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    Home > Coatings News > Paints and Coatings Market > Furniture companies: extremely difficult and seeking to break through

    Furniture companies: extremely difficult and seeking to break through

    • Last Update: 2021-05-01
    • Source: Internet
    • Author: User
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    Now, entering the second quarter of 2019, listed companies have successively announced the first quarter's financial reports.
    Combined with the actual situation of the furniture companies, the actual operating conditions of the companies have not been unexpected, and are generally difficult to maintain.
    It is difficult to maintainthe financial reports announced by listed household furnishing companies, such as Gujia Home Furnishing, Shangpin Home Delivery, etc.
    , have increased significantly, and since the beginning of this year, the real estate industry has been relatively loose in policies, and the future expectations of the furniture market should remain.
    But in fact, most of the current furniture companies are in a state of extreme difficulty and confusion.
    According to the survey, the current furniture companies mainly focus on reducing expenditures in their operations, while constantly trying multiple channels to seek breakthroughs.
    From the apparent point of view, the first is to lay off employees and shut down some production lines.
    In the case of a bad market environment, when the number of orders is not sufficient, companies choose the most direct way to reduce expenses, from some large brand furniture companies to small furniture factories, that is, to shut down some production lines and lay off personnel.
    On the one hand, the number of orders is insufficient, and the company’s original production line and human resources are over-allocated.
    On the other hand, labor costs are one of the overweight expenditures for companies.
    Of course, in addition to layoffs, furniture companies are also constantly delaying some settlements, mainly due to supplier payment arrears.
    Originally in the current sensitive period, suppliers required cash settlement or monthly settlement for small companies, but for some large companies, they still settled on a quarterly basis.
    According to the survey, many powerful brand companies that had normal settlements have started to postpone their settlements for half a year, or are in arrears.
    In addition, the business situation of furniture companies is not good, mainly due to the decline in sales performance.
    It seems that marketing efforts should be increased.
    However, the current situation is that companies are shrinking, business personnel are traveling less, and marketing activities are basically stopped, including advertising and promotion.
    A significant reduction in budget .
    Not only do companies need to reduce expenditures, but more importantly, companies lack confidence in the effects of marketing activities.
      Obviously, the current situation of furniture companies is that their performance continues to decline, the order volume is insufficient, and the cash flow is tight, so they cut expenses as much as possible.
    But at the same time, companies are more flexible in their operations and actively try various new channels and new models.
    Seek a break  It has been said for many years in the era of great changes in the furniture industry, but although furniture companies often say that they want to change and transform, they have in fact continued the previous model and have not changed.
    Companies pursue popular products in the market, participate in exhibitions and attract investment, and fully support dealers to open new stores and open more stores.
    But it is clear that the current hypermarket store-in-store sales are declining by a cliff, and no matter how difficult it is for companies to stick to it independently, an unprecedented dilemma has emerged.
    Companies have to re-examine the market, transform customization, whole-house customization, and even complete decoration, cooperate with factory purchase platforms, and actively seek cooperation with real estate developers, hardcover housing projects, and so on.
    At the same time, the design requirements for products have also been significantly improved.
    The most direct thing is that the product design is no longer the company buying a sample and doing it back.
    Most of them are willing to spend a fee to ask a professional design company to produce drawings.
    Not to mention the effect, on the one hand, this kind of transformation is that the market has increased the requirements of enterprises, the original model of furniture enterprises is difficult to sustain, and the enterprises are in great dilemma; on the other hand, it also represents that enterprises are really thinking about industry transformation and enterprise development, and try themselves.
      According to the survey, the operating conditions of furniture companies are very unsatisfactory.
    There are many factors.
    The real estate market has not really picked up, and even if it starts to pick up, it will take half a year or a year to affect the furniture market.
    The current plight of furniture companies belongs to "far water".
    The second is the changes in the international trade environment, and the difficulties in trade with the United States have increased, and more export furniture companies have increased their domestic sales.
    The third is that the domestic furniture consumer market is dominated by the post-80s and post-90s generations, which have higher requirements for products and channels.
    On the one hand, the design requirements for products are increased, and the overall design for home improvement is required; on the other hand, the original channel furniture hypermarket store-in-shop model is difficult to sell.
    Not to mention the ability of dealers, it is the channel itself that is diverging, and the hardcover room project Cooperative brands are very few after all, and it is difficult for most dealers to really participate.
    The factory purchase platform is also bringing owners from all over the country to factories to purchase, as well as soft decoration agencies, designers, etc.
    , including some independent comprehensive furniture stores and experience stores.
    All of them are decentralizing consumption, and at the same time, the whole-house custom-made big brands are developing rapidly, seizing a large number of consumer markets.
    ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? In addition, the domestic furniture industry is scattered in many production areas, and the number of inland furniture companies is increasing.
    Small furniture companies and small custom factories relying on the development of central cities have scattered consumption.
    It is also very important that the speed of self-learning and progress of the operation team of furniture companies cannot keep up with market changes, and they lack decisive decision-making and response capabilities when the industry is transforming and the company needs to change.
    Of course, furniture companies themselves are not perfect in management, efficiency, cost control, etc.
    , the overall consumer market is weak, consumption is more cautious and other factors also have a greater impact.
      On the whole, furniture companies are currently in extreme difficulties and perplexities.
    Companies are struggling to survive.
    They are constantly shrinking in scale, but at the same time they cannot find a direction to break through, and are caught in multiple dilemmas.
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