient use. Any material can not withstand a lot of waste and unreasonable use even if it is cheap. Therefore, choosing the right materials and using them efficiently and reasonably is the best way to really solve the difficulties of raw materials.
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