As the downstream industry of real estate, the furniture industry is directly affected by the real estate market. In particular, the current real estate market is in the implementation stage of a number of new policies, which will cause a huge change for the entire furniture industry.
Status: Suppressing upgrades
Some of the real estate market since 2018 The policy continues to be implemented in depth, and the policy of new housing hardcover housing is beginning to be implemented in an orderly manner. Some cities continue to strengthen regulation and control, suppress restrictions on purchases, increase the scope of restrictions on purchases, limit sales, increase the proportion of down payment, and buy houses by lot.
At the same time, the new policy emphasizes the implementation of the development of the housing leasing market, especially long-term leasing, protects the legitimate rights and interests of leasing stakeholders, and supports the development of specialized and institutionalized housing leasing companies, which is simply said in the market. Rent and sell with the same rights.”
The gradual implementation of the housing policy, such as hardcover houses, purchase restrictions, long-term leases, and other housing policies, the market impact has begun, and the transformation of the furniture industry has been upgraded to a critical period, and the changes have become more apparent. The industry is closer to the consumer market and the industry landscape will be re-divided.
Of course, the impact of changes in the real estate market on the furniture industry is lagging behind, and the impact of real estate regulation on the furniture industry is not as serious as it might be.
First, the Chinese furniture industry is still in the growth stage, and will continue to rise steadily for a long time to come. At present, the rigid demand for both the housing market and furniture is still very large, and furniture companies are more affected by the property market regulation policy in terms of product and business models.
Second, high-end products are less affected by regulation, and as the country increases the construction of affordable housing and the rapid development of new urbanization, the market demand for low-end furniture will gradually increase. . However, the domestic furniture industry is currently in a critical period of transformation and upgrading. The industry is accelerating the reshuffle, and real estate regulation has a direct or indirect impact on the entire industry.
Impact: Adjusting Product Structure
First of all, the most direct is the change of products on the market and the adjustment of the structure of furniture products. Whether it is the housing market or the consumers of furniture, there is a new class of power – the new middle class.
In fact, the housing market regulation has little effect on high-end consumer groups, and the demand for high-end brand furniture for high-end villa clubs will not decrease. On the contrary, the new middle class has relatively limited spending power, but it has higher requirements for quality of life, and more emphasis on lifestyle and quality of life. As a result, many companies have identified this group of consumers as high-end consumer groups. It is mainly based on medium and high-end, and it is true.
In addition, smart furniture and multi-functional furniture are receiving more and more attention. High-end smart furniture is a kind of consumer pursuit of modern life. It has a sense of science and technology, a sense of the times, and has the convenience and comfort of life. The future is bound to be the most bright development direction of the furniture industry.
The same multi-functional furniture, especially the furniture with storage function, will also have a great market. For the first-tier cities, small-sized houses are mainly used, how to use a very limited space to install furniture and obtain space comfort. Enjoyment is a product service that many custom furniture companies are researching and focusing on. Therefore, in the current stage of solid wood furniture, a large number of panel furniture appeared in the furniture market and quickly expanded market share, and panel furniture began to return to life.
Impact: Adjusting the business model
Secondly, it is the impact on the business model. On the one hand, the gradual implementation of the hardcover housing policy, the channel for furniture companies And have a direct impact on sales strategy. In the past, furniture companies mainly served dealers. Now they mainly set up engineering departments for real estate developers, directly cooperate with real estate companies, or cooperate with real estate dealers to cooperate with real estate developers. In the past, various enthusiasm and welfare for dealers were reduced. Most of the time.
It is very obvious that the hardcover room has a certain impact on the cabinet market. The hardcover room is not able to reach the level of the baggage in every place, but as the standard kitchen cabinet of the hardcover room, it is often given priority. Equipped. Therefore, the earliest kitchen cabinet enterprises in the custom furniture industry will also feel the chill of the hardcover room first.
On the other hand, the implementation of the policy of renting and selling the second-hand housing and rental housing will inevitably lead to the emergence of new consumption power, especially the demand for furniture in the long-term rental market, which will form a new small purchaser. There will also be new demands for furniture replacement and service life, especially for panel furniture that is likely to grow even more.
Impact: Real estate business interception furniture sales
In addition, the gradual implementation of the new real estate policy, real estate companies began to enter the furniture industry, housing enterprises directly set up furniture production base Or form a cooperative alliance with large furniture brand enterprises, which is the source market interception of furniture consumption, which has a great impact on furniture sales.
Real estate companies are looking for partners that are mainly large companies, can guarantee supply and stable quality products, and even have a longer payment cycle, which may lead to more and more large enterprises Large, the furniture industry is increasingly concentrated in the future industry landscape.
The housing market is in turmoil, the new policy is gradually implemented, and the impact on the furniture industry begins to appear. The impact has many aspects. Furniture companies need to follow the national policy and constantly adjust their market according to market conditions and their own advantages. Positioning, product structure and business model further stimulate the potential market and make the market more comfortable.
In fact, for furniture companies, the implementation of the housing market new policy, the deepening of the industry transformation and upgrading, can be described as both dilemmas and opportunities. Whether the products of the enterprise conform to the mainstream trend of the market, whether the business model conforms to the new consumption habits, whether the development of brand building keeps up, the production capacity and product quality meet the market requirements, etc.The key is related to the survival and development of enterprises.
In the transformation of the furniture industry in recent years, many old and large enterprises have disappeared. Some of the leading industry leaders are withdrawing from the market, some are in the critical stage of transformation, and some enterprises have begun to undergo comprehensive transformation. Single product development to the overall home, from finished furniture to full house customization, the development of physical store brands by e-commerce brands and so on. Enterprises have their own analysis of the current situation, so that we can clearly understand the situation and follow the trend.
From the perspective of the operation of some furniture companies in recent years, some of them are very confused and do not know the direction; others are actively trying to change, innovate and adjust strategic planning.
Change: Breakthrough in Branding
One is a breakthrough in branding, and real estate companies are more willing to work with big brands, of course Dealers are also more willing to cooperate with big brand companies, both products and services are more secure. Consumers’ trust in branded products is undoubtedly higher. In the past, furniture brands were mostly industrial brands, and the public outside the furniture industry did not understand. Today’s customization, experience consumption and new consumption habits and consumption methods make enterprises pay more attention to brand building.
Change: Strengthening the ability to customize services
Second, product richness and customized service capabilities are strengthened. The main service targets of furniture companies are transferred by dealers. For dealers + consumers, they need stronger service capabilities. Whether it is a limited purchase or a hardcover house, it does not have a big impact on the furniture market. Instead, it has increased the occupancy rate of new properties, which is more beneficial for some brand companies and their dealers.
The market has not shrunk, but consumer demand and consumption patterns and habits are changing, and companies and distributors are vying for model houses and customized services. The industry and the outside world have reached a consensus on the inevitable development trend of the whole house customization service. Consumers basically see the effect after the renovation before or before the decoration, then for the enterprise, in the case of not being able to transform the whole house customization service, only Product category richness and marketing efforts, and cooperation with more home businesses to ensure home one-stop service capabilities, is the best policy.
Change: online and offline combination
The third is the adjustment of channel construction. Focus on the combination of physical storefronts and online stores. In the physical storefront, in addition to the store-in-store brand stores in professional hypermarkets, large companies are more active in building brand-independent store systems, including independent brand stores, community brand experience stores, and model house experience stores.
At the same time, it is combined with online, especially in the exhibition. Almost all brand furniture companies are constantly trying on virtual display. In marketing, in addition to strengthening the construction of these channels, and at the same time building the engineering department of the company, it is responsible for cooperating with real estate, doing hotel, club customization projects, and baggage check-in business.
In addition, there is also a big increase in production. Whether it is custom or cooperation with real estate companies, it requires strong production capacity. Facing the housing market turmoil, furniture companies must do a good job in production. It is understood that furniture companies generally invest a lot in production equipment, especially in some enterprises to transform and customize, install new imported equipment, achieve intelligent manufacturing in a small scope, ensure production capacity, ensure product quality stability, and basically meet environmental protection requirements. At the same time, in order to better connect with real estate, better serve the market and reduce costs, furniture companies began to move forward and set up production bases in the market.
The regulation of real estate does not really affect the furniture industry – although it seems that some measures of furniture companies are to deal with the implementation of the new real estate policy, but more importantly because of the needs of the market.
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