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  • You are here: Home-> News->home shopping malls is shutting down, online furniture business is growing

    The raw material of office furniture is mainly wood. The current growth rate of wood is far from keeping up with the needs of the society. The supply cannot satisfy the demand. The price increase is inevitable. Especially since the beginning of this year, the price of wood has been rising, coupled with labor costs and Logistics costs have also shown a rising trend, which has led to a continuous decline in the profits of furniture manufacturing companies, and even some companies have fallen into a loss situation. This, coupled with fierce market competition, has caused office furniture brand distributors to suffer.

     The reasons for the tight market supply are: First, the global protection of the ecological environment, prohibiting illegal logging, resulting in a sharp drop in wood production; Second, the abnormal changes in the climate in recent years, but also to reduce the overall amount of timber fell; Third, the upstream raw material processing enterprises As production and transportation costs increase, there is a clear lack of underemployment.

           Another important reason for the tight supply of the market is the sharp drop in timber exports that occurred after the tsunami in 2004 in the Southeast Asian region, the traditional timber import destination of China. Countries such as Thailand, Malaysia, Myanmar and Indonesia are the major suppliers of timber imported from China, and Indonesia, in particular, has been ranked among the top three suppliers of imported timber in China before 2003. However, these countries are victims of the tsunami. The damage to the houses is very serious and the economy is also affected. Due to the large amount of wood needed for reconstruction after the disaster, the export volume of wood must be affected. The tsunami also caused damage to the port and the stagnation of sea transport, resulting in tight transport capacity and rising freight rates. As a result, the timber market was often out of stock and out of stock. Therefore, the tsunami in Southeast Asia has a considerable impact on the price of imported timber in China.

    There are three reasons why the home store closes down: First, the home industry is a downstream industry closely related to the real estate industry. The trend of the real estate industry determines the direction of the home market to a large extent. This round of the tide of home shopping malls closed down, and the country continues to strengthen the real estate macro-control, the property market trading volume has shrunk dramatically, leading to a reduction in the flow of household stores is closely related.

          Another important internal cause of the slump in home building materials stores is the blind expansion of stores in recent years. In recent years, as the real estate industry continued to heat up, many home stores began to “snack” around major cities in the country. More and more vendors are pursuing the monotonous scale. With the excess production capacity on the upstream and the blind expansion of the stores, the brands of famous home stores have experienced problems such as a decrease in the occupancy rate and difficulty in attracting investment. It is not surprising that small and medium-sized stores are closed down.

         In order to retain merchants, there is bound to be a rent war between the stores and the stores. In the future, the phenomenon of rent reduction or rent-free will probably occur in large numbers. At the same time, there will be price wars and service wars between the stores and the stores. Consumers are expected to become the ultimate beneficiaries. They can buy better products and more thoughtful services with less money.

         The more sluggish the industry is, the more necessary it is for home stores to analyze the situation calmly, to improve their internal strength, plan their own product positioning, and improve their management capabilities. Stores should rely on new formats, better services, better management, and stronger marketing to retain consumers and find their place in the competition.