With the shortage of global resources and the substantial increase in raw material prices, the cost of furniture as a resource product will inevitably increase. At the same time, the appreciation of the renminbi and the reduction of the country ’s export tax rebate for enterprises with “two highs and one capitalâ€, the domestic furniture industry, which originally had huge living space, is also facing increasingly fierce competition.
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Market digestibility cannot match the growth rate of raw material prices
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The price of wood is constantly soaring, and labor, transportation, decorative paper, etc. have not risen, but the increase in the digestibility of the entire furniture market is no match for the growth rate of raw material prices. Compared with the market sales in previous years, there have been very few sales this year. .
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The excessively high raw material prices have caused the furniture to increase its price almost every few months or even one or two months. A senior person who has been engaged in furniture sales for many years said: "Even the monthly delivery price is different, the factory only Tell the price increase, and for whatever reason, later I was too lazy to ask. "But the fierce competition makes the sellers dare not lightly raise prices, many people have to endure pain and reduce profits. From the perspective of consumers in the consumer market, consumers are becoming more and more rational, and the price promotions that were popular in the past years have lost their previous power. In addition, due to the influence of national policies, many brands that previously locked in the international market also turned around to seize the domestic market. Brand competition is hot and cold, and to a certain extent, marketing costs continue to rise. Traditional marketing models are facing severe challenges.
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Brand segmentation forms a new pattern
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A dealer who has been engaged in the furniture industry for many years said: " Suzhou furniture brands are becoming more and more down-to-earth, no longer playing with the concept of nothingness, the image of the terminal store is modified as needed, and after-sales service is gradually strengthened ... These series of changes All indicate that each brand has entered the construction stage of brand connotation, which will make the personality of the brand more and more obvious. The more prominent the personality of each brand, the more focused the target customers are, and the more consumer groups who focus on different needs will understand Choose their own direction and pay attention to related brands. The entire furniture market will not appear to be anti-bacterial due to the promotion of anti-bacterial by a certain brand.
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Brand integration, capital operation, and more active corporate alliances are one of the most notable features of the furniture industry this year. Industry reshuffle is imminent, and competition will force brands to segment customers in the market, and a new pattern will be formed in brand segmentation.
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The future is an era of coexistence of competition and cooperation
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Next year's market is a year of full competition. With the sharp rise in oil and production materials prices and the entry of a large number of stores, products and brands have greatly followed. The era of competition and integration has arrived. How should furniture meet the challenge next year? Experts point out that Due to the shortage of resources and the impact of national policies, product prices will also tend to rise. Insiders pointed out that market competition is an inevitable phenomenon in the development of the market economy, and the future is an era of coexistence of competition and cooperation.
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Competition and cooperation are reflected from different aspects. For the furniture companies themselves, they must find out the market positioning, customer positioning, brand positioning, establish a unique brand personality, enhance their own competitiveness, and occupy and expand the market.
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In addition, the future market will also require cooperation and coexistence between related companies to attack the market in the form of a group. This requires all brand enterprises to be good at sharing benefits with others, making good use of the lever principle of resource integration, developing inter-industry and inter-industry alliances, complementing each other's strengths, exerting the power of group operations, and innovating profit models so that alliance enterprises can enjoy each other The maximum value of this is to achieve complementary and win-win results. (Editor: Peter)
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