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At this year's show, a seminar on “Flat Furniture†will be held. Because China's urbanization process is largely reflected in the third- and fourth-tier cities, the process is very fast, and the city's sales volume has increased greatly. These cities may not use high-end furniture. We hope that the seminar will inspire the factory to develop some new products, suitable for those from When the countryside moved to the city, the house was not very large, and the families with less demanding furniture also inspired the furniture store. Is it necessary to make a suitable housing area to provide consumption possibilities for these families? ——— Fang Hui, Secretary General of Dongguan Famous Furniture Club
The market is shrinking, overcapacity, rising labor costs, rising costs, and falling profits... In recent years, affected by the international and domestic market environment, the furniture industry has been in a cold winter, and production and sales have fallen seriously. In 2011 and 2012, several famous exhibitions such as Guangzhou Exhibition, Shanghai Exhibition and Dongguan Exhibition, which are well-known in the furniture industry, have repeatedly become popular. Some well-known brand manufacturers who have participated in the exhibition for many years have even withdrawn from the exhibition. Under the cold winter, where is the way out for the furniture industry? The exhibition trade and trade joint action is to break the "strong heart" of the industry puzzle, how long can its utility last? What is the practical significance of the integrated exhibition and trade platform created by Houjie to the local furniture manufacturing industry? The series of reports will focus on the production, display, circulation and integration of trade and exhibition in Dongguan furniture industry, and try to clarify the development of the industry and provide valuable reference for the transformation and upgrading of the furniture industry.
On the eve of the opening of the furniture, the reporter visited Dongguan exhibitors, associations and local governments to exchange topics on the employment situation of the furniture industry, the recruitment situation after the year, the salary level, the market sales, the participation fees, and the exhibition's role in opening up the market. Analyze the deep-seated reasons for its continuous squeeze, as well as the practice of manufacturers to actively transform and update equipment and technology.
Automated production line cost savings
“The profitability of the furniture industry is getting lower and lower, which is a trend.†Wang Yayun, general manager of Novartis Furniture, who is busy setting up the exhibition, said. Therefore, Wang Yayun also worked hard to control costs. Last year, the company began to invest 20 million yuan to build a fully automated production line. It has been used since the beginning of the year, and the overall cost is estimated to drop by 30% in terms of the reduction in material waste, the reduction in personnel, and the reduction in electricity consumption. For example, the number of employees has been reduced from 100 to 50. The wages of first-line workers have risen by 15%-20% this year, reaching 3,000 yuan. According to the plan, mass production will be carried out at the end of this year. When calculating electricity consumption and environmental protection emissions, it is estimated that the overall cost will drop to 50%.
In fact, in Dongguan, there are not many furniture companies currently investing in automated production lines. Novartis furniture is still ahead of the comparison. Wang Yayun said that the main consideration is that the market is still expanding. In addition, the Chinese furniture industry is constantly improving the degree of industrialization, which is also a trend of development. “We think this production line is worth investing in, and then there will be more and more demand for technical talent.â€
The recruitment situation this year is still good, but it is hard to find managers and administrative staff. Wang Yayun began to hire managers from Hong Kong and abroad. “The overall strength of the company is improving. We have found that local managers, in terms of knowledge and management level, are still weaker than those hired from outside, and their salary requirements are similar. Therefore, as a company, Would be more willing to 'external' management staff."
Strongly concerned about third- and fourth-tier cities
There are more than 900 exhibiting companies that are embarrassed about the show. “The enthusiasm of exhibitors this year is very high. Because the market is not good, it is necessary to go to the exhibition, but also to break through.†Fang Hui, secretary general of Dongguan Ming Furniture Club, found that exhibitors are more cautious this year. Whether it is the advertising of exhibitors or the decoration of booths, dealers are very rational.
Fang Hui introduced that the cost of exhibiting enterprises is mainly the booth fee, decoration, reception expenses, advertising investment and so on. Generally speaking, according to the company launching a new series, a booth of 150 square meters, the booth fee is about 80,000 yuan, 20,000 renovation fees, a series of booths will not exceed 150,000 yuan. If you advertise, it might be a bit higher. Some factories have 10 or more series, and the investment is even more.
This year's exhibitors also launched many new products. Fang Hui commented that “the product is real and respects the market.†For example, cost-effective, a new product launch, different styles, manufacturers will reduce the number of different styles to reduce the size of dealers to open stores. The decoration will not be too luxurious, and will not be willing to increase the burden on the dealers, giving the dealers more subsidies in advertising promotion. "Now the factory owners are very real."
She also found that the furniture business owners are very optimistic about this year's situation. First, after the reshuffle last year, the market will be better. This year's real estate market will be better. The various adjustments have not had much impact. China's urbanization process gives them great confidence.
Fang Hui revealed that at this year's exhibition, a seminar on “Family Furniture†will be held. Because China's urbanization process is largely reflected in the third- and fourth-tier cities, the process is very fast, and the city's sales volume has increased greatly. These cities may not use high-end furniture. We hope that the seminar will inspire the factory to develop some new products, suitable for those from When the countryside moved to the city, the house was not very large, and the families with less demanding furniture also inspired the furniture store. Is it necessary to make a suitable housing area to provide consumption possibilities for these families?
Joining industry associations to enhance
Exhibitors and companies improve not only the enthusiasm of exhibitors. The awareness of joining industry associations is also increasing. At the Spring Festival Reception held by Dongguan Ming Furniture, 22 Dongguan furniture companies became new members of the club. Today, the name of the furniture club has reached more than 380. These member companies are furniture companies with their own brands. In addition to the increase in the number of members of the famous furniture club, the number of members of the furniture associations such as Dongguan Furniture Association, Dalingshan Furniture Association and Dongguan Cabinet Industry Association is also rising.
Tang Liping, general manager of Dongguan Tangyi Furniture Co., Ltd. said that for many years, the company mainly provided customized furniture for foreign furniture manufacturers, following the production mode of “foreign orders, domestic productionâ€. In this mode, the company can continue to make profits by simply taking orders and focusing on production. Therefore, he did not think about joining the industry organization before.
However, this year, Tang Liping actively applied to join the famous furniture club. "From the market point of view, we have both foreign and domestic. From the perspective of enterprise industry, we have brands and marketing. Therefore, we must integrate industry resources to adapt to new markets by joining industry organizations."
Among the 22 new member companies, there are furniture brand enterprises, as well as upstream and downstream enterprises in the industrial chain such as home stores and furniture accessories. Tang Liping said that it is the members of the industry organization that are increasingly diversified and gradually cover the upstream and downstream of the industrial chain. Enterprises can further integrate the industry resources and seek their own development and transformation.
The person in charge of the custom furniture committee of Dongguan Ming Furniture Club believes that many companies join the committee and want to connect with the buyers through the alliance group, which can not only reduce the procurement cost of custom furniture buyers, but also improve the right to speak of custom furniture manufacturers. In the past, the furniture enterprises in Dongguan were mainly exported, and the demand for the organization of the association was not high. As Dongguan furniture companies including the Pearl River Delta moved to domestic sales and built brands, this group model can help the enterprises in Dongguan. . “The previous orders of the company were mainly obtained through the door-to-door and self-development, and the exhibition set up a custom furniture exhibition area, which will promote the whole custom furniture industry, gain more customer resources and designer resources, and promote the industry forward.†Tang Liping Say.
The furniture industry is gradually gathering
In the view of Wan Zhuope, the mayor of Houjie Town, the furniture industry has been expanding in the domestic market while being affected by the shrinking of foreign markets in recent years. The life and death of enterprises, becoming bigger and smaller, these are the normal phenomenon in the industry shuffle. “The furniture industry felt very hard last year, but big companies are no problem, big companies are still growing, like model, mousse, window of the city, far dream home textiles, etc. Last year, the output value of the entire furniture industry has also increased. At the same time, SMEs are facing greater difficulties."
"However, we should see that a mature industry will have a gathering later, and the furniture industry is also spreading from the original to the gradual accumulation." He said that now the core components of large enterprises are themselves, low-end Product outsourcing. Large companies are responsible for the quality of supervision, and they do high-end parts themselves. Low-end and low-profit things are generally not required. “At present, we also see a number of small and medium-sized furniture factories, which are transforming to help big companies to make products. Because it is more difficult for SMEs to make brands, he can grow up slowly through the transformation process.â€
“SMEs are at a disadvantage in competition, and land, capital, and talent are limited. What the government can do is provide public service platforms such as financing services, R&D innovation, and industrial clusters, so that SMEs can find corporate development factors in the process of growth. Let them grow." Wan Zhuopei pointed out from the perspective of the local government that large enterprises are pillars and that small and medium-sized enterprises are the foundation. Without foundations, there is no pillar. He said that SME support is still necessary, and SMEs are very energetic and creative. The growth of SMEs depends on both the “regional growth environment†and the “business ownerâ€. The ultimate success or not depends on the boss itself.