The slowdown in the growth of the furniture industry has become the new normal

At present, for many companies, the market will continue to “hibernate”. The gradual rational return of the national real estate market in the future will definitely have a certain impact on the furniture market. When the endogenous power is insufficient, the development risk driven by the radiation of the upstream and downstream industries is relatively large, and the accelerated transformation of enterprises and the optimization of product structure and core competitiveness are extremely urgent.

According to a survey conducted by various agencies, at present, the furniture industry has ended a period of rapid growth of 30% and has entered a stage of steady development. In particular, compared to the rapid development of the furniture industry in the past, the situation in 2018 is somewhat unsatisfactory. According to the earnings report of the first three quarters of 2018 disclosed by more than 40 home-listed companies, the growth rate of the home furnishing industry slowed down significantly compared with the same period in 2017. In particular, custom homes officially ended the 30%-70% high-speed growth era, entering the new normal of 10%-20% growth.

?? Industry new ecology: more stable

Industry insiders said that under the new normal of economic downturn, the home industry has developed steadily, and the growth rate has slowed down. From high-speed development to medium-speed development, the L-shaped trend is obvious, but it has not yet reached the bottom. In the future, in the big environment, the slowdown in the growth of the home industry will become the new normal.

At present, after decades of rapid development, furniture companies have begun to transform from a large-scale resource-intensive model to a development model centered on improving efficiency and quality. The thrust behind the development, in addition to the development of the enterprise to a certain extent, the need to adjust itself, the changes in consumption structure and population, the entire industry chain must also be developed from low-end to high-end, precise and personalized.

Perhaps, after this round of reshuffle, the concentration of enterprises will be further strengthened. The overall development of the industry has slowed down. Many enterprises have also explored some new features in the “mixed war” of transformation. For example, the emergence of new technologies in the industry has brought the industrial production category into a prototype. In particular, custom home equipment, technically achieved a breakthrough that could not be imagined before.

For example, in the case of the market tending to rational consumption, companies and stores have also made various attempts in product and marketing. In 2018, various domestic furniture presents different development trends. Wooden furniture pays attention to materials and design, emphasizing visual experience; metal furniture pursues fashion, individuality and leisure entertainment functions; soft furniture is the key to the unification of art and function, high technology The content and high artistic content are dominant. More and more enterprises have begun to focus on production management and product research and development, from single product production to product service diversification. Some enterprises have achieved remarkable results in transformation and upgrading. The problems of serious product homogenization and overcapacity have also been curbed.

These are the new ecosystems that have emerged after the industry slows down! The following is a description of the new industry ecology presented after the slowdown in growth.

?? Product new ecology: more yuan

?? Product is the foundation of a brand. From the past few years, various domestic furniture presents different development trends. As mentioned above, wooden furniture pays more attention to materials and design, emphasizing visual experience; while metal furniture In the pursuit of fashion, personality and leisure and entertainment functions, the soft furniture is the key to the unification of art and function. More and more enterprises have begun to focus on production management, product research and development, from single product production to diversified product services; some enterprises have achieved remarkable results in transformation and upgrading, and problems such as serious homogenization of industrial products and overcapacity have been curbed.

?? Obviously, based on the complex and volatile nature of the domestic market, we can no longer treat the entire market from a single dimension, but should adapt to local conditions according to local conditions. As pointed out by some insiders, for example, some regions pursue quality, and master designs will be popular; in some regions, they will be able to make preferential packages. Each region is also composed of a variety of consumer groups, so diversified development will not stop, there will be more room for development.

At the same time, with the release of the new environmental protection policy in 2018 and the increasingly clear industry norms, the furniture industry has gradually shifted from home producers to residential service providers, and is moving from low-end to mid-to-high end in the value chain. This requires us to pass Continue to reform and innovate to adapt to the new development situation.

?? Channel new ecology: richer

At present, in the case of the market tending to rational consumption, companies have also made various attempts in marketing. Since the concept of “new retail” has been thrown out, it has become the main line of action for companies with strong comprehensive strength. Especially in 2018, it is a year in which various new retail formats and elements are concentrated, and it is called “new” by the industry. The first year of retail sales."

In the new retail initiative, the home is dedicated to creating a real estate experience with 230 stores to achieve MALL, to achieve fresh supermarkets, food and beverage theater, physical fitness, children's entertainment, home care, digital intelligence and other large consumer formats Full layout. Shangpin Home has opened two 3000+m2 super-stores in Shanghai and Beijing, which is intended to create a slow life experience zone that combines “home, fashion, art and social”. Sophia, who is also a custom giant, has also explored three modes of smart stores, life experience museums and design stores.

Not long ago, Red Star Macalline and the House of Reality all proposed the "Thousand Store Plan." According to official website data, at present, the number of domestic Red Star Macalline shopping malls exceeds 300, and there are more than 270 homes. In the future, it will cover third- and fourth-tier cities while covering first- and second-tier cities. The same channel is also sinking by IKEA. Its online e-commerce business has expanded its service to 149 cities, breaking the tradition of buying IKEA products in only the first and second-tier cities, and trying small downtown stores and experiences. Shop and so on.

At present, based on the impact of one-stop consumption trends, most of the stores are now close to consumers, such as shopping malls, community stores, etc., and are no longer confined to the traditional framework, showing the channel layout towards a richer direction. development of.

??Competing new ecology: more ruthless

?? Industry growth slows down, companies are good or bad. At present, many enterprises are in the process of exploring the transition period, and the market is undergoing changes. If enterprises are not actively transforming and adjusting, channels and consumer audiences will be diverted, and for many small enterprises, this is even more unbearable. In an environment of slowing growth, some companies seeking to enter the capital market, such as listing, are only a window for the transformation and development of enterprises, and there will be an opportunity for breakthrough.

As we all know, the social attention of China's furniture industry is far lower than that of the Internet, finance, IT, real estate and home appliance industries, and there are very few furniture listed companies. It is necessary to make the furniture industry become more social and public, and become the focus of public attention. If furniture companies want to be bigger and stronger, they will need a lot of financial support. After listing, they will undoubtedly provide sufficient sources of funds for enterprise expansion. This has further forced the small and medium-sized micro-furniture enterprises in the midst of water and fire.

According to industry insiders, the biggest problem in the industry is that small and medium-sized enterprises are mostly small, not strong, and not extensive, which poses great challenges to the industry's reshuffle and transformation. The outstanding problem in the future is that a large number of small and medium-sized enterprises need to be upgraded, including technical level, labor productivity, product quality and environmental protection.

Otherwise, in the market shuffling further acceleration, and the game of small and medium-sized enterprises intensified, companies with weaker competitiveness will be constrained and gradually squeezed out of the market relentlessly.

At present, for many companies, the market will continue to “hibernate”. The gradual rational return of the national real estate market in the future will definitely have a certain impact on the furniture market. When the endogenous power is insufficient, the development risk driven by the radiation of the upstream and downstream industries is relatively large, and the accelerated transformation of enterprises and the optimization of product structure and core competitiveness are extremely urgent.

?? And we should firmly believe that some people have the demand for furniture, no matter how the economy develops, the furniture industry has a limited coefficient of elasticity. At present, consumer spending power is improving. With the in-depth development of the Internet, channels for consumption at any time are expanding; favorable policies such as national poverty alleviation policies and urbanization construction will be further released.

All of this is enough to fill our confidence in the future. In the future, whether the furniture industry can return to high-speed growth again is full of uncertainty. Some furniture companies can't keep up with the downturn in the overall environment and the intensification of the competitive situation. It will close down before the spring.

?? But what is certain is that the market potential of the furniture industry still exists, the market size is still very large, and the overall increase is considerable. This requires each furniture person to create a new ecology belonging to all furniture people in the new market environment.

For more information about furniture and home, please pay attention to Xianghe Furniture City official website: