Mahogany furniture e-commerce dry out furniture dealers

The core of e-commerce lies in retail, and in many ways, it's about eliminating intermediaries—dealers. This idea has been echoed by numerous professionals in the e-commerce industry, as dealers often act as a barrier to seamless online operations. They tend to inflate product costs, complicate the process of achieving consistent pricing between online and offline channels, and hinder the fundamental principle of e-commerce: affordability. Additionally, they create a gap between consumers and businesses, making the e-commerce process less efficient and more expensive. As a result, users often feel disconnected from the brand. For new e-commerce players like JD.com or Xiaomi, removing dealers is necessary to streamline operations and maintain control over pricing. However, the furniture industry, especially in the case of mahogany furniture, is quite different. It has unique characteristics that make it difficult to fully transition to an online-only model. Unlike clothing or food, where products can be sold easily with minimal physical interaction, buying high-end mahogany furniture involves a significant investment—often in the tens of thousands of dollars. Such a large purchase requires more than just a digital image; customers need to experience the product firsthand, assess its quality, size, and overall value before making a decision. After purchasing, installation and after-sales service are also critical components. These services are usually handled by local dealers, which is not something most manufacturers can manage on their own, especially if they don’t have a nationwide network of stores. Imagine a factory in Zhongshan selling a wardrobe to a customer in Beijing, but without any local presence. Would the factory send staff to install and maintain the product? That would be costly and impractical, making it hard for the company to remain profitable. While some large mahogany furniture companies may have the resources to handle this, the majority still rely on dealers to distribute and support their products. Eliminating them entirely could lead to more problems than solutions. The factory would face the challenge of managing a vast network of stores and after-sales services, which is both financially and logistically difficult. Therefore, the industry is not yet ready to remove intermediaries completely. At present, both e-commerce platforms and manufacturers depend on dealers, and they cannot afford to cut them out entirely. However, the current dealer model in the mahogany furniture industry is outdated and resistant to change. Many dealers are hesitant to embrace e-commerce, preferring to stick to traditional methods. If they don't adapt, they risk being left behind. For the industry to thrive, dealers must evolve, integrating e-commerce into their operations rather than resisting it. In the past two years, many dealers have felt the pressure from e-commerce. On one hand, market demand is declining, and rent is rising. On the other hand, they’re being forced to become mere middlemen or risk being eliminated altogether. Many want to join the e-commerce movement but don’t know how to start. It’s a tough situation for them. So far, there have been very few successful cases of e-commerce integration in the mahogany furniture industry. From factories to dealers to stores and e-commerce platforms, everyone is trying to find their place. Discussions around e-commerce strategies and channel development are becoming more common, which shows progress. When all these small parts come together, a complete system will emerge, leading to a new phase of growth for the industry. For more information on China's furniture industry, please visit the official website of Xianghe Furniture City.

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