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Furniture industry reshuffle intensifies the cultivation of brand development channels into a way out
The furniture industry has undergone significant changes this year, becoming a major topic of discussion. Ah Jin mentioned that this year, the big transformation in the furniture market is no longer about just making money. Companies need to be powerful and have effective marketing models to survive and keep up with market trends. As a result, furniture companies that lack strong strategies are gradually disappearing.
Whether it's Shunde furniture or the broader Chinese furniture industry, a new transformation is essential to overcome the current sluggish situation. Some industry experts believe that property market regulations won't change overnight. The furniture industry must prepare for a long-term battle and find new paths forward.
Furniture factories can be seen everywhere along the national roads, especially in areas like Longjiang. According to locals, only companies with an annual turnover of at least 10 million yuan can afford to build large advertising signs on the highway. In Shunde, there are many such enterprises, some of which have been operating for over ten years. Before 2000, most furniture factories in Shunde were profitable. "At that time, as long as you opened the factory, everything was fine," said Chen Sheng, a veteran in the furniture industry. Back then, there was no need to open stores or find dealers; cars from all over the country queued up at the factory doors to buy goods. "Back then, gross profit could definitely exceed 50%, but now it's hard to reach even 20%."
As the furniture industry grows, it eventually hits a ceiling. Many large furniture factories in the Shunde area choose diversified development when they reach a certain scale. They invest in steel, fabrics, real estate, credit, and other sectors, with furniture production taking up less of their overall business.
According to officials from the Guangdong Furniture Association, China's per capita furniture consumption is still far below that of developed countries in Europe and America, leaving plenty of room for market growth. Future competition will not only focus on manufacturing capabilities but also involve product development, marketing, branding, communication, and management.
Zhang Yuncheng, a furniture industry observer, believes that the industrial chain in the Foshan furniture cluster is well-developed and efficient, but the overall strength is still lacking. To reverse the decline, the focus should be on brand strategy and cultivating influential large brands to accelerate regional industrial upgrading.
A marketing manager from a branded furniture company thinks that developing multiple channels is an effective way to share risks. The multi-channel model typically includes domestic and international markets, direct stores and distributors, private brand production and OEMs. "Our main approach is the dual-channel model of domestic and international markets," the manager explained. Recently, the brand has expanded its domestic distribution while also focusing on foreign markets. "We emphasize an international perspective in product design, and more foreigners than Chinese visit our exhibitions in March and September." The brand's annual sales are around 200 million yuan, with foreign sales accounting for three-quarters of total revenue. This year alone, the Japanese market brought in tens of millions of yuan in orders, and South Korea and Dubai also performed well. Additionally, the brand has started adopting a multi-channel strategy in the domestic market, mainly through dealers with direct stores as a supplement.