Entering the threshold, the furniture market is in a "weird circle"

When the entry threshold is low and the furniture industry is in a vicious circle, the market is caught in a “weird circle”. For a long time, the furniture industry has entered a low threshold, and many companies with weak economic strength, backward management mode, and low process quality standards have swarmed up, hitting low prices in the market, and growing rapidly, forming an overwhelming situation in the industry market. Under the pressure of competition and survival, some second-tier brands also gave up the basic positioning principle, and they followed suit and began to lower standards and lower prices, which accelerated the industry survival crisis. Behind the price cut is to reduce the quality, the quality will hurt the market and destroy the brand. Second, the project bids and competes to suppress the price. The result is that it hurts people and is unprofitable. The bid price is lower than its cost, and it can only reduce the quality. The engineering party that issued the bid should also change the consistent practice of adopting a low-price bid, and the price is too low and harmful. Vicious competition will make the inferior products fish mixed, shoddy, brand products under pressure. Form a vicious circle of helplessness.

The furniture industry is in a vicious circle of competition

Most of the most fundamental causes of vicious circle are because the company's own positioning is blind, its ability to resist risks is poor, and it has lost its way in the face of adversity. A wrong decision can lead to the loss of hematopoietic function, weakened ability to resist risks, depletion of liquidity, bankruptcy, and loss of dealers.

At the same time, quality management awareness is also relatively weak. Many new furniture factories do not have quality management systems and standards. Even the most basic professional quality inspection positions are not established, let alone quality management. All quality standards rely solely on the evaluation of experienced workers, and the manufacturers of products become products. Inspector. In order to avoid the responsibility of quality, the quality control will flow in the form, which will lead to the circulation of the problem products in the market. In the end, the dealers, consumers and the market will only suffer from it. The manufacturers will eventually suffer from their own consequences, in complaints, claims, rework, Material waste, loss, declared bankruptcy, disappeared.

Enterprises are prone to split: the entity increases the terminal competition is fierce

In order to pursue more profits, the establishment of most small-scale furniture enterprises in the early stage, due to weak financial strength, lack of relevant staff, and inadequate technology and supporting systems, joint venture shares are common. With the development of the enterprise, when the enterprise develops to a certain scale and has a certain economic foundation, the enterprise is prone to division under the drive of the interests. Some of the partners who are uneasy about the status quo will regroup and break away from the original enterprise. Although the original enterprises can recruit new key personnel through recruitment and internal training, the newly cloned enterprises will erode the original enterprises at a low price in the initial stage, the number of market operating entities increases, the overall production capacity also increases, and the number of terminals increases. The competition is getting more and more intense.

Should not blindly expand: to understand the specificity of the product

The blind expansion and rapid development of furniture companies will directly lead to contradictions in production and sales, poor planning, and the results will make dealers and manufacturers physically and mentally exhausted. Interest-oriented behavior and blind follow-up expansion have brought too many hidden drawbacks. The result is an imbalance between the supply and demand of production plants and employees, resulting in a relatively short period of labor relations, which makes the gap between relevant technical personnel, sales, management and workers huge. Due to the imbalance between supply and demand, the boss is forced to let the workers take the lead, let alone institutionalized management and standardization operations.

Due to the particularity of the products of the furniture, many small-scale furniture enterprises have fallen in the development without being able to penetrate the rules of the internal market growth. Because the furniture industry is different from other industries, the current competition is not as hot as other industries such as flooring, ceramic tiles and sanitary wares due to the differences in product specifications. Especially domestic furniture sales are strict order sales. According to the sales quota, the size of the customer's ordered products is not the standard size, so the manufacturer can not standardize the production in the specification size, which also forms the so-called "zero inventory" in theory. For the smaller manufacturers, they are worried that there is no order sales, and they are worried that the order is too large. The order is too small to meet the normal operation of the company. The order is too big to be eaten, resulting in production jam, so there are some production scale advantages for the current one. The development space for enterprises will be even greater.