The three major causes of the collapse of the southern furniture industry in the Beijing market to be solved

After 20 years of rapid development, Guangdong furniture, once recognized by the society as " walking at the forefront of the furniture industry and occupying the leading position in the Chinese furniture market " , has lost its glory nowadays. Recently, well-known furniture brands in Guangzhou and Shenzhen have successively entered Beijing and established direct channels with Beijing-branded home furnishing stores because of the shrinking of the southern brands in the Beijing market year by year. In Beijing, the mainstream furniture is no longer the southern furniture brand, but the rising star of the local Beijing. With the rise of northern furniture and the advent of the era of brand competition, the three " causes " of southern furniture itself have lost their momentum in the battle with the Beijing Army.

Distributor system hinders development " Our market in Beijing is shrinking. " A person in charge of a brand furniture company in the south bluntly said that his products faced a dilemma in Beijing. The brand's furniture used to be infinitely popular in major home furnishing stores in Beijing, but now it only has a point of sale in home discount stores that are no longer mainstream, and no one can see it in other stores.

For a long time, Guangdong furniture benefited from the time of reform and opening up, adjacent to Hong Kong and Macao and became a golden channel connecting the domestic market and foreign markets, as well as the local government to help companies sing operas and people, accounting for 60 % of the national furniture output value China's market share is well-known as " National Furniture Looks at Guangzhou " and " Furniture Manufacturing Leader " . With the continuous development and growth of the home furnishing industry and the expansion needs of some Guangdong furniture companies, a number of furniture brands have opened branches in areas outside Guangdong, planning a national layout.

"The
problem lies in the furniture distribution system. " Industry insiders said that the expansion of the dealer system has caused brand owners to lose control and initiative, which has become an important " cause " of Guangdong furniture's loss in Beijing. The enterprise has succeeded in opening the market through the dealer, but the dealer who generally represents multiple brand products is uneasy at this time, or the agent household has developed into a new enterprise brand, or it does not obey the control of the enterprise and enters and exits the sales market at will. The gradual shrinkage of some Southern brand furniture in Beijing is directly related to the withdrawal of Beijing dealers from large home stores.

Export-oriented delay in branding, export-oriented, and neglect of brand building is the second largest " cause " of Guangdong furniture scene. According to information, by the end of 2006 , Guangdong furniture sales will reach 117.4 billion yuan, of which exports will account for 53 %. In addition, furniture exports in Guangdong alone account for 50 % of the country's furniture exports. More and more private furniture companies basically focus on the export market. It should be said that exports are the basis for the survival of some Guangdong furniture.

If Chinese furniture companies, especially Guangdong furniture, appear on the international market as independent brands, then this is exactly what we want. The problem is that most enterprises export in the form of OEM , that is, OEM, only focus on mass production, complete foreign orders on time according to the buyer's design plan, and do not pay attention to " Chinese design " and " Chinese brand " . With such development methods and enterprise strength, Guangdong furniture is arguing against the rapidly rising northern furniture, Jiangsu and Zhejiang furniture, and striving to grab a share in the domestic market is obviously difficult to achieve. " In addition, because the styles and marketing models of exported furniture are different from the domestic market, Guangdong furniture's export experience is likely to become a burden. " Liu Chenru, Secretary General of the Beijing Market Association Home Furnishing Market Branch said.

Northern Furniture “ salted ” in high school in Beijing, turned on the radio, and often heard advertisements familiar to various furniture companies; turning over major newspapers in Beijing or opening professional home furnishing websites, furniture brand marketing activities were not uncommon. After careful observation, it is not difficult to find that most of the furniture companies that advertise and do marketing promotion are northern furniture brands, and rarely see Guangdong furniture brands.

Industry insiders believe that " Northern furniture is not necessarily of better quality than Guangdong furniture, but Northern furniture brands are better at shouting than Guangdong furniture brands. "
Not paying attention to brand publicity is the third largest " cause " of Guangdong furniture that is " north drifting " towards weakness. If a furniture company wants to become a well-known brand in the industry, it is difficult to achieve without considerable advertising investment and marketing. The Guangdong furniture brand, which has always liked pragmatism, is still reluctant to carry out brand promotion so far. Some insiders have analyzed that in the Beijing market, Guangdong Furniture has not achieved a position commensurate with the strength of Guangdong Furniture, but has a tendency to decline in status. This is already a warning. If it continues to develop as above, it will only make the northern furniture stronger.

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