Furniture brand embraces the market development space

In August of this year, Shunde Furniture Association launched the Pan-Family Union, Shunde Furniture Brand Alliance, and the original and auxiliary materials alliance. The move was interpreted by the outside world as a group of high-quality brands to enhance the influence of Shunde furniture brands and gain more market voice.

When the furniture industry develops to a certain scale, it will encounter ceilings. It is understood that after many large furniture factories in Shunde area have achieved a certain scale, they will choose a diversified development model. For example, capital flows into steel, fabrics, real estate, credit and other fields, and the furniture industry will be less and less in the proportion of the entire company.

"The per capita consumption of furniture in China is far from the level of developed countries in Europe and America. The market can still develop a lot of space. After the competition in the furniture market is no longer the competition of pure manufacturing capacity, it will involve product development, marketing, branding, communication, management, etc. One aspect.” Luo Baihui, an expert in China's manufacturing brand operation, believes that the industrial chain of Foshan furniture industry cluster is relatively complete and the circulation allocation efficiency is relatively high. However, the overall level is not strong, and it is necessary to fundamentally reverse the trend. We should focus on developing brand strategies and cultivating influential big brands to accelerate industrial upgrading in the entire region.

A small number of enterprises in Shunde still maintain a relatively stable development. Lan Xiaohua, a researcher at the Chinese University of Hong Kong, found that a top fabric sofa brand in Longjiang has found a new development path through channel innovation. The brand does not open stores, does not find dealers, and completely handed the channels to the top interior designers, through the designer works to the products to the market, and then to the designer a certain business commission. According to the person in charge of the brand, through the previous market research, they found that in the sales of high-end furniture products, the most discerning person is often the interior designer. “For example, when designers design model houses, hotels, villas, government offices, and our products, the chances of target consumers being impressed are far greater than the chances of successful sales promotion in the store.” Lan Xiaohua believes that Through the designer's order, hundreds of millions of sales can be made in one year. Through the designer channel, it can not only ensure the stable sales of the products, but also enhance the influence of the brand.

Luo Baihui, an expert in China's manufacturing brand operation, believes that it is also a good way to spread risks through multiple channels. In general, the multi-channel model mainly includes: domestic + foreign, direct store + dealer, own brand production + OEM.

"What we do is mainly the dual-channel development model of domestic + foreign countries." These years, while increasing the national layout, the brand also takes into account the development of foreign markets. “We have always emphasized the international vision of product design. In the days after the March and September exhibitions, there are more foreigners coming to the exhibition than the Chinese.” The brand’s annual sales are about 200 million yuan, of which foreign sales. The amount accounts for three-quarters of the total sales. A person in charge of a brand revealed that this year, only the Japanese market has received orders of tens of millions of yuan, and the South Korean and Dubai markets have also performed well. In addition, the brand has also begun to adopt a multi-channel development model in the domestic market, “based on dealers and supplemented by direct sales stores”.

Luo Baihui believes that multi-faceted development channels can effectively share risks. After this round of industry reshuffle, the threshold of the furniture industry will be improved and the development will be more standardized. Companies with strength and advanced ideas will gain more market opportunities.

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