Guangdong furniture giants "all the way west" West moved to the huge wave beach market
August 25 15:13:15, 2023
In June of this year, the rumors of the “closing tide†in Dongguan were reported. The Foreign Trade and Economic Cooperation Bureau of Dongguan found that the growth rate of import and export leading indicators slowed down during the foreign trade and economic operation monitoring. A series of "warning signals" indicate that 2011 is destined to be an extraordinary year for the furniture industry. Under the pressure of rising costs, domestic trade furniture companies are looking for better production bases and a shift from coastal to mid-western industries. Expanding. Recently, Da Vinci's high-priced furniture fraud incident has made the domestic furniture consumption market a huge space. In fact, after the financial crisis, furniture exports encountered a cold current, and many foreign trade furniture enterprises have begun to switch to the domestic market. In June of this year, the rumors of the “closing tide†in Dongguan were reported. The Foreign Trade and Economic Cooperation Bureau of Dongguan found that the growth rate of import and export leading indicators slowed down during the foreign trade and economic operation monitoring. A series of "warning signals" indicate that 2011 is destined to be an extraordinary year for the furniture industry. Under the pressure of rising costs, domestic trade furniture companies are looking for better production bases and a shift from coastal to mid-western industries. Expanding. Under the pressure of “three big mountainsâ€, Guangdong Furniture seeks to break through the development of Guangdong furniture industry after more than 30 years of development. It has about 8,000 furniture enterprises and employs more than 1.3 million people. The value of Guangdong furniture industry accounts for one-third of the country's total. Sales account for one-third of the country's total, and exports are close to 50% of the country's total exports. It has become the most developed area in China's furniture manufacturing industry and the largest furniture export base in the Asia-Pacific region. “Although the output value is huge, after the financial crisis, the furniture industry has faced a difficult time. Especially this year and next year.†Zhu Changling, chairman of the China Furniture Association, said that due to the appreciation of the renminbi, the sharp rise in raw materials and labor costs, and upstream The impact of the “three big mountains†of real estate regulation and control policy. This year, the domestic furniture industry's production growth rate and export growth will drop a lot. Since the second half of 2007, the export-oriented coastal furniture industry has felt the winter hit. In Guangdong, the largest province for furniture exports, more than 300 furniture companies have closed down. In 2009, the province's furniture industry exports continued to grow for 11 consecutive months, and it has only eased in 2010. But this year, the export form of the furniture industry has deteriorated again. Under this background, coastal furniture enterprises, which mainly manufacture high-end products and export furniture, began to transform the domestic trade market and increase the transfer of industries to the central and western regions. Aiming at the western market, Guangdong furniture industry transfer opened the curtain furniture exhibition is the most direct and effective way for enterprises to attack the market and win the reputation of local consumers. In recent years, Guangdong furniture enterprises have not been limited to participating in the three major furniture exhibitions in Guangdong Province. These coastal furniture enterprises that used to target overseas markets now collectively “turn inward†regardless of the place of origin or the market. The western region is their important transfer position. This is not a good thing for some small and medium-sized manufacturers in the west. Co-hosted by the Chengdu Municipal Government and the Sichuan Provincial Department of Commerce, Chengdu International Furniture Fair is the third largest professional furniture fair in China. Last year, 30 provinces and municipalities came to the exhibition to participate in the exhibition. There were a lot of coastal furniture enterprises participating in the exhibition. Due to the limited exhibition area, the organizers had no choice but to reject the application of dozens of coastal enterprises. The latter were mostly blocked overseas markets. Later, trying to expand the western domestic market. "At present, the proportion of Guangdong's furniture industry exports only accounts for about 30% of the total output value, and this proportion is still falling." Wang Ke, president of the Guangdong Furniture Association, said. Under this background, coastal furniture enterprises, which mainly manufacture high-end products and export furniture, began to transform the domestic trade market and increase the transfer of industries to the central and western regions. The director of the furniture of the Guangdong Dynasty, the military, frequently visited the provinces of the central and western regions. “Sichuan and Jiangxi are the provinces we focus on, and we are ready to choose a place to establish a production base.†Wang Xihua, the executive vice president of the Guangdong Dynasty’s furniture, admits that the coastal furniture industry must advance westward, inevitably infiltrating the Midwest II, which was not previously concerned. In the third-line market, only 10% of their products are exported, and the rest are all domestic sales. The penetration into the lower-level market is inevitable. The traditional domestic furniture market has always been a three-pointer. The competition of various forces in the past is not obvious: Guangdong and Jiangsu and Zhejiang have always occupied the overseas and domestic high-end products market. The third-ranking Sichuan furniture industry is committed to cultivating domestic second- and third-tier cities, and even It is a county-level primary market with a market share of no less than 70%, and their market share in the high-end furniture market is only about 10%. For many years, direct competition between the two major furniture bases in Sichuan and the coastal areas is not obvious, but the coastal furniture industry collectively “turns inward†and the two sides will inevitably face a confrontation. After the westward move, there are still many doubts about the “internal strength†of the western environment. However, in the context of the westward migration, many furniture companies still have many doubts. The relevant person in charge of a well-known enterprise told reporters that the most worrying thing is whether the western consumption power can meet the needs of industrial transfer. For many companies, Guangdong is not only a major province for home production, but also a province of consumption, and will not give up easily. Even well-known companies such as Shen Luda and Jordan in the province have recently recruited high-profile companies in Guangdong to establish sales channels: According to reports, Shen Luda used cars to reward Guangdong dealers, and the investment attraction is not small; and Jordan recently in Foshan At one investment promotion meeting, a sales plan of 40% for the whole year has been scheduled, which shows the attractiveness of the Guangdong market. It is understood that Sichuan, Guizhou and other places have always been the export province of skilled workers, with abundant middle-level human resources, and a small number of high-level talents, enterprises can be brought from Guangdong first, and then gradually cultivated locally. What worries companies most is the local investment soft environment. It is reported that the global home CBD is a joint project with the local government. The enterprises that are stationed can obtain up to three years of tax-free and one-year tax reduction. Moreover, Chengdu will move all the home projects located in the urban area within one or two years. The project is facing the expressway and has a special export. After the completion of the project, it is very likely that the Chengdu local car will be given free concessions, and the future subway lines will also lead to this place. Reporter's point of view: Even if it is successful in the west, adapting to the environment, it will take two or three years or more to produce benefits. Fundamentally speaking, furniture companies should not do transfer, but transformation; practice internal strength and actively seek branding. , refined, differentiated development path. Seeing that the Autumn Furniture Fair 2011 will open next week, what new products will we see in the second half of this year? What surprises will the furniture predators give us? Wait and see!