2012 China's five major strategies for furniture development

2011 is the autumn of China's furniture industry. The local real estate regulation and control policies have been introduced, which has curbed the demand of the downstream furniture market. The “Da Vinci” incident has had a great impact on the overall integrity of the furniture industry, coupled with rising costs and expansion of stores. China's furniture enterprises, especially small and medium-sized furniture companies have a very difficult life, and the phenomenon of family business failure is not uncommon in all parts of the country. In 2012, the overall situation did not improve much, and home enterprises should rise to the ground. Three business opportunities are waiting for the beginning of the 21st century, China's sustained high economic growth has promoted the prosperity of consumption, and real estate has gone hot, making the investment focus continue to irrational to the real estate industry, and driving the overheated development of the furniture industry. In order to promote the healthy development of the real estate industry, China launched a series of real estate control policies in 2010, and the furniture industry also entered an adjustment period, and the growth rate slowed down noticeably. In the downturn, this year is a year that economists have seen decline. However, in the unfavorable circumstances of the big environment, there are still three major business opportunities in China's furniture industry this year. First, the decline in housing prices has led to the release of rigid consumer demand. With the further development of real estate regulation, many real estate companies have to reduce the price to stimulate housing consumption, and those consumers with rigid housing demand will look to buy. Some insiders pointed out that in March this year, the price of housing transactions will be slightly reduced in tentativeness. By May, the price cuts will further expand, and in September, another price climax will be entered. The decline in the price of each round of housing transactions will result in rigid consumer purchases and a small increase in sales in the furniture market. The second is the consumption of hotel furniture. It is understood that with the rapid development of China's tourism industry, the demand for furniture in leisure resorts has grown rapidly. From January to March last year, the number of star-rated hotels opened in China reached 43 and the total number of guest rooms exceeded 11,454 (sets). Experts pointed out that in the next few years, it is the golden period for the accelerated development of China's hotel industry, and the demand for hotel furniture will increase exponentially. The third is the consumption of furniture brought by the affordable housing. The housing project launched by the state is also a big cake this year, and small and medium-sized furniture companies must spare no effort to fight for it. In the case of slowing down the growth of the industry and increasing competition, how to grasp the limited business opportunities lies in the strategy chosen by the furniture enterprises. Generally speaking, my state-owned enterprises are not suitable for adopting the scale expansion strategy this year, but need to adopt the following strategies according to their own characteristics. The first is the cost leadership strategy. Only by continuously reducing the cost of products and operating costs, the family enterprises can make their total cost lower than their competitors in order to take the lead in the competition. In this respect, it is necessary to establish an effective cost management mechanism. On the other hand, it is necessary to reduce the price of raw materials by strengthening cooperation with raw materials and component suppliers, or to integrate raw material production into the business scope of the enterprise through joint and merger methods. Business dependence, thereby achieving the goal of reducing costs. The second is to support the dealer strategy. The family enterprises must strengthen the control of the dealers, encourage the dealers to expand the sales channels through the survival of the fittest and the strengthening of store sales training. The more difficult it is, the more SMEs have to give in the snow, give their dealers greater support, and maintain the volume growth in the weak market. At the same time, the home enterprises should ensure the market appeal of the main brand, re-integrate the products internally, and maintain the appropriate product breadth and depth. The third is a strong joint strategy. After 30 years of development, China's furniture industry has not yet produced monopoly brands or leading brands. Many enterprises have been in the primary competition, but through joint enlargement and strength, it is still the future development trend. For many small and medium-sized enterprises with limited financial strength, it is a good way to achieve product complementarity and resource integration through strong alliances between brands to improve market competitiveness. The fourth is to reform the priority strategy. Although innovative products can take the initiative in the market, they must be treated with caution for small and medium-sized enterprises, because the development of new products requires more time, material and financial resources. On the contrary, small and medium-sized enterprises should be retrofitted on the basis of mature brand products, so that they do not need to increase capital investment and get good results. The fifth is a differentiated, multi-channel expansion strategy. The family enterprises should give full play to their strengths and build on the basis of innovation ability and marketing ability, and carry out multi-level development in the field of differentiated consumption and supporting processing. For example, Jiaxing Store, which is under the guise of bedding, has strengthened cooperation with local hotels under construction, expanding the market share of the brand in the local market, and even the local health care chain chain has become its partner. Overall, the situation faced by most of the enterprises in this year will still be very difficult. It is necessary to give full play to innovative thinking and adopt appropriate development strategies in order to successfully break through.

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