A brief talk about the traditional furniture industry

Home listed enterprises in the 2018 annual report has disclosed that, from the data, in 2018, the nine listed custom home enterprises revenue and net profit growth rate of no more than 18%, and achieve revenue and net profit growth of more than 30% of the customized enterprises, only 1. By comparing the annual report, it is found that some head custom home enterprises inventory increased by a large revere year-on-year, may face the risk of overcapacity.

A brief talk about the traditional furniture industry

Industry insiders said that the full decoration policy to seize the market share of custom home, the expanding product line led to overcapacity and caused a greater crisis, 2019 custom home enterprises will face greater challenges.

First, order decline inventory is facing greater pressure

Full decoration policy led to the order cut-off for custom home enterprises are quite obvious impact, the reduction of orders for custom home will affect the enterprise’s inventory, forming inventory and capacity squeeze pressure.

Second, the overcapacity of the running horse circle becomes a hidden risk Under the pressure of reduced orders, industry competition will not decrease. And it’s going to increase.

Head of some custom home brands have raised funds to build factories, has opened a new round of production capacity layout. There is no doubt that expanding the product line is the only way to face the industry’s competitive layout industry. But whether it will cause overcapacity.

This is also verified by the need for market demand. When there is an oversupply of custom home products, the price will fall. In this case, the enterprise efficiency is likely to decline, there will be price competition in the stock market.

Once such a pattern occurs, the industry reshuffle will come.

Third, the whole decoration “cut-off” to seize market share The introduction of a full-decoration policy for custom home enterprises is no different from the head of the drink. Many places in the country have begun to implement a full decoration policy.

From the transaction caliber, the proportion of hardcover housing has reached 20%, compared with the previous year again increased by 5%. This part of the impact will gradually appear.

The market share of wardrobe customization (and flooring, tiles, etc.) that was originally a retail terminal is no doubt being taken upstream. In short, the market for custom homes has shown a trend of more and more fragmentation, specialization, and more and more tend to concentrate upstream.

This is worth thinking about for custom enterprises, especially end stores. In response to these changes, custom home enterprises, especially small and medium-sized enterprises, extensive production has been entering the second half of the competition resistance.

A brief talk about the traditional furniture industry

If competitiveness is to be enhanced, there are several aspects to consider:

1, how to reduce labor costs.

2, how to improve product sings products and services.

3, how to improve the delivery of products to reduce inventory pressure. For the custom home industry, software for the improvement of production mode has been qualitative change, to cloud wood software as an example, with the front and back end integrated design and production mode, greatly reducing the cost of docking each process. Reduces billing costs and error rates.

Lay a solid foundation for enterprise efficiency improvement. At the same time can be special lying to improve the service.

A better production system means shorter product delivery and less inventory pressure.

All in all, it’s a trend for the industry, and an opportunity and a challenge for the business. Better development in line with trends. Is the way to win!