Foreign orders drastically reduced, domestic demand plummeted

It is no exaggeration to use the word "depression" to describe China's home furnishing industry last year. When you go to the furniture city, you often find that there are not many consumers in the store, and even some shops are surrounded by advertising banners. You think that the dealer is renovating or a new brand is settled in. In fact, these dealers can't hold back. Not only distributors, but also some furniture manufacturers in Dongguan, Shunde, Zhongshan, etc. have collapsed. The reporter was informed yesterday that Shenzhen Longgang Central City alone had four or five furniture stores closed last year. Facing the "three major cold snaps", the home furnishing industry shouted "the sad days".

Cold snap 1: Demand for regulation of the property market plummets

In 2010, the state introduced two rounds of control policies in order to curb the excessive rise in housing prices. Since then, the real estate market has shrunk dramatically, the total area of ​​houses that can be renovated has shrunk sharply, and the home market sales have also suffered severely. The "golden nine silver ten" of the furniture industry burst with the gloomy housing market. The furniture market, which should have been the peak sales season, is still quite deserted. According to expert predictions, the housing market situation is still grim this year. In a wait-and-see atmosphere, consumer demand has plummeted, and the home furnishing industry may face a difficult "cold winter." Many people in the industry pointed out that due to the economic situation and real estate policies, the tide of home furnishing enterprises in 2012 may continue to appear.

Cold snap 2: double suppression in the exit

The frustration of the global economy and the appreciation of the renminbi have reduced China's export competitiveness, and home furnishing orders from abroad are being significantly reduced. At the same time, domestic demand has also been slowed down by policy. The double suppression of the export and domestic demand markets, coupled with the temporary recovery of the vitality injured in 2011, has significantly increased the pressure on home furnishing companies. Regardless of whether it is a manufacturer, a distributor, or an agent, all face heavy pressure. Taking Dalingshan Town, Guangdong, the first town for furniture export in the Mainland as an example, 35% to 40% of furniture companies are in a loss state, and the phenomenon of bankruptcy is intensifying. Some insiders even revealed that among the more than 6,000 furniture companies in Guangdong, only about 30% to 40% have grown or maintained their existing levels. Most of these companies are relatively balanced in the domestic and foreign markets. As the domestic market has also declined, 70% of domestic companies have closed production capacity by about 30%. Industry insiders predict that 2012 will be the most difficult year for furniture manufacturers to develop, and how to survive will become a problem that furniture manufacturers need to think about.

Cold snap 3: overcapacity intensifies bankruptcy

With the reduction of rigid demand in the upstream real estate market, the home furnishing market is facing the situation of "more monks and fewer porridge". The reduction in the overall market means that competition will be more intense. At the same time, the competition between high-end brands and mid- and low-end brands will also form a more intense competitive situation.

It is understood that many stores chose to expand against the trend last year and opened new stores, which led many brand distributors to live in the "expanded" days and follow the stores to open stores around. Such blind following has made the originally fiercely competitive market even more fierce, and it has also caused the problem of homogenization between stores becoming increasingly serious. In this increasingly day-to-day market competition, there will inevitably be some stores that cannot keep up with the times. Those that expand for expansion and cannot meet the needs of consumers will be ruthlessly cleaned. Under the cruel market environment, the home furnishing market urgently needs a new model to adapt to the market and change the market.

Distributor:

Business is getting harder and harder

"It's not just the cost of distribution channels that has risen, the original operating costs have also risen significantly." Chen Gang, a furniture brand distributor, said that on the one hand, rents in home stores are rising, on the other hand, due to inflation, the salaries and commissions of employees in specialty stores It has also been greatly increased, and the cost of logistics transportation has increased by an average of 15% to 30% per year, which has caused the operating costs of dealers and agents to continue to rise. Chen Gang said that since July last year, he felt that business was getting worse and worse. In the home plaza he entered, there were probably more than 300 merchants, of which nearly 200 were losing money.

consumer:

Furniture is too expensive

Buying "good but not expensive" furniture products is the desire of the majority of furniture consumers. However, due to rising production costs and complicated intermediate circulation links, furniture prices on the market now generally continue to rise, and consumers seem helpless. A Miss Fang Li, who was going to buy furniture, told reporters: "Originally, we plan to decorate 50,000 yuan, and 20,000 yuan to buy furniture. How can we know that furniture is too expensive now? The price can be cheaper. "

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