Since last year, under the pressure of tight real estate regulation, weakening demand and trade barriers between Europe and the United States, some furniture companies have experienced declining sales, sharply reduced profits, and even fell into a state of loss. The news of reducing production, closing stores and layoffs has emerged one after another. Faced with a tough market environment, the contrarian breakout has become a topic that every furniture company must face. Industry dilemma highlights today, the over-regulation of real estate control policies has led the real estate industry into a cold winter, which undoubtedly cast a shadow over the furniture industry downstream of real estate. Just when China's furniture industry fell into a trough, the trade barriers bills of countries such as Europe and the United States showed a tendency to bombard. Under the shackles of internal and external factors, some furniture companies generally have a decline in sales performance, a sharp drop in profits, and even a loss. The EU recently formally adopted the “Wood and Wood Products Regulations and New Environmental Design Directivesâ€, which will further increase the barriers to the export of wood products in China. According to industry insiders, with the increase in raw materials and labor costs, the production costs of domestic enterprises have been continuously improved, and the foreign sales prices have not increased, directly compressing the profit margin of enterprises. The appreciation of the renminbi has made corporate profits shrink, and the new EU regulations are undoubtedly worse. Recently, the 2009 mid-term profit warning announcement of the Dynasty Furniture shows that “as of June 30, 2012, the unaudited consolidated profit for the six months will be reduced by more than 90% year-on-year. After the announcement, the royal family’s furniture valuation plummeted as high as 10.69. In fact, the decline in the performance of the furniture of the Dynasty is actually a microcosm of the entire furniture industry. According to incomplete statistics, in 2011, more than 70 small and medium-sized furniture companies in Shenzhen closed down; in all parts of the country, there was also a surplus of furniture stores. In the closing of the store, the furniture brand in Beijing closed five stores in less than half a year in the second half of 2011; the sales of major brands also experienced different degrees of decline and loss. There are more than 60,000 enterprises, and there are only 4,000 enterprises above designated size. Most of them are still fighting alone, rarely cooperate with other enterprises and other industries, lack of cluster awareness, and their competitiveness is relatively weak. The brand, it is difficult to raise awareness, is a major pain in the furniture business. "China Sankei Shimbun" reporter survey found that at present, a domestic The situation of small and medium-sized enterprises closing their doors is widespread, and some of the barely maintained furniture companies have also seen a significant decline in store popularity. From the end of 2011 to this year, with the implementation of national real estate regulation and control policies and the rising cost of raw materials and labor, some furniture companies and The sales growth of dealers has narrowed and the profitability has declined. There are many factors contributing to this phenomenon. The first 10 years of China's furniture industry can be described as the wind and water, the growth rate once exceeded 30%, and when it was nearly two years, inside and outside Under the adverse economic environment, the market has shown a transformational pain. Industry analysts believe that the current lack of long-term planning in the industry, blind follow-up phenomenon is widespread, the competition in the low-end market is increasingly fierce, product homogeneity is serious, and even the price In the war, the reshuffle trend of the survival of the fittest is very obvious. In addition, the domestic furniture industry brand is more chaotic, lacking high value-added Chinese brands, and well-known furniture brands with independent intellectual property rights are rare. There is a huge gap between product quality and developed countries. Directly affecting the international status of China's furniture companies, It directly affects the long-term development of China's furniture exports. An industry person who does not want to be named said that the furniture industry will face shuffling in the next three to five years. In the context of the global economic downturn, the reshuffle of the Chinese furniture market has just begun. Under the law, through the integration of resources, shuffling has positive significance for the long-term development of the entire furniture industry; at the same time, this is a new challenge for every enterprise. At present, furniture companies should be in product innovation, design, production technology, quality control. Internal management, reduce costs and improve overall competitiveness.
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