How To Survive The Epdemic For Chair Manufactuers In China

- Sep 22, 2020-

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I. Direct "halving" of demand in the first half of the year


First, the so-called "halving" of demand does not directly reflect the inability of stores and stores to open. In previous years, the Spring Festival is the Indian summer of the property market, many owners with decoration needs will also choose to decorate in the beginning of the year, which directly led to the decline in furniture procurement demand, coupled with home quarantine during the epidemic, the entire market demand is seriously insufficient.


Secondly, the epidemic has a greater impact on employment and income, resulting in the original home decoration and furniture purchasing demand has been significantly reduced.


Third, with the outbreak of the global epidemic and the turbulence in the international market, furniture exports have been hit very hard, and the demand for the export part has stagnated.


Therefore, the recovery of demand is inseparable from the recovery of the housing market and the home decoration market, as well as the recovery of the economy and people's livelihood.


Second, the supply side liquidity is seriously insufficient


Compared with the lack of demand, the supply problem has also become a pain point for companies. On the one hand, the operating rate is insufficient, and the production capacity cannot keep pace with, unable to complete the order as scheduled;


On the other hand, domestic and international transportation is affected by the epidemic. Even if there is an order, it cannot be delivered even if there is no normal delivery. Therefore, cash flow becomes the biggest problem.


3. Online marketing is not a cure-all


Offline customers stagnating, order delivery bottlenecked, the furniture industry began to actively embrace the Internet, online live broadcast to sell goods, and became the enterprise's "elixir".


Indeed, many head enterprises have received very good results through live streaming, with transaction data drifting red and performance rising. However, more enterprises have a basic consensus: online must be combined with offline.


Online is only the entrance of traffic, and it is the key to release discounts and seize customers. However, the characteristics of furniture, product experience, systematicness and professionalism cannot be solved in a live broadcast. Moreover, the effect of traffic transformation also needs to be activated through offline customer unit price.


Therefore, the brands that do well are those that have more stores and can digest and translate online traffic offline.


There are still four key points for industrial recovery


In 2020, exports will be severely hampered, and expanding domestic demand will become the theme of the year. On this basis, the demand for a better quality of life is the basic color of domestic demand. In addition, to accelerate the recovery of the furniture industry, there are still four key points:


1. Economic recovery and increased liquidity


Only when China's epidemic prevention and control efforts are consolidated, the global epidemic spread is contained, the domestic economic environment is improved, and supply chain mobility is enhanced can the furniture industry recover with sufficient momentum and a stable environment.


2. Embrace online and speed up digitization


Affected by the epidemic, furniture enterprises have started to embrace the Internet and start online marketing and community operation. However, these are just one of the tools and approaches. The digital transformation of furniture also includes digital design, digital production and digital marketing, etc., so a complete ecological chain must be formed.


3. Store expansion, online and offline integration


With the introduction and diversification of consumer entrance, the decrease of furniture terminal stores, coupled with the "online carnival" created by the epidemic, many people are singing the blues about the entity. In fact, the characteristics of furniture products and services determine that it is impossible to completely separate from the entity, and online drainage also depends on offline experience and transaction.


However, the scene and entrance of this experience may not be in the shoppingmall, flagship store in the commercial street, community store, model store in the real estate, or even the Shared experience pavilion in the city, etc. This may be a new battlefield for store expansion in the future.


4. Channel transformation and integration into big industries


Channel changes are not starting today, but they will certainly accelerate this year.


First of all, the real estate market breaks through. In order to speed up the cash flow, the real estate enterprises either put some rough houses online and increase the demand for home decoration and furniture on the side, or rely on the advantages of the platform to accelerate the promotion of more vigorous hardcover.


Secondly, the reduction of furniture consumption demand, to a certain extent to promote the home decoration demand first consider hard installation, weaken the soft installation, in this respect, home decoration, decoration enterprises have more advantages;


Thirdly, designers, especially web celebrity designers, are known for their ability to carry goods. Designers will have a greater say and influence in the future household consumption, and they will become an important force that cannot be ignored in the household industry.


In the future, enterprises will compete not only on product quality, but also on humanization of service and internationalization of design.


We firmly believe that the domestic epidemic will soon pass, and the recovery of China's economy and Chinese furniture is increasing. Let us seek opportunities in the crisis created by this era, and see the rebound and outbreak of furniture market in the next National Day Golden Week, helping Chinese furniture and China's economic development.