Mahogany furniture e-commerce dry out furniture dealers

The core of e-commerce lies in retail, and in many ways, it aims to eliminate traditional dealers. This idea has been widely recognized by many in the e-commerce industry because dealers often act as a barrier. They increase product costs, complicate the alignment of online and offline pricing, and hinder the low-price principle that e-commerce relies on. Additionally, they create a distance between consumers and businesses, making e-commerce operations less efficient and more costly. Users often feel disconnected from the process, leading to dissatisfaction. For new e-commerce companies like JD.com and Xiaomi, eliminating dealers is essential. However, the furniture industry—especially the mahogany furniture sector—is quite different from other retail sectors like clothing or food. It has its own unique characteristics that make the role of dealers indispensable. Without them, the path to successful e-commerce might be difficult to walk. Home furniture e-commerce still depends heavily on dealers for now. Unlike simple retail products that can be sold online with ease, high-value items like mahogany sofas require a physical experience. A customer spending tens of thousands of dollars on a sofa would not be satisfied with just an online image. They need to see, touch, and measure the product in person to ensure it fits their space and meets their expectations. After purchase, installation and after-sales service are also critical, which most factories struggle to handle directly. Imagine a factory in Zhongshan selling a wardrobe to a customer in Beijing without a local store. Would they send staff all the way to install and maintain the product? That would be expensive and inefficient. For most manufacturers, this isn't feasible. Only large, well-established companies with nationwide operations can manage such logistics, but these are rare in the mahogany furniture industry. Therefore, most factories still rely on dealers to reach customers across the country. While removing dealers could help control online-offline pricing, it raises new challenges for e-commerce implementation. It’s like trying to fix one problem while creating another. As a result, the furniture industry is still too early to fully eliminate intermediaries. Factories currently cannot take over all dealer stores. If they remove dealers, they would need to open their own offline stores nationwide, which is a huge burden. Many factories already struggle with the cost of maintaining their own storefronts. Replacing dealers step by step could slow down e-commerce growth. In the current state of e-commerce development, both platforms and factories still depend on dealers. They are not yet ready to completely cut out the middlemen. However, dealers in the furniture industry tend to be resistant to change. Many are content with their existing sales models and don’t actively seek to adapt to e-commerce. This is a big challenge in the digital era. If dealers want to survive, they must develop an e-commerce mindset. Simply resisting change and refusing to support online efforts will eventually lead to being replaced. When factories move forward with e-commerce, they should also consider the interests of dealers. Finding a way to integrate e-commerce with dealers is more promising than forcing them to continue with outdated practices. Over the past two years, many dealers have struggled during the rise of e-commerce. On one hand, market demand has dropped, and rent continues to rise. On the other hand, e-commerce threatens their traditional business model, forcing them to either become mere middlemen or be eliminated. At the same time, many want to join e-commerce but don’t know how to start. It’s like a chicken meeting a weasel—caught between two difficult choices. The mahogany furniture industry has had very few overall success stories in e-commerce. From factories to dealers to stores and e-commerce platforms, everyone is still figuring things out. Last year, there was much discussion about e-commerce challenges and solutions. Now, more attention is being given to collaboration between different parts of the supply chain. This is progress. As each link becomes more connected, a complete e-commerce system will emerge, leading to new opportunities for the furniture industry. For more information on China's furniture industry, please visit the official website of Xianghe Furniture City.

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