Since April last year, the State Council and the Ministry of Housing and Urban-Rural Development have successively issued a series of new housing policies, and local governments have successively announced the implementation rules. For a time, the property market shock triggered concerns in the industry. Many people even believe that once the real estate industry is sluggish, the home building materials industry will be suppressed, and the decline in sales will be inevitable. What is the market trend in the outdoor furniture industry that is closely related to real estate?
In the face of the impact of the financial crisis, China's outdoor furniture companies, which are mainly export-oriented, have suffered different degrees of impact, and some enterprises are facing the dilemma of bankruptcy or sharp decline in orders. With the development of China's economy and the improvement of residents' living standards, people are increasingly advocating free and healthy outdoor leisure life. Outdoor furniture has been rapidly promoted from the past professional and commercial fields to the mass consumer field. Nowadays, both internationally renowned brands and domestic professional outdoor furniture manufacturers have set their sights on the domestic market. Under such circumstances, is the country’s strict property market regulation policy an opportunity for the outdoor furniture industry to be hit again?
Macroeconomically beneficial development opportunities have increased
On September 3, Wen Jiabao, a member of the think tank, the economic adviser of the National Development and Reform Commission, and the famous economist Professor Guo Shiping, visited the 2nd Asia-Pacific Economic Forum and discussed with entrepreneurs on the topic of how to spend the winter in the home industry in the next year and a half. . After comprehensively analyzing the international and domestic economic situation, he stressed that in the next year and a half, the home furnishing industry should conform to the trend of economic development, and should not blindly expand investment, holding cash is king.
“Comprehensive property tax is the biggest politics in China,†Professor Guo Shiping predicted that property tax will be levied nationwide next year. Once the property tax is introduced, the real estate landscape will undergo major changes. Eliminating the "investment" and "speculation" functions and restoring the "residence" function of real estate is the ultimate goal of house price regulation. Professor Guo Shiping also predicted that the national real estate prices will be lowered sharply next year, and even the second and third tier cities in China will not be spared. “The decline in real estate is good for the home furnishing industry,†said Professor Guo Shiping. “One is that house prices have been lowered, and there are more people buying. If you buy a house, you must be renovated. On the other hand, 36 million sets of affordable housing in the country. Continuously launched, it also provides a large market for building materials and home furnishing industry.†He believes that on the surface, the introduction of purchase restrictions and the decline in house prices seem to have a great negative correlation with the home furnishing industry. The blow, the home industry should not feel too pessimistic, but the opportunity will increase.
Regardless of the opportunity or the "winter", in the face of this inevitable reshuffle of the industry, Professor Guo Shiping repeatedly reminded the entrepreneurs here: Do not blindly expand the investment, the money spent as little as possible or not The money that should not be spent is determined not to spend. He repeatedly emphasized the words "cash is king". He believes that only when the financial crisis comes to hold cash and preserve its own strength can we ensure the survival of the company. Only in this way can we usher in a new round of development opportunities after the cold winter.
At the economic forum, Professor Guo Shiping analyzed the entire home industry from the perspective of economics. However, it is not difficult for us to find out that if the decline in house prices is good for the home furnishing industry, it will be good for the outdoor furniture industry.
At the 2nd Asia-Pacific Economic Forum, Yao Jiqing, the marketing director of the European Group and Sun Zhiyong, the chairman of Zhibang Cabinet, said that the “severe winter†would not affect the cabinet industry. They said that the cabinet industry should still be in the “springâ€. Lin Wei, president of Eagle Group, also said that “winter†is a big climate, and different fields have different climatic characteristics.
The industry segmentation also subdivides the risk accordingly. For outdoor furniture, this "winter" is not necessarily cold. The indoorization of outdoor furniture is a trend in the development of the industry in recent years. With the accelerated pace of urban life and the multiplication of pressure, people are more focused on their physical and mental health. At the same time, in order to conform to the modern fast-paced life, the current decoration styles tend to be simple, and with the gradual enhancement of energy-saving and environmental protection awareness, returning to the original and returning to the natural trend is becoming more and more popular. With its novel shape and humanized design, especially the hollowed-out rattan and futuristic rotomolding, the outdoor furniture is full of casual and fashionable “personality†and creates a fresh and elegant feeling. It can bring outdoor atmosphere and be sleek and simple. The steps of outdoor furniture entering the room are unstoppable.
September can be described as the exhibition month of the home industry. In many exhibitions, outdoor furniture made of materials such as rattan, rotomolding, outdoor wood and stainless steel shines. In addition to the common reclining chairs and lounge chairs, the “1+2+3†combination suitable for living room space and the 6-person design suitable for restaurant space have obvious indoorization trends. The product design of fabric cushions and coffee table sets more definitely affirmed this trend.
The indoorization of outdoor furniture breaks the routine of furniture placement and expands the outdoor furniture sales market.
Grasping development opportunities, outdoor furniture still needs to be "warm"
Although the indoor furniture of the outdoor furniture brings some spring atmosphere, the outdoor furniture industry still needs to “protect the coldâ€.
In recent years, with the rapid development of the national economy, the outdoor furniture market has continued to heat up, and export-oriented outdoor furniture companies and traders have tried to market the domestic market. However, due to the lack of experience in opening up sales channels in the domestic market, and facing the arrival of international brands, domestic outdoor furniture companies need to enhance their “internal strengthâ€:
First, the future direction of development and product positioning. Most furniture companies in China have always adopted a family-style extensive operation, lacking market positioning, let alone positioning the future development direction. A company with no sense of direction and purpose and lack of strategy is destined to be eliminated. So the first thing companies need to do is to position themselves according to changes in the environment. The other is the positioning of the product. The domestic home market has always been based on plagiarism and has no brand awareness. The society continues to improve, and our consumers are paying more and more attention to brands. In such a large environment, good brand image construction and service construction is a powerful guarantee for outdoor furniture enterprises to survive at the terminal.
Second, the enterprise management structure is systematized. Since most of the domestic furniture companies are developed from family workshops, the cultural level, comprehensive quality and professional management ability of the employees are not high. The management of the company is mostly "internal promotion." These people often hold core management positions. When they do not receive continuous professional training or exercise, they often expose the biggest weakness - "experience management and localism", which is fatal for enterprises. Moreover, one form of enterprise facing the end consumer is the franchise store or the direct store. In general, small and medium-sized enterprises do not attach importance to corporate culture, and rarely carry out training, resulting in the professional knowledge, basic quality and comprehensive ability of store employees.
With the integration of the industry and the new round of competitive pressure, outdoor home furnishing enterprises are faced with self-adjustment and breakthrough from the traditional to the norm, from the norm to the scale, from the scale to the international development. Whether in the big environment or in a specific situation, companies should establish a corporate culture and a benign business model that can be developed.
Third, domestic terminal marketing capabilities need to be improved. Although many outdoor furniture companies have a full range of products and a wide variety, their long-term dependence on exports has made their domestic terminal marketing capabilities relatively weak. Nowadays, in order to develop their own product sales channels, they must increase their terminal marketing capabilities.
Fourth, grasp the entire market environment. Professor Guo Shiping said at the Asia-Pacific Economic Forum that "2011 is the most dangerous year for China's economic situation." According to the market rule of survival of the fittest, this industry reshuffle is inevitable. Under such an economic situation, we must not only increase our own "internal strength", but also take advantage of the trend.
The development of the market will make an industry more perfect in the constant "pain". In this "winter", the leaders of outdoor furniture enterprises must recognize the current situation, change in time, integrate resources, practice internal strength, and strengthen physical fitness in order to create more beautiful flowers in the "spring."
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