Wu Baoji, Secretary-General of Kunming Furniture Industry Association: In the past year, government procurement accounted for about 50% of government purchases, corporate purchases accounted for about 30%, and scattered orders accounted for about 10%. This year, due to policy influence, government procurement fell sharply to around 10%.
Duan Yi, general manager of Yunnan Paige Furniture Co., Ltd.: Among the customer groups of Paige Furniture, the party and government organs accounted for more than 70%, but under the policy of the central government's policy of saving, this year's office furniture sales are “very pessimisticâ€. This year, the company's sales in the same period were only about 30% of the previous year.
Liang Qifeng, general manager of Yimeiju Furniture Office Branch, said frankly that in terms of government procurement, the unit that was expected to buy more or purchase larger specifications was reduced this year. “The amount of government procurement has dropped by about 20% this year compared to last year.â€
In September of this year, there were net posts that summed up the necklaces, bracelets, rings and other accessories worn by Wang Ping, secretary of the Jiangxi Ji'an Municipal Party Committee, on various occasions. Many people suddenly thought of the “tables†that were introduced in 2012 due to wearing various famous watches on different occasions. "Yang Dacai," and in 2013, was reported by his real name and had a family of 16 under the name of "Fang Hao", former deputy director of the Fujian Provincial Securities Regulatory Bureau, Tian Yuqin.
While government officials’ daily wear and property disclosure issues have received increasing public attention and supervision, many officials have begun to make low-key travel.
As corrupt officials continue to be dragged down, the new leaders have also introduced a series of policies to increase the supervision of officials, not only in the requirements of officials, but also in the office environment of officials. In July of this year, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the "Notice on the Party and Government Organs Stopping the Building of New Buildings and Offices and Clearing Up Office Spaces", requiring that party and government organs at all levels should not be in any form and reason within five years. Newly built halls and halls, projects that have been approved but have not yet started construction will be suspended. The notice also called for a comprehensive clean-up of the office buildings of the party and government organs and leading cadres, and the vacancy of over-standards.
On the one hand, the supervision of the people, and on the other hand, the pressure of the policy directly led to the decline in the purchase of office furniture by government agencies, which brought great shock to the entire home furnishing industry. In the face of special market conditions, many companies lament that "as long as they do not die, they are victorious."
Government procurement "shrink" office furniture sales fell
The reporter learned from the Secretary General of Kunming Furniture Industry Association Wu Baoji that in Kunming, in the past years, government procurement accounted for about 50% of government purchases, corporate purchases accounted for about 30%, and scattered orders accounted for about 10%; this year, affected by policy, government procurement It has fallen sharply to around 10%.
Duan Yi, general manager of Yunnan Paige Furniture Co., Ltd. has been engaged in the office furniture industry for more than ten years. “It is a good thing for the government to implement regulations to limit the excessive standards of the office, but this turn is too urgent.†The customer base in Paige Furniture Among them, party and government organs accounted for more than 70%, but under the background of the central government's policy of saving, this year's office furniture sales are "very pessimistic." Duan Yi also said that the company's sales for the same period last year was only about 30% of the previous year. This means that from January to the present, the company is losing money every month.
In order to reverse the loss situation, the company timely adjusted all the products according to the market conditions. The original large-size, solid-wood frame or skinned executive desk was reduced in size, and the material was also simplified to be a wood-based panel. It is much cheaper than before. Paradoxically, the newly-changed products are incompatible with the original exhibition halls with large pieces of furniture. Although the company’s top management is unwilling but not willing, they can only continue to suffer losses while they must step up their efforts to invest hundreds of thousands to renovate the exhibition hall. . "If you don't install it, you will become more and more passive. It's really a dilemma, but there is no way. Unless you give up, you still have to adjust it and go upstream. In such a big environment, some small companies are out of market reshuffle. We are out. I am very confused now. I don’t know how it will be at the end of the year. I can’t stand the loss.†Duan Yan also said.
Internal and external troubles are also manifested in the sales company and the commission link, the employee performance is not entered, there is no commission, the livelihood cannot be guaranteed, and the personnel are lost. Paige Furniture had 32 employees in the same period last year, and now only 19 people. “The turnover rate accounts for at least 25%.†The loss is concentrated in employees who have worked for more than one year and less than two years. At present, employees who are more than three years old are also shaking. The company's logistics department has advised and relocated the employees of very few positions. In the factory, due to the reduction in the amount of orders, the support of the factory is becoming less and less, and even the original agency rights cannot be guaranteed. The quantity will be small, and the factory will not openly develop and support other brands.
Starting from office furniture, Yimeiju currently has the largest office furniture showroom in Southwest China with the most complete range of furniture and the most professional service. Liang Qifeng, general manager of Yimeiju Furniture Office Branch, admitted in an interview with this newspaper that “it must have been affectedâ€. However, in terms of government procurement, the unit that was originally expected to buy more or purchase larger specifications has lowered the specifications this year. . “The amount of government procurement has dropped by about 20% compared with last year.†Fortunately, the company has no major influence on the total sales of office furniture through the development of enterprises and private enterprises.
Duan Yi also said that there is a saying in the industry this year: "As long as it does not fall, not death, it is actually a victory."
The building materials and public clothing markets were also affected by the "Notice on the Party Building and Government to Stop Building New Buildings and Clearing Up Office Buildings". The situation of the local decoration and building materials market is also severe. He Jianming, executive vice president of the Yunnan Interior Decoration Industry Association, pointed out that in the past, the local decoration and building materials market, mainly based on public decoration, has now been transferred to civilian use. In the consumption of building materials industry, the market share of public clothing in the past accounted for 64%, and civil use accounted for 36%. However, this year, the proportion of the two is reversed, mainly for civilian use, supplemented by public wear, according to incomplete statistics, as of this year. In August, the public clothing has fallen to 21% in the local market.
Yunnan Yihao Decoration Engineering Co., Ltd. is mainly engaged in public service, and its business comes from bidding from companies and governments. But this year, the government's public dress is basically not done, and the business is mainly turned to the enterprise side. Zhang Lie, general manager of Yihao Decoration, analyzed that the impact from the policy is one of the factors. He estimates that at present, there are about a hundred decorative companies mainly in the public sector in Yunnan Province. Basically all companies involve government bidding. Therefore, the impact of the policy introduction on the entire market is still there. "But the public clothing may not be absolute. It has its own particularity. If you encounter a good big project, you may be able to meet one year's digestion in one or two projects. So even if the bidding is reduced, it is reasonable to say that there is no impact. of."
In terms of building materials, Jixiang Floor ranks first in the list of government procurement materials because it can be stably produced in batches and reaches the world's highest environmental protection grade F floor. Zhao Jincai, president of Yunnan Jincai Group Jixiang Floor, said that the impact of the reduction in government procurement is there, but the impact on Jixiang floor is not too big. The proportion of government procurement accounts for about 10% of the sales of Jixiang floor Yunnan market. The purchase of mid-end and mid-to-high-end flooring products has not changed much this year. In addition to the quality and brand of Jixiang flooring, it is also related to the moderate pricing of Jixiang flooring products.
Enterprise transformation meets the market under special market conditions
I have to admit that the current market has indeed changed: in the past, government procurement required traditional, stable products, large quantities of purchases, sufficient funds, and higher requirements in product design, quality, and materials. More consideration is the operating cost, product selection is mostly practical, style or modern, or jumping, color requirements are relatively rich, materials are more combined with wood and wood, sheet metal combined to reduce costs. Based on such changes, the current transformation and adjustment to meet market demand is a common voice in the industry and a measure chosen by most companies.
But how to turn? The industry has also given a lot of advice. "In the current market situation, transformation and upgrading is a must, products must be suitable for market demand, change according to market changes, cost-effective to have a certain advantage." This year, in the case of Yunnan's home market is sluggish, Jixiang The floor can still be sold against the market, all the way to the red, Zhao Jincai combined with their own experience, although the market is difficult, but the innovation of products, models, thinking should not be interrupted, should lay a solid foundation, consumer-centric Should also pay attention to quality improvement, brand promotion and after-sales service.
Wu Baoji of the Furniture Association believes that in adjusting business ideas, enterprises should shift from the previous heavy government procurement to the general civilian customer group. In addition, they should expand and diversify into other industries around the entire market. In the difficult market situation, Wu Baoji suggested that enterprises should control costs from management and save costs from the source, in order to survive this cold winter.
The same is the transformation of the customer base. Liang Qifeng’s suggestion is more clear and intuitive: “There are many high-end and alternative products in the real estate industry. Enterprises can start from the richness of products, improve customer support services, and send more people. Going out to do work and working hard in this area. On the other hand, Liang Qifeng also noticed the newly emerging 80s generation. "Office furniture is the only way to achieve product uniqueness. At present, the purchasing decision-making power of various enterprises and institutions has been concentrated in the hands of the 80s. After 80s, the group is extremely free to pursue freedom, self-centered, and full of personalized requirements for products. Especially interested in new things, in order to cater to the needs of the backbone consumers, companies should boldly improve in style, function, color, and the product to be differentiated from the mass market, is the way out for office furniture."
At present, Paige furniture has been adjusted for the products, and the exhibition hall is also being renovated. However, Duan Yi also noticed that in the past, the simple and generous and affordable staff screen furniture was not in the sight of government units. Now, she found that a small number of units have begun to abandon the high-priced solid wood desks, slow. Slow transition to screen-style office furniture. Perhaps this will be a good market opportunity.
Chengdu furniture editorial report
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