Development trend of furniture raw and auxiliary materials



At present, the pace of transformation and upgrading of the furniture industry is accelerating, and the demand supply of raw and auxiliary materials also presents the following three major development trends, thereby better forming the usual supply and demand industrial chain and assisting the entire furniture industry to transform and upgrade better and faster.

Trend 1: Industry Transfer

With the improvement of domestic economic level and consumption level, the growth of the industrial chain in the Mainland is inevitable. The low cost and huge domestic demand in the Mainland can also support the development of related industrial chains. At the same time, it can also create employment, promote consumption and activate the economy. First, the local government needs to support, improve relevant policies, improve the entrepreneurial environment, and give preferential treatment; second, relevant enterprises should do a good job in supporting services, improve management, pay attention to original design, striving for famous brands, and stand at a higher starting point. Otherwise, the development space is very limited.

Xu Xiao said: "At present, the mainland is not as good as the coastal areas in terms of industrial base, supporting services, exhibitions, transportation, transportation, etc. Whether the furniture suppliers are transferred or not depends on their own strength and production and marketing plans, and cannot be blindly attacked. Consider setting up branches and branches."

Zhao Lihua agrees that the overall migration of the furniture industry, especially from the coast to the interior, is a trend, which is manifested in six aspects:

(1) Increase in factory costs;

(2) The transportation cost increases, the furniture is a large item, the transportation cost is quite high, and the land occupation is large, the warehouse cost increases, and the related expenses can be reduced nearby;

(3) The quality of locally produced products is relatively stable. This is because wood varies in different environments and is only stable in the local area because the environment is similar to the production environment.

(4) Emerging industrial parks can be planned at one time in planning, increasing the use rate of the site to make furniture production smoother and improve production efficiency;

(5) The labor cost along the coast will also be higher than that in the Mainland

(6) The mainland is relatively small in industry and is also very popular in the furniture industry because it can increase employment, promote consumption and increase tax revenue.

Among them, the cost gap is the primary reason for industrial transfer. Zhang Taiping also believes that the transfer of the consumer market will also determine the migration of the entire industry: “As long as there is a shift in consumers and a cost gap, furniture suppliers and raw material suppliers will also Following the transfer, there is a key factor here, the follow-up of services and the control of costs."

Trend 2: Adjusting business strategy

In the face of an objective market environment, enterprises must also adjust their operations. Xu Xiao suggested: “How can companies avoid risks when the market deteriorates? First, go to inventory, withdraw funds, revitalize funds; second, fight for cash settlement. To avoid risks such as bankruptcy of downstream enterprises; the third is to actively research the market, find the next stage market demand point, and purchase relevant raw materials in advance; fourth, special operations, do several kinds of materials, even various specifications, various grades The products are all available; the fifth is to open up the source, strive for every possible merchant and reduce all unnecessary expenses."

The impact of the same market environment on the adhesive suppliers is also huge, which directly leads to a rapid decline in product sales. Even some suppliers are trying to survive and adopt the wrong strategy of selling at a reduced price, which makes the business operation fall into a vicious circle, its operation and Operation is almost unprofitable. In this environment, General Chemical has chosen to adhere to the adjustment of its own business strategy:

* Continuous research and development of new products;

* Improve the company's training, streamline internal workflow and improve efficiency;

* Strictly review all expenses within the company and strive to maximize the company's limited resources;

* Expand the scope of the market and make up for the reduction of sales from the existing range; * Together with the furniture industry, improve products according to process requirements, and improve the quality and efficiency with furniture companies.

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