Inventory as a corporate profit killer
Recently, listed companies in the furniture industry have released their 2011 annual reports. The annual report shows that, in addition to a slight decrease in the inventory of Del Home Furnishings compared with the same period in previous years, but also up to 5348.45 million yuan, the inventory of other listed companies is still high. Among them, the inventory of Yihua Wood Industry is as high as 1.244 billion yuan, an increase of 53.77% year-on-year. High inventory has become a profit killer for home furnishing companies.
First, it will affect the quality of furniture. Especially the furniture is piled up in the warehouse, and the ventilation is not good, especially in the south. Once the "back to the sky" is encountered, the high humidity of the air will cause serious natural losses.
Secondly, the stocked furniture needs to be placed in a place and managed by multiple people. It will also cause product damage, crushing and deterioration, which will increase the cost.
Third, the excessive backlog of furniture products will, to a certain extent, directly cause the capital turnover of furniture factories to be difficult, which will cause enterprises to lag behind in the development of new products, which will affect the development of enterprises. The cost increases accordingly, which makes the enterprise suffer from the stagnation.
Original design boosts industry development
An interesting phenomenon is that while domestic furniture companies are worried about inventory, the sales of imported furniture brands continue to be bullish. According to the relevant person in charge of Actual Home, in 2011, the sales of Home Home International Home Pavilion of 20,000 square meters exceeded 400 million yuan, and the average daily sales reached more than 1 million yuan. The first three months of this year and last year Compared with the same period, it increased by more than 10%. At the beginning of this year, when the "fake brand" was counterfeited by Italian government agencies, well-known Italian furniture brands are coveting how to open the Chinese market.
Importers are favored because of their unique product design advantages.
First of all, the design of imported furniture is very particular, especially the details can withstand scrutiny. At the beginning of the design, users will be involved in the design of the product and the use value of the product will be improved. They attach great importance to the fit of product design and life.
Secondly, imported furniture is durable. At the home of a friend of a dealer, a sofa was set up, which looked the same as the new one, and felt good to the touch. "Do you believe? These products have been used for 10 years, and have moved with me several times, and it is not bad at all." The dealer's friend said, every product of real Italian furniture can be used as artwork, Durable and highly collectible.
Third, imported furniture is very good at creating a comfortable and comfortable living environment. A dealer tells us with his many years of experience in the industry: people who buy domestic furniture mainly focus on price, while those who buy imported furniture pay more attention to a quality lifestyle. It is reported that many imported furniture manufacturers do not only sell furniture, but sell furniture, accessories, and ornaments together. Guests take a fancy to the furnishings of the entire space and buy them all. This is the market effect of experiential marketing.
At present, not only imported furniture is favored, but products with distinctive characteristics of some well-known domestic brands are also very popular. In particular, the post-80s generation has become the mainstream of consumption. They are more pursuing brands and personalities, prefer mavericks, do not like similarities, and most of their purchases are characteristic furniture products. Now the total population of the post-80s is nearly 200 million, accounting for one-sixth of the total population, which cannot be ignored by any furniture company, so it is important to cater to their needs.
Therefore, starting with original design, creating your own unique products, and strengthening the core competitiveness of the company have become a coup for domestic furniture companies to get rid of inventory problems and increase profitability at this stage.
At the Guangdong Furniture Fair in March this year, many branded furniture launched their own original design products, which were welcomed by the market. For example, at the Guangzhou exhibition, Zhongshan Diou Furniture's "Yutai" series of new products received lots of orders on the spot. At the Famous Furniture Fair in Dongguan, Qufu Furniture exhibited patented products such as Carpenter's Workshop and Sevilla. Nearly 50 dealers signed two days and paid a deposit, which reached the expected exhibition target.
This year's Shenzhen Furniture Fair also features a "design dome" theme pavilion, dedicated to show original designs by domestic and foreign designers. At the Dongguan Furniture Fair, the China Furniture Association announced that it will host a sofa design competition for the first time, leading furniture companies to create core competitiveness through innovation and increase the added value of products. This move received a positive response from many furniture designers. During the Guangzhou and Shunde Furniture Fairs, seminars such as "Industrialization of Furniture Design" and "Communication between Manufacturers and Designers" were also held. All these indicate that original design has attracted great attention from people in the industry, and original design will become a new breakthrough in the development of China's furniture industry.
Chen Baoguang, vice chairman and secretary general of the China Furniture Association, said recently: "The development of independent intellectual property rights lags far behind the improvement of productivity and product quality, which is one of the bottlenecks in the development of the domestic furniture industry." He saw at this Guangzhou exhibition The original design has attracted great attention from furniture companies and is very happy.
Escort for original design
To grasp the original design and raise the awareness of intellectual property protection, furniture companies have seized the life-saving straw? This is only necessary when life is on the line. When the original design of the domestic furniture industry is still in its infancy, there are still many problems to be solved.
First, there is a lack of talent. Most Chinese furniture companies produce what the consumers need, and what the market is popular about, just follow the trend. Many enterprises are small in scale, weak in strength, and do not have professional designers. In addition, the directional training of such talents by colleges and universities in China is extremely rare, and it is unable to meet the needs of the market. Therefore, training professional furniture design talents is a top priority.
Secondly, the original design has a large investment, high risk, and time-consuming. This is not something that any company can do. It requires the company to have strong capital, talents and other strengths. The business owner should have long-term development goals and determination to grow bigger and stronger.
In addition, the irregular operation of the market has also restricted the development of original designs. For example, at this year's Guangdong Furniture Fair, there were several incidents of plagiarism of patented products. Zhu Changling, chairman of the China Furniture Association, said that the phenomenon of plagiarism and counterfeiting of furniture has gradually decreased in recent years, but it still exists. Small companies are following counterfeit products in large companies, and this is still happening now and then. The China Furniture Association once issued an industry treaty that requires everyone not to counterfeit and resist counterfeiting. In terms of protecting intellectual property rights, all enterprises should not impersonate other people's products.
Original design has now become the top priority in the development of the industry, and it needs the strong support of the government and all walks of life. The government must provide a fair and sound environment with a sound legal system for the development of original design, and provide support for policies, science, technology and funds Intermediary organizations must also provide support for original designs; consumers should also rely on our original designs and vigorously resist cottage furniture products. Only when all parties form a joint force, our own original furniture can be recognized and accepted by the market, and the enterprise can truly develop.
Take multiple measures and lift inventory
In addition to original designs, are there other ways for furniture companies to reduce inventory and increase profits? The answer is yes. Xu Guanrong, secretary general of the Shanghai Furniture Industry Association, said that when the market is weak, "fixing production by sales" is a better way for companies to reduce inventory. Unlike Guangdong's mass production mode, most enterprises in Shanghai now adopt customized production to reduce inventory risks. In addition, refining the division of labor, outsourcing some processes, and organizing production according to orders is also one of the methods for enterprises to reduce their inventory. For enterprises with foreign trade business, they must always pay attention to the changes in the foreign trade market and pay attention to the early warning analysis of the import and export business of relevant government departments in China to minimize the export risks. Those large and powerful enterprises, while implementing both domestic and international grasps, avoid market risks and develop new foreign markets in new ways and through new channels. "Never give up exports", but strategic adjustments are necessary. When the international economy is complex and volatile, and full of uncertainty, we must strengthen confidence, increase independent innovation, and exploit the advantages of product design and quality to develop the market.
In extraordinary times, furniture companies should find their own development methods, always pay attention to market changes, improve production efficiency and capital turnover, so that they can play an advantage in the fierce market competition and take the lead in development.
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