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Himfr.com Reports The Furniture Industry Has Formally Entered A Period Of Marginal Profit

Profits era curtain call, this small-staged

Chinese Furniture, 2000 Furniture 130 billion yuan output value, export 3.565 billion U.S. dollars, until 2007 an annual rate of 15% -20% growth, export growth rate of 20% -30%, which is an attractive large market leading business vie with each squeeze of furniture in this sector. Chinese furniture manufacturer 2000 20000 2003 60000 2007, 80000, Beijing sent furniture, Sichuan School furniture, Zhe furniture, Guangdong sent home furniture, each side, each leading the trend, Chengdu, Sichuan, Zhejiang, Anji, Ningbo , Shenzhen, Foshan, Dongguan, the main production base of the furniture, furniture companies doubling every year, the furniture store business area be expanded in tandem with the development of the market, Beijing unexpectedly home from the previous one-man show to now more than furniture, the city chorus; Shenzhen the seven countries from the Three Kingdoms to emerge as a contender; before the city went into furniture, products, single, single vendor, and now into the furniture city, dazzling array of products in previous years, soaring real-estate all the way, singing along with the furniture, bought a house, buy furniture, a more than a cow.

Real Estate to calm down, and furniture, the slow growth of total demand and production growth into the cup sharp contrast, so did the furniture, selling furniture, people feel embarrassed bear, raw materials, rising 10,000 yuan products, the cost of materials used to take 8,000 yuan is needed now 8500 yuan, 500 yuan of profits have been compressed; labor costs rise, 10,000 yuan products, according to one person per day for the completion of the previous 40 yuan, is now 60 yuan, 1 yuan Profit less 20 yuan management fee increases will lead to profits shrunk 100 yuan; if it is for export enterprises, export tax rebate down 200 yuan, plus other costs, so that the calculation of the profits from the previous 10% shrink to 1% -3%, landing on the loss.

Fine management to replace the extensive type management

Furniture industry is the traditional manufacturing industry, less demanding of technical, historical origins, since the private sector, "carpenter" to economically backward areas are still playing the role of furniture manufacturing, hand-crafted furniture workshop-style production is still scattered in the private sector, many furniture enterprises from such a workshop-style furniture, gradually expand the scale of additional machinery and equipment, therefore, in the management of very extensive, either there is no such an extensive management system, or system, on paper, the system flip-flop in the lack of specific management practices and means of research, relevance, feasibility and implementation of the force is not strong, corporate organizational structure and functions of the position can not be reasonably clear, more levels of management, management, and inefficient to meet at about the same on the line, tried to shift out of the question, wrangling.

Furniture enterprises to enter the low-profit era, in particular, are doing OEM, OEM business, not be able to receive a single, but a single to do, because the cost is too high, the dollar unrest, RMB appreciation, collection cycle is long, in regard to non - profit to be made, even at a loss to control the cost of each link are valuable. To make full use of raw materials, inventory, to reduce the extreme, man-effectiveness of play, purchasing costs, selling costs are hungry lower cost control of each process are the profit growth opportunities.

Fine furniture industry management implementation is the first Taiwanese furniture companies, which are Taiwanese furniture companies and meticulous management is usually the preferred method is to import a professional ERP systems, such as Taiwan l, Cambridge, Billy Kazuo F18 by importing furniture ERP, enterprise Fine management to enable enterprises to achieve "zero defect", "just in time production" and "zero inventory" management level. Through the implementation of ERP, business management problems to solve: Supply Chain Collaboration difficult, planning and control is weak, slow response, on-time delivery of high cost, cost control and accounting complexity, quality, retrospective detailed issues such as lack of means. Since 2000, many Hong Kong-owned, private enterprises have begun to study the Taiwan Furniture Fine management, such as Zhongshan Four Seas, Shenzhen Wei An, and other famous furniture enterprises.

The competition is the details of the furniture industry competition, martial arts highlight nuances, the details of the precious value lies in the creative, unique, non-repeating. Details of the impact of quality, detail reflects the taste, the details show differences in the details determine success or failure. People to pursue higher and higher, fine furniture market stress management, and the details can often reflect their professional standards, highlighting the inherent quality of enterprise, improve the quality of enterprise products.

Shorter product life-cycle

The modern consumer demands and product diversification of the style choices, with the real estate development and quality of life, the rapid increase of modern, fashionable style of the Europe and the United States into the Chinese market, European classical, solid wood, plate and glass, rattan-style, metal furniture, colorful.

A great wealth of furniture products to stimulate consumer choice, desire, changes in fashion led to changes in consumer attitudes, people began to pay more attention to the popularity of furniture, furniture consumption cycle is quietly shortened product homogeneity caused by intense competition, a chair trying to conquer the one table trying to conquer the time has slid into the long river of history, the product replaced faster and faster, shorter product life cycles, to the furniture industry has brought many challenges, not only the end of the need to minimize the flow of inventory, production site but also a small amount of multi-species production. E, coupled with new age groups, especially the grass is always greener, which features the one hand, also make furniture, product life cycle becomes shorter. The cultural content of furniture, a gradual increase in Chinese people's consumer attitudes are changing. At the same time their needs change in speed is even more surprising.

Furniture commercial multiple co-exist, the dominant brand Monopoly

Status of the circulation of exhibition of furniture from the top department stores in the basement and play a supporting role, the city developed into specialized exhibition of furniture into the leading role in marketing mode, a wide range:-operated stores, franchises, direct marketing network, channel sales, etc. , based on product features, business models can be different, and many furniture and real estate tie-in sales, network marketing, low cost, if they can establish a good reputation and quality of service, it is able to attract 80, 90 post-consumer groups. The furniture industry has experienced for decades, has also experienced furniture business to the brands of goods from the stall transformation of the role of promoter, furniture franchise market flight speed the development of China's furniture industry to create a famous brand, furniture manufacturers have carried out the image of business, in order to shape the products and brand image to build the image of the stage show, product promotion into brand promotion, brand of independent stores, brand stores in the stores, furniture franchise market, the leading position.

Secondary and tertiary markets sold the focus of future

Furniture, domestic secondary and tertiary market is the future focus for three reasons:
First, a shrinking market. According to the Shenzhen Furniture Trade Association of the 50 export enterprises and 10 front-line shops survey data show that our combined manufacturing costs increased by 30%, but the export selling price only increased by 8%, the product line increases the rate of the market is only a year ago rose by 2.6%, higher than the rate of raw materials rose up furniture range.

Second, the rural urbanization. Building a new socialist countryside, rural urbanization, much of the development of two or three markets, China's 1.3 billion population, 800 million in rural areas, the per capita consumption of 100 yuan more than in the furniture, is to increase the 10 billion market, China is a large agricultural country it should be the last to say, our people living mostly in rural areas, but many of the family's main income is from agriculture, but other industries, or in the field work, in the living environment, not the placement of many agricultural tools, Tsuchiya, Mao housing, brick Kibusa structure is gradually being phased out, reinforced concrete structure buildings, is now the main living environment in rural areas, a great demand in the furniture.

Third, the export of furniture to reduce, transfer to do more than domestic. As of September 30, 2008 with the same period in 2007, export orders, a decrease of 40%, in fact, is not a weak market, but by the sub-prime crisis, the impression that the West undermined the confidence of sellers, and this information needs 3-5 years to restore or even longer.

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About the Author

I am a professional editor from China Products, and my work is to promote a free online trade platform. http://www.himfr.com/ contain a great deal of information about sterile surgical gloves,auto trash can, welcome to visit!

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