Furniture Hardware Industry: Multidimensional Development Channels
The furniture industry will reach the ceiling when it reaches a certain scale.
Now the furniture hardware industry gross profit is about 20%~30%, and the net profit is generally about 5%. The profit of the agency processing is even less, and 15% of gross profit has been capped.
After many large furniture factories in Shunde reach a certain scale, they will choose a diversified development model. For example, the funds will flow into steel, fabrics, real estate, credit and other fields, and the furniture industry will become less and less in the proportion of the entire company.
The per capita consumption of furniture in China is far from the level of developed countries in Europe and the United States, and there is still room for market development. Afterwards, the competition in the furniture market will no longer be a purely manufacturing capability competition. It will involve product R&D, marketing, branding, communications, and management. The industrial chain of Foshan furniture industry cluster is relatively perfect, and the distribution configuration efficiency is relatively high. However, the overall level is not strong enough. To fundamentally reverse the trend, we should focus on developing brand strategies and cultivating influential big brands so as to accelerate industrial upgrading in the entire region.
It is also a good idea to develop risk sharing through multiple channels. In general, the multi-channel model mainly includes: domestic + foreign, direct-operated stores + distributors, private label production + oem and so on.
What we do is mainly the domestic and foreign dual-channel development model. Over the years, the brand has also increased its national presence while also taking into consideration the development of foreign markets. We have always emphasized the international perspective of product design. In the days following the annual March and September exhibitions, there are more foreigners than the Chinese. The brand's annual sales of about 200 million yuan, of which foreign sales accounted for three-quarters of total sales.
Multi-faceted development channels can effectively share risks. After this round of industry reshuffle, the threshold of the furniture industry will increase and the development will become more standardized. Companies with strong and advanced ideas will gain more market opportunities.
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