Rapid development of China's furniture industry to help open up the domestic market

“The biggest problem in the Chinese economy is the issue of growth methods and structures. During the 12th Five-Year Plan period, we must fundamentally change the mode of economic growth and make strategic adjustments to the entire economic structure.” Yao Jingyuan, chief economist of the National Bureau of Statistics in China Finance and Economics 2010 At the annual meeting. With the "12th Five-Year Plan" countries urging the transformation of economic growth mode and the adjustment of the economic strategy from export-oriented to domestic demand-led, the Secretary-General of the Shenzhen Furniture Association Hou Kepeng expects that the furniture industry will also usher in the best time for transformation. The annual increase in the output value of the market is expected to exceed the automotive industry and become China's largest industry.

Cao Hongfu, deputy chairman of the China Brand Planning Alliance and director of the Furniture Committee, said that the Chinese furniture industry has experienced childishness and early growth during the past 30 years and is now in the midst of growth. It will only enter mature growth after 2015.

According to incomplete statistics, the total retail sales of the whole society in 2009 increased by 15.5% over the previous year, and the furniture industry exceeded construction, decoration materials, and automobile growth. The growth rate was 35.5%. In the first three quarters of 2010, total social retail consumption increased by 18.3%, of which the furniture industry contributed 38.4%, which is the fastest growing industry.

The reporter was informed that China's furniture production capacity has taken up 25% of the world's total, making it a veritable first furniture manufacturing country. In 1978, just after the reform and opening up, China’s furniture had a market of 1.3 billion yuan. Now the total amount has reached more than 7,000 billion yuan. According to the average growth rate of 22.2% in the past three decades, by 2015, the industry will reach a total output value of 2,430 billion yuan.

China's furniture industry is mainly distributed in the Pearl River Delta, Yangtze River Delta, Bohai Rim, and Sichuan Province. According to Hou Kepeng, Guangdong accounts for 50% of the total capacity of the Chinese furniture industry, 15% of Zhejiang, 8% to 10% of the Bohai Rim, less than 15% of the Northeast, and nearly 10% of Sichuan. These areas are mainly formed by natural agglomeration of the furniture industry chain, most of which are extensively produced and operated, and the degree of industrial aggregation is low, resulting in the lack of close upstream and downstream links in the industry chain and raising the cost of the entire furniture industry.

“This kind of extensive production model has resulted in the entire industry not forming a consumer brand at the current stage, and its international competitiveness is weak. Although historically our country’s woodworking technology is in a leading position in the world, after decades of reform and opening up, it has become the world’s development. The first furniture manufacturing country, but still not very competitive in the world furniture industry.” Industry insiders said.

Natural agglomeration shifts to effective gathering Industry insiders expect that the furniture industry's CBD model will become an effective development model for the transformation and upgrading of the furniture industry. This is a mode of concentrated industrial development that integrates manufacturing, commerce, logistics, and the park as a whole and has an effective agglomeration effect. Hou Kepeng believes that the agglomeration of the furniture industry in the past was naturally formed, and the “Twelfth Five-Year Plan” could use the opportunity of the eastern coast to orderly transfer industries to the central and western regions to develop an effective clustering model of CBD.

It is understood that in the furniture CBD, companies can solve the wholesale, retail and product display problems without having to build an exhibition hall. Semi-finished products or raw materials can be skipped directly into the procurement logistics part of the warehouse, when needed by the procurement logistics supplier sent to the production workshop. Industrial manufacturing, commerce, and the park community each have their own major axis.

It is understood that to build China's Asia Pacific region, the largest one-stop trading service platform for furniture raw materials, Hebei Xianghe Asia-Pacific International Furniture Materials City, Wuhan China Furniture CBD in 2009 were opened in succession for the "Twelfth Five-Year" period CBD " Home sales, production, research and development, and service are all in one place, and the model of integrated production and sales has set a precedent.

E-commerce helps to open up the domestic market. “China's furniture exports account for about 22% of the world's total, of which the US and EU markets have more than 75% of exports. China's furniture industry has long relied on exports, resulting in 2008 financial After the crisis broke out, many small and medium-sized furniture companies that depended on foreign sales and were not strong enough came to an end." Xu Shaolun said that with the "12th Five-Year Plan" countries shifting their economic strategy from export-oriented to domestic demand-led, they will vigorously promote the development of domestic trade and furniture. The industry should quickly adjust its strategy. While both "export" and "domestic demand" must be developed simultaneously, it is necessary to expand the domestic market.

The traditional domestic furniture marketing model is the use of independent stores, large national chain, local chain, large supermarkets and other channels for sales.

Relying on e-commerce, the furniture industry has acquired a new and effective marketing model to meet the furniture needs of a large number of young people. According to industry insiders, the future furniture industry will usher in greater opportunities for transformation and upgrading relying on the e-commerce industry.