Why so many furniture factories cannot become brands in China?
China is a large manufacturing country , and furniture is a very important industry in manufacturing . In 2017 , the output of Chinese-made furniture hit a record low and there was no growth trend . Now , Let’s talk about the reasons why Chinese furniture is difficult to become a brand . Maybe something to do with this topic .
1. Labor cost
It is understood that in the past ten years, China ’s labor cost has increased by 2.7 times, the financing cost of private enterprises has more than doubled the bank’s benchmark interest rate.Both labor, raw materials and business operating costs have risen sharply.
With the intensification of industry competition in 2017.Under the influence of the “price surge” and the industry reshuffle trend, corporate profits have once again been cut.Many furniture manufacturers went bankrupt because they did not have profit.
Without technological innovation , there will be no rise in furniture companies . Chinese furniture companies have been immersed in a low-price competition and low-profit but high-sale industry atmosphere . Many companies do not want to spend huge amounts of capital and manpower to innovate , and they dare not to innovate . Even innovation is not as good as ” copying new ” , which leads to serious homogeneity of the industry’s products . As a result , the Chinese furniture industry lacks innovation and stays at the low-end manufacturing level for a long time . International influence has stagnated .
Nowadays, the furniture industry is becoming increasingly competitive. Innovation is the inevitable way to survive. To improve the competitiveness of furniture companies, first of all, they need to face up to the importance of innovation; they must increase investment in product research and development, establish long-term development goals of enterprises,, forming a good model of innovative competition in the industry.
3.High financing costs
Although the China domestic financing environment is very mature , but a large number of they are concentrated on high-tech industries . As a traditional secondary industry , the furniture industry is difficult to attract investment . Many furniture companies have development intentions , but they have no funds to support future market and brand building .
The furniture industry is already very competitive, but external companies are increasingly looking at the furniture industry as their growth point.many real estate companys and design companies have begun to launch their own home furnishing products, using their strong channel advantages to force the already difficult furniture companies.
Many production furniture manufacturers bosses start with workers . They have no brand awareness and brand management experience . As a result , now has a situation where factories have no brand and traders companies and design companies have become brands.
What is a brand ? Brand is a good word of mouth . China’s furniture factories are mostly targeted at traders and design companies , but wholesalers are few in number compared to retailers . So no one knows the furniture factory , and there will be no brand .
“Brand is word of mouth”.So in response to market changes, our created” OE-FASHION “. Began to start the new business model of wholesale + retail.