Under the global economic downturn and the double-sided impact of domestic real estate regulation and control, the life of furniture companies is really difficult. In order to get rid of the decline in performance, furniture companies are also looking for new ways. Export-oriented furniture companies have changed their direction to domestic sales. In order to find new profit growth points, some furniture companies are looking for innovation in the sales model, hoping to get a share in the e-commerce field.

Furniture companies seek transformation

Export to domestic sales

Furniture is a typical export-oriented industry, with annual exports accounting for nearly one-third, but with the global economic downturn, coupled with rising raw material prices and labor costs, leading to a gradual decline in manufacturing advantages, furniture exports have been hit hard. Under the influence of the decline in overseas order demand, foreign anti-dumping policies, and RMB appreciation expectations, some furniture companies engaged in export business in the Pearl River Delta, Yangtze River Delta and other regions have turned their main markets to domestic sales.

Industry insiders pointed out that the advantages of export-oriented furniture companies are huge production scale and efficient production and processing capabilities. In the face of the decline in overseas orders, companies can choose to carry out OEM for well-known local brands or imported brands sold in China. Since the market demand for these brands is generally relatively large and the sales volume is guaranteed, transition furniture companies can give full play to the advantages of production capacity.

However, there are both joys and worries. Export orders usually require every profit to be profitable, but after switching to domestic sales, furniture companies need to develop the market, and during the market cultivation period, they have to focus on investment, making furniture companies exporting to domestic sales short-term Hard to benefit. The exported products are mainly designed according to the characteristics of overseas consumers' demand. After turning to the domestic market, it is very likely to appear unacceptable and difficult to cater to the preferences of domestic consumers. Therefore, domestic furniture companies that have transferred domestic products have to change product designs to meet the needs of domestic consumers. In addition, the regulation of the property market has affected the total domestic demand for furniture, making it difficult for furniture companies. After exporting furniture into the domestic market, it will undoubtedly make the already sluggish domestic furniture market more competitive.

The good news is that from recent data, furniture exports are showing signs of picking up. Customs data shows that the export growth rate in May rebounded sharply from the previous month, an increase of 15.3%, an increase of 10.4 percentage points from the previous month. The growth rate of the export of light industrial products has greatly accelerated. The furniture export value in May increased by 55.9%, an increase of 33.6 percentage points over the previous month.

Minister of Commerce Chen Deming said that although China's import and export data rebounded in May, the trend in the later period remains to be seen. Affected by the European debt crisis and other factors, China's foreign trade situation in the later period is still relatively grim.

Fahrenheit (300033, i-bar) iFinD data shows that last year, 1 of the 12 listed furniture companies suffered losses, and 6 companies' net profit declined year-on-year; Net profit declined year-on-year. Judging from the semi-annual performance forecast, as of now, eight companies have announced performance forecasts, of which one company is uncertain, one company continues to lose money, two companies reduce, and four companies increase slightly.

Enter e-commerce

In the face of the current sluggish domestic furniture market, the sales of major furniture companies in the first half of the year have declined to varying degrees. Many domestic brand furniture companies have to adopt "closing stores" measures to reduce expenses, while some companies have started The idea of ​​opening an "online store".

The editor understands that e-commerce platforms such as Tmall Mall and Jingdong Mall have attracted many furniture brands such as Qumei, Nick Love, Federal, Disney and so on. In addition to selling in Tmall Mall and Jingdong Mall, Nick Aijia will also be stationed in the Experience Pavilion of Aifeng Chao Line, and will undertake leasing business in Bangjia Rental Store. Hegou furniture not only sells through Tmall Mall, but also establishes its own online shopping platform website.

Like physical stores, the furniture on the e-commerce platform is a big price war and attractive discounts. However, the editor found on Tmall Mall, Jingdong Mall and other e-commerce platforms that furniture sales are not very optimistic. Except for a few products, most products have very few sales, and the better sales are those with high discounts. Industry insiders said that these behaviors of furniture manufacturers are actually just changes in sales methods, and they are still fighting price wars, and the final result of price wars will undoubtedly reduce the profits of furniture manufacturers.

In addition, Red Star Macalline will also enter the e-commerce market, and its e-commerce platform "Hongmei Mall" will be launched in the near future. At the same time, Red Star Macalline's e-commerce strategy was also exposed for the first time: Red Star Macalline's existing merchants and brand resources were transferred online, and online merchants were expanded through e-commerce service providers. Will be gradually introduced into Hongmei Mall.

It is understood that China's e-commerce has developed rapidly in recent years. The 2010-2011 "China E-commerce Development Report" shows that the total domestic e-commerce transactions in 2011 reached 588 million yuan, an increase of 29.2% year-on-year. Industry insiders pointed out that the number of e-commerce companies is growing rapidly. Based on the income of the e-commerce market, the number and scale of enterprise growth, the development of e-commerce is the general trend. However, as e-commerce competition enters an incandescent stage, the survival of furniture e-commerce platforms will be under pressure and polarization will occur. Coupled with too many online brand store products "cottage", it will also hinder the development of furniture companies.

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