We have seen that more and more cross-border companies are pouring into the custom furniture industry, but there are very few successful ones. Although the industry is analyzing and the market is characteristic, third-party consulting companies have repeatedly voiced in the industry, but cross-border enterprises are very Less real understanding of the industry’s operating characteristics. Today we try to deeply analyze the experience characteristics and business status of the customized furniture industry through 10 sentences, and hope to inspire our industry operators. Since the development of the custom furniture industry, the market is unpredictable, consumer demand is changing with each passing day, and industry competition is rising. The industry changes caused by this are also one after another. Under this, custom furniture companies can only grasp the opportunity and realize the development goals of the enterprise only by recognizing the development situation of the industry.
01 Low barrier to entry, high barriers to business
On the surface, the custom furniture industry is investing in some equipment, and several industry experts can start operations. Therefore, the national small workshops, cross-border brands have sprung up, the small factory can start projects hundreds of thousands, large groups of tens of millions or even billions of dollars in the custom furniture industry. Three years later, I have gone through countless detours, wasting a lot of manpower, material resources and financial resources. I found that the industry is too deep, and the company’s operating conditions are still “not found in the North” and have fallen into a long-term unprofitable state. Customized furniture industry low entry barrier: equipment, plant, software and other factors of heavy capital investment, is no longer the core of business operations, these are all possible to spend money. However, the company’s product system, technical talents, terminal operations, process management, software information construction, supply chain systems, etc., are all highly specialized technical activities, which are often decisive for the development of enterprises.
02 High gross profit, low net profit
In the past ten years, China’s labor cost has increased by 2.7 times, private enterprise financing costs have exceeded bank benchmark interest rate by more than 2 times, and logistics costs are developed. The country is twice as large, regardless of labor, raw materials or business operating costs. Therefore, the cost issue has become a problem that many small and medium-sized enterprises are bothered. Along with the intensification of industry competition in 2017-2018, under the influence of the “price surge” and the industry reshuffle trend, corporate profits have been cut again, even thinner than the blade! The custom furniture industry has a long process and a high degree of professionalism. From the order measurement, design, production, logistics, arrival, installation and after-sales work, an order requires more than a dozen processes, and the participation of 2-4 people makes it predictable. 40% of gross profit, and finally got less than 10% of the net profit. If you have a post-sale problem, rework is a loss. The custom furniture industry is by no means a legend in the profiteering industry.
03 “Original” from Europe
Without technological innovation, there is no rise of furniture companies. Chinese furniture companies have long been immersed in low-cost competition, small profits but quick turnover. In an industry atmosphere; many companies do not want to spend huge sums of money, manpower and material resources to innovate, nor dare to innovate, or even innovate as “copying new”, leading to serious homogenization of industry products, resulting in lack of innovation in the Chinese furniture industry, long-term stay in low At the level of manufacturing, international influence has stagnated. Nowadays, the competition in the furniture industry is intensifying. Innovation is the inevitable return of the survival of enterprises. To improve the competitiveness of furniture enterprises, enterprises need to face the importance of innovation first. Secondly, they are willing to invest, establish the goal of long-term development of enterprises, and prevent plagiarism. Form a good innovation competition model in the industry. Our custom furniture companies, and even the entire furniture company, go to Europe all the year round, go to Milan to participate in various world-class exhibitions, return to the domestically unmodified “according to the gourd painting”, swallow the European products and become “China” Design” and “Made in China”.
04 Production determines sales, the background determines the front desk
The custom home industry has the saying that “production determines sales, the background determines the foreground”, and there is no good internal production supply system. Directly causing the terminal to load slowly, the order is slow, so the production cycle is long, the custom product is wrong, the shipment is not shipped, the delay is single, and it is not uncommon. It will directly lead to dissatisfaction of the terminal, and the customer complains greatly. Whether front-end marketing can be exerted is often subject to production delivery, internal back-office operation system, strong manufacturing system and background control system, which are the basic conditions for the rapid expansion of customized furniture enterprises.
05 Custom furniture “fast is slow, slow is fast”
The so-called fast and slow theory is essentially enough attention to the background, in the early days of the project, it is devoted to research Products, software docking system, production system, order process, terminal mode innovation, etc., enter the second half of the competition era, if you still “slap the head” and “take it for granted” to come to the project, it is bound to die very badly! Cross-border into the custom home brand With strong strength, we often face today’s customized market based on past successful experiences. We believe that large-scale investment in regional markets, rapid construction of large stores, construction of multiple stores, and tree models can quickly break through the regional market. Behind the rapid expansion must be supported by a strong system. Customized home production, technology, software and marketing are very complex “system engineering”, all of which are professional and can’t be done overnight. There is no industry precipitation of 2-3 years. And the support of the basic system is unable to expand steadily. The “fast and slow theory” belongs to the characteristics of the custom industry, which is also an important reason for many cross-border brands to enter the custom industry. Only by grasping this characteristic can we truly achieve the “fast” in the target, preferring the “slow” in the early stage and the “fast” in the later stage.
06 “Three big mountains” and “four highs and four lows”
In recent years, furniture companies have generally encountered “three big mountains”, that is, “market icebergs, financing High mountains, transformed volcanoes.” The market is getting colder and colder, financing is getting harder and harder, and transformation means finding death, not waiting to die. In the development and growth of enterprises, furniture enterprises also face the problem of “four highs and four lows”: high labor costs, high financing costs, taxes and fees.High burden and high institutional transaction costs; low product quality, low technical standards, low brand recognition, and low corporate integrity have severely restricted the competitiveness of China’s furniture industry.
07 Is there a chance for the price war to start?
From the perspective of the custom furniture industry itself, the possibility of a deep price war is unlikely. From the perspective of competition, the custom furniture industry has formed a preliminary industry stratification. The structure dominated by private enterprises also makes the business strategy relatively rational. The industry is in a high-speed growth stage and the supply and demand are balanced. From the product perspective, the non-standardization degree of customized furniture is more High, the front-end design, back-end installation and maintenance, etc. are very demanding, and the products are not in stock according to the order; from the brand point of view, the consumer brand awareness is increasing and the price sensitivity is decreasing, the European-style home cabinets, Sophia wardrobe All have laid a strong brand positioning. From the above aspects, the possibility of a deep price war in the custom furniture industry is not large, and the possibility of a partial price war with the purpose of “drainage” is relatively large. In addition, the customized furniture industry has a long service process, many participants, and high service costs. This leads to a relatively good profit for the company or the store to support its services.
08 Customized furniture second half competition performance
Customized furniture second half competition characteristics:
1,8 main board listed companies, capital market intervention, fast Raising the operating threshold of the industry, whether it is the level of business management or the integration of resources, is a new situation.
2, traditional business thinking, solidified thinking, grassroots entrepreneurship has “can not find the North”;
3, the national customization, the national cross-border is still staged, if not Respect the law of industry development, follow the traditional business model, the ending must be very miserable;
4, the price war starts, the concentration of the head brand is increased, the service radius of the branch (factory) is reduced, the resources are relatively focused, the area Sex brands are facing huge challenges.
5, M&A, restructuring, O2O, self-assembly + whole house customization, become the new normal.
(provided by Shenyang Building Materials Network) <
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