The new wave of furniture market is close to the current price

A few days ago, Mr. Zhang called the hotline and said that he was preparing to start renovations this year. However, it took a lap to find out in the store that the price of some furniture did not fall compared with the end of last year. At the beginning of each year, the home furnishing industry will almost always have a "price hike." Affected by last year's market policy, at the end of last year, there appeared to be signs of price increases in the market. Whether the industry will adjust prices and the incentives for price increases this year has become an issue of particular concern to the industry and consumers.

"Up" sound is not a hole in the wind

In the new stage of economic development, the requirements for the home building materials industry will be more stringent. Meeting the production requirements and adapting to the market policy has become a necessary condition for furniture manufacturing enterprises, and will also accelerate the deep reshuffle of the furniture industry.

He Fazhen, president of the Beijing Furniture Industry Association, told reporters that the home industry is a resource-intensive industry, and the sustainable development of enterprises is often closely related to upstream raw materials. “Especially in recent years, the prices of raw materials such as wood, steel, sponges, leather, adhesives and even hardware, as well as packaging materials, have risen in an all-round way, and transportation costs have also risen steadily.” He Fazhen said that the cost of labor has been continuously improved. Both have a direct impact on the furniture manufacturing industry. “With the market policy and rising prices of raw and auxiliary materials, Chinese furniture has entered the era of shuffling.” He said that the furniture industry will have to face a series of upgrades and transformations.

Specifically, timber is still in short supply this year, and the price of logs has increased by 5%-10%; the price of domestic wood-based panels has also risen from 2015, and has experienced a substantial price adjustment of up to four times; the leather used in furniture products, Last year's biggest increase reached a record high of 30%; textile fabrics rose relatively small, about 5-10%; and the price of paints and adhesives also rose by 5%-10%.

"What makes companies more headaches is the increase in transportation costs." He Fazhen said that due to the impact of the new transportation policy, according to calculations, in terms of logistics, the freight unit price will be raised by about 33.6%.

Will the rising cost be passed on to consumers?

Behind the rising prices of raw and auxiliary materials and the increase in transportation costs, there is an infinite increase in the cost of various enterprises. Usually, consumers are more concerned about whether the rising cost of the company will be passed on to the price of the product.

"The current home furnishing industry is in the critical period of transition to high value-added manufacturing and intelligent manufacturing, and it needs strong capital accumulation to support it." He Fazhen said that although the profitability of enterprises has become smaller, the transformation is facing a severe test. However, if we can coordinate reasonably and actively, it will largely eliminate the impact of rising prices on businesses and consumers.

In fact, every year into December, the home improvement industry usually has a price increase. It is understood that a number of home improvement companies have recently issued a letter of corporate price adjustment, which has slightly increased the existing products based on the original price, and some products have remained unchanged.

A related person in charge of the decoration company said: "The price increase is inevitable, and all the elements of the decoration chain are increasing, so the price of the home improvement product will naturally increase accordingly." The real price adjustment will generally be in the middle and late December. After the New Year's Day, although the overall price has increased slightly for the consumers, under the influence of the policy, the company will actively update and upgrade its own production equipment, and apply the environmental protection concept to the products more, so that The products used by consumers in the home decoration process will also be more environmentally friendly and safe.

Some insiders suggest that consumers who have a renovation plan can easily lock in the price of the main material and furniture by paying the deposit first by paying the deposit first. At the same time, in the choice of the brand, we must try our best to choose the strength. The big brands will be more secure in the subsequent construction and after-sales service.

In addition to price, consumers should also pay attention to the delivery period of furniture products. Affected by relevant policies last year, some companies also have “pain points” in terms of delivery period, and there is no shortage of “rich but out of stock” voices in the market.

Enterprises urgently need to "break the bureau"

In the ever-changing market environment, enterprises must first understand their own situation and explore their own pain points in order to "prescribe the right medicine" and seek new ways with new ideas and new methods.

"In the context of rising costs, the easiest way to break the enterprise is to go with the market." He Fazhao, president of the Beijing Furniture Association, said that in the increasingly severe situation, enterprises should consider comprehensively in terms of production, service, and management. Find a solution.

In terms of production, enterprises should take a refined and intelligent route, effectively use resources and improve quality. "Intelligent manufacturing is the trend of the development of the furniture industry is also inevitable." He Fazhen told reporters that the furniture manufacturing industry should gradually reborn from the labor-intensive industries and slowly become a smart industry. Lean production transformation can help enterprises to reduce the waste of raw materials and labor costs while improving production efficiency, thus leveling the impact of rising costs.

In addition, high-quality and perfect service is one of the necessary conditions for enterprises to stand out from the big environment. Many companies said that the value of the product needs to be achieved through successful sales, and the increase in the price of the terminal will be contrary to the consumption expectation, which will lead to poor sales. "In the inevitable situation of price increases, through training and other means to strengthen service awareness, and more ways to enhance the stickiness of the brand and the market, can stimulate the potential consumption power of consumers in the current market conditions." He Fazhen said .

In fact, a harsh market environment may be an opportunity for companies. For example, in response to rising logistics, companies are forced to optimize their transportation systems; responding to industrial restructuring has also forced companies to pay more attention to transformation and upgrading. After the big waves are washed, the enterprises that remain in the market must have withstood the test, and the quality of the products will naturally increase substantially.

As an industry closely related to the upstream and downstream industry chain, furniture companies must be able to build high-quality products without the support and control of many aspects. However, regardless of the market situation, enterprises can not lose control over the quality of products. On top of this, they must also seek a way out from multiple links.

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