The furniture market is not as good as before. This was the feedback from nearly 500 Chinese furniture industry entrepreneurs from all over the country at the Leadership Summit held by "True Love · Furniture TIME" on December 29 last year.
As soon as the order is completed, it hits US trade barriers: the US International Trade Commission ruled on November 30 last year that it would continue to maintain the existing anti-dumping tax order on China ’s export of wooden bedroom furniture to the United States at a tax rate of 43.23% to 216.01%. It is an established fact that the time limit is still five years and furniture exports are not optimistic.
On the other hand, compared with the domestic market, compared with 2010 when furniture companies became the most popular CCTV advertising tenders, the just-closed 2011 CCTV advertising tenders, the enthusiasm for the furniture industry to invest in CCTV advertising dissipated rapidly; furniture stores let the vacancy rate and rents "fly" together for Zero conflicts have deteriorated unprecedentedly.
Furniture manufacturer "worst times"?
The dilemma of Chinese furniture manufacturing companies' survival is no longer necessary. Mr. Zuo, the boss of a furniture company in Foshan, Guangdong, told reporters, "According to the current operating situation of the furniture industry, if the anti-dumping tax rate for bedroom furniture exported to the United States exceeds 10%, it will be difficult for an enterprise product to have an advantage. If the tax rate is raised to 216.01%, it will be The product has no advantage in the United States. "
In fact, many furniture manufacturers in the Pearl River Delta clearly felt that the market entered the off-season ahead of schedule in October 2010. The order is completed, but there are no new orders to take and dare to take. Morgan Stanley's professional research report shows that for every 1% of the US GDP growth rate declines, China's GDP growth will decline by 6.5%, and 60% of China's furniture exports are sold to the United States, the downward trend is more obvious.
What is striking is that the "three come and one supplement" in the coastal areas has been cancelled, many suppliers of materials and accessories in the furniture industry have also been removed, and export tax rebates have been reduced, making it difficult for enterprises to continue production. At the Leaders' Summit held on December 29 last year, Mr. Chen, a well-known furniture company owner in Dongguan, told reporters, "Since the financial crisis, Dongguan Dalingshan has closed down two companies every day."
The famous economist Lang Xianping's argument was quite sensational, "China's furniture 70% production capacity is only 29% consumption. Over the years, it is not the product innovation that has really driven China's furniture exports, but China has a serious overcapacity. . No export, the Chinese economy will disintegrate immediately! "
Dealers face multiple difficulties
The exit is nowhere to be found, what should I do?
"The common practice of furniture manufacturers is to switch to the domestic market and seek sales channels. This has to some extent forced the furniture store's" Great Leap Forward "expansion." According to Yang Tao, CEO of Guangzhou Kumanju Animation Technology Company, retail expansion Next, it will continue to be the driving force for the growth of the entire furniture industry.
Statistics show that Red Star Macalline has attracted more than 40 stores in 2010 and opened more than 30 stores. The number of stores opened in a year is the total before 2010; Ouyada also opened 6 stores; the area with smaller plates Brands such as Mercure Center, Jockey Club Home Furnishing, etc. have just opened a dozen or so furniture stores in Guangzhou in just one year, with an area of ​​over one million square meters.
It stands to reason that the continuous expansion of the store should be a symbol of the prosperity of the industry, but the actual plot is that the expansion of the store pushes up the vacancy rate, and the channel hegemony also causes the store rent to "fly up". The dealer Xia Chen said, "In the past 200 square meters, the monthly rent was 20,000, and the profit was 500,000; now 300 square meters, the monthly rent is 40,000, and the profit is still 500,000."
This fate of being exploited is obviously something that the furniture dealer does not want to see. Reluctantly, the competition in the industry has been unprecedentedly fierce, and the competition between Red Star Macalline and the actual home has also become fierce. A merchant has calculated an account. If he enters Red Star Macalline, he will have to pay an additional rent of at least 300,000 yuan per year. If he enters the actual home, Red Star Macalline will be carried out in more than 70 chain stores nationwide. The same "sanctions" have unimaginable consequences.
As a result, the general phenomenon is that dealers sigh and have been busy for a year, but their profits are lower than in previous years; furniture real estate developers complain that the stores are all over the country and there are few well-managed stores; furniture manufacturers are worried and their production capacity has increased Does not sell.
The furniture industry accelerates "differentiation between rich and poor"
It seems that the entire furniture market is shrouded in a downturn. But the data shows that in 2010, Chinese furniture continued to grow at a rate of 30%. Jintian Haomai is the most well-known furniture equipment supplier in China. Guan Jianhua, the company ’s managing director, also told Nandu reporters, “In 2010, Jintian Haomai ’s equipment sales reached more than a billion, with a growth rate of 40%. For example, Pocket Pearl Furniture, There were more than 300 million pieces of equipment purchased from Jintian Haomai in 2010 alone, and additional funds will be purchased to purchase equipment this year. Moreover, companies that have increased investment in equipment are by no means a Pearl, but also Quanyou, Opie, etc. "
The introduction of high-tech equipment can, on the one hand, help leading furniture manufacturing enterprises to carry out large-scale and industrialized production and shorten the supply chain. "Once CNC equipment is enabled, the customer can place an order at the terminal, and the workshop can immediately design the production drawings, cut and drill. Technological processes such as holes are also launched immediately. Orders in the morning will be delivered in the evening. "Guan Jianhua said that the introduction of equipment can largely solve the problem of" labor shortage "for enterprises.
"Industrial restructuring is being led by the tide. Leading furniture manufacturing companies are deeply integrating manufacturing and channel services through informatization and high technology to profoundly change the capabilities and looks of Chinese furniture brand manufacturing companies. For example, Chuanjun Furniture Pearl is introduced to IBM, Yuejun Furniture Federation introduced Digital China. "Yuan Weidong, founder of" True Love · Furniture Tim e "magazine said.
dialogue
Forecast of the furniture industry
Chen Huai, Director, Policy Research Center, Ministry of Housing and Urban-Rural Development
In the golden past 10 years of the "Great Leap Forward Development", China's urban housing including affordable housing, commercial housing, etc. is only 7 million to 8 million. As a related industry of real estate, the furniture industry still has a lot of room for development. The next step the furniture industry has to take is the one the home appliance industry has taken.
Yang Tao, CEO of Guangzhou Kumanju Animation Technology Company
With the arrival of the "baby boom", there are 150,000 new births a year in cities such as Guangzhou. Roughly calculated, the Guangzhou market alone has more than one billion yuan of "cake" for children's furniture in a year, and it is worth noting that buying children's furniture is already a rigid demand for household consumption.
Huang Zhiwen, Deputy Director of Chongzhou Economic Development Zone Management Committee
Some local governments in the Midwest have listed the furniture industry as an opportunity for new manufacturing breakthroughs. Chongzhou has built an 8-square-kilometer western furniture industry base. It is conservatively estimated that the output value of the Chongzhou furniture base exceeded 10 billion yuan in 2010, an increase of more than 36% year-on-year. By 2015, the output value of the base will be at least 50 billion yuan. The Chongzhou local enterprises, all friends of the Chongzhou local incubator, and the Pearl of the Palm, will also become the aircraft carrier of Chinese furniture companies.
Point of view
Capital starts chasing the furniture industry
The intuitive signal of the rise of the industry is the rush for capital to enter. On the same day that the United States announced the continuation of the anti-dumping tax order, Kumanju, a local company specializing in the children's furniture market in Guangzhou, received an international venture capital investment of 60 million yuan; and in early 2010, Red Star Macalline and Shangpin Home Furnishing also Both have received large amounts of venture capital. At the same time, companies such as Hundred Years, Huayuanxuan, Tycoon, and Jinsheng Home Furnishing have also spread the message of conspiracy to go public.
Prior to this, the overall annual output value of the Chinese furniture industry exceeded 700 billion yuan, but could not incubate a furniture company with an annual output value of more than 10 billion yuan. The number of listed furniture companies has been criticized by the industry.
The reason why capital was not optimistic about the furniture industry was also very simple. "One is that the traditional manufacturing business model is too simple and lacks imaginable space; second, furniture manufacturing enterprises are mostly family-owned enterprises, and property rights are not clear enough; third, talents for industry development. There is a shortage, and the dealership is huge. There are at least 50,000 or 60,000 furniture dealers in the country, but most of them are husband and wife stores. "Yang Tao, CEO of Kumanju.
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