Since the beginning of 2014, the furniture industry has been ups and downs, and there are people who have bankruptcy and wages. And "transformation and upgrading" is the eternal theme of the people in the circle. In the words of the author, the days of "furniture 'local tyrants' are not so good." In my opinion, "openness, practicality, responsibility, change, management" are the five key words for the survival of enterprises.
Recently, the furniture industry can be described as ups and downs, Bailan mattresses posted bankruptcy notices, Huayuanxuan IPO was blocked, and it was caught in financial difficulties; Fuzhi Island exposed 10 million wages in arrears of production line workers; at the same time, Xilinmen, around, and home Enterprises such as Scoxin disclosed the growth of the company against the trend. Some people say that today's furniture companies are facing transformation and upgrading. This sentence seems to be listening to the day from the author's step into the furniture circle. This sentence is correct, but not today, but every day, because furniture companies are also enterprises, enterprises will face life and death. Looking at the enterprises in the world, which one is not facing the transformation and upgrading every day, want to live and live better?
Listening openly: the boss can't have money, and the heart is small.
Today's world is a world of information integration. Whether you want it or not, the direction of this world will become more and more open. The furniture industry is a traditional industry with low technical content and low entry barriers, which has led some prospectives to be short-sighted. According to incomplete statistics, the number of small and medium-sized enterprises in Sakaguchi has closed at no less than 300 this year. Two years ago, the sales volume of a well-known furniture company in Suzhou was nearly 100 million yuan. It is difficult to break through 30 million this year. In the past few years, the company began to pursue big brands by earning some money. Instead of adopting suggestions from dealers and industry insiders to improve existing products and strengthen research and development, the boss is arrogant and self-sufficient, can’t listen to market information, and thinks that he Already ok, only now has the end.
Openness, not only refers to the opening of market information, but also the opening of the boss's thinking. Some bosses have money, the bones are hard, but the heart is getting smaller, and they can't get used to the manager's style of doing things. This kind of business owner abounds in the furniture industry.
Down-to-earth: income has increased and the head has to be upgraded
In the past few years, there have been many people who have made a fortune due to furniture. It is a good thing and a bad thing to have money. The furniture bosses who have money start to buy luxury cars, buy land, and set up factories. If they don’t have enough money, they can borrow from banks or find loan sharks. When the profits of furniture companies fell today, the ability of companies to repay their debts was insufficient, so they had to close. There is a Jiangxi Chamber of Commerce, with annual sales of around 50 million, and suddenly declared bankruptcy in September. Due to the joint guarantee of the Chamber of Commerce in previous years, the land was valued at a high value of 10 million yuan from the bank, and the loan was estimated to be 20 million from the bank. Today, there is no ability to repay the bank loan. Finally, the Municipal Labor Bureau came forward to sell the property and pay the workers' wages.
Similarly, Huayuanxuan IPO was blocked, and the previous big moves were all to pay, and financial difficulties became a reality. The income of the furniture company has increased, but the head has not been upgraded. The judgment of the future is much higher and farther away. The market environment is slightly changed, and the enterprise can't afford it.
The competition of furniture companies is slowly transforming. In the past, I was looking for a so-called master to come over and make a training slogan. I pulled several products to bombard the exhibition at the show. The era of superficial efforts is coming to an end. Furniture companies should work hard on products, work hard in terminal store management, work hard on team building, work hard in after-sales service system... Establish a systematic enterprise operation mechanism and a more pragmatic investment development plan to survive.
Responsibility: This is courage and ability
The corporate structure determines the future of the enterprise. A company that does not take consumer health as its own responsibility has been unable to go on. A company that aims at short-term interests is also destined to survive. Being responsible for the industry is a kind of courage and a capability. This includes not only leading the development of the industry, but also focusing on the health and comfort of consumers in the industry product standards. Are companies that still cut corners and harm the interests of consumers, and the future?
Embrace change: change to death, change to death
With the rapid development of Internet thinking, traditional furniture companies face the challenge of new things. Take e-commerce, for example, embracing change, not only refers to the fact that all people are e-commerce, but should include Internet thinking in terms of product direction, new category development, business management, market model, and storefront marketing model.
There is a furniture factory. The original business was based on their relatives and friends and some old employees. With the development of the company, new talents came in and conflicted in the work. The boss is reluctant to adjust his original entrepreneur, but the old staff does not embrace change, and the company has closed down in 2008. Appropriate talent flow can make companies more energetic. A pool of stagnant water, what is the face of external competition? There is a saying that is good: "Unchanged and died, changed to find death." A company lacks awareness of market crisis, and the rest is lazy and inert.
Fine management: the days of furniture "local tyrants" are not so good.
It is understood that 80% of the management model of Chinese furniture enterprises is still extensive, and it is in a relatively backward and traditional state in terms of marketing, brand operation, production, team building, and cultural advocacy. Marketing lacks basic system operation and team building is simple. By human nature, production is even more messy...
Some people say that the furniture business owner is a "local tyrant", that's right. Compared with other industries, the gross profit margin of furniture is still above 40%, and the net profit is only about 10-20% or even lower. As the market competition pressure intensifies, the real estate market shrinks severely, the market profit margin becomes smaller, the labor cost shows an increase of more than 30%, the days of furniture local tyrants are not so good, the extensive management must be changed, and the refined enterprise operation potential It is imperative.
The establishment of a refined enterprise system has also been done by many furniture companies. The result is that enterprises are staggering, personnel are lost, and difficulties are being implemented. The core reason is that enterprises lack cultural roots. Some people don't understand corporate culture and make it illusory. To put it simply, the corporate culture is to let employees work hard in your place and to make progress together with the company. As a business owner or executive to establish and create this cultural atmosphere, its own improvement is particularly critical.
Transformation and upgrading is not a day or two, but a theme that we face every day. When did you start practicing? Just today.
For more information on China's furniture industry, please pay attention to the official website of Xianghe Furniture City ().
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