The furniture industry touches the online game

“On the 18th, the province just opened a special meeting on the transformation and upgrading of the furniture industry.” On November 21st, at the Shengxia Home in Zouping’s Haosheng Street, the reporter’s marketing director Zhao Qinfen made the reporter feel quite surprised. “I have been in the furniture industry for almost 10 years. I will pay attention to all the furniture-related information.” Zhao Qinfen explained, “Of course, this is also related to the fact that the market has not been very good in recent years.”

In Haosheng Street, about one out of every five households is engaged in the furniture industry. Although the word "transformation and upgrading" does not appear in the mouths of too many people, exploration and experimentation have been quietly occurring, and the contradictions and conflicts between old and new concepts have also It is inevitable.

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Online and offline conflicts are difficult to adjust

Just past the "Double 11", Li Baoshuan, general manager of Zouping Lanlin Home Furnishing Co., Ltd., is more busy than other furniture company CEOs. The furniture company, which relies entirely on online platforms, sold 2.6 million yuan in its Hechen brand during the “Double 11” period this year. For this company that was founded in 2011 and started with 100,000 yuan, the growth rate is quite impressive.

“We don’t have a physical store under the line. The network is the only sales platform. This is incompatible with the traditional sales methods that require tangible sensibility.” Li Baoshuan told reporters that “Before 2011, there were basically no e-commerce in the streets. The number has gradually increased over the years, and now there are more than 100."

However, the current local network sales are basically new entrepreneurs like Li Baoshuan. For the old manufacturers who have been doing furniture for decades, it is still a problem to eat this "pie" on the line.

The sales of furniture have long relied on dealer channels. “In general, we set up a specialty store in each county. It is not allowed to cross-load goods between regions. E-commerce completely breaks the regional concept and has The price advantage directly impacts the interests of the dealers, which is difficult for dealers who spend a lot of physical store costs and publicity expenses.” The relevant person in charge of Shandong Meida Furniture Manufacturing Co., Ltd. said.

Zhao Qinfen witnessed the closure of three physical stores under the impact of e-commerce. "Laizhou, Qingdao and Penglai's three dealers have represented a southern furniture brand. When manufacturers develop e-commerce routes, due to the price of furniture in physical stores. It’s about 15% more expensive than online, and I have to close my door.”

So at this stage, can we give up a large area of ​​dealers to switch to online sales routes?

“No!” said Liu Yong, director of the office of Shandong Meiya Furniture Manufacturing Co., Ltd. “The furniture industry has its particularity. The price of furniture and clothing and consumer goods is often much higher. The higher the commodity price, The more consumers need to see the real thing, the physical store is necessary. Moreover, online shopping installation and after-sales service are a problem."

The same product uses different prices online and offline, which becomes the source of conflict between the current e-commerce path and the dealer path, but it is also the focus of the future to resolve the conflict. Li Baoshuan analysis, if large manufacturers use their own plant, personnel, technical advantages to open a production line specifically for the online market, different products go through different channels, can avoid conflicts with dealers, but also break through the online market.

Many manufacturers in real production are indeed exploring this road. "Despite the conflicts between online and offline, e-commerce has to do it sooner or later. Our company plans to register a new brand next year to specialize in the online market. The market grabbed the cake." Zhao Qinfen said.

But not all traditional furniture companies are willing to increase investment in opening new production lines, and many still have concerns.

Transformation - small steps to accumulate

Driving on the streets of Haosheng, the furniture manufacturers that have become large-scale have flashed from time to time, and the billboards of local enterprises with endorsement stars are also very eye-catching, and this is another scene 40 years ago. "At that time, it was a family-style scattered workshop. The furniture that was made was sold in a simple shed next to the 309 National Road." Bi Hongbo, director of the Haosheng Street Office, recalled.

Nowadays, the national road is empty, and the small stalls can no longer be found. Instead, they are the exclusive showcases of “good furniture, good creation” and brand stores opened in all major shopping malls. In 2013, more than 2,200 households of 8476 households in Haosheng Street were engaged in individual industry and commerce, and more than 1,500 of them were engaged in furniture production. One out of every five households is a furniture industry practitioner. From the supply of wood at the source to the processing of furniture at the middle end to the logistics at the end, there are a lot of good streets, and the furniture production industry chain has completed the formation of troops. Thousands of trucks will be there every day.

In recent years, with the continuous saturation of the market, Haosheng Furniture has gradually stepped out of the single furniture era and marched towards “Good Health Home”. From the living room to the bedroom furniture, from daily chemical to kitchen and bathroom supplies, you can purchase one in the streets of Haosheng Street. Specific to different products, the market segmentation has been achieved among enterprises. "The same is the production of sofas, solid wood, mahogany, fabric, software, everyone will focus on different types of competition, to achieve differentiated competition." Liu Yong said.

"The furniture industry is not like industry. It can achieve a qualitative leap by a technological innovation. Its changes will not be subversive, but small steps will be carried out, and the nuances will see the spirit." Bi Hongbo said.

"The big market is not very good" is a sentence that reporters will hear when they enter a number of furniture manufacturing companies. Some factories said that they need to work overtime or even temporarily to order orders in previous years. Sometimes they need to work shifts this year. "But the market cake is there, just see who can eat." Liu Yong said. And whether you can eat it, how much you can eat, the test is the wisdom of each family.

Breakthrough - the sales pattern has quietly changed

Responding to the increasingly saturated furniture market and finding new growth points has become a top priority for furniture companies. All furniture companies will focus on the transformation of marketing methods.

"The countryside surrounds the city, the experience of the older generation on the battlefield, today we have to transplant to the mall." Zhao Qinfen said. Different from many small furniture production workshops in Haosheng Street, many large furniture manufacturers have always been the main sales target of domestic first- and second-tier cities with excellent workmanship. Shengxia Home is one of them. In recent years, furniture brands have sprung up, and urban market cakes have been continuously divided. At the same time, with the advancement of urbanization, huge markets in rural areas, especially in urban and rural areas, have gradually emerged. “In 2015, 60% of our energy will be placed in the rural market, and new styles will be developed for rural areas, with a price/performance ratio.” Zhao Qinfen introduced.

Sales in the furniture industry have long relied on dealer channels rather than on direct consumers. Zhao Qinfen said that in August this year they began to try to open up community routes, and cooperate with real estate developers to "buy a house, send furniture" promotion methods, directly selling furniture to developers. In a property in Jiaonan City, Qingdao, the first phase has received orders for more than 100 suites. In the later period, more than 400 suites will be completed one after another. If the cooperation is successful, the follow-up can also get 1500 to this developer. 2000 sets of orders. "Compared with the traditional dealer route, the community route has reduced the cost of the developer and promoted our sales. But at present, 80% of our sales still rely on dealers around the country, and the community route has just started." Zhao Qinfen said.

"In fact, product design and development, brand building and so on are the fundamental strategies for industrial transformation and upgrading, but it will not be completed overnight. At present, there is no provincial-level furniture technology center in the whole Zouping." Li Dong, deputy director of the Zouping County Economic and Trade Bureau said. Design and development is still a shortcoming of many local furniture companies. Although many companies have set up their own design and development teams, they are mostly three or five people, and many times they are still being transformed in popular fashion styles.

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