At 5:35 pm on November 7, the 41-year-old Wu Wu was in the rare gap after dinner, kneeling in front of the green belt at the factory gate, and “swinging the dragon gate array†with several Sichuan fellows. Laowu's Fuyun Furniture Factory is a Hong Kong-owned factory that has invested in Dalingshan Town of Dongguan for more than 20 years. The production operation in these months is still normal. At the entrance of the factory is the 107 National Road connecting Beijing and Shenzhen. The National Highway where the Fuyun Factory is located was once the busiest section, but now the container trucks from the south to the north seem to have been significantly reduced. What is the truth about the "winter" theory of the Pearl River Delta furniture industry? Take Dalingshan Town as an example. There are more than 320 furniture companies here. More than 80% of the furniture is exported to overseas markets. Every day, the “Dalingshan made†furniture sent to more than 100 containers around the world. As early as five years ago, the export value of furniture in Dalingshan Town was as high as 2.15 billion US dollars. It was praised as “the first town of Chinese furniture export†by the industry, but now it is obviously going downhill. The reporter conducted a field investigation. The decline in furniture exports is facing a dilemma. Dalingshan Town completed a total import and export volume of 275.859 million US dollars in the first nine months of this year, down 15 percentage points from the same period last year, and completed an annual progress of 59.6%. The total export value was only 155.37 billion US dollars, a year-on-year decline of 22.3%. Whether it is the completion schedule or the growth rate, the two statistics of Dalingshan are the last in the 32 Dongguan towns (streets) participating in the ranking. The chill of the decline in the export of furniture manufacturing enterprises was also transmitted to the upstream. The Jilong Timber Market, not far from Fuyun Factory, is a large-scale furniture timber distribution center in Dalingshan Town. It covers more than 200 timber enterprises in the market covering an area of ​​about 250,000 square meters. A staff member of the wood company, which specializes in imported timber such as North American timber, New Zealand pine, and Nanyang timber, told the Shenzhen Business Daily that the operating income of its sales department this year was about 10% lower than last year. Since the outbreak of the financial crisis in 2008, the company’s orders have been reduced, and there should be no rumors of triangular debts that affect the company’s shipments, producers default on raw materials, and dealers default on producers’ payments. An important production base over Dongguan. Shunde Weifangfeng Furniture Co., Ltd., which is mainly exported to foreign countries and started to transform and take care of domestic sales last year, is a typical representative of Shunde furniture enterprises. On November 7, Zhou Danying, the chairman of the company, said in an interview with Shenzhen Business Daily that the export market encountered unprecedented difficulties such as the sluggish international economic environment. Sales have been difficult to grow, so the market began to test the domestic market. Since the beginning of this year, we have increased investment in brand promotion, increased investment in development of the terminal market, and added stores in several large-scale furniture stores across the country. In the second half of the year, market sales have rebounded. Foshan furniture industry is polarized. A Shunde furniture enterprise person who did not want to be named said in a telephone interview with the Shenzhen Commercial Daily that the current competition in the furniture industry has reached an unprecedented stage of fierce competition, raw materials have risen, and labor and rental costs have increased. The rents of shopping malls are also increasing, and there is not much demand growth in market sales. There are still new plants to start construction, and the phenomenon of product homogenization is increasing. The company has to compress the production line and wait for the opportunity to resume. In such a difficult living situation, there are also some furniture companies still in a benign situation of expanding production and sales growth. Foshan Jintiantuo Furniture Co., Ltd. is one of the representatives. The company's CEO Liu Dingfei told the Shenzhen Business Daily that since the beginning of this year, the company's multiple production lines have been in full production, not only in Foshan, but also two production bases are fully operational, and in the first half of this year, they are still in Hubei. Production has been put into production, production is completely normal, and sometimes due to the market demand for products is too fast, and have to queue up for delivery. The company's production and sales increased by more than 20% in the first 10 months. Liu decided to analyze the reasons, mainly because the company's product market is the right way, mainly to develop children's furniture, which is widely needed in the production market, and hired celebrity endorsements. At the same time, the large-scale furniture in Dongguan, Guangzhou and Shanghai in September this year. At the exhibition, take the initiative to attack, raise awareness, and find new business opportunities in the market. The “labor shortage†that cannot be circumvented by domestic enterprises, the weak international demand caused by the European and American financial crisis, the fierce competition in the domestic demand market, frequent anti-dumping investigations, changes in the RMB exchange rate, rising labor and raw material costs, etc. It is the recognized reason for the furniture industry in the Pearl River Delta to encounter a cold winter. "Our factory has been lacking in work this year." Xiao Li, who is engaged in administrative personnel work at Fuyun Factory, told the Shenzhen Business Daily that the operation of several furniture factories around the country has been stable for several years and there is no shortage of orders. On the contrary, it is a headache for employees to lose too much. Many workers leave after a few months, and the factory often does not recruit enough people. “Dongguan’s minimum wage has been rising in recent years, but the ex-factory price of furniture in the factory is not dare to raise prices in front of dealers.†The salesman of another Taiwan-funded furniture factory in Dalingshan Town is also voicing. His Taiwan-funded factory began to try to participate in some domestic exhibitions to find domestic customers from the previous year, but found that the domestic sales orders are scattered, which is not conducive to large-scale production. The production line of the Taiwan-funded furniture factory that entered Dongguan early was adapted to the production of large-scale overseas orders. After switching to domestic sales, it faced the embarrassment of “big shoesâ€. The 50 companies in a year of life and death, the Secretary-General of the Dongguan Furniture Association, Liao Zhisheng insisted that the situation in the industry is better than the 2008 US financial crisis, and there has not been a large-scale shutdown. “The number of enterprises that have been shut down for one year and the newly registered enterprises are maintained at around 50, which are all within the normal range. The situation in 2008 was too sudden. Many enterprises were not prepared at the time and felt particularly stressed. After these years of suffering, The corporate mentality that has been held up now is used to it.†Yu Xuhui, deputy secretary-general of the Famous Furniture Club of Houjie Town, Dongguan City, agrees that his association has more than 330 member companies. This year, there is no economic environment due to the downturn. In the case of scale reduction, the annual furniture exhibition is still difficult to find. "Enterprises adjust their business strategies, and the extreme phenomenon of corporate failures is rare in the thick street furniture industry." Yu Xuhui stressed. “Some companies engaged in custom furniture business have been eye-catching this year and have received many orders for hotel projects, real estate clubs and model houses.†Lin Guorong, general manager of Dongguan Chuangyu Industrial Co., Ltd. said that the company passed the market survey 8 years ago. The product category has been compiled, and now I focus on the furniture that reflects the "romantic trend" style, and does not make too many models. Since the beginning of this year, the output value of enterprises has increased by more than 10% compared with last year. Houjie Town, where Chuangyu is located, is the only Guangdong Furniture International Purchasing Center approved by the Guangdong Provincial Economic and Information Committee. Compared with the Dalingshan furniture industry, which focuses on exporting, the furniture companies in Houjie take care of both inside and outside. On both sides of the furniture street of Houjie Town, there are exhibition centers of major furniture factories, including many enterprises in Beijing and Zhejiang. Related News Foshan Reproduces Low-rent Supermarket The furniture manufacturing industry has encountered a rare pressure for rising costs, and the cost of marketing and sales is also rising. The rent of shops in furniture stores is increasing every year. Foshan Shunde Lecong is China's largest distribution center for furniture sales. It enjoys the reputation of “China's furniture trade capitalâ€. The furniture market is well-known at home and abroad. It gathers the Louvre, the Dynasty, the Red Star, the Meikailong, and the Shunlian Furniture City. Mid-to-high end large home stores. However, because of the reputation of Lecong's furniture market, furniture products from all over the country have come to the store to create a store. While doing the music market from Wangle, it also promotes the rent of the mall in the furniture market to rise every year. The previous rent averaged 100 yuan per square meter, and now it has risen to an average of 600 yuan / square meter, and sometimes even a shop is hard to find. Gao Hongbin, former deputy secretary-general of Foshan Furniture Association, said in an interview with Shenzhen Business Daily that high rents have caused small and medium-sized furniture companies to stop. There is an urgent need for more ordinary furniture stores to come out. In Foshan Town, Chancheng District, Foshan City, there is an area of ​​800,000 square meters, and the world's largest single-home store, Foshan International Home Expo City. The Expo City is expected to open grandly around 2013. In order to distinguish it from Lecong's existing home store, this giant home store has set a three-year rental plan, which will be implemented from November this year. The furniture rent is 45-90 yuan/square meter. Related links, strong sense of smell, diversification, and practice of internal strength "Now many furniture companies can only count as a large workshop. In the long run, to survive and develop in this industry, we must first establish a standardized modern enterprise management system. This is A long-term strategy that a company must adhere to." For the current furniture companies to avoid the "stubborn" crisis, Yu Xuhui, deputy secretary-general of the Houjie Town Furniture Club in Dongguan City, made such a proposal. “Now the market downturn is a serious challenge for every furniture company. There are also many people who are in a panic and will adopt some methods of cutting their feet to meet their needs. From the current market consumption demand distribution, enterprises can adjust to the front line. The distribution network of the city should change when the market situation is very good, the rapid expansion without cost. In the second and third-line markets with greater growth potential, the speed of opening the store network should be moderately accelerated." Yu Xuhui said: "Business management The sense of smell should always be sensitive. For example, the custom furniture is very popular nowadays. Some companies that have been staring at hotels and real estate customers in the past few years have worked hard on design and personalization before they set the pace of the market. It’s not that companies are now transforming themselves into custom furniture, but reminding us how to lay out in advance, by subdividing target customers, actively adjusting product lines and grasping potential business opportunities.†Yu Xuhui also suggested that furniture companies also have channel layouts. Try to innovate. Traditional domestic channel construction often goes through dealers, enters various supermarkets, or builds self-built exhibition centers. The layout of foreign markets relies on explicit channels such as overseas professional buyers. In the process of innovation channel layout, it may be more contact with hidden channels such as home improvement companies, tooling companies, design companies, brand chains, engineering companies and group purchases. "Diversification, practicing internal strength is the two prescriptions that I have given to the current enterprises." Liao Zhisheng of the Dongguan Furniture Association explained that "diversity means not to spread around, but to extend around the core areas of its own expertise." For example, furniture companies that only used to be in the US market tried to tap customers in the Middle East, Southeast Asia, and Africa. In the past, companies that only made sofas could try to add some bedroom products. In the past, companies that only looked at first-tier cities could try newer second- and third-tier cities. Development; In the past, companies that only distribute goods through dealers can try to use the new channels such as exhibitions and e-commerce to woven the net.†Liao Zhisheng also advocated that enterprises “practice internal skills†and “standardize internal management of enterprises, which can improve the efficiency of enterprises in a short period of time. A thick street enterprise that I know, the proportion of administrative staff in the original staff is as high as 40%, which not only causes management bloat, but also complaints from the production line workers. Last month they drastically streamlined the administrative staff and the factory was relaxed. a lot of."
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