In order to survive, while Taiwan-funded factories continue to move out, many local furniture factories are actively exploring the road of transformation, because the real "winter" is still behind.
Fight for survival
"This year's challenges are great. We are fighting for survival." You Guozhong, the principal of Shenzhen Renhao Furniture Development Co., Ltd., confessed to reporters yesterday that Renhao Furniture's average annual growth rate from 2009 to 2011 reached 30% to 40%. "But the growth plan set this year has not been realized and can only be kept flat."
This board and wood furniture factory in Longgang, Shenzhen, this year saw an unfavorable environment and immediately reduced advertising and other expenses. "Now it depends on the control power of the enterprise. Enterprises that contract fast will lose less." You Guozhong said.
He believes that when the government regulates real estate, fewer people buy a house, and furniture sales naturally decrease. "Moreover, China's furniture industry is expected to have an overcapacity of 30% to 40%, and the current industry operating rate is only 60% to 70%."
The labor cost has risen by about 20% this year, and the monthly salary of ordinary workers is 2700 ~ 2800 yuan. Therefore, Renhao Furniture is promoting large-scale and mechanized production.
You Guozhong said: "We have to do a good job in branding and service to help dealers promote the goods. This year the environment is not good, and some furniture stores have reduced dealer rents for dealers for 1 to 3 months. We have also actively explored some engineering customers . "
It's pretty good to be flat. A recent survey report on the production and operation of small and micro export furniture companies in Shunde released by the Shunde Entry-Exit Inspection and Quarantine Bureau shows that the situation is more severe than in 2008. There are about 5,000 furniture companies in Shunde, of which more than 400 have obtained export qualifications, basically SMEs. Many companies' export orders have dropped by more than 40% this year, and their gross profit margin has fallen below 10%. If the cost is deducted, the net profit may be only 3% to 5%.
There are also media reports that due to a decline in sales of more than 30%, several "leader" furniture companies in Zhengzhou have already seen one-third of workers fail to do their jobs.
Dynasty furniture listed in Hong Kong recently announced that profits in the first half of this year are expected to fall by more than 90% year-on-year, mainly due to lower sales and lower profits.
As one of the major suppliers of domestic furniture coatings, Chen Bing, chairman of Shenzhen Zhanchen Coatings Group Co., Ltd., observed that among their more than 2,000 furniture customers, 95% of customers had a decline in revenue this year and orders decreased by 10% to 30%.
Chen Bing said: "Exports are shrinking sharply. First, factories are relocated, and many Taiwanese and Hong Kong-funded furniture factories are transferred from Dongguan to Vietnam and other Southeast Asian countries. Second, orders are transferred. Due to the increase in labor costs in China and the appreciation of the RMB, many foreign Merchants transfer orders to other countries and regions; third, some foreign orders are too low in price and the payment cycle is too long, and domestic furniture companies are reluctant to take orders. "
The road to transformation is rugged
Maybe the ship is small and it is good to turn around. Sishang Furniture Co., Ltd., located in Nantou Town, Zhongshan City, has grown against this trend this year. Chen Min, the company's general manager, told the newspaper that Sishang has been seeking transformation since four years ago. "Our income was in 2009 and 2010, but we achieved growth last year and this year."
The staff of Sishang Furniture has decreased from 230 people four years ago to 150 people this year. Chen Min said frankly that this year it has risen by 20%, and the average worker's monthly salary is about 3,000 yuan. "5-6 years ago, we had planned to build a factory in Jiangmen, but fortunately it was not built."
Chen Min promoted the transformation of the factory and made three "actions": one is focusing, the product changed from office furniture to office chair; the second is to enhance the industrial design capacity, and won the award in the "Governor's Cup" design competition in Guangdong last year The third is marketing innovation. It used to cooperate with American importers, but now it directly cooperates with American furniture brands and has its own product brand.
Although both export and domestic sales revenues have increased by 40% year-on-year this year, Chen Min still said, "We have encountered very big challenges."
"Compared to last year, the exchange rate of the renminbi has increased by about 10%, and the impact on sales has reached 30%. Vietnam and Bangladesh are not very mature, but Thailand is not weak and its labor costs are lower than China." Chen Min said, " The next step is that our opponents are Korean companies. They have a more mature supply chain, high efficiency, and strong national brands. "
"Europe and the United States cost about the same as us. Some of our plastic parts come from European companies such as BASF. The monthly salary of European workers is 1,000 to 2,000 euros, but the efficiency is high; the United States monopolizes resources and the energy cost is low." Chen Min said, there are In Taiwan, mainland workers are 3,000 yuan / month, and Taiwan, 5,000 yuan / month, but Taiwan-funded factories have good quality and high efficiency, and can seize the mid-range market.
"Therefore, some people in the low-end market are robbing, and the mid-range market is also facing competition from local companies in Europe and the United States, because our products are shipped in the past, and freight rates are also increasing." Chen Min feels that Sishang's transformation road is still long.
What surprised Chen was that in the first half of this year, an Italian customer asked Sishang to help design and produce by themselves. "Chinese design is promising in the future." He said that on the basis of enhancing industrial design capabilities in the future, on the one hand, it will do a good job in the domestic market, and at the same time, it will make good use of global resources.
At present, Sishang has 40% to 50% of parts outsourced production, and this proportion will increase to 60% to 70% in the future. "We will focus on the core issues." Chen Min said.
Big companies are also transforming. The Jianwei Group in Jiangmen mainly exports furniture to the United States. In May this year, Jianwei proposed at the supplier conference that the focus should be shifted from foreign sales to domestic sales, supporting dealers to grow bigger, practicing internal skills and reducing costs.
Cold winter is yet to come
In the eyes of Tao Yongjun, head of sales of the Pearl River Delta of Zhanchen Coatings, Guangdong furniture manufacturing industry has undergone some obvious changes this year: due to the difficulty in recruiting workers, the “post-90s†struggle is not as good as that of its predecessors. Automatic spraying line and automatic dryer to reduce manpower.
"Another change is that in 2008, the ratio of exports to domestic sales was about 5: 5, and now 70% to 80% of enterprises only do a little export and turn their energy to domestic sales, because most of the profits of foreign sales are made by traders such as US home-line. went."
"Moreover, the division of labor is moving toward specialization. In the past, there were two types of office and home furniture, but now there are children's furniture , and factories that specialize in cabinets and other parts." Tao Yongjun said.
He believes that "in the future, furniture factories will be differentiated, one will seek output and conduct mechanized large-scale production; the other will increase labor, focus on art carving and industrial design. It is expected that large factories will merge small factories, and it is difficult for small factories to receive orders independently. . With the improvement of environmental protection requirements, the factory's plates, paints, etc. must meet environmental protection requirements, and due to increased costs, some small and medium-sized furniture factories will be eliminated. "
Tao Yongjun optimistically expects that due to the rigid demand for housing, the furniture industry will pick up in the second half of this year and the first half of next year.
However, Liu Zhengqiu, marketing director of Jianwei Group, believes that the real winter has not yet arrived, and China's GDP growth rate is still nearly 8% this year, and it will gradually drop to 5% within ten years. "The low-cost advantage of China's manufacturing industry is still ten years away. After ten years, enterprises will split up, either cultivate world brands and produce unique products; or mass-produce and only do OEM; or have strong design capabilities and a few people. Can feed myself. "
"Transformation requires vision and resources." Liu Zhengqiu said that it is estimated that only 30% of enterprises have the ability to transform, 30% of them do not have the ability to transform, and continue to make hard work of processing fees, and 40% of enterprises have a difficult time. "The real cold winter is yet to come."
Deng Guangsen, Secretary General of the Zhongshan Furniture Chamber of Commerce holds the same view. He said that either developing a new product is a transformation, or simply transferring the factory to another place is a transformation. Successful transformation requires wisdom, positioning, and matching resources. This is no less than a second venture.
4G surveillance camera is an easy-to-install and easy-to-use remote surveillance camera. It adopts advanced 4G communication technology and is mainly aimed at users who implement remote surveillance requirements for enterprises, industries and users in specific industries. A complete set of 4G surveillance cameras consists of cameras, 4G traffic cards, memory cards, etc.
The 4G surveillance camera is mainly accessed through the Internet, thus realizing the monitoring mode of two-way channels of voice and video. You only need to install a monitoring software on your phone, you can watch the real-time monitoring video of the camera at any time, making remote monitoring easier.
Solar 4G Camera,4G IP Camera,4G Solar Bullet Camera
Shenzhen Sanan Technology CO.,LTD , https://www.sanan-cctv.com