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Export companies are turning to the domestic market
Recently, many warehouse-type home stores in the suburbs have become new shopping destinations for consumers in addition to the traditional stores in the urban area. The reporter saw after field investigation that in these warehouse-type stores, more than half of the furniture brands are exported to domestic sales, including Yuexing Group, Fubon Green Furniture and other large domestic furniture export enterprises.
"We have been engaged in furniture export for almost 30 years, but due to the financial crisis, overseas sales have declined, so the company decided to restructure and formally enter the domestic market in early 2008," Zhu Xinmin, Planning Director of Zhejiang Ningbo Fubang Green Furniture Co., Ltd. Introduced to reporters that since the 1980s, Fubon Furniture has begun OEM production for many big-name furniture in the United States. Sometimes an order is enough to keep a factory's assembly line busy for a year. During the peak export period, the annual export volume of the Group even reached RMB 600 million. However, the severe impact of the financial crisis has sharply reduced the demand for overseas furniture. After 2007, Fubon Furniture ’s annual export volume fell by nearly 70% compared with 2004 and 2005, which forced Fubon Furniture to consider opening up the domestic market. There are countless export-to-domestic enterprises similar to Fubon Furniture in the Pearl River Delta and Yangtze River Delta. Guangdong Dongguan Yangchen Furniture had previously contracted for American Yali and other brands, and 90% of its products were exported. At present, its domestic sales share is close to half of the overall sales.
In fact, after the financial crisis, export-oriented furniture companies that do not have advantages in capital and product development, especially those lacking independent brands and only engaged in OEM production, have relatively meager profits, and are even on the verge of losing money. Turning to domestic sales has become a necessary way out.
Transforming enterprises value brand building
Since 2009, furniture products under the banner of "export to domestic sales" in the Beijing home furnishing market have gradually increased. Compared with home furnishing companies that have been in the local market for more than ten years or even decades, many furniture companies that export to domestic products have also begun to exert their efforts in strategic layout and brand building.
In terms of store layout and business model, many export-to-domestic brands are surprisingly inclined to open independent stores.
Yitong Home has opened flagship stores in Madian, Shibali Store and other places to operate American furniture. Yazhen Furniture, FFDM Home Furnishing, Fuyi Home Furnishing, "Homebox" and other brands have also appeared in Beijuran, West Fourth Ring Road, Wangjing and other places. Fubon Green Furniture has also opened 45 independent stores in Beijing, Shanghai, Ningbo, Taiyuan and other cities.
In this regard, Chen Tao, vice president of Yitong International Home Furnishing, believes that the reason for adopting independent stores for direct sales is to help ensure that companies have the right to control product pricing and independent research and development.
Relative to the construction of marketing networks, the establishment of corporate brands can not be completed overnight, which is also a shortcoming of many transforming enterprises. The person in charge of Fubon Green Furniture said that the time for export-to-domestic enterprises to enter the domestic market is relatively late, and brand influence needs to be gradually improved through market and consumer feedback. "In the final analysis, the brand image needs to be carried by the product. The company must first ensure the quality of the product and make appropriate innovations in accordance with the needs of consumers."
Industry insiders believe that with the shrinking of the total demand for home furnishing after the regulation of the property market and the entry of export companies into the domestic war, the future competition and reshuffle of the furniture industry will become more intense.
â– The way out
Build a brand to cater to domestic sales
Many export enterprises have accumulated a certain strength in the long-term export process, and have not neglected the construction of domestic sales channels. Therefore, when the share of export declines, they can sell their exported products under their own brand and sell them to China. Many brands have successfully transformed and quickly established a chain model in China with their own brands.
Brand representatives: Meikemeijia, Yitong Household, etc.
Acting imported furniture brand
Since the products or brands of furniture export enterprises have been transferred to the domestic market for a relatively short period of time, they still lack visibility and cannot show their brand advantages. Therefore, companies that have a good understanding of overseas markets will use imported brands as a shortcut to expand domestic sales. In terms of brand positioning, these companies also tend to choose first-line international brands with high international reputation as agents, and use their influence to quickly gain market share.
Brand representative: Fubon Green Furniture (representing US high-end furniture Lexington to expand the domestic market)
Development of e-commerce and furniture leasing
The trend of e-commerce has been blowing in the home furnishing industry for a long time, which is also an opportunity for the export to domestic enterprises to grow rapidly. According to Fu Jianguo, general manager of Nick Aijia Furniture, due to its positioning to young consumer groups, domestic sales have chosen to use the Internet as an emerging channel and achieved satisfactory results. At present, in addition to the sales in Taobao Mall, the brand will also enter the Aifeng wave offline experience hall and undertake the leasing business in the Bangjia leasing store.
Brand representative: Nick Love Furniture
OEM for domestic brands
The expertise of export-oriented furniture companies is not in sales, but in their huge production scale and efficient production and processing capabilities. Therefore, when the number of overseas orders declines, companies can choose to be local well-known brands or imported brands sold in China such as IKEA. OEM production. The advantage of this model is that the channels of OEM brands are relatively complete, and the market demand is also large, so the manufacturing capacity of transformed enterprises can be digested and absorbed.
â– Reasons for transformation
RMB appreciation
In July 2005, China implemented exchange rate reform. The RMB exchange rate was based on market supply and demand and a floating exchange rate system was implemented. Since the exchange rate reform, the appreciation of the renminbi has not only affected the price of Chinese furniture in the international market, but also brought a lot of pressure to foreign furniture companies.
Export tax rebate rate decreased
On July 1, 2007, the Ministry of Finance issued a new policy on export tax rebates, which lowered the export tax rebate rate for furniture products to 9%. Since many enterprises regard export tax rebates as their main profit component, this undoubtedly increases the export cost of enterprises.
Rising raw material prices
In recent years, the prices of the main raw materials of furniture products have all risen sharply. The prices of wood and oil have risen since 2004, which has caused the cost of exported products to rise. The sales price of exported furniture cannot be increased proportionately, making the cost of the enterprise higher and lower and the profit getting thinner, which increases the survival pressure of furniture export enterprises.
Trade barriers
In recent years, many countries such as the United States have carried out anti-dumping of Chinese panel furniture. Furniture manufacturers in EU countries such as Germany and Italy have also submitted anti-dumping complaints against Chinese upholstered sofas, seats and other furniture to the European Commission. Due to trade deficits, Many countries resist imports by raising high-quality standards, hindering China's furniture exports.
In the face of a completely different living environment from the export market, will the transformed enterprises be unacceptable? Will a large number of transforming enterprises divert the market share and target groups of local furniture companies? Various claims show that, despite the strong production scale and processing capacity, there is still a huge room for improvement in the export network to domestic furniture companies in terms of marketing network and brand image building.
â– Store statement
Insufficient operating capacity of transformed enterprises
â— Ma Jingjing, Sales Director of Honolulu Furniture
The furniture produced by foreign trade furniture companies is very competitive in the domestic market, but export and domestic sales are very different models. Export is to accept large orders from foreign countries and then mass-produce. The entire container is exported, and the enterprise will not have an inventory backlog. When selling domestically, companies have to face small orders, as well as inventory and logistics pressures. In addition, the needs of domestic consumers are also diverse, and companies have to produce many non-standard customized products.
The competition in the furniture market is becoming increasingly fierce. Export-oriented enterprises have good design and production capabilities, but insufficient operating capacity. Need to establish a perfect dealer channel and sales network in China, and gradually build brand influence. This is a challenge that must be faced by furniture companies that export to domestic sales.
The market needs to be cultivated, waiting for high costs
â— Cao Jing, Chairman of Beijing Baichuan Furniture Park
At present, there are more than 30 furniture brands that are exported and sold domestically. These brands were sold directly to the United States and some European countries, and they have done a good job in product quality and environmental standards. There are also some products from export companies that have encountered a refund. They urgently need funds to revitalize. We will get these products at a low price and sell them to consumers at a low price.
After transforming domestic sales, export enterprises are often in a passive position. Because they do not know enough about the domestic market, they are not sure about the domestic consumer demand, and the brands are not well-known to consumers, so many companies have spent hundreds of millions of yuan and spent several years not seeing any improvement. If export enterprises want to succeed in the domestic market, they need a process of market cultivation, during which companies have to pay some high waiting costs.
â– Other views
Transformed companies lack marketing concepts
â— Liu Wei, Sales Manager of Henry Dai Furniture
European-style and American-style furniture are emerging markets, and there will inevitably be many companies to compete and share. But each brand has a corresponding customer group. We mainly target consumers in villas and high-end clubs. In addition to the exquisiteness of the product itself, this part of the consumer group pays more attention to the value and reputation of the brand. Many enterprises that export to domestic sales are not fighting for brand and design quality, but price.
In addition, companies that used to rely solely on foreign orders for production and export have no concept of marketing in the domestic market, and their channels, marketing networks, and brand image will take a long time to settle and accumulate. Therefore, what we are worried about is not the export of domestic furniture companies, but the impact of foreign top brands entering the Chinese market.
Price-oriented consumers will be diverted
â— Wang Lanyu, General Manager of Super Comfort International Home Furnishing
The economic situation in China is good, and the economic situation in Europe and the United States is not good. Many foreign furniture companies have set their sights on the Chinese market, and it is an inevitable trend for export-oriented enterprises to shift to domestic sales. Export-to-domestic enterprises will seize a part of the market share, but they only divert only some consumer groups that are more sensitive to prices. In contrast, many high-quality customers have had overseas life experience, or often go abroad, they are well-informed, often domestic users of high-end villas and apartments. What these people value is the quality of the furniture.
All of our products are designed by American factory designers and manufactured according to American standards, which can guarantee the original taste. Many enterprises engaged in OEM contracting are forced by intellectual property rights and other factors after the transformation, they cannot completely copy foreign designs, and will make some changes, and they will lose the taste of imported furniture.
â– Transformation experience
Provide cost-effective products to domestic consumers
â— Chen Tao, Vice President of Yitong International Home Furnishing
First, we must understand the actual needs and preferences of consumers in the domestic market and make some tailor-made or targeted improvements. Because each consumer market has its own characteristics, especially in the field of home furnishing, different cultural backgrounds, lifestyles, and life concepts will put forward different requirements for home furnishing, so we cannot copy the exported furniture intact. To really pay attention to domestic consumers, ordinary people can buy it.
Second, we must pay attention to environmental protection, and export products are as perfect as possible in terms of environmental protection. However, domestic requirements for environmental protection are relatively less strict than foreign ones, and some manufacturers lower their standards. However, consumers are not stupid, and will eventually choose to use word of mouth to vote.
The third is price. There are two situations that need to be avoided. One is to turn yourself into a “returnee†after turning to domestic sales to increase your value. When you distance yourself from domestic brands, the price is raised. The other case is dumping goods at a low price. In fact, export-to-domestic enterprises must invest high-quality products in the domestic consumer market and give the people real goods. (Text / Newspaper Li Qilin)
â– Shopping map
Unified International Home
The traditional American furniture is too large to fit in a small apartment or an area with a small space. The unified "small American" furniture design is more suitable for the environment in which the Chinese actually live and is easy to mix and match with other furniture. The product range includes classic style, neo-classical, and country style, which meets the diverse needs of consumers.
Madian Store: 1st Floor, Madian Bridge East Gome
Shibalidian Experience Hall: West side of the Fourth Ring Road north of Shibalidian, Chaoyang District
Meikemeijia
Meikemei household furniture and various hard and soft decorations are arranged in nearly a hundred exhibition rooms. The furniture is composed of "Meikemeijia" and "Isen Allen" brands, and provides lamps and decorative ornaments that match the style of furniture , Decorative paintings, carpets, bedding, curtains and other household items, so that consumers' home needs are met in one stop.
Lize Store: No. 57 South Road, West Third Ring Road (Lize Bridge), Fengtai District
Chaoyang Park Store: Floor 1-2, Guanhu International Apartment, 105 Yaojiayuan Road, Chaoyang District
A-Zenith furniture
The three sub-brands of A-Zenith Furniture, "Kadia", "Lorenzo" and "Livia", are positioned at the high end and are aimed at the top consumer groups of furniture consumption in Europe and America, and can also meet different consumption age groups. Consumer attitude and demand.
Flagship store: Building 113, Beilijia, Shaoyaoju, North Fourth Ring East Road, Chaoyang District
North Juran Store: No. 008, 4th Floor, Building 1, Juran Home, No. 65 North Fourth Ring East Road, Chaoyang District
Honolulu International Furniture
Honolulu International Furniture was established in 2009, and its products are mostly domestic products exported from domestic large-scale furniture companies and foreign trade products. The location of the experience hall bypasses the urban area, and the store rental and operating costs have advantages over similar stores. Therefore, the products in the Honolulu experience hall are 30% to 50% lower than the similar products in the store.
Sifangqiao flagship store: Wangsiying Guanyintang Cultural Avenue, Chaoyang District
New National Exhibition main store: No. 38, Huosha Road, Houshayu Town, Shunyi District
Beijing Baichuan Home Park
Beijing Baichuan Home Park operates American-style fine furniture and home accessories. Most of the brands in the store are exported to domestic brands, and some imported furniture brands are covered. The total business area of ​​the store is 6,000 square meters, and the space display model room is up to 1,000 square meters. Introduce the American warehouse operation and sales model to achieve low prices with low commercial operating costs. All goods in the store are clearly marked and no longer negotiated.
Headquarters: No. 3, East Courtyard, No. 12, Shunhang Road, Airport Logistics Base, Shunyi District
Branch: Ground Floor, Block C, Lufthansa Outlets, East Fourth Ring Road
Heat Lamp Oval Marble Carving Station,Oval Marble Carving Station,4-Lamp Carving Station,Marble Culinary Station
Shaoxing Biaoyi Hardware Products Co., Ltd. , https://www.byeob.com