Furniture companies try to form an alliance to attack the market in a group form

Well-known brands in the field of furniture are trying to develop alliances. Recently, Xilinmen Furniture Co., Ltd. and Yihua Wood Industry Co., Ltd. successively issued announcements and third-party Huari Furniture, and the three parties signed a strategic cooperation framework agreement. They want to integrate multi-party resources and complement each other's advantages, and enhance the brand awareness of the three parties and the market share of the products. rate. This also indicates that brand integration, capital operations and corporate alliances have become more active as the most prominent feature of the furniture industry this year.

Strong alliance

It is the first time that large domestic furniture companies have joined forces and closely united. According to public information, Yihua Wood is one of the large-scale furniture enterprises specializing in the production and sale of solid wood furniture, solid wood flooring and other wood products. It has obvious advantages in the export of solid wood furniture and flooring. Xilinmen is a leading enterprise in the domestic mattress industry. Hotel furniture products enjoy high popularity in the industry; Huari Furniture is a large-scale furniture enterprise integrating scientific research, development, design, production and sales. Its production of civil solid wood furniture, hotel furniture, children's furniture, wooden doors, overall wardrobes and other products The advantages are obvious in the market segment.

The main contents of the tripartite strategic agreement are: the three parties will use mutual trust as the basis for cooperation, improve efficiency and common development as the fundamental goals and interests, give full play to the respective advantages of the three parties, enhance competitiveness through resource integration and complementary advantages, and jointly develop the market. According to the agreement, Xilinmen will produce mattresses and hotel furniture for Yihua and Huari, and respectively branded “Yihua” and “HuaRi”. Yihua will produce solid wood furniture, solid wood flooring, solid wood doors and windows and other products. With the names of the other two brands, Huari also produces children's furniture, overall wardrobes and other products in the same way.

The strategic cooperation framework agreement is an intentional cooperation agreement. Therefore, the specific transaction amount is still unclear. The announcement states that the specific product cooperation types, models, prices and quantities involved in the specific strategic cooperation will be based on the specific business cooperation agreements signed by the three parties and related. The business contract is subject to.

Qin Zhanxue, executive vice president of the Building Materials Circulation Association, believes that the three furniture brands each play an advantage and strengthen the alliance is an innovation of the industrial model. However, there are still some problems behind it. "This kind of cooperation only exerts the advantages of technology and production. The channel is still controlled by each brand. It is equivalent to selling the same product with three brands. The cooperation method is still rough. Such innovation is worth encouraging, but later development. Maintenance is also very important, especially in the construction of the unified market. The best ending is that the three companies have joined forces to develop into a trust group, and then each of them will use a brand to uniformly sell a certain category of products."

Rich product line

According to expert analysis, the main purpose of the cooperation between Yihua and Xilinmen and Huari is to enter the children's furniture industry. The data shows that the current sub-sector of children's furniture has a market capacity of about 50 billion yuan, but the largest annual sales of the industry is less than 1% of the market capacity. The concentration of the whole industry is extremely low, which is the "blue sea" of the current home industry.

Xilinmen has signed a brand licensing agreement with Walt Disney Company, signed a transaction memorandum with Ai Ying (Shanghai) Trading Co., Ltd., and obtained the relevant licenses for the Disney and Doraemon brands and used for the production and sales of the products.

Liu Weihong, deputy general manager and secretary of the board of directors of Yihua, said bluntly that the cooperation was mainly to “trust two other OEM products and sell them in our own channels” to take advantage of the advantages of the three furniture brands. Cooperation and complementarity, for Yihua is mainly to fill the shortcomings in soft home decoration and children's furniture. He also admits that the future of children's furniture is a new growth point for the entire industry, but Yihua has previously invested less in research and development and production in this area. This cooperation with Huari will greatly benefit the richness of Yihua's product line.

He believes that the next development trend of the furniture industry is horizontal cooperation, and there will even be a phenomenon of mergers and acquisitions. "The future trend is strong alliance, and it is not excluded that there may be more integration actions."

The strategic cooperation of the three giants will enable the superior products of the three different segments to achieve the unification of styles through mutual commissioning of production, the high standards of quality, and the one-stop convenience of sales, which will ultimately be presented to consumers in full compliance with the industry. The highest standard of high quality products. Holding the Solidarity Alliance can not only help the three companies to enhance their competitiveness in the other two business areas, but through the complementary advantages and coordinated operations, the joint competitive advantages of the leading brands of the three market segments will form certain industry barriers, and other enterprises will want to go beyond It is even more difficult. The signing of the contract may change the market structure of the future home industry.

Coexistence of cooperation

The same as China's overall economic development, the furniture industry, which has been developed for many years, is currently at a critical period of structural transformation and development model change. The reporter learned from the Boao China Furniture Forum and the first China Furniture Brand Festival that there are relatively obvious problems in the Chinese furniture industry: the industry concentration is low. The number of enterprises in the whole industry has reached more than 70,000, and there are more than 200,000 corporate brands. The scale is relatively loose and the overall efficiency is low. Due to the institutional problems of production, marketing, channels, stores and other related factors, the overall industry value is significantly lower than other industries; the furniture industry's management model is relatively backward. The modern management business model such as mergers and reorganizations that frequently appear in modern enterprise management has not been effectively introduced into the overall industry; that is, capital is outside the industrial base, and the development investment of the whole industry entity industry is relatively weak.

With the gradual market situation, the integration of resources has become the primary task for major furniture companies to break through the bottleneck of the industry. The competition in the furniture industry has evolved from the competition of the comprehensive strength of furniture enterprises to the competition of the industrial chain, and the furniture enterprises have taken a group battle or a new way out.

The industry believes that next year's furniture market is a year of comprehensive competition. With the sharp rise in the prices of oil and production materials, the large number of stores, the products and brands have followed suit, the era of competition and integration has arrived, how should furniture meet the challenge next year? Experts pointed out that due to resource shortages and national policies, product prices will also tend to rise. Market competition is an inevitable phenomenon of market economy development, and the future is an era of competition and cooperation. Competition and cooperation are reflected in different aspects. For each furniture enterprise itself, it must identify the market positioning, customer positioning, brand positioning, establish a unique brand personality, enhance its competitiveness, and occupy and expand the market.

Of course, the future market will require cooperation and coexistence among related companies to attack the market in a group-based manner. This requires all brands to be good at sharing benefits with others, making good use of the leverage principle of resource integration, developing inter-departmental and cross-industry alliances, complementing each other's strengths, leveraging the power of group operations, and innovating profit models so that alliance companies can enjoy each other. The greatest value, to achieve a complementary win-win situation. Obviously, the industry leaders Xilinmen, Yihua and Huari are taking the lead and embarking on the industry to explore the road of breakthrough.

manual elliptical trainer

Horizon Elliptical,Cross Trainer Machine,Elliptical Workout,Best Elliptical Machine

Zhejiang Kingdom Sports Co.,Ltd. , https://www.zjkingdomsports.com