Even Tianhong sells at a low price, and Xianyou classical furniture industry suffers from spring.

“Strong funds, low cash out”

Recently, driving or taking a car through the Fuzhou-Xiamen Expressway, you will notice that on the billboards along the line, “Lian Tianhong” uses such words to stimulate the eye. Many people speculate that even Tianhong is going to completely clear the warehouse and declare bankruptcy? The response of the person in charge of Tianhong is: This is just a self-rescue operation of the company, and nothing more.

Whether it is "bankruptcy speculation" or "self-rescue declaration", but the "funded, low-cost cash" advertising, reveals the message: the classical furniture industry is still in a weak, stagnant development. How can enterprises accumulate energy in the predicament, weather the winter, waiting for the arrival of spring? How can the government and relevant departments work together to help enterprises transform and upgrade? These have become the focus of attention in the industry and society.

Cash out at a low price, with a view to revitalizing

Even Tianhong is a large-scale classical furniture company. Before the industry suffered a cold spell, the company had more than 5,000 production workers and opened hundreds of exhibition halls or directly operated stores across the country. Large-scale production capacity, fast-expanding direct-sale stores, unconventional advertising words, and overwhelming advertising investment have greatly increased the popularity of Liantianhong, and it is extremely popular in the classical furniture industry.

“Mahogany furniture production needs to hoard raw materials. When the market is good, raw materials are expensive. Nowadays, the market is not very good, the price of raw materials has dropped, and the purchasing power has decreased. Even if you want to throw at the cost, there is no one. Buy.” A person in charge of the Fujian Classical Furniture Association said that the risk of the mahogany furniture industry is here. If there is no certain economic strength, the capital turnover will not be able to sell at a low price.

Since September last year, due to the global economic downturn and the European debt crisis, the mahogany furniture industry has entered a downturn. In the first two or three months, the price of mahogany raw materials and furniture was only 10% to 15%, which is still within the normal range. Subsequently, terminal sales experienced a significant decline, in stark contrast to the market in September 2011 before the market. At the beginning of this year, many small enterprises and small workshops stopped production or sold at a loss due to the backlog of stocks and the pressure of capital and cost. According to local industry estimates, more than 600 small-scale furniture companies in Xianyou County are facing a crisis of survival and are in a state of suspension. Even medium or large enterprises are also affected by this cold wave. Even Tianhong is an example.

On June 20 this year, Lian Tianhong adopted the "self-rescue action": overnight, dozens of large-scale outdoor advertisements beside Fuzhou-Xiamen Expressway were changed to "unfettered, low-cost" The price is cashed out." The company's top management claimed that this is a new strategy launched by Tianhong after the production cuts and more than 30% of the direct stores were closed.

“Chicken-wing wood furniture has dropped from more than 300 yuan to more than 150 yuan per kilogram!” When it was launched, the magnitude of the decline was surprising, and it was not too controversial in the industry. What is the actual effect of the price reduction action? “The spot mahogany furniture and handicrafts in Tiannhong’s national direct sales stores have almost been snapped up, and the price reduction operation will be nearly 100 million yuan by the 10th day.” In the Tianxinghong Beijing West Fourth Ring Red Star store, the customer Ms. Li came here and turned over. The book is marked with signs, and the furniture in the living room, study, dining room and bedroom are all purchased, worth millions of yuan.

The person in charge of the company announced that the self-rescue operation successfully solved the capital turnover dilemma, and also laid a solid economic foundation for the next step of European furniture and the launch of a century-old environmental protection home improvement.

Strong alliance, in order to become bigger and stronger

"Low-cost action can only be an emergency, not the direction of industry development." Lin Aixin, director of the arts and crafts department of Xianyou County and secretary general of the Fujian Classical Furniture Industry Association, said, "Only through integration, bigger and stronger, can we respond to market changes."

In fact, local visionary entrepreneurs have already taken action. In May of this year, a joint-stock company with a registered capital of 100 million yuan was established in Xianyou. This “Qianxian Culture and Art Co., Ltd.” was jointly funded by five mahogany furniture enterprises and Golden Eagle Guarantee Company, including the glory of Tangtou Town, Tangjie, Tianwaitian, Chengzhongcheng and Zhumu Renjia. The company occupies an area of ​​40 acres and was transformed from the site of a large shoe factory. The exhibition hall, clubhouse and related supporting facilities are currently under construction.

The era of “single fights and small fights” has passed. Only with teamwork and cooperation, can we have strong strength in technology research and development, response to the market and good after-sales service.” The company convener Chen Shaohui said that they will be in business mode. Innovate, organize production according to the modern enterprise system and standardization model, build a brand, and open flagship stores in key cities across the country, engaged in design, decoration, sales, repurchase and other related businesses, with an annual production value of more than 500 million yuan, a tax benefit of 7500 More than 10,000 yuan.