The meager profit stimulates the pressure of the transformation of China's furniture industry to prevent "the road"
In 2011, Chinese furniture exporters generally felt unprecedented pressure. Affected by the financial crisis and the European debt crisis, consumer demand in Europe and the United States, which has always occupied an absolute market share, has plummeted. During the second interview of the 110th China Import and Export Fair (Canton Fair), the reporter learned that many furniture companies are bearish on export prospects and are cautious about domestic sales. attitude.
According to industry experts, due to the dual pressures of the domestic and international economic situation, Chinese furniture has already reached the “crossroads†of transformation, and it is urgent to increase the added value of the industry, enhance its core competitiveness, and polish the “golden signboard†made in China. Many enterprises are still deeply rethinking the lessons they should learn from the "Da Vinci" incident and expressed their desire to prevent the embarrassment of marketing as a motto for future development.
Low-profit Chinese furniture "is not easy to live"
"The most worrying thing is that the traditional markets such as Europe and the United States have shrunk dramatically this year, although the problems of cost, labor, and exchange rate are not optimistic, but once there is no market, everything else is meaningless." A person in charge of a Sino-foreign joint venture furniture company in Zhejiang Tell the reporter.
According to statistics from the Furniture Branch of China Chamber of Commerce for Import and Export of Light Industrial Products and Crafts, from January to August 2011, the growth rate of China's furniture exports was 14%, while the average growth rate in the same period of the previous year was close to 30%. The situation is not optimistic. Among them, the traditional high-end market in Europe and the United States, which accounted for nearly 80% of the export share in previous years, has fallen to less than 60% of the total export share this year.
Talking about his own rejection of the multi-million dollar order of the big American companies, Shen Qinfang, deputy general manager of Zhejiang Haojie Metal Furniture Co., Ltd., suffered a bitter stomach: "I have received it now, I can't get a loan. Where can I buy raw materials? If I take it. Orders, can not find loans, companies can only find loan sharks, this is a no return. If you want to go, it is difficult to make up your mind to take orders."
Fortunately, the demand in emerging markets such as Latin America, Russia and the Middle East is relatively strong this year. Zhao Jun, deputy general manager of Foshan Shunde Tianyou Industrial Co., Ltd. said that three orders have been signed so far, all from emerging markets. "There are large supermarkets sold in Brazil and Russian furniture chain stores. The main business is panel furniture. The gross profit margin of OEMs is less than 5%, mainly in order to maintain daily operations." Zhao Jun said.
The reporter learned that at present, China's furniture exports are mainly OEM, the competition for homogenization is serious, and the core competitiveness is lacking. The average profit rate of the industry is only maintained at 3% to 5%. Many enterprises basically do not make money for export. The tax rebate is hard to support.
China's furniture is difficult at the transition junction
“This solid wood chair is priced at US$19.9. The price sold by foreigners to foreign consumers has to be four times higher. If it is sold to the domestic market, the price will be at least 7 to 10 times. Although the furniture industry has a 'money landscape' However, it has not fallen to the top of the production enterprise, and the profits have been earned by the middlemen. We also want to make our own brands and channels to develop the domestic market, but it is not difficult to find out after the trial.†Afat Furniture Co., Ltd. Zeng Bo, manager of the company's business department, said.
According to industry analysts, export enterprises are mainly facing three major problems in domestic sales: First, Channel and brand building, including various channels for opening up the domestic market, booth laying, brand promotion, etc., require enterprises to invest huge fees; second, collection problems Export orders have a letter of credit as a guarantee, while the domestic market has a long payment period and lacks credit guarantees. Third, domestic sales orders are scattered from the overall volume. It is better to make export orders easier to share control costs.
On the other hand, how to increase the added value of products is an issue that Chinese furniture cannot avoid. Hu Weiqiao, secretary general of the China Light Industry Arts and Crafts Import and Export Chamber of Commerce Furniture Branch, said that compared with the huge capacity of Chinese furniture, many furniture companies in Europe and America have low annual output, but the profit margin is quite high. “European furniture companies focus on brand and design. Even if they make a chair or a bed, they can continue to innovate. This is the embodiment of the company's core competitiveness, and it can also bring high value-added and reputation to the company.†Hu Weiqiao said.
Zeng Bo told reporters that this year the company has consciously carried out brand promotion. For example, if buyers are willing to use the company's brand in overseas distribution channels, they will enjoy a 30% discount. At the same time, they will jointly promote products with domestic large-scale furniture stores and supermarkets to enhance brand awareness.
Do not take the road, competitiveness improvement needs to be supported
The reporter found that Chinese furniture exported overseas is not all a low-end product route. In fact, many domestic furniture companies undertake the OEM tasks of famous overseas furniture brands and produce products for the high-end market. Liang Jinsheng, chairman of the Guangzhou Trade Fair Import & Export Co., Ltd. said that on the technology and manufacturing process, Chinese-made furniture will never lose to overseas counterparts, but it can only share the "small cup" of other people's profits, which is due to exports. The inertia of thinking formed by enterprises over the years: the products are sold and sold, without considering the long-term development of the industry, which leads to the fact that Chinese furniture is still in an extensive labor-intensive industrial environment and lacks core competitiveness in the international market. .
During the current Canton Fair, all exchanges involving product design and creative ideas attracted many companies to observe. Hu Weiqiao said that the furniture club will give full play to the advantages and advantages of the industry associations, timely reflect the company's demands, communicate and build various communication channels, and help enterprises to increase the added value of products.
At the same time, many furniture companies have also deeply reflected on the "Da Vinci" incident disclosed this year, which will prevent enterprises from taking the "road" in brand building as a motto. The management staff of a handicraft company in Shanghai admitted to the reporter that the "Da Vinci" incident sounded the alarm for the domestic furniture industry. "At present, the furniture industry gives people the feeling of 'great leap forward', the store is crazy, but the whole industry's internal mentality Impetuous, lack of integrity. In fact, our company also wanted to create an 'Italian brand,' and gave the brand a beautiful story, hoping to increase the added value of the product. But after the 'Da Vinci' incident, we will Give up this kind of quick success."
Industry experts also pointed out that relevant departments should provide policy support for the transformation and upgrading of the furniture industry, including the implementation of relevant policies that are in line with the state's incentives for importing equipment, tax exemption, and import of key components and raw materials for major technical equipment. Financial support; give special funds to support industrial technological transformation and technological innovation.
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