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            The furniture industry should prepare for the hard life

            2018-09-06 Source:admin View:968
            With the popularity of the word "consumption downgrade" and the popularity of the Internet, people were surprised to find that the income growth of enterprises such as Jingdong, Tencent and Yunnan Baiyao was declining while the income growth of Shunxin agriculture and Fuling mustard was increasing. Over 200%, it seems to support the phenomenon of "consumer demotion".

            In the current economic environment, people's pessimism and anxiety about the future are in fashion. In the second half of 2018, both individuals and enterprises, whether large listed furniture enterprises or small and medium furniture factories, may have to prepare for a hard life.

            The growth rate of listed furniture enterprises has generally slowed down sharply.

            In August, the listed companies of major listed furniture enterprises were announced one after another. Custom-made furniture, which used to grow at an impressive rate, has generally slowed down this year: the first-tier leader, Europeans, posted a 25.05% year-on-year growth of 4.845 billion in household revenue, while several others, with a growth rate of more than 30%, either had a small base last year or had access to government industrial support funds.

            The industry predicts that the inflection point of the custom furniture industry has arrived, although there is still a lot of room for the size of the custom furniture market, but now the real estate matching, fine decoration + baggage check-in, complete set of meals have been customized furniture store orders intercepted. This is why now the first echelon of customized furniture companies are actively carrying out their own new business, although the early days are still burning money.

            Traditional furniture listed companies reported that their operating conditions are not optimistic, such as dream Lily by the impact of the U. S. trade war, the performance of a substantial decline. In the business world, people know that if there is room for growth in an industry, it depends on the growth rate of benchmarking enterprises in the first echelon. Now the performance of listed furniture enterprises is generally in decline, showing the depression of the entire industry, many small and medium-sized furniture enterprises have already entered the cold winter.

            The furniture industry should prepare for the hard life.

            Small and medium-sized furniture enterprises net profit dropped to the critical point.

            Although the growth rate of large furniture enterprises has declined, they still have certain scale advantages of capital and R&D, production, channel and brand, and still have enough net profit to transit slowly to autumn and then to winter. For small and medium-sized furniture enterprises, especially small furniture factories, net profit has been repeatedly compressed. The decline in the labor force means paying more to hire workers; the rise in the social security base means spending more on non-wage costs per person on average; not to mention the rise in rents, the costs of environmental storms, and the overall capacity of some upstream raw material manufacturers driven by environmental remedies. The decline will bring about the rise of raw materials, not to mention various taxes and financing difficulties.

            It is seen that the cost is rising, but the order is not increasing. "Orders for this year's peak season are even less than those of the previous season." the author has heard more than one time that furniture factory owners have no choice but to Tucao.

            In some traditional furniture industry centers, many furniture factories are quietly shutting down, closing down, or relying on e-commerce agents to survive reluctantly. In fact, even if not the furniture industry practitioners, you can also perceive some of the downturn phenomenon: factory co-rental, rent-seeking factory, rental vacancy, village and town commercial street depression... Under the great development of the times, most of the furniture factories failed to "transform" or "upgrade", but quietly disappeared, just as they were quietly born.

            The furniture industry should prepare for the hard life.

            Prepare for a hard life.

            No one can escape the impact of the economic downturn, the key is to uphold what kind of mentality, it determines who can jump up in the next economic rise. Whether it is large furniture listed enterprises or numerous small and medium-sized furniture enterprises, must be prepared to live a hard life.

            It is not a good thing to live too hard. It can slow down the development of listed furniture companies, no longer blindly staring at the city, blindly rely on investment to achieve growth, when they slow down, look at themselves, the source of net profit can also be "throttling", can be to improve production efficiency, good products and services, good management of franchisee, From bigger to stronger; for small and medium-sized furniture enterprises, can clearly self-positioning, no longer like to blindly imitate the practice of large enterprises, but will put "survival" in the first place, find their core competitiveness, continue to enlarge their own advantages, with "small and beautiful" characteristics to win more and more consumers chase Follow.

            In this sense, in the "hard life" environment, large and small furniture enterprises are actually standing at a relatively fair starting point, at this time, the competition is no longer a resource, but the depth of internal force. Whose internal force is strong enough, who will be the first to hit bottom and rebound.

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