Since last year, under the pressure of tight real estate regulation, weakening demand and trade barriers between Europe and the United States, some furniture companies have experienced declining sales, sharply reduced profits, and even fell into a state of loss. The news of reducing production, closing stores and layoffs has emerged one after another. Faced with a tough market environment, the contrarian breakout has become a topic that every furniture company must face. Industry dilemma highlights today, the over-regulation of real estate control policies has led the real estate industry into a cold winter, which undoubtedly cast a shadow over the furniture industry downstream of real estate. Just when China's furniture industry fell into a trough, the trade barriers bills of countries such as Europe and the United States showed a tendency to bombard. Under the shackles of internal and external factors, some furniture companies generally have a decline in sales performance, a sharp drop in profits, and even a loss. The EU recently formally adopted the “Wood and Wood Products Regulations and New Environmental Design Directivesâ€, which will further increase the barriers to the export of wood products in China. According to industry insiders, with the increase in raw materials and labor costs, the production costs of domestic enterprises have been continuously improved, and the foreign sales prices have not increased, directly compressing the profit margin of enterprises. The appreciation of the renminbi has made corporate profits shrink, and the new EU regulations are undoubtedly worse. Recently, the 2009 mid-term profit warning announcement of the Dynasty Furniture shows that “as of June 30, 2012, the unaudited consolidated profit for the six months will be reduced by more than 90% year-on-year. After the announcement, the royal family’s furniture valuation plummeted as high as 10.69. In fact, the decline in the performance of the furniture of the Dynasty is actually a microcosm of the entire furniture industry. According to incomplete statistics, in 2011, more than 70 small and medium-sized furniture companies in Shenzhen closed down; in all parts of the country, there was also a surplus of furniture stores. In the closing of the store, the furniture brand in Beijing closed five stores in less than half a year in the second half of 2011; the sales of major brands also experienced different degrees of decline and loss. There are more than 60,000 enterprises, and there are only 4,000 enterprises above designated size. Most of them are still fighting alone, rarely cooperate with other enterprises and other industries, lack of cluster awareness, and their competitiveness is relatively weak. The brand is difficult to raise awareness, which is a big pain for furniture companies. The reporter found that at present, some domestic small and medium enterprises are closing their doors. The situation is widespread, and some of the barely maintained furniture companies have also seen a significant decline in store popularity. From the end of 2011 to this year, with the implementation of national real estate regulation and control policies and the rising cost of raw materials and labor, the market for some furniture companies and distributors has been Sales growth has narrowed and profitability has declined. There are many factors contributing to this phenomenon. The first 10 years of China's furniture industry can be described as a wind and water, with a growth rate of more than 30%, and when it has been affected by the internal and external economic environment for the past two years. Under the influence, the market has shown a pain in transformation. The industry analysts believe that the current lack of long-term planning in the industry, blind follow-up phenomenon is widespread, the competition in the low-end market is increasingly fierce, product homogeneity is serious, and even the price war, the survival of the fittest The reshuffle trend is very obvious. In addition, the domestic furniture industry brand is more chaotic, lacking high value-added Chinese brands, and the famous furniture brands with independent intellectual property rights are rare. The product quality has a great gap compared with developed countries, which directly affects The international status of China's furniture enterprises, and directly affects my country The long-term development of exports. An industry person who does not want to be named said that the furniture industry will face reshuffle in the next three to five years. In the context of the global economic downturn, the reshuffle of the Chinese furniture market has just begun. Under the influence of market rules, Through resource integration, shuffling has a positive impact on the long-term development of the entire furniture industry; at the same time, this is a new challenge for every enterprise. At present, furniture companies should be in product innovation, design, production technology, quality control, internal management. Work hard to reduce costs and improve overall competitiveness.
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