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China 34 furniture market opportunities, challenges and strategies



In the context of global economic integration, the financial crisis spread to every country in the world and regions, China naturally is no exception, a number of high external dependence, labor-intensive export processing enterprises have been hit especially hard. According to customs data show that the first half of this year, total imports and exports 946.12 billion U.S. dollars, down 23.5%. Which exports 521.53 billion U.S. dollars, down 21.8%; imports 424.59 billion U.S. dollars, down 25.4%, of which furniture exports 11.76 billion U.S. dollars, down 9.8%. Modern Sofas Le Corbusier LC2 Sofa Knoll Sofa Le Corbusier LC3 Sofa Barcelona Daybed Kubus Sofa Barcelona Bench Marshmallow sofa Knoll Corner Sofa Le Corbusier LC3 2 Seater Sofa Le Corbusier LC2 2 Seater Sofa Bocca sofa Le Corbusier LC3 3 Seater Sofa Eileen Gray Daybed Le Corbusier Grande Corner Sectional Isamu Noguchi Freeform Sofa Knoll 3 Seater Sofa Le Corbusier Petite Corner Sectional Anonimo Chesterfield Sofa Le Corbusier Petite Chaise Sectional Knoll 2 Seater Sofa Hans J Wegner Style GE 290 3 Seat Sofa Le Corbusier LC2 3 Seater Sofa Hans J Wegner Style GE 290 2 Seat Sofa

At present, China is in stabilizing the macroeconomic rebound a critical period, and uncertain factors still more. In the first half, total retail sales of social consumer goods grew 15.0%, of which consumption growth in rural areas has always been faster than the city, become a driving force in consumer demand, promote economic growth, a "reinforcements." Consumption growth in rural areas to achieve a historic breakthrough, thanks to "home appliances to the countryside," "Cars to the countryside" and so benefit the implementation of agricultural policies, fiscal subsidies to rural consumers through direct way to promote the expansion of consumption, and achieved good policy effects .

In the domestic furniture market structure, the majority of brands will be 12 cities as a marketing focus, and since last year, companies have found that in 12-line city furniture market is faced with the dilemma of insufficient demand consumption. Reflected in the first half of this year, the majority of furniture industry in sales last year, about 10% year on year decline. Visionary entrepreneurs start looking for a new growth point for emerging markets, therefore, 34 markets are increasingly being furniture industry attention.

1, 34 huge potential market, the development of strategic opportunities furniture

In accordance with the usual furniture, market segmentation, Beijing, Shanghai and Guangzhou, and other cities are a large market, capital cities and some well-developed prefecture-level cities may be called the secondary market, other prefecture-level cities and some economically developed county-level market, compared with three grade market, with other county-level cities, towns and some developed areas of the rural market for the four markets. According to statistics, there were about 600 prefecture-level cities, county-level city about 2800, not less than 50000 villages and towns. In the urbanization process and the strategy of stimulating domestic demand, the 34 market potential is gradually turning into real purchasing power.

According to preliminary estimates the author present, China's 34 markets, representing about 800 million people, nearly 1.5 million households in each of the demand for furniture purchased at 30%, the 34 market capacity will reach 1,500 billion yuan, has great potential. And, because the overall market and 34 to enhance income levels, purchasing power of residents also will be gone up 34 sales in the enterprise market, where the proportion of overall sales increment will be increasingly high.

More and more companies are bringing 34 markets as a strategic growth point. Full-friend, double tiger, daughter of Sichuan Province as represented by the furniture industry has been through years of deep plowing 34 markets, has made remarkable achievements, and has a higher brand awareness and market share. However, because the market is in 34 states yet to be developed, and truly into the 34 markets are not many well-known brands, so the whole competition is relatively weak, to brands that will have a clear brand for competitive advantage.

Second, open up 34 to face the challenges of the furniture market

The face of enormous market potential, 34 the market for many enterprises, especially the first-line brands, still faces many challenges.

As the 34 markets, the level of consumption, purchasing power of residents is relatively low, so accustomed to killing one of the first-line market, 12 brands will have doubts, even some companies that enter the 3 4 market will lower their brand value, become the low-end. Therefore, the ability for the 34 market development, market demand for the product launch is very critical.

In the channel construction, due to 34 markets scattered across the country showed punctate distribution of a single regional market size is small, and the levels vary in terms of managing large extent, the difficulty high, for first-line brands, you need to transform business ideas, the establishment of the depth of the rolling development of regional marketing system and establish a benchmark market in order to point, and the formation of scale. At the same time, strengthen the promotion of regional brands is also very important.

In addition, the 34 furniture markets, logistics, after-sales service is all because of the regional decentralization may lead to higher costs and quality decline.

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2011-4-19