Furniture brand segmentation forms a new pattern, future competition and cooperation coexist

With the global shortage of resources and the significant rise in raw material prices, the cost of furniture—being a resource-intensive product—is bound to increase. At the same time, the appreciation of the renminbi and the reduction of export tax rebates for enterprises categorized as “high pollution, high energy consumption, and capital-intensive” have placed the domestic furniture industry under increasing pressure. Once a sector with vast growth potential, it is now facing fierce competition from both within and outside the market. **Market demand struggles to keep up with rising costs** The price of wood has surged dramatically, while labor, transportation, and decorative paper costs have remained relatively stable. However, the overall market's ability to absorb these price increases is lagging behind the rapid growth in raw material costs. Compared to previous years, sales this year have been significantly lower, with very few deals being made. As a result, furniture prices are rising every few months, sometimes even every one or two months. A veteran in the furniture industry shared, “Even the monthly delivery price changes, and the factory only tells you about the price hike without giving any reason. Eventually, I just stopped asking.” Yet, due to intense competition, retailers are hesitant to raise prices, often choosing to absorb losses and reduce profits. On the consumer side, buyers are becoming more rational, and traditional price promotions no longer hold the same appeal. Moreover, with the influence of national policies, many brands that once targeted international markets are now shifting their focus to the domestic market, intensifying brand competition. Marketing costs are rising, and traditional sales models are under severe pressure. **Brand segmentation creates a new landscape** As business models become more competitive, the question arises: how can companies achieve sustainable growth? A long-time furniture dealer noted, “Each brand is becoming more practical, no longer relying on abstract concepts. The store image is being updated as needed, and after-sales service is gradually improving. These changes indicate that brands are entering the stage of building deeper brand value, which will make each brand’s identity more distinct. As brand personalities become more prominent, target customers become more focused, and consumers with specific needs will choose brands that align with their preferences. The market won’t be dominated by a single trend, such as antibacterial features.” Brand integration, capital operations, and more active corporate alliances are key trends in the furniture industry this year. The industry is undergoing a major reshuffle, and competition is pushing brands to segment their customer base, leading to a new pattern of brand differentiation. **The future is an era of competition and cooperation** Next year’s market will be highly competitive, with rising oil and production material costs, along with an influx of new stores, products, and brands. The era of competition and collaboration has arrived. Experts suggest that due to resource shortages and policy impacts, product prices will continue to climb. Industry insiders emphasize that market competition is inevitable in a market economy, and the future will be defined by coexistence between competition and cooperation. Competition and cooperation manifest in various ways. For furniture companies, it is essential to define their market, customer, and brand positioning, build a unique brand identity, and strengthen their competitiveness to capture and expand market share. Moreover, the future market will also require collaboration among related companies to collectively enter the market. This means that all brands must learn to share benefits, leverage resource integration, form cross-industry alliances, combine strengths, and drive group operations. By innovating profit models, alliance members can maximize mutual value, achieving a win-win outcome.

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