The threshold of solid wood custom furniture industry will improve the development of more standardized

"The industry reshuffle has become the most talked-about topic in the second half of this year," Ajin said. He pointed out that the market changes over the past two years have been significant, and it's no longer a time when companies could easily make profits. Only those with strong capabilities, unique selling points, and effective marketing strategies can survive, while those unable to adapt are gradually disappearing. Whether it's the furniture industry in Shunde or the broader Chinese furniture sector, a major transformation is needed to overcome the current sluggish situation. Some industry experts believe that property market regulations are not one-off events, and the furniture industry must prepare for a long-term battle while seeking new paths forward. Along the national road from Lecong to Longjiang, you can see several furniture factory billboards within just a few steps. Locals say that a furniture company must have an annual turnover of at least 10 million yuan to afford such advertising. In Shunde, there are many such companies, some of which have been around for over a decade. Before 2000, most furniture factories in Shunde were profitable. "Back then, as long as you opened the factory, you basically made money," said Chen Sheng, a veteran in the industry. "There was no need to open stores or find dealers—cars from all over the country lined up at the factory door to buy goods." He added, "At that time, gross profit could exceed 50%. Now, even 20% is hard to guarantee." According to reports, the gross profit margin for board wood furniture is about 20%, while solid wood products have slightly higher margins, ranging between 20% to 30%. However, net profit is generally around 5%. The profit from processing is even lower, with gross margins capped at 15%. As the furniture industry grows to a certain scale, it often hits a ceiling. Many large furniture manufacturers in the Shunde area, after reaching a certain size, tend to diversify their operations, investing funds into sectors like steel, fabrics, real estate, and credit. As a result, the furniture business becomes a smaller part of the overall company. However, representatives from the Guangdong Furniture Association noted that China’s per capita furniture consumption is still far below that of developed countries in Europe and America, indicating significant room for growth. In the future, competition in the furniture market will no longer be solely about manufacturing capabilities but will involve product development, branding, marketing, communication, and management. Zhang Yuncheng, an industry observer, believes that the Foshan furniture cluster has a relatively complete industrial chain and efficient distribution systems. However, the overall strength is still limited, and a fundamental shift is needed. He emphasized the importance of focusing on brand strategies and cultivating influential big brands to accelerate regional industrial upgrading. During the visit, the reporter found that although the environment is challenging, a small number of enterprises in Shunde continue to maintain relatively stable growth. One top fabric sofa brand in Longjiang has found a new development path through channel innovation. Instead of opening stores or finding dealers, the brand entrusts its channels entirely to top interior designers. By showcasing designer works, the brand brings products to the market, and in return, offers designers a commission. According to the brand's representative, research showed that in high-end furniture sales, interior designers are often the most discerning buyers. "For example, when designers create model homes, hotels, villas, or government projects, the target consumers are more likely to be influenced by the designer's choices than by traditional retail stores," the representative explained. Through designer orders, the brand achieves hundreds of millions in annual sales, ensuring stable revenue while boosting brand visibility. Additionally, the marketing manager of a Lecong-based furniture brand believes that spreading risk through multiple channels is also a smart approach. Their multi-channel model includes domestic and international markets, direct stores and dealers, and both own-brand production and OEM. "Our main strategy is a dual-channel model of domestic and international markets," the manager said. Over the past few years, the brand has expanded its domestic presence while also entering foreign markets. "We emphasize an international design vision. After the March and September trade fairs, more foreigners come to the exhibition than Chinese buyers." Annual sales for the brand reach about 200 million yuan, with 75% coming from overseas. This year alone, the Japanese market placed orders worth tens of millions, while South Korea and Dubai also performed well. Domestically, the brand has adopted a multi-channel approach, combining dealers with direct sales stores.

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