Chinese furniture seeks to change the enterprise under the adversity

2012 is a year in which the world economy continues to bear the weight. Overall, the world economy has grown this year, but continues to operate at a low level. China's economic growth rate also declined. According to data released by the National Bureau of Statistics, China's GDP growth rate in the first three quarters of 2012 fell quarter by quarter: 8.1% in the first quarter, 7.6% in the second quarter, and 7.4% in the third quarter. From the high point of 9.8% in the first quarter of 2011 to the low of 7.4% at the end of the third quarter of 2012, the year-on-year growth rate of GDP has been falling for six consecutive quarters.

In such a large environment, coupled with the short-term negative impact of the state on real estate regulation and control, the overall situation has also been hit hard. Most of the companies have fallen into a decline in performance, or a slight increase in performance, but the overall profit Still a downturn. The performance of large-scale enterprises generally fell by 20-30%, the collapse of small and medium-sized enterprises, the withdrawal of large-scale stores, the greatly reduced effect of exhibitions, and the increasing cautiousness of dealers, indicating that the Chinese furniture market has begun to stagnate or even shrink.

This status quo is an unprecedented adversity encountered by the furniture industry. It also makes the industry, including manufacturing companies, dealers and store owners, begin to realize that the Chinese furniture industry has entered a new era, regardless of whether the industry is willing or not. Are you ready? The impact of oversupply in the entire industry is gradually becoming more prominent. Under the leadership of the buyer's market, the market's competitive situation has become more complicated, no longer a purely product level and manufacturing capacity competition, but involves more comprehensive and diverse. Competition between R&D, marketing, branding, communication, management, services and other resources and resources.

Ushering in a new era under adversity

The rare international financial crisis for many years has brought about a huge impact on all walks of life in China. Since the first half of 2008, the export of coastal areas has been blocked, and the growth rate has been declining month by month. After entering October, the situation has turned sharply. The impact of the international financial crisis has rapidly spread from small and medium-sized enterprises to large and medium-sized enterprises, from the export sector to other sectors. The eastern coastal areas have spread to inland areas. This has made many companies entering the market in the new century feel embarrassed and stressed in the first decade. In 2009, the furniture industry ushered in a short peak season, and it was only a short-lived. From 2010 to 2012, the entire industry has felt a year of sadness, and the market is bleak year after year.

When the poor is thinking, enterprises can't sit still when the external environment is difficult. If you want to survive and develop in adversity, you must think about how to change to adapt to changes in the external environment. In 2012, Chinese furniture companies began to enter a special period, which is a rare opportunity and challenge for every enterprise or every enterprise employee. Throughout the industry, we can easily find that the market responds positively from the negative waiting for the big environment to the present, the market channels begin to diversify, the product innovation is valued by the enterprise, the service concept is upgraded to a new height, and the product style is more abundant. The national furniture industry is moving towards a balanced development. Despite the difficulties, the entire industry is advancing.

The transformation of the new era channel

According to industry experts, 2012 is the first year of the transformation of China's furniture industry channel. In this year, we can easily see that the sales channel has changed before the big market, and e-commerce has been able to develop rapidly. The experience store began to bloom in the country, the independent stores of large enterprises became more and more mature, the custom furniture was popular all over the country, the big real estate developers joined the market competition, etc. A large number of new models are emerging, even though it is still in its infancy or only started, but What is certain is that through a few years of hard work, it will definitely make a profound change in the composition of the entire industry.

Prior to this, China's furniture industry has undergone new changes in the process of rapid development. From the seller's market to the buyer's market, the types of products are becoming more and more abundant. However, the sales model has not changed much. It can even be said that there is no change. The model is quite single. It is basically two forms. One is the “landlord” type of lease in the hypermarket, and the other is the independent store. The low-level “landlord” form of the hypermarket, along with the development of the furniture industry, has continued to expand, and a large number of new stores have emerged, resulting in a serious oversupply of stores, but stagnating in market operation and management, ignoring customer needs and consumption habits. The changes that have taken place, although still in the mainstream, are no longer able to meet the development needs of the industry. In 2012, many hypermarkets quietly withdrew, and new furniture stores were difficult to attract investment. Some high-end large-scale chain stores continued to reduce the standard of investment promotion. In the past, the target of high-end stores was only limited to first- and second-line brands, and now it has begun to accommodate unknown. New brand. We seem to have seen the helplessness and poorness of the "landlords".

The corruption and decay of the old model is a hotbed for the development of new models. Under the dilemma of hypermarkets, new models will surely be born. With the rejuvenation, personalization and networking of consumer groups, e-commerce and customized furniture have quietly emerged, and e-commerce is threatening traditional hypermarkets step by step. On the day of the Singles Day promotion, many of the big stores were deserted, but e-commerce was booming. All-youth home sales exceeded 100 million sales to create a furniture e-commerce myth. The traditional e-commerce Lin was close to 60 million, and Gujia Home also exceeded 50 million. Cool sales are close to 20 million, and Jiayimei, which has just been online for 20 days, is also 2 million. After this beautiful set of data came out, it not only stimulated the nerves of the furniture dealers, but also stimulated the nerves of the business owners. The operators of the traditional stores were even more uncomfortable. Li Junming, a large distributor in Yunnan, predicted in a forum: "After five years, the turnover of the furniture industry should be more than 30% online, and may even reach 40%." Once again, the industry has caught the eye. The industry is not only concerned with the data he predicted, but more importantly, Li Junming is a prominent representative of traditional furniture dealers. He is a vested interest in traditional channels. His opposition to e-commerce, the embrace of e-commerce, a 180-degree turn, This will undoubtedly bring shocking effects to traditional dealers.

The transformation of the channel will also drive the transformation of the industry. In order to comply with the development of the new era, the manufacturing enterprise will start to change from the inside. Li Lishan, general manager of moderate furniture, said that in 2013, he will invest heavily in e-commerce platforms, and will develop new products suitable for e-commerce, and add sales and management teams for e-commerce. In the author's interviews and surveys, almost 80% of companies are preparing and taking e-commerce channels.

The transformation of brand communication in the new era

With the changes in the media environment, the socio-economic environment, and the revolution in new communication technologies, the number and variety of media have flourished, and the information available globally has shown an exponential growth momentum. The speed of the Internet, the popularity of digital TV and smart phones have led to the emergence of a number of emerging information dissemination channels with the banner of interactivity. Such as Weibo, WeChat, group texting and so on. This allows companies to have more choices when building brand image and expanding brand influence.

At the same time, due to the increase of media communication channels, such as mobile phone text messages, e-mail, web logs, BBS, network communication and other new communication methods generated by new technologies, the life of modern audiences is divided, and their time spent on a single medium is becoming increasingly limited. However, the information facing them is increasing and more complicated. The audience stimulated by all kinds of massive information every day has been slow to respond to the stimulation of advertising, the distraction of attention, the continuous decline of memory, and even the psychological state of information resistance. For example, some implantable advertisements can be accepted at first, and now there are more and more disgusting, especially some implanted advertisements like the Spring Festival Evening, which makes the audience from all over the country scream. The current audience, the processing of information began to surface, they are used to reading short articles, quickly browsing pictures, using the "fast food" style of information interpretation.

Therefore, the simple way of brand communication in the past: choosing a single media or a single mode of communication is no longer suitable for the development of the new era. Faced with more intense market competition, and more savvy consumers, coupled with the homogenization of products, the road to creating brands is becoming more and more difficult. The brand identification system under the new era of change is more complicated, the brand image and personality are more diversified, and the brand continues to expand in different markets, while at the same time maintaining the unity of the brand. Any one of these tasks is more complicated than before. This puts higher demands on brand communication, and advertising alone is no longer a task for brand communication. Under this circumstance, marketers must integrate advertising, public relations, sponsorship activities, event marketing, promotional activities and other means of communication, and apply them to all aspects of brand communication according to their respective advantages. Let them work together for the brand and play the role of integration.

In the conversation with the author, Zhou Shiwang, chairman of Foshan Yiyi Furniture, pointed out that enterprises must change with the changes of the times, and the way of brand communication should also change. Butterfly Yiyi is playing a combination of boxing in the brand communication: network, TV, industry magazines, charity events, event marketing, and more. Therefore, in the short period of time of enterprise development, the reputation and reputation of the industry have been greatly improved. In the absence of pioneering salesmen, the dealers developed through the media have even surpassed dozens of professional development teams. enterprise.

With the advent of the new era, companies can only find new roads to change in order to break through the old bottlenecks in the overall situation of change, in order to find a new path of development.

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