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"Take copper as a mirror, you can dress up; take people as a mirror, you can judge the gains and losses; take history as a mirror, you can see success." With reference to the development of the US furniture industry, perhaps, you can find new ones for the confused Chinese furniture industry Way out.
1. The Great Environment of the American Furniture Industry
1. Three shifts in the US furniture industry: first developed from the Northeast region, New York, Pennsylvania, and New England, then moved to the Midwest region, and then moved to the South region. Each transfer actually moves to an area with lower manufacturing costs and high-quality hardwood resources. This kind of "manufacturing capacity transfer" is also true in China's furniture industry.
2. The negative impact of globalization on the US furniture manufacturing industry is extremely serious. From 1992 to 2005, the import of all furniture products increased from US $ 4.1 billion to US $ 23.65 billion, an increase of almost US $ 20 billion, or an increase of 477% From 1997 to 2005, the furniture industry other than kitchen cabinets has lost 108,000 jobs, accounting for 21% of unemployed workers in the United States during this period.
3. The impact of changes in the concept of furniture consumption on the US furniture industry: Like many mass-produced consumer products, civilian furniture has become a "common commodity" more like a bulk category, and sales depend on price. Consumers no longer regard furniture as something worth spending, and less and less money is spent on furniture; at the same time, furniture companies compete for prices in the market, profits have shrunk greatly, but production costs have continued As a result of this rise, the investment in factories and equipment has fallen sharply, which has led to the lag in technology and equipment of many American furniture factories.
Second, the US furniture industry's operating strategy in the face of "increasing costs, intensifying competition, lower profits, and shrinking markets"
Facing the market environment of rising costs, intensifying competition, decreasing profits, and shrinking markets, American furniture manufacturers have adopted a variety of operating strategies.
1. Turn off their factories and become wholesalers and retailers: in the retail channel, they use their brands to attract consumers and put products in low-wage cost countries such as China to manufacture, and its profit comes from retail The difference between the price and the manufacturing price.
2. Strengthen its own manufacturing capabilities and integrate imported products into its own product line. In addition, they also use lean production and the latest technology to improve their energy level.
3. Concentrate on making customized products. From the production of "common products" to customized products, customers are willing to spend a little more on customized products, which makes it impossible for large importers.
4. Develop new markets and product uses: The wooden parts industry is a good case. They changed the product structure and positioned the market in the construction industry and the kitchen cabinet industry to cope with the downward trend of the furniture industry.
5. Re-establish the industrial agglomeration of the furniture industry or establish an advantage center to make the entire supply chain operate more closely to provide more value to target customers.
3. Where does China's furniture manufacturing industry come from?
1. Transition from "common goods" to "custom goods", closer to customers, creating value-added products and services
In the furniture industry, many furniture manufacturers lack contact with end customers and rely too much on retailers to obtain information on customer needs and expectations. The furniture manufacturing industry must learn how to approach end customers, how to provide products for them, and guarantee their profit. This requires better marketing capabilities, better sales networks, lean production and flexible manufacturing capabilities, immediate supply chain operation capabilities, supply chain management, innovative thinking and leadership, better education and training of employees, etc. , In short, is a new business model
2. In terms of manufacturing, the factory must be automated as much as possible to obtain maximum production efficiency and improve labor productivity
Therefore, it may be necessary to adopt new technologies and "lean manufacturing" to reduce costs; at the same time, it is necessary to increase investment in worker education and training, new product development and research, so as to cultivate workers with special skills, Create premium products and sell them for good prices. If we continue to produce products of ordinary commodities and provide low-level services, then we will continue to lose the market and give the regions with richer and cheaper labor.
3. Establish relevant advantage centers or gather competitive advantages
According to Mike. Porter's definition in "Competition Theory", "aggregation refers to a group of companies that are geographically close to each other, have a coordinated organization in a specific field, and are linked together through common interests and complementarities", through supply chain development Strategic partners and all links of the entire supply chain work together to make the most effective use of resources.
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