The profits of the furniture industry have shrunk, and does the wardrobe have an impact?

In recent years, with the soaring prices, all walks of life are facing price increases, and price increases have become the norm. In the furniture industry, with the increase of raw materials and labor costs, the increase of solid wood furniture is very large. Then, for the rise of solid wood prices, the wardrobe enterprises will have to face the rising of raw materials, and whether the future sales strategy will follow The trend of solid wood is to adjust the strategy? Behind the continuous price increase is a round of solid wood furniture industry and solid wood furniture brand reversal breakout.

Price rise will become the trend of the industry

Consumers who often visit furniture stores will find furniture prices, especially solid wood furniture. Through market research, it is found that at present, the raw materials, hardware accessories and labor costs for producing solid wood furniture continue to increase, and the rise in furniture prices has not only become a fait accompli, but will also become a general trend in the future. On the one hand, there are fewer and fewer high-quality solid wood in domestic and American, Brazilian and other raw materials. On the other hand, domestic consumers are increasingly preferring solid wood furniture, and the shortage of raw materials will naturally lead to high finished furniture.

In recent years, with the integration of the furniture market, the first-line solid wood furniture brands have continuously entered Chengdu, and these brands have affected the price system of the Chengdu market to a certain extent. Due to factors such as the continuous increase in raw materials and labor costs, furniture prices have been rising in recent years. The brand he represented has risen slightly at the end of last year. The price of solid wood has been rising, how should the wardrobe enterprises be related brands? What should be the result of rising materials? Will the profit of marketing shrink?

The profits of the furniture industry have shrunk, and does the wardrobe have an impact?

Although the price of solid wood furniture products has been rising for several years, the solid wood furniture brand manufacturers have not earned a lot of money because of the rising price; on the contrary, under the influence of various high costs, solid wood manufacturers and The profits of dealers are gradually shrinking. As a mid-to-high-end solid wood furniture brand, the accumulation of raw material prices has increased by 40%-50% in recent years, while the end products have only increased by 5%-10%, and there has been no price increase this year. Obviously, the increase in product prices is far from the increase in raw materials, not to mention the further dilution of profits from other cost increases. "Profit is really getting thinner and thinner, but the price of the product should ultimately be determined by the market. If the increase in the short term is too large, it will be far from the consumer's consumption expectations, and it will only be a priceless market. It is not conducive to the sustainable development of the brand. The market has been so unchangeable, and the profit rate can only be sustained from other aspects such as improving management efficiency, financial open source and throttling.

For large furniture companies, cost control is only one aspect. Actively seeking listing may also become another hope for the breakthrough of the market and the flow of funds.

For the furniture enterprise, his profit is facing shrinkage, and the wardrobe enterprise is also affected by the same reason. How to make the correct strategic decision under low profit is the wardrobe enterprise should think.

Should actively face the problem

The rise in costs, the decline in profits, and the rationality of consumption... are now more and more directly testing how the solid wood furniture industry is sitting in the fierce market competition. In the course of this interview, no matter how the solid wood furniture brands evaluate the market dynamics, they all conveyed a common view to the reporters - the survival of the fittest, in the competition of the solid wood furniture market, the bigger and stronger will always be those Active and savvy business. Therefore, the wardrobe brand in the face of the reduction of solid wood materials, proactive response to solve problems is the development of the king.

Cost-effective furniture has more core competitiveness in the market

The solid wood furniture market is bound to usher in a major reshuffle. "Affected by the real estate policy and the central policy, there will be no market for high-end solid wood furniture in the future. On the contrary, furniture that is cost-effective and can meet the actual needs of consumers will be greatly developed."

The solid wood furniture market has been developing very fast all the time, but there are some exaggerated styles in this market. Therefore, from the perspective of development, such a shuffling is also needed, so that the entire industry can be better precipitated. Maintaining pure European and American traditions and crafts, emphasizing the product's exclusive sense and individuality, and striving to create a service model with a unique rhythm of European and American household tasting centers and one-stop full-brand stores, and relying on the exhibition economy, has been the elite in recent years. The favor and pursuit of the class.

It is not shameful to learn the advanced design and technology of others in the future. It is shameful to learn all the time without their own things. Although facing the rise of raw materials in the furniture industry, the wardrobe enterprises should also be more broad in their strategic adjustment. Therefore, wardrobe enterprises should strengthen their own innovation in all aspects and enhance the core competitiveness of enterprises, so that they can have stronger strength to compete with their counterparts at home and abroad to win their own "cake".

For more information, please stay tuned to http:// Xianghe Furniture City official website

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