Shoe Leather Industry Adjust Market Strategy To Cope With Low Speed Growth

Rise!

Rise!

Rise!

The price of paint, cloth, timber and rents rose.

Fall!

Fall!

Fall!

The volume of new residential pactions in Guangzhou and Shenzhen has dropped.

In the first half of this year, Guangdong, which occupies half of the country's furniture production and export, has gone through trials and hardships.

Reporters learned from the statistical data of the Provincial Furniture Association, influenced by a number of major policies and international economic situation, the basic operation speed of the furniture industry in Guangdong slowed down, showing a moderate growth trend; the total sales value of furniture in 1~6 was 79 billion yuan, an increase of 12% over the same period last year.

Among them, exports increased by 23% over the same period last year, which has changed from negative growth to faster growth at the beginning of the year, and domestic sales grew by 5% year-on-year.

Raw materials and rents are rising to curb production capacity. The industry association of Provincial Furniture Association said that the reason for the slow growth pattern in the first half of the year was mainly due to four points: first, the cost of production increased considerably.

The prices of raw materials such as steel, paint, leather, cloth, imported wood and domestic wood-based panels increased, and the profits of enterprises contracted. Secondly, energy shortage, the main furniture producing areas of Shunde and Dongguan were "three stop four" phenomenon; third, the implementation of the new labor law increased the total cost of human resources by 20%~30%, accounting for 2%~3% of the total sales value of enterprises; fourth, the price of products increased, and the prices of products adjusted by enterprises to reduce discounts or new products increased by an average of 5%~10%.

According to Mai Junmian, director of Lecong economic and Trade Commission, Lecong furniture enterprises in Shunde entered the double pformation period in the first half of this year, mainly focusing on domestic sales, and the export increased significantly. Exports from tens of millions of dollars to tens of millions of dollars in the past year.

According to Yuan Shihao, President of Dongguan Furniture Association, Dongguan has shifted from a strong export to a reduction of exports and expansion of domestic sales. About 90% of Taiwan funded enterprises have closed down about 30% of their production capacity, and continue to produce their businesses in Vietnam.

Statistics from the provincial furniture industry association show that in the first half of this year, a total of 300 small and medium-sized furniture enterprises were closed up in Guangdong.

Mainly due to the reduced capacity of Taiwan funded enterprises, many small and medium-sized enterprises that processed parts for Taiwanese enterprises are difficult to continue, and the next is those small businesses with poor quality and unlicensed production. About 70% of the domestic enterprises are closing down about 30% of their capacity.

At the same time, as the main channel of sales, the rental of furniture stores is rising. In the current furniture market, sales are not booming, and the furniture market is expanding. The rents of some large and super large furniture markets in Lecong are constantly improving. Some of them are already up to 400 yuan ~500 yuan per square meter per month, causing furniture dealers and enterprises to complain incessantly.

It is worth mentioning that the expansion rate of most enterprises slowed down in the first half of the year.

Because there are many uncertainties in the development of the industry, at least the general investment in new factories and new equipment is suspended, and 1/3 of the projects are halved.

Among them, Guangdong's Huizhou, Sanshui, Heshan, Gaoming, South China Sea and other places have begun to undertake the industrial pfer of some furniture enterprises in the PRD furniture industry, and some Guangdong enterprises have slowed down to the Yangtze River Delta and the Bohai rim.

Wang Ke, executive vice president of Furniture Association, said that the key enterprises of furniture in Shunde and Dongguan should actively formulate strategies and pay attention to the development trend of the industry.

In the next few years, the furniture industry in Guangdong is still in a period of adjustment. This year's situation has accelerated this process, and enterprises will further develop towards specialization. Some enterprises will grasp the brand of product design and market sales, including the first line, second line and three line brands. A considerable part of the enterprises will become the OEM factories of brand enterprises, specializing in the production of furniture parts and blanks. Some of them will not be able to become brands or be willing to make OEM factories between brands and OEM. Some enterprises have declared bankruptcy, which is in line with the objective laws of market economy.

In this regard, the backbone furniture enterprises should reposition, determine the next five years of business law and your direction, formulate corresponding strategies and tactics, striving for healthy and steady development in the new round of adjustment.

At the same time, enterprises should actively implement pformation and grasp the proportion of exports and domestic sales.

Enterprises that rely on exports for a long time should try to expand domestic sales.

Export is the main factor and domestic sales supplement.

Fully domestic enterprises can also try to develop some international markets, mainly domestic sales and exports.

Speaking of growth expectations in the second half of this year, Wang Ke said that the overall situation of Guangdong furniture industry is expected to be better than the first half of this year in the second half of this year, but the difficulties still remain heavy, with export growth likely to drop, and domestic sales growth will be larger than that in the first half of this year.

The total annual value is expected to reach 184 billion yuan, an increase of about 15%.