According to the data, from January to July this year, the number of Shunde furniture exports declined, and the export growth rate fell by about 5 percentage points from the same period last year; the profits of Shunde ’s furniture companies above designated size decreased by about 600 million yuan, and the industry ’s profit loss was about 15 100 million yuan. The Qingdao furniture industry, this year, has also shown a decline in exports month by month.

The "Formaldehyde Standards Act for Composite Wood Products" of the United States came into effect on July 1, and the formaldehyde limits stipulated in the bill are 1000 times higher than our national standards. This will obviously increase the cost of testing and production costs, so many furniture companies including the Suzhou area feel very headache. Zhejiang's furniture industry also has a situation of "increasing production but not increasing income".

Furniture companies are losing their competitive advantage in export

Shunde, Qingdao, Jiangsu and Zhejiang are the important hinterland of the Pearl River Delta furniture industry group, the Bohai Rim furniture industry group, and the Yangtze River Delta furniture industry group. The situation they face represents to a certain extent the current domestic furniture companies encountered in the development process. problem.

According to an analysis by a senior person in the furniture industry, the current raw materials of the furniture industry, including wood and furniture coatings, have increased by at least 20% compared with two years ago; labor costs have also increased by 20% -30%.

In addition, the potential for RMB appreciation is still great. On August 11, the central parity of the RMB against the US dollar broke the 6.4 mark for the first time, which means that foreigners have to pay more money for Chinese goods.

The furniture industry circulates the saying that "Chinese furniture looks at Guangdong". Guangdong, as the "core" of China's furniture industry, has always led the development trend of the furniture industry. And the fact is, "Guangdong's furniture processing production occupies the 'half of the country's furniture production'." In the face of rising cost factors such as raw materials, labor, and environmental protection, many furniture companies that export in the form of OEMs are becoming less competitive, and their advantages are being lost.

Turning to domestic sales, the road is not smooth

Compared with the gloomy situation abroad, the domestic furniture industry is much more optimistic. In recent years, domestic consumption capacity of furniture products has been continuously improved, and domestic furniture demand growth is higher than that of foreign countries, especially in the second- and third-tier markets. As a result, export companies facing the pressure of survival turned their attention to the domestic market and actively sought transformation.

The export market is getting smaller and smaller, is the cake in the domestic market so easy to grab? In fact, as early as the financial crisis in 2008, companies continued to sing "to enter the domestic market." Nowadays, global economic development is blocked again. In the face of this environment, companies should calm down, try their best to maximize their strengths, and do n’t blindly plunge into the whirlpool.

According to the survey, most enterprises are facing the problem of "unacceptable conditions" in the process of switching from foreign sales to domestic sales. A person from an export company revealed, "To make an order, the process is probably: acquiring, processing, exporting, and collecting money. The ordering party will first give a certain percentage of the deposit. As soon as the product leaves the factory, the other party's balance will come over. . Such a good business, if it is not a bad market, who will let go? "Domestic sales are different," something you make is not necessarily required, and the risk is obviously increased; domestic sales are not only for R & D, production, but also Entering the circulation field requires after-sales, and any one of these links is more complicated than when doing foreign trade. "

The lack of a mature marketing network and a perfect after-sales service system are the key to hindering the entry into the domestic market, and channel construction is the first step for companies to gain a foothold in the domestic market.

Where is the way to "change face"

The products of furniture companies are generally exported to developed countries such as Europe, the United States, Japan, and South Korea, so the quality and function of the products are relatively better than domestic products. However, due to the current competition in the domestic furniture industry, brand competition, Industrial chain integration, channel integration, and capital operation phases. Therefore, when exporting furniture companies to the domestic market, they must reorient and adjust the original products. Pure quality alone cannot meet market demand.

The development path can be changed in a timely manner from the following aspects, combined with the actual situation:

1. The company's transformation from concept to form. The transformation of the company's form involves many aspects such as the company's organizational structure, talent selection, and team building.

2. Walking on two legs, complement each other at home and abroad. The international market and the domestic market are interdependent and mutually reinforcing. On the one hand, using the strong production capacity and good quality reputation of OEM in the international market to develop the domestic market, actively create brands and build a marketing system. On the other hand, continue to open up the export market and face up to the fact that the existing export markets in foreign trade exports are concentrated in developed countries in Europe and America, increasing the breadth of exports.

3. Reasonable market positioning strategy. Choose a reasonable business model. The competition in the domestic market is very fierce. Foreign trade companies must know which profit area of ​​the industrial chain they are in, in order to choose the development path according to their own characteristics and determine the business model. It can be roughly divided into a high-end, professional asset-lighting model that goes upward and a development model that goes downstream.

4. Channel strategy. The key to promoting the success of export-oriented enterprises to domestic sales. In addition to conventional marketing channels, companies should diversify their thinking and develop sales channels on the Internet, in rural areas, and on existing dealers to open up potential markets.

5. Product strategy. Work hard on product features and brand building. On the one hand, foreign trade enterprises should make full use of the unique advantages of their strong production capacity and provide competitive high-quality, multi-level products. On the other hand, we must pay attention to brand building: for some strong transformation enterprises, you can consider building your own brand.

In short, export-to-domestic sales is an out-and-out process. Only by formulating corresponding corporate strategies based on their own characteristics and market needs, and making plans before moving, can transforming enterprises become invincible in the fierce market competition. Enterprises that transfer to domestic sales must have confidence in the transformation. By expanding the domestic sales market, they can change the business model in which enterprises rely entirely on foreign markets, which is conducive to the long-term development of enterprises.


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