FUJI Car Operating Panel,Touch Screen Elevator Control Panel,Villa Elevator Ladder Control Panel,Elevator Multi Style Control Panel Suzhou FUJI Precision Elevator Co.,Ltd , https://www.profuji.com
Likou furniture research and development capabilities to improve the industry optimization is the way out
Buying furniture at Likou Furniture City was once a popular choice in recent years, as it offered a wide range of options and the possibility to bargain. Over the past two years, Red Star Macalline, Yuexing Furniture City, and Sixth Space have rapidly expanded in Sucheng, introducing imported and high-end brands. As a result, buying furniture at Likou is no longer the only option. Faced with this "foreign invasion," as the second-largest furniture industry in the country, both the merchants and the industry itself are thinking about how to tackle issues like the lack of strong R&D capabilities and an underdeveloped design sector. A new trend is emerging: more and more manufacturers from Likou are focusing on research and development and design, establishing their own R&D teams. Additionally, the Suzhou International Home Furnishing Research and Development Institute, organized jointly by the government, associations, enterprises, and universities, has also started construction.
Furniture lacks R&D capabilities
Likou Furniture City, which began as a small rural family workshop in the 1990s, has now grown into the largest furniture distribution center and consumer market in East China. With nearly 1.5 million square meters and over 3,000 businesses, it offers a vast selection. However, when you casually browse through the city, you may find it overwhelming due to the sheer number of similar-looking products. Choosing among them can be just as challenging as the price.
The Likou furniture cluster is mainly composed of small and medium-sized enterprises. Most of these companies rely on their own resources, making it difficult to support large-scale R&D teams. Moreover, investing heavily in new products carries the risk of not being well-received by the market after production.
"The overall reputation of Likou Furniture City is well-known, but there aren't many well-known brands in the cluster," said Shi Lei, executive chairman of the Suzhou Furniture Industry Association. Gu Hongmin, secretary of the Party General Branch and deputy director of the Likou International Furniture City Management Committee, also admitted that R&D and design are the "short legs" of the Likou furniture industry, which has hindered its growth. In contrast, in important areas of the Guangdong furniture industry, such as Shenzhen, Dongguan, Shunde, and Zhongshan, furniture R&D institutes or design institutes were established within seven to eight years. These institutions have become leading units and public platforms that drive local industry development and promote corporate brand innovation and product creation.
Currently, the state of Likou furniture is characterized by weak R&D capabilities, inconsistent product quality, and a lack of personality, which limits the ability of furniture companies to grow larger and stronger. Industry insiders remain confident about its massive scale and future potential, but they are also concerned about the industry's own R&D capabilities.
Optimization and upgrading of the furniture industry to enhance R&D capabilities
In fact, several powerful furniture companies in Xiangcheng District have recognized the importance of R&D capabilities for market competitiveness. They have taken the initiative to form their own R&D teams.
New Acer Furniture is one of them. Cai Yaojun, assistant to the general manager of the company, stated that since the company started building an R&D team in 2005, it has launched three series of original products to the market, with each series containing up to 100 different items. "Each series has invested 3 to 5 million yuan in R&D. Although the investment is large, the long-term benefits are also considerable," Cai Yaojun explained. Now, R&D funds account for about 10% of sales. After more than eight years of development, the company’s R&D team has grown to 12 people, including two graduate students, and the annual salary of core staff has reached 200,000 yuan. Despite the high salaries, talent for furniture R&D remains scarce.
Shi Lei, executive chairman of the Suzhou Furniture Industry Association, said that consumers are increasingly focused on furniture quality, grade, and design sense, while price attractiveness is diminishing. Although the Likou furniture industry cluster is large, it is not yet sophisticated, lacking original products. It is clearly not sustainable to rely solely on price wars. Under these circumstances, concentrating talents and resources to enhance R&D capabilities is beneficial for the optimization and upgrading of the entire furniture industry and is also a guarantee for the long-term development of Likou Furniture.