The development of the furniture industry encountered three "stumbling blocks"

The furniture market has a large number of brands, but the quality of the company is mixed. Some small and medium-sized furniture companies are under the influence of large-scale enterprises due to lack of funds, lack of innovative capacity, and imperfect management system. Although they are “forced”, they are The development of the industry is still causing no small obstacles.

Although the current furniture market is not good, the number of furniture companies is still very large. Under the new industry pattern, overcapacity has become an indisputable fact in the industry. At the same time, many small and medium-sized furniture companies still rely on "OEM" production. , Counterfeit brand names, the good and the bad of upstream companies also affect the construction and development of business channels.

The first: the lack of capital into the channel to build stumbling blocks

The reason why furniture manufacturers are difficult to face the ever-changing market is that they lack the financial strength to back them up. In the past two years, due to equipment renewal and expansion of production capacity, coupled with fierce market competition, corporate profits have become thinner and thinner. Temporary capital accumulation has not yet formed. The lack of capital investment has seriously affected the product R&D, channel laying and brand building.

For many small and medium-sized furniture companies, the shortage of funds is even more serious. It is hard to overcome difficulties and financing difficulties is an insurmountable threshold for SMEs. If the company does not form a stable sales channel and does not have a perfect sales model, once the market suffers troubles, it is easy to encounter a sales crisis, and it is even more difficult to talk about channel sinking to the secondary and tertiary markets.

Second: The popularity of imitationism

In order to win the market sales and take the initiative in the market, some large furniture companies often invest heavily in product research and development, and this sum of investment is often difficult for small and medium-sized furniture companies to get it. However, it is difficult for large enterprises to invest in "high-cost" investment to obtain "high-yield". Once a new product is introduced, it is often copied directly by many companies.

Furniture companies not only imitate their products, but in management, business model, and even brand publicity, many companies often engage in “acquisitionism” and follow suit to become a life-saving rule for many companies to survive. Enterprises that are homogenous and lacking in capital can only follow the same steps and cannot break through the market and even be eliminated.

Third: The management system is not sound

The furniture industry is still very traditional in terms of management and marketing. The quality of employees in the industry is not high. Therefore, only a very small number of companies have relatively well-known brands and relatively complete channels. Many furniture companies’ own channels and sales management are obviously not standardized enough, and the market outlets are weak. The dealers' choice of products depends on good customer relations. In addition, many companies do not have the ability to operate brands, there is no systematic business model and professional marketing team, there is no accurate market information, there is no customer-oriented service standards and customer-oriented service system, there is no research, production, supply system for the market , Capital investment cycle is long and the risk is high, all these will become the time for the furniture company to die, and may be fatal at any time.