Jin Fu Ya Luo Xu: In 2011, the market was “difficult to do”, anti-acceleration market standardization process


The internationally renowned furniture (Dongguan) exhibition, known as the “Important Engine of Houjie Economy”, kicked off today (September 5). The exhibition is the fourth largest furniture exhibition in the world. The exhibition is the 26th, with an exhibition area of ​​270,000 square meters and 936 exhibiting companies. This year's furniture exhibition, what new highlights will attract the attention of many inside and outside the industry? Send a joint report group from Beijing, Shanghai and Guangdong to report on the exhibition in all directions!
[Time] September 5, 2011 [Location] Dongguan Houjie Business Center [Guest] Guangdong (Foshan) Jinfuya Furniture Co., Ltd. Deputy General Manager Luo Xu [Reporter] Li Yangjing Guangdong (Foshan) Jinfanya Furniture Co., Ltd. General Manager Luo Xu [Reporter]: Hello, Mr. Luo, thank you very much for your interview. Today is the second day of the Dongguan Furniture Fair. What new products have we brought to this exhibition?
[Luo Xu]: Our booth is in Hall 3, which is the pure solid wood furniture of Dreams, and then the simple French furniture of Muxi Love and Rose. It is fashionable to have leather sofas and leather beds on the 1st floor of Hall 5 Then there is a dreamy aristocrat in Hall 6, which is a European-style teenager of all solid wood. In addition, there are rural and rural styles, a little old-fashioned teenagers. We are mainly based on slate fashion adult and children's furniture. The children's furniture is mainly solid wood, one is Nordic style, the Finnish pine series, and the whole The dreamy aristocrat of solid wood.
The products are set to have high and low points. The investment areas are different. [Reporter]: It is also a very effective way to attract investment through the exhibition. I have learned that some enterprises have mainly targeted first-tier cities in the past, but many companies have found this year for third-tier cities. Even sinking to a four-tier city, do our companies have a focus on the investment promotion area?
[Luo Xu]: The focus of our various brands is different. The brands participating in this exhibition are mainly based on the first- and second-line markets, because its product positioning and market positioning are relatively biased. We also make villages, solid wood. Yeah, aristocrats, are mainly high-end children's furniture, so the consumer population is mainly in the first and second class markets, but other brands like the color of the emperor lotus and the Korean style of the meditation, the color of the happy station, These are slowly sinking into the third-tier market.
[Reporter]: It is still selected according to different brand positioning.
[Luo Xu]: Because the layout of our brands in the first-line market has basically been completed in the past few years, it is mainly based on the third-tier market, which is the county-level city.
If there is no better material to replace the demand for solid wood furniture will continue to increase [Reporter]: I just saw that this exhibition is solid wood furniture, it can be said that the solid wood furniture market is a bit confused in the past two years, how do you think about this phenomenon Now, more and more companies are beginning to engage in the industry of solid wood.
[Luo Xu]: It should be said that the income level of people is constantly improving, and the concept of consumption is also improving. After all, the traditional thing of furniture is that it has been made of solid wood for thousands of years, giving an impression that solid wood furniture is used. It is environmentally friendly. Although it destroys the environment, people always think that the practicality of solid wood furniture is very high. From the ten or twenty years of domestic production of pure board furniture, later to make board wood, now do all solid wood, this is the material Ascension, because there is no better material to replace it now, the demand for solid wood furniture is getting bigger and bigger.
In 2011, the market was “difficult to do”. It was a process of regulating the market. [Reporter]: When I interviewed many CEOs, they said that the market was not good in 2011. On the one hand, due to the pressure of the store, on the other hand, the price of labor, logistics and raw materials. The rise has made the days not too good. I don’t know how our company has been in the first half of the year.
[Luo Xu]: In the first half of the year, we still have growth compared with the same period. The growth rate has decreased compared with previous years. The growth in the past few years was over 25%, generally 30% and 40%. This year only increased by 100%. More than ten.
[Reporter]: The double-digit growth is still OK in this year's market environment.
[Luo Xu]: We feel that this year's market is more difficult to do, and it is also a trend to regulate the market. It may be too easy for everyone to do the market before.
[Reporter]: There are people who want to sell furniture a few years ago.
[Luo Xu]: There are still people to grab.
[Reporter]: It’s not going to work now. I want to advertise and do all aspects of marketing.
[Luo Xu]: This is very normal. It is a sign of maturity in the industry. Not everyone can make a profit. There is a big difference between doing good and bad. Before you do it, you work hard and gain. He There are few efforts and gains. Now you have no chance to gain less effort. This is an inevitable trend in the development of the industry. Other industries have already completed this process. Like the home appliances and other industries, the furniture industry has entered the law of economic development.
[Reporter]: You just mentioned that, according to the positioning of the brand, there are differences in the choice of some investment cities. How are our enterprises distributed in terms of channels?
[Luo Xu]: Our first- and second-tier cities mainly rely on dealers to join the specialty stores. Now that we are starting to do county-level markets, we will consider doing regional general agents, and now we are doing some regional general agent pilots.
Enterprises do not have the ability to open an independent store. The weight of such a large store will only be crushed. [Reporter]: Let's join the first- and second-line stores. The pressure is relatively large this year. Many companies have opened their own independent stores. I think our products are very comprehensive. Is there any plan to open an independent store?
[Luo Xu]: There are ideas, because opening independent stores, in addition to product improvement, including promotion, management, sales, there are still some basic work to do, everyone wants to open independent stores, from the perspective of cost, brand development, market The angle is definitely good, but when you don't have the management ability and the operational ability, if you do the independent store, you may not be able to produce benefits. At this time, for the brand, the enterprise will have a negative effect, maybe You don't have this ability, you have to carry such a big weight, and then you will be overwhelmed.
The combination of online and offline is the main mode of promotion in the home industry. [Reporter]: We have discussed the issue of independent stores just now, and then discuss e-commerce, because e-commerce has a particularly high voice this year. What do you think of e-commerce as an emerging channel?
[Luo Xu]: I think that with the development of the Internet, a large part of people's information is obtained from the Internet, but other industries are more advanced. Buying electrical appliances can be bought online and can be delivered in a short time. However, there are a lot of uncertain things in furniture. It is different to look at photos and physical feelings, especially the positioning of high-end furniture. The main display is not this product, but the home culture. This kind of thing is difficult to display on the Internet. The sofa can see its style, but it is very important to have a sense of sitting, which is not realized on the Internet. The combination of e-commerce and physical store promotion should be a model for the promotion of the furniture industry at this stage.
[Reporter]: It is complementary online and offline.
[Luo Xu]: It is more difficult to promote it entirely by e-commerce, and the logistics system of the furniture industry has not been perfected yet. There is also an after-sales service. Sometimes such things are inevitable and sometimes have problems with bumps. After the emergence, if there is no fixed service channel, or the service channel is not very sound, this thing will be difficult to do.
[Reporter]: You just talked about your feelings from the after-sales and experience. There is still a point of view. If we sell products online, it may have a certain impact on offline dealers. Do you agree with this view?
[Luo Xu]: This is a narrow angle of consideration. As a company, its profit or sales is not only in the channel, not just in the dealership, or the dealer should relax the idea, the furniture industry Is to sell the product to the dealer, the dealer sells it, the dealer earns how much money, how much money is lost, the profit on the entire brand chain has a fixed proportion, but I think if there is a new model, it is completely Can be changed.
[Reporter]: Finally, please tell us what kind of plans do our company have in the second half of the year?
[Luo Xu]: Because these brands are not available for a long time, these brands are in strategic markets, and there are strategic markets for radiation, such as Beijing, Shanghai, Chengdu, Chongqing, Guangzhou, and Shenzhen. The first-tier cities are at least 10 million. The consumer groups radiate the city and lay out the strategic market outlets. Other jobs are to sink to the third- and fourth-tier cities, and to provide good service and logistics distribution.
[Reporter]: I am very grateful to Mr. Luo for accepting our interview. Finally, I wish you a successful exhibition.

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