The furniture industry has experienced shuffling or will enter the high threshold era

Adjusting the shuffle, on behalf of the individual, represents a process of death and new life, but it is not necessarily a bad thing. In fact, the result of corporate rushing and fighting, as far as the industry is concerned, foreshadows the beginning of a mature process and begins to move towards a bright future. Brand expert Zhao Long expects that "this process will last for 3 to 5 years."

Cruel fight

Adjusting the shuffle, on behalf of the individual, represents a process of death and new life, but it is not necessarily a bad thing. In fact, the result of corporate rushing and fighting, as far as the industry is concerned, foreshadows the beginning of a mature process and begins to move towards a bright future. Brand expert Zhao Long expects that "this process will last for 3 to 5 years."

"Big industries, small enterprises" is a feature of China's furniture industry that is different from developed countries. The total output value of Chinese furniture accounts for 70% of the world's total furniture output. In sharp contrast, the furniture industry lacks industry giants. There are currently more than 9,000 large and small furniture manufacturing enterprises in Guangdong Province, and the enterprises that account for 1% of China's market share are zero.

The first word of industry maturity is called “merger”. In the next few years, “merger” and “elimination” will become the key words of the furniture industry. According to the law of Baredo, the most important of any group of things is only a small part, about 20%, and the remaining 80%, although majority, are secondary. "It is to let these 20% of large enterprises go to mergers and acquisitions or eliminate 80% of small and medium enterprises." Zhao Long said.

Zhou Benquan’s statement is slightly different from Zhao Long’s. “One-third of the enterprises will be eliminated, one-third of the enterprises will continue to do OEM work, and one-third of the enterprises will become the backbone of the industry through industrialization and brand operation.” Zhou Benquan still holds his “three-way” Viewpoint, and predict that this knockout will last at least until 2015, and the surviving companies will share the big “cake” of the furniture industry’s trillion yuan output value.

In this knockout, some companies are like crocodiles. As the earliest and most primitive reptile ever lived, it still has fierce and tenacious vitality. Some enterprises are like pandas. Although they are honest and docile, they face enormous threats to survival and need to be artificially inferior to breed. The market economy naturally has the characteristics of the jungle. After the fight, the enterprises that survived the fight will become the hegemons of the furniture industry like the jungle crocodile.

Compared with the “crocodile” enterprises, “Giant Panda” enterprises always have the characteristics of weakness and warmth, which is easy to make people feel pity. But this is not necessarily the whole truth. The survival of the fittest should be addressed. At this stage, I have to be especially vigilant and thinking about how to make crocodiles? How to learn from crocodiles? Rather than thinking about how to save the giant panda.
If the government has unlimited liability to the giant panda enterprises, not only will the burdens become heavier and heavier, but there may be situations in which good and bad enterprises compete for funds, compete for raw materials, and compete for energy. "The furniture manufacturing industry needs to be cultivated more, but it must be cultivated from the development, and it cannot be unified across the board, and we cannot give unified support." Zhou Benquan said.

“Weak furniture companies will shed their tears from the furniture industry or be merged with other companies.” In the furniture industry, some people are furniture people, and death is a furniture ghost, which is very moving. Zhao Long said, "We don't want to see you leave, but I think the growth of the company and the industry will inevitably go through such a process.

Entering the high threshold

After a round of brutal fights and shuffling, experts predict that the era of low thresholds is coming to an end and the furniture industry will enter a high threshold. Enterprises will also move from extensive to intensive, from profiteering to meager profit. It’s like running a marathon. Everyone in the road is almost the same, until the athletes start to really open the distance.

The furniture industry has been called "low threshold industry" and "low quality industry" for 30 years. Does the industry have no progress? The industry believes that the answer is no, only that the industry is not mature, and business owners do not have the ability to think systematically. Perhaps the bosses of all furniture companies do not like to hear the words, the entire furniture industry is still at the "low end of the manufacturing industry." However, there is a newspaper in Guangzhou that lists the clothing industry, the footwear industry, the furniture industry, etc. into the extensive industry, pointing out that the low-end manufacturing industry is still at a low point.

From the beginning of the business, the furniture industry has a "child in the virus" in management and thinking, but there is no "original sin." Many furniture companies started low in the initial stage and produced thick lines. They were developed by the father and son, husband and wife, and brothers. They started in a small workshop with a plane and a saw. The people worked together and worked hard to develop and grow.

However, there was no clear plan in the early stages of development, and the river was crossed by the stones. The development direction of the enterprise is also fixed by the boss. Management models and concepts are lagging behind, and the problems of aging of marketing models and serious homogenization have laid a hidden danger for furniture companies.

The relationship between furniture factories and dealers is slack, and a large supply chain cannot be achieved, depending on the above reasons. A business owner sets a dead task for the regional manager - three stores in the responsible area, the regional manager does not have the ability to manage the market, directly to the dealers the indicators, the cost of opening the store falls on the dealer, the dealer feels very Convinced: "Why do you open three stores for you?"

At present, the entire industry is undergoing drastic changes. If the business owner continues to be stubborn and lacks planning, and still dominates the corporate culture by personality, the enterprise may go astray.
The true meaning of the market is reality. Only those who grasp the reality have the opportunity to grasp the future! In the high threshold era, a three to five year plan is important to the development of the company.

"Unfortunately, many Chinese enterprises, especially private enterprises, are not aware of this. Even if they realize that they do not know whether to position 2012 as the year of reform, the year of transition, the year of start-up or the year of strategizing." Zhou Benquan said.

The lack of entrepreneurs is also the reason why the furniture industry is called “low threshold industry” and “low quality industry”. Traditional businessmen, bosses and entrepreneurs are three different levels of business owners. Businessmen are generally blind, focusing only on the money and product quality of each transaction; the boss begins to consider and consider the business situation of the company; "The difference between entrepreneurs and them is that they have a lot of their own views and thoughts on the industry. Thinking about how to provide the society Excellent products, how to lead the industry, establish industry norms, consider how to improve the internal welfare of the company's employees and cultural quality." Zhao Long believes that the team of entrepreneurs is essential.

In the era of high threshold, talents will be the core of the company, and the direction of development of the company will no longer be decided by the boss alone.

At present, the concept of talent in the furniture industry is deformed. On the one hand, the boss of the enterprise is thirsty. On the one hand, the family-style production and management model rejects talents, and it is difficult for talents to integrate into the decision-making level of the company. The furniture industry is like a dwarf space. The 1.6-meter person can enter, and the height of the talent is 1.8 meters. Every day, when you go in and out, you are hitting the wall. How do you survive when you bend over? Business owners have high expectations for talents. I hope that people can produce golden eggs. The business owners will look at him from a daily perspective. The talents are very tired and eventually leave after leaving a plan.

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