The Chinese furniture industry is gradually becoming more familiar with e-commerce, as most brands have now established their own online stores. This time, Lin's Wood Industry, which has managed to secure a top-ten position in Alipay's sales volume, not only promoted itself effectively but also brought furniture e-commerce back into the spotlight. However, for many in the Chinese furniture sector, this development is not entirely positive — it has instead deepened the challenges they already face.
Why are these challenges so complex? The internet’s growing transparency is starting to challenge the traditional, opaque methods that furniture businesses have long relied on. These include exaggerated price discounts, vague material descriptions, and misleading marketing tactics like "factory direct sales." Most furniture companies are still unprepared for this shift in consumer expectations and market dynamics.
Moreover, the diversification of e-commerce channels presents another major dilemma. Furniture manufacturers must rethink product designs to better suit online sales, convince regional agents to support logistics and installation, and fairly distribute profits. Additionally, building an efficient e-commerce team requires new talent, often including younger employees from the 80s and 90s generation — a group that can be difficult to manage and integrate into traditional company cultures.
Another significant hurdle comes from resistance by traditional furniture retailers against platforms like Tmall and Taobao. Many brands' O2O strategies have faced strong pushback from large retail chains such as Red Star and actually. Over the past few years, successful furniture e-commerce brands like Lin's Wood, Merlot, and Quanyou have largely avoided these big-box retailers. Furthermore, as Red Star and actually begin to develop their own independent e-commerce platforms, furniture manufacturers will need to reconsider how they engage with these evolving market structures.
Despite these challenges, the path of e-commerce remains promising. Transparency is the future, and while e-commerce acts as a catalyst, it’s clear that change is inevitable. Younger generations will eventually replace older ones in the workforce, and even though physical stores may resist, the importance of platforms like Tmall and Taobao will remain central for most furniture brands.
The competition among furniture brands is accelerating, and those who continue to neglect brand development risk facing serious consequences in the near future.
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