The impact of the current and future economic environment on the Shenzhen furniture industry in the next 3 to 5 years

The development of an enterprise is inseparable from the big economic environment. As the helm of enterprise management, only the familiar environment of the enterprise can make long-term planning for enterprise development. Hou Kepeng, executive director of the Shenzhen Furniture Industry Association, gave a keynote speech on "The impact of the current and future economic environment on the Shenzhen furniture industry in the next three to five years."


He mainly made in-depth analysis from three issues: first, the current economic environment and the main reasons for China; second, the problems in the Shenzhen furniture industry; third, the shaping of the core competitiveness of the Shenzhen furniture industry.

He talked about three phenomena in the industry:

First, the real economy is shrinking now, and finance is prosperous. Second, all of our factor costs are growing, but our industry is not innovative enough.

Third, the so-called "insufficient innovation" is mainly because we are not investing in human beings and talents. Because an industry needs to make progress, the most important thing is talents. Why is Shenzhen more developed than other places because of the human resources or talent structure? Other mainland cities are good.


What are the reasons for these three problems? First, the market is not good. Actually, there are external factors and internal factors. From the perspective of international factors, the economic recovery of the Western economies has hardly progressed from the 2008 financial crisis to the present. China’s growth of 7% is the number one. No country is 5%, 6%, 7%. The United States grew by 2% last year. In many countries in Europe, it is 1%, and some have negative growth. Japan has not even a few percent, and basically has negative growth.

Second, especially in the traditional manufacturing industry, many market shares, especially for the countries along the “Belt and Road”, especially low-cost countries such as Southeast Asia.


Third, the United States and Europe have a lot of manufacturing industry began to return. The export market should not be expected in the future. The biggest domestic problem is the shrinking consumer market. The shrinking consumer market has caused the manufacturing industry to shrink and consume insufficiently.



Shenzhen furniture industry problems

Shenzhen is not nothing. It has the advantage of industry first, and there is a group of Fujian bosses who have the advantage of intelligence and intelligence. This is not comparable to every region, and the number is large, the degree of accumulation is high, and there is nowhere else. Moreover, these companies born in Shenzhen, especially members of the Shenzhen Furniture Association, have a comparative advantage in terms of their ability to change and innovate than other regions in the country.

But we can't stay under this advantage. The biggest problem is that Shenzhen enterprises lack a strategic vision. The purpose of doing things is to make money. One year is to participate in an exhibition, and then open a store, and the dealers will pay for it. Basically, most companies are still at this stage.

Shenzhen enterprises must have a little sense of crisis now, and they must have a strategic vision. They should not just look at projects and open stores. Really have to think about how to make a brand. Software and hardware must be invested, otherwise it will not match.

The problem now is that Shenzhen enterprises are not strong in their ability to become bigger or stronger. Without such courage or enthusiasm, they will take the initiative to grab other people’s markets, but they will give up.



How Shenzhen furniture will shape its core competitiveness in the future

1. You may have seen the prototype. The Shenzhen Furniture Industry Association launched the “Chinese Furniture Premium” in March this year, so Shenzhen furniture should win with quality. The four green premium products companies that were first launched in China's furniture have basically met the requirements of the association after six months of rigorous and continuous monitoring.

2. Next, we will push a “Shenzhen Standard”. On January 1, 2016, this Shenzhen standard will be “Shenzhen Furniture, Home Furnishings and Hazardous Materials” jointly drafted by Shenzhen Furniture Industry Association and Shenzhen Government Habitat Environment Committee. The Limited Standard, of course, has a one-year transition period. For example, the release of formaldehyde in the board should reach E0 level, and most enterprises can't reach it now. The heavy metal content of the paint is higher than the national standard. There are two industries in Shenzhen that implement this standard, one is the Shenzhen garment industry and the other is the Shenzhen furniture industry. With reference to European and American standards, what are the strict Shenzhen standards? It is to create an advantage for Shenzhen, which is the uniqueness of Shenzhen to create competitiveness with other regions. Shenzhen quality and Shenzhen standards have been launched in the last two years. This is the need for the Shenzhen Municipal Government to transform or upgrade or eliminate backward production capacity.



2. How to shape our core competitiveness is “Furniture + Internet”. The Internet is a means, furniture as a traditional industry, how to use the Internet as a means to expand our market, I think this is the theme. Last year, the Shenzhen Furniture Industry Association subsidized 3 million and encouraged ten companies to do “three-dimensional homes”, so that we can more flexibly grasp terminal data. The biggest value in the future is data resources. "Furniture + Internet" aims to "+ big data on the Internet". At present, the association is preparing to set up its own big data company to establish contact with the terminal with the system software "made in Shenzhen".

3. The strategy should consider the future growth of the enterprise from the perspective of vertical integration of the home. Do not regard the customization as so mysterious, nor ignore the ability of the active furniture itself. They cannot replace each other, but this does not mean that they cannot enter them. industry. Because the current house is a hardcover room in the future, especially in the metropolis below 90 square meters, has not been waiting for customization has been cut off, Vanke's current house is hardcover. Companies that now do active furniture have the ability to cross the custom enterprise directly into the hardcover field because their design capabilities and processes are no worse than custom companies. Today, this analysis will be held at the Home Furnishings Show, and it is also hoped that the furniture companies will place orders for the jewelry companies. From interior furniture to furnishings to furnishings, furniture is an intermediate link that is most likely to integrate upstream and downstream industries.

4. If you want to be a brand, you must have a strategic mindset if you want to establish an independent image of “making in Shenzhen”. The so-called strategic thinking has laid out the strategic consciousness of the whole country. This layout is not just about opening a store to the whole country. It is necessary to establish its own manufacturing center and distribution center in all major regions. This custom enterprise has already reached the front of Shenzhen enterprises. Sofia enterprises have already completed the bureau in East China, North China and Central China. The basic layout of Shenzhen enterprises has just begun. The furniture is about to be laid out in East China. The factories in Suzhou are capped. Several small and medium-sized enterprises are in Xinyang. The layout is complete. Most of the enterprises did not start, and the Shenzhen position quickly disappeared. The manufacturing industry, especially the furniture industry, was not encouraged by Shenzhen.

Fifth, the Shenzhen Furniture Industry Association is now in the Nanshan Planning Headquarters Base, the product display center and the enterprise R&D center. The exhibition halls and R&D institutions of Shenzhen's outstanding brands can be concentrated in the urban area of ​​Shenzhen with developed transportation.



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