Redwood furniture enterprises move to second and third tier cities

2012 is an important year for China to implement the “Twelfth Five-Year Plan”, and the cultural and creative industry will become a national key development project. As one of the representatives of traditional Chinese culture, mahogany furniture is full of Chinese 5,000 years of history and culture, providing opportunities for those who pursue spiritual life to enjoy more traditional Chinese culture.


In recent years, with the development of urban economy, the disposable income growth of urban residents has been relatively flat, while some second- and third-tier cities have entered a period of rapid growth, and the disposable income level of residents has increased rapidly, and it has also attracted many investment enterprises. look. Since 2008, the number of mahogany furniture enterprises has continued to expand, and mahogany furniture has also developed rapidly in second- and third-tier cities. The prospects are considerable. Many mahogany furniture companies have begun to march from first-tier cities to second- and third-tier cities to gain more market share.


Throughout the entire mahogany furniture market, we can easily find that many large-scale brand enterprises continue to expand the market scope, and second- and third-tier cities are also their key development areas, such as Zhejiang Red, Zhongshan Hongguxuan, Zhejiang Dongyang Mingtang Redwood, Zhejiang Dongyang CITIC Redwood and other mahogany furniture enterprises, its sales outlets throughout the country's major cities.


According to many mahogany merchants, opening stores in second- and third-tier cities, the cost of sales is much lower than that of first-tier cities, which can reduce some expenses. Coupled with the impact of national macro-control policies and financial crisis in the past two years, first-tier cities Relatively tight. Therefore, the second and third-line markets have become a must for many development strategies of mahogany enterprises.


For mahogany furniture dealers, investing in second- and third-tier cities can save a lot of input costs. Under the same profit, the rent pressure and labor cost of second- and third-tier cities are relatively low.


"Since the second half of 2011, due to the impact of the international economic situation, China's regulation of the real estate industry has impacted the mahogany furniture market in the first-tier cities, while the second- and third-tier cities have relatively loose purchase policies, and their markets have not been fully tapped. The development prospect is great. It is also one of our development strategies to go to the second and third tier cities to develop the market. At the beginning of this year, we opened new stores in Wenshan City, Yunnan, Nanjing, Jiangsu, and Guilin, Guangxi.” Zhongshan Hongguxuan Furniture Co., Ltd. The person in charge said this.


The reporter also learned that many mahogany furniture companies not only lock their eyes on first-tier cities such as Beishangguang, but also listed second- and third-tier cities as key development areas. Even the four-tier cities will become the scope of their sinking, showing their power. Big.


As we all know, things have their two sides. Second- and third-tier cities obviously have huge market potential, which can increase sales and occupy more and larger market share. However, the regional economic development in the second and third tier cities is uneven, the market lacks regulation, and the mahogany furniture market may be relatively chaotic. This requires mahogany furniture enterprises to recognize the market situation of second- and third-tier cities, rationally adjust product sales strategies, understand the consumption levels and needs of their residents, sum up experience, make long-term preparations, tap various potential business opportunities, and achieve brand promotion.

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