Declining sales of panel furniture, reducing corporate profits
For a long time, panel furniture was a well-deserved "sales champion" in the furniture market. Because of the relatively low price and fashionable style, panel furniture has been well received by consumers. Along with the emergence of a large number of panel furniture brands in the furniture market, home stores are also willing to provide "Wangpu" to them.
However, as the price difference between solid wood furniture and panel furniture is getting smaller and smaller, coupled with health and environmental protection, it has become the main factor for most consumers to consider when purchasing furniture. As a result, sales of panel furniture have started to decline since last year. According to statistics, in 2012, compared with 2011, the total sales of panel furniture fell by 30%-40%.
Not only that, but the high cost and low profit of panel furniture also overwhelm the enterprises that manage panel furniture. According to Wen Shiquan, chairman of Yifeng Furniture, in the cost of production and distribution of panel furniture, raw materials such as plates and hardware account for 45%-55%, labor costs 10%-20%, and logistics transportation costs 5%. In addition, there are business operating costs, field rents, and so on. The cost is rising, but the price is difficult to upgrade. Calculated, the net profit of panel furniture is only 7%-8%. "Compared with European and American furniture, panel furniture has less requirements on the production process, and the market entry threshold is lower, which in turn makes more and more brands in the field, and profits are less and less, and many companies even lose their ability to resist risks." Yin Chao, secretary-general of the Beijing Furniture Brand Alliance of the National Federation of Industry and Commerce Furniture and Decoration Industry Association.
Under the pressure of the market, many panel furniture brands began to transform, and the home stores also conformed to the market trend and gradually adjusted the proportion of panel furniture in the store.
Europe and the United States furniture suddenly rose to the favor of the store
At the same time that plate furniture entered the low tide period, European and American furniture suddenly sprang up and became the “darling†of the market. The "European and American furniture" often mentioned in the industry actually refers to European and American classical style furniture. Most of these kinds of furniture are solid wood materials, healthy and environmentally friendly, and the style is gorgeous and atmospheric. It is suitable for large-sized houses and villas, and is popular among middle and high-end consumers.
The market outlook is good, and the home store will naturally not miss this opportunity. Actually, the home was the first to bear the brunt, and it was the first to announce the opening of the “European and American Family†project in the second half of this year. According to Ren Cheng, the vice president of the Real Home, “Europe and the United States†is the European and American classical furniture brand display and experience center established by the home. The center will jointly market the mainstream European and American classical furniture brands to provide consumers with European and American classical furniture. One-stop shopping service. She said that at present, the home of the company has built a 20,000 square meter "European and American family" in Beijing Lize store, which is expected to open in November; in 2014, it will build another 40,000 square meters of "European and American family" in Beijing Shilihe store. ". In order to promote the project, the home will reduce some of the panel furniture brands and expand the European and American classical furniture stores. Brands involved in building this project will not only gain advantage of the location of the store, but also enjoy rental benefits.
Chengwai Cheng also began to create a new European and American furniture museum. According to Liu Changhe, the chairman of Chengwai Cheng, the Chengdong East Land Plot is currently being renovated and is ready to open a 50,000-60-square-meter European and American furniture store. The original “European and American Furniture World†outside the city will be moved to the museum after re-branding. It is reported that the museum is currently undergoing renovation and investment promotion, and it is expected to open the door in the first half of next year.
For the home store to play "European and American furniture brand", Yin Chao said that because the property market regulation policy has little impact on high-end real estate, the sales performance of European and American furniture is not bad, and there is still much room for development in the future of European and American furniture. Home stores provide a good display and sales platform for European and American furniture brands, and give these companies the opportunity to rapidly develop their brands, which will contribute to the overall healthy development of the industry.
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