What is the future direction of the furniture industry?

The development of the Chinese furniture market has already embarked on its own path. In the past two years, the furniture market has been changing at an increasingly fast pace, with rapidly changing consumer demands and rising industry competition, resulting in continuous changes in the industry. So, what are the main problems troubling us in the current market? What is the future direction of the industry? The editor of this article will provide a detailed analysis!

The current market situation of low profit and high cost: disappearance of demographic dividend, increase in employment costs, increase in product design costs All the issues indicate that the furniture industry is heading towards a low profit era. At present, there are several aspects that affect the profits of the furniture industry.

Labor costs: It is understood that in the past decade, labor costs in China have increased by as much as 2.7 times, financing costs for private enterprises have exceeded bank benchmark interest rates by more than twice, and logistics costs are twice that of developed countries. Whether it is labor, raw materials, or enterprise operating costs, they have all risen significantly. With the intensification of industry competition, under the influence of the "price surge" and industry reshuffle trend, corporate profits have once again been reduced, even thinner than blades!

Innovation cost: Without technological innovation, there would be no rise of furniture companies. Chinese furniture companies have long been immersed in the industry atmosphere of low price competition and low profit high sales. Many companies do not want to spend huge amounts of money, manpower, and material resources to innovate, nor dare to innovate. Innovation is not like "copying new", resulting in serious product homogenization in the industry. This has led to a lack of innovation in the Chinese furniture industry, which has been stuck at the level of low-end manufacturing for a long time, and its international influence has stagnated. Nowadays, the competition in the furniture industry is increasingly fierce, and innovation is the inevitable way for enterprises to survive. In order for furniture enterprises to improve their competitiveness, they first need to face the importance of innovation;

High financing costs: Although the overall financing environment in China is already very mature, a large amount is concentrated in high-tech industries. As a traditional secondary industry, the furniture industry is very attractive to investment.