The crisis in the furniture market shows overcapacity

The crisis in the Chinese furniture industry is manifested in serious overcapacity, and the most fundamental way to resolve this crisis is to "de-capacity". ——— Xu Meiqi, Deputy Director of Shanghai Furniture Research Institute

On the one hand, a large number of home stores are withdrawn, and on the other, new and larger stores are constantly opening, which is very abnormal. ——— Chen Baoguang, Vice Chairman of China Furniture Association

Will the closure of the Red Star Macalline Pazhou store bring about a chain reaction? Is the scale of the China Furniture Industry Exhibition too large? A few days ago, heavyweights such as Chen Baoguang, deputy director of the China Furniture Association, and Xu Meiqi, deputy director of the Shanghai Furniture Research Institute, appeared at the first event of the Songshan Lake China Furniture Forum to interpret the challenges and opportunities facing the furniture industry from a professional perspective.

The crisis is manifested in overcapacity

" In 2012 , China's furniture industry faced an extremely complex economic situation." Xu Meiqi, deputy director and professor of the Shanghai Furniture Research Institute, said in his speech that the domestic market is currently experiencing a depression due to the impact of macro-control. At the same time, the price of domestic labor continues to increase, the prices of raw and auxiliary materials increase, and production costs rise sharply. The uncertainty in the international market is increasing, and it faces more trade barriers and non-trade barriers. The development of China's furniture industry has reached a turning point, and the upgrading of enterprises is imminent.

Xu Meiqi said that the 2008 financial tsunami triggered a global economic recession, but China's furniture has maintained a rapid development trend in the next three years. In 2011 , the total output value of China's furniture industry reached 1.01 trillion yuan ( 154 billion US dollars), and the export volume $ 38.8 billion. Judging from this year's situation, "the good days of the furniture industry really seem to be over." The crisis in the Chinese furniture industry is manifested in serious overcapacity, and the most fundamental way to resolve this crisis is to "decapacity".

Hypermarkets should be transformed into industrial brands

"This year there are a large number of home store withdrawals, which is a manifestation of the appreciation of commercial real estate." In response to the closure of the Red Star Macalline Pazhou store, Chen Baoguang, deputy chairman of the China Furniture Association, analyzed that most domestic home sales stores are leased property operations, rising year by year The rent has already overwhelmed the on-site merchants, and the appreciation of commercial real estate is a key factor in overwhelming the “second landlord”.

For example, Chen Baoguang said that the rental of Xianghe Furniture Store, which has a business scale of 2.2 million square meters , has been reduced from 120 yuan / square meter to less than 80 yuan / square meter this year, making it very difficult for merchants to do business. Nonetheless, an extra-large home store with an operating area of more than 5 million square meters was opened next to it. "On the one hand, a large number of home stores have been withdrawn, and on the other hand, new and larger stores are constantly opening. This is very abnormal. "

Professor Xu Meiqi said that the "greedless" expansion of hypermarkets will surely lead to self-reliance. Chain companies like Red Star Macalline and Jisheng Weibang should take the initiative to transform from commercial brands to industrial brands to avoid major turbulence in the industry.

Future or present 1 million m2 furniture exhibition

The current domestic furniture exhibitions are getting bigger and bigger. Are there too many exhibitions? Huang Weiye, president of the Shenzhen Furniture Association, said that the first time his own furniture factory participated in the exhibition, the booth was only 9 square meters, and now each time it has reached 2000 square meters. Exhibiting twice a year, each time to get a large booth, is for the face of the company, it can be said that many companies have been "kidnapped" by the exhibition. However, over-exhibition will consume a lot of manpower and material resources, which is very unfavorable to some growing furniture companies. "The market has not been good in the past two years. Some furniture companies have paid booth fees and will not participate in the exhibition.

Chen Baoguang, deputy chairman of the China Furniture Association, believes that under the current economic pressure, the transformation of furniture companies is very painful, facing the challenges of industrial transfer and brand upgrade. The key for enterprises is to find out their own positioning and "learn to give up". Chen Baoguang said that the scale of the Shanghai Furniture Fair this fall is expected to reach 500,000 square meters, and the booth is still tight. It is expected that a furniture exhibition with a scale of 1 million square meters will appear in China within 10 years . "So furniture companies must have confidence. Rising is still a big trend. "

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