Macro trend of China's furniture industry is a serious major issue, can not tolerate the slightest pseudo-science, and only pious pursuit of truth, to find out the origin of things, they are not to be misled by some of the noise.

 

Industry attributes, the basic point is that we discuss the issue, but also internal and external must act by any internal order. Industry evolutionary logic is based on its own property, the future pattern and shape also has its inherent inexorable law. The hustle and bustle is not desirable attitude.

 

A.

Industry Attributes

 

Furniture industry is different from any other industry, has its own unique properties and laws.

 

1) very low industry concentration

 

The primary characteristics of the furniture industry is concentrated low, which is fully competitive market characteristics of the decision. Figure 1 is a comparison of the concentration of a variety of industries worldwide.

 

 

 

As can be seen, the concentration of the furniture industry is not only much lower than cars and household appliances, and even lower than the clothing, textiles and footwear and at the lowest level. Table 1 shows the countries or regions in the world furniture industry concentration statistics.

 

 

 

Concentration of countries inside the furniture industry and its industrial development level and socio-cultural characteristics related to the Japanese culture and market segmentation is its concentration is lower than the high level of other industrialized countries, the underlying causes. Italy is a design and innovation-oriented country, and its low concentration is inevitable performance. US economic fundamentals, the short history of cultural, social consumption patterns and industrial structure is its concentration is much higher than the reason why other developed economies. China has not been established, no matter what the final, given the current low concentration will be improved, the industry is facing reshuffle and restructuring, but no matter how this upgrade are difficult to subvert the basic law. And ignoring the views of those bad-mouthing the value of small and medium enterprises are ignorant.

 

For a perfectly competitive industry, many enterprises not only competition, but also a low barrier to entry and exit, product homogeneity is serious, as well as complete industrial chain information, business is difficult to hold for a long time not to be imitated by others core technology, so It is a typical entry easy to do difficult industry. Table 2 shows the properties of various industries and categories.

 

 

 

Unfortunately, the furniture industry is precisely the position in the first column on the left, but it need not be too pessimistic, this table also implies a kind of valuable information, that is to say the furniture industry has two paths, namely: First, in the current Red Sea market, by optimizing the strategy to win, which means the ability to rely on cost control, economies of scale and the whole industry chain to seek hegemony in the mass market; the second is in the blue ocean market segmentation strategy to take the difference of the road, In certain segments of seeking to establish their own unique advantages, which means that you are in this segment is the boss, others difficult to match, or even if a competitor can do also have to pay more expensive than your price, thus Make your position to be stable.

 

2) the unique dual attributes

 

Furniture is a typical industrial products, industrial products, all having common attributes, such as the need to meet the needs of industrial production. Except for a few categories of office and public furniture, other furniture products are basically produced insurance reform, specific customer is not known in advance, there is no clear dialogue objects, which means that the uncertainty of the market and the consequent The enormous risk. Companies in product development and marketing aspects of challenging, strategic level and operational capability fiasco. Since the human, material and environmental variables in the infinite, we never have standard answers, but also full of boundless creative space.

 

Meanwhile, with almost all other industrial products different is that the furniture and both environmental attributes, which are inseparable and building and interior. General industrial products, usually only need to consider the design and manufacture of a single product, such as cars, mobile phones, home appliances and so on. The furniture must be considered ancillary to consider a combination with other product features or division, consider the style compatible with other products, but also consider the pattern of real estate and interior tone, and then is associated with lifestyle. The architecture and interior furnishings are not necessary for those industrial and market properties.

 

Therefore, the furniture looks simple, very complex substance. Whether it is real estate or household appliances industry, the success of their experience and maturity may not adapt the furniture industry, any contempt for the furniture industry will pay a heavy price. Furniture industry must be diversified, industrialization and life stylized.

 

B.

Product form and manufacturing systems

 

Many people have had and I explored the future of Chinese furniture should take what the route.

 

Generally believed that the product should have China's own characteristics; in the industrial system, that the German Industry 4.0 is an inevitable trend, both foothold are clear and in-depth analysis will be made later.

 

The other points are made from a certain point for the. For example: Some people think that the real estate business is the trend of supporting fine decoration, and still others online or O2O is the ultimate destination, promising people more customizable.

 

Leaving aside the contradiction between those concepts, such as the integration of existing programs to provide fine decoration and customization in the end which route is right? How to reconcile the two? Where is the boundary? Do not say confusion on the level and point of view, namely: some from the perspective of industry chain, some on market segments, as well as from the channels and services, and talk, however, are not enough for any single dimension Thoughts become whole industry basis.

 

Let me talk about two things:

 

First, external trade or industry chain downstream industry and furniture industry are not comparable, although there will be some successful cases of restructuring or business extends into the furniture industry, but become climate, let alone truly engulf the entire furniture industry. As the saying goes: Gehangrugeshan, they are unlikely to understand the essence of the success of the furniture industry. Now called the terminal block will have some impact, but only temporarily, as the furniture industry-wide open channel mode, those problems will be solved, the channel will be more three-dimensional, single channel monopoly will not last.

 

At present, we are trying to enter the furniture industry outsiders are the following four.

 

① real estate: in the furniture industry chain downstream real estate capital strength is relatively strong, the concept is relatively new, such as Vanke, refined decoration market in recent years, is indeed expanding, especially in a second-tier cities. Fine decoration matching furniture needs, as to how complete, is that they want as a consolidator, but whether it is self-built factory or to integrate upstream and downstream of the furniture business to whom the supplier can not shake the entire furniture industry fundamentally. If the chain extension over, is nothing more than to solve their problems of real estate, the market as a whole is a relatively closed and limited. Open to bring their own trouble, even if willing to open, market-oriented operation must also implement the job because the business model different, but once the market, will be integrated into the traditional furniture industry in the past, as the parent who has nothing to do critical. Meanwhile, the integrated solution ideal is full, the reality is skinny, because facing the industry chain is too long, industry attributes vary, cross-border issues such as standards can not be unified, not too many uncontrollable factors, resources and capabilities are difficult to match . While supporting whom furniture companies may undertake to no small order, but is sustainable? Even if a sustainable period of time, then the business whether they can always control their own destiny? Whether due to get some order in front of the channel lost, lost the ability to make a living in the jungle of the market it? You know, once the enterprise can not be independent, then sooner or later it will be eliminated by the market.

 

② appliance industry: home appliances industry has a hundred billion dazzling body mass, but that is because the home appliance industry concentration is much higher than the furniture industry, product differentiation is small, the risk is lower than the purchase of furniture and appliances on the indoor environment affect single emotion far below the furniture. So, if the appliance industry thinking to operate the furniture industry is very difficult to be effective.

 

③ IT industry: IT industry cut into the furniture industry's biggest advantage is the ability of information technology, the IT industry to get a clear idea of ​​furniture in the field of IT technology law is much more difficult than the furniture industry implant, I agree with Professor Xu Xiaonian, an economist's view that Internet + is not exact, but + the Internet is correct. Because the Internet is only a means, the industry is fundamental.

 

④ upstream or supporting industries: As for the material, floors, doors and windows, ceramics and sanitary ware, and other upstream and supporting industries are basically in B2B mode of operation, and the furniture industry B2C or B2B2C model very different, but also very different business ideas, to want to be successful, not reborn is unimaginable.

 

Second, the future of online business under simple and line of business is not entirely absent, but can not get into the mainstream; nor should distinguish specialize in customized business and fully customizable do business. To store as a symbol of the physical channel port market, "eyeball" to network on behalf of the virtual world is the market's "heart" of the physical world and the virtual world will seamlessly. Similarly, mainstream enterprise shall personalized consumer demand for a better response capability, but apart from a handful to do handicraft workshop production of small-scale customization of products, customized furniture industry mainstream market can only be limited customization Based on a custom basis for large-scale production due to both economic considerations here, more professionally designed indispensability. As a customer of its own non-professionals do not have control and balance complex elements of design capacity, fully meet all the needs of the furniture and interior design, and ultimately will not have a good effect.

 

So, the future fate of the Chinese furniture industry in the end will be where? It thrusts in September this year in Shanghai at the "Chinese furniture industry cluster assembly of heroes" on the statement made the following formula, namely:

 

And shape the future pattern of China's furniture industry = German industrial 4.0+ Italian design China's national innovation system + endowments

 

1) German Industry 4.0

 

Industry 4.0 have not unfamiliar, as shown in Figure 2.

 

 

 

Germany is known for large-scale industry, large industry as the main heavy equipment and automatic lines marked. In the information age to respond to the individual needs of consumers, the implant mass customization and flexible production methods and the Internet +, based on big data and networking. The ultimate goal of this system is the enterprise to switch from the current mode of operation for the C2B B2B2C mode, in theory, can be completely reversed in accordance with customer demand for product production and value delivery to consumers. And this mode of implementation is not able to complete their own individual enterprises alone, but the need for industrial restructuring.

 

But the innovative product is not designed to be fully resolved Industry 4.0 China is a pluralistic multi-ethnic society, and the development of the gradient is very large, and its volume is equivalent to the whole of Europe. Pure Manufacturing thinking is not enough, unrealistic and dangerous.

 

2) Italian design innovation system

 

Germany's short board is precisely the advantage of the Italian furniture industry, where the system that are in accordance with the entire industry ecosystem to build design-driven, relying on is based on small and medium enterprises as the mainstay of the industry cluster. Italian design from the current study, the scene of construction, to the conceptual design, as well as the final solution, consumers can always bring a different feeling surprise, and lead the global design direction, as shown in Figure 3.

 

 

 

Italian design has always stood in the forefront of the global trend, and lead the global design direction, I am afraid that no one will deny. But its design systems and soil, but little known to the people. This is not only because Italy:

 

The world's best production technology and engineering

Excellent model makers and craftsmen

The world's most important design reviews

The world's most famous design exhibitions and related activities

The most prestigious design schools

Design of the most prestigious public research institutions

Art gallery, an outstanding retail and flagship store

 

Italy not only has a mature, cutting-edge and evolving significant, profound theoretical system design, but also has a fertile soil design. Highly specialized division of labor between SME clusters is a full of innovation and vitality of social, cultural clusters economy more firmly than maintain a steady stream of endogenous motivation. In the northern region of Lombardy, has a design practice almost all the conditions, whether it is material, structure or technology, as long as the designer requested, it must be someone to help him to achieve, which is almost unthinkable in Germany, because Germany They are big business, no one is willing to open themselves a prototype and used in the manufacture of large-scale production lines.

 

It has a long history and cultural traditions. Italy there are two things a profound impact on the progress of human civilization, one of the Roman Empire, laid the foundation of Western civilization, if not of the Roman Empire, there is no contemporary Western civilization; the second is the Renaissance.

 

Industry 4.0 is based on mathematical logic deduction, the context is very clear, easy to understand; but the design innovation system invisible, intangible, and therefore hard to see, hard to understand, but also inexplicable. But the design have never had, nor should have standard answer, because of this, it has unlimited creative space, only with infinite charm. Purely rational thinking design can not restore the whole picture, we can not explain the magic of the design world.

 

Design is a philosophy, and only rely on philosophical thinking in order to comprehend the true meaning of design and innovation system. If the German Industry 4.0 is "art", then the Italian design innovation system is the "road."

 

3) China's national endowments

 

China is geographically vast, equivalent to the entire Europe, the population is not comparable to any Western country, but is also a long history, is the birthplace of the whole of Eastern civilization. The West Rome, East has China.

 

The rapid development of contemporary China, everything is far from being finalized, therefore no single, narrow and static thinking is undesirable, we should all beneficial nutrients eclectic other civilizations, and on this basis, give full play to all their strengths, self integrally. Among them, China's national endowment is our own special soil, the future shape of Chinese furniture products and industrial system is inseparable from this endowment. This includes our unique resources, history and culture, the superstructure, the social basis, geographical differences, national literacy, values, development gradient and so on.

 

Contemporary Chinese furniture, we believe should be the new modern Chinese furniture Chinese furniture distinguish the two concepts, which has a relatively figurative stylish and distinctive Chinese elements shape, have a direct and straightforward performance in the international arena high recognition, but also large limitations. It can become a modern Chinese furniture system is an important part, but the inclusiveness and tolerance of the former should be greater, the higher the degree of internationalization. We envision the state should be in China has a deep meaning, but it is to the elements and to the stylized.

 

Scandinavian modern furniture, there is no obvious Scandinavian specialties figurative elements, but with Nordic "soul", that is practical, natural, human and pure. Italian modern design is no set style and set on the potential elements, but there are also the core of the academic idea that 3E concept, namely: aesthetics (Estetica), ergonomics (Ergonomia) and economy (Economia).

 

China should uphold what the concept of modern design, has not been determined, nor to the conclusion when, but also to explore and develop, and that this requires the joint efforts of academia and industry, both inseparable designer groups adequate design practice, also requires theorists and thinkers farsighted lofty vision and deep insight. However, the characteristics of contemporary Chinese furniture is not completely without trace, but there is a signal, though this signal is relatively weak, the market trend changes over three decades has left its trajectory. In an ideal world the value orientation of consumers under the influence of cultural and academic circles has been in the game among the invisible but powerful manufacturing for their own survival and development, more forward by compromise, but academia is not nothing, but weather conditions are not mature, in line with the Law of Development of the tide will eventually wash away everything backward ideology, subculture, after all, is not the culture, mainstream culture to sub-culture will not accept indefinitely, but will be filtered, be selective absorption, and survival of the fittest, renewal. We also need time.

 

Chinese furniture manufacturing and distribution system should match the above product form, as shown in Figure 4, for a long time, its basic features will remain diversified. Both the most modern manufacturing methods, including industrial 4.0, there are traditional handicraft production, and more organic form would be a combination of both as well as derived from the complex system, the machine can be used to do by hand is not better thing, but the machine can do the impossible, and therefore to improve its value.

 

Meanwhile, both large industrial system, there are highly specialized division of labor, small and medium enterprises as the mainstay industry cluster. Existing common, standardized operations and production lines, there are plenty of vacancies is still very sophisticated equipment. Both centralized and more differentiation. Centralized for efficiency, and differentiation in favor of innovation.

 

 

 

 

three.

Industry structure

 

The future pattern of China's furniture industry has a pattern, regional and industrial patterns and other characteristics of the three main geographical territory.

 

1) geography

 

Geography of China's furniture industry is being reset, industrial transfer unstoppable, its rules and the main driving forces in the following areas:

 

① coastal migration to developing regions, a blank area to the mainland, developed areas, shown in Figure 5;

 

 

② industrial transfer driving force from the lower costs to develop new markets;

 

③ consistent pattern of industrial transfer destination country of two vertical and three horizontal, shown in Figure 6;

 

 

④ eventually form a relatively rational and balanced industrial networks.

 

2) Regional characteristics

 

Currently the regional characteristics conferred by the China Light Industry Federation and the China Furniture Association, a total of 37, two years ago statistical data is 25, including 22 for the manufacturing category, three for the sales distribution class. As shown in Figure 7.

 

 

 

Distribution of this historical pattern is formed not easily change, but also a profound impact on the new layout. But the national format is quietly changing, industry must have a future upgrade.

 

3) industry form

 

Industrial patterns include three traditional industry clusters, vertical and horizontal joint enterprise with the emerging industry parks. Overall, to the front of the "industry attributes" and "product form and industrial system" consistent and in accordance with their own characteristics good positioning. Then, to dedicated industrial upgrading, including:

 

① upgrade production means and equipment. A small amount of concentrated, social division of labor, a lot of differentiation is a necessary condition.

 

② clusters and enterprise features and functions of the upgrade. We must improve their management level, improve quality and reduce costs.

 

③ product upgrades. Constantly improve old products and develop high-quality new products to improve product performance and adapt to social lifestyle changes.

 

④ value chain. Halter companies to move towards the ends of the smile curve chain, with particular emphasis on services and experiences. Customization is an important service, but it is only one aspect, far from all of them.

 

The traditional characteristics of the region, we must solve the problem of evolution. Based on trends, repositioning, carding product structure and industrial structure in the region, including the type of business and its scale. Build public technology platform, focusing on cultivating the soil. Emphasis on regional brand building and communication.

 

For vertical and horizontal joint enterprise, the future Chinese furniture enterprise community is still a few companies to precipitate as large in the Red Sea market, and even large enterprises, and will lead to a number of satellite companies jointly develop, but TOP10 companies accounted for the total share of the market will not more than 10%. Business groups will continue to be dominated by SMEs. But to survive or breed out of small and medium enterprises is not now the highly homogeneous state, but in all segments of the design innovative enterprises.

 

For the new industrial park, the day after tomorrow as made out of artificial enclave, the need to address two issues: the reality of survival and sustainable development. The former problem is not large, because the presence in the market who are generally guaranteed circumstances network investment and construction, but the latter must attach great importance to the long-term positioning it with the park and the accumulation of resources and capacity building with matches They are closely related.

 

Chinese furniture industry glorious future depends on everyone to work together, work together to build. Various stakeholders and shoulder common responsibility of industry and society, their need to make a difference, as shown in Figure 8.

 

 

 

While we advocate responsibility and role, but a realistic point of view, this alone is not enough, so also need to consider the value of exchange and balance of interests, a small pattern based, pattern of targeting. So, we have reason to believe that Chinese furniture manufacturing country given from now true to the design and manufacture of power.

 

This dream is our generation historic mission, our responsibility.


Company Informations:
 
Kinmai Office Chair Co., Ltd
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