Yang Long: How to promote the internationalization of furniture brands

Enterprise Management Consulting Expert Yang Long

The coordinates in the global economic system are quietly changing. China, Brazil, Russia, India, Brazil, and South Africa are becoming the focus of economic issues. At the same time, the European and American markets are still suffering from pains in the process of recovery. Mr. David Yang, the chief consultant of China's famous enterprise consulting management and brand marketing management expert, and the chief consultant of Yuanda International (China) Management Consulting Co., Ltd., believes that the prospects have become clearer: China has surpassed Japan and become the second largest economy in the world. body. China's future will no longer be just a "world factory", but will also be the most promising "world market."

The picture of global economic geography is undergoing unprecedented changes. The car market is a measure of a country consumption The important reference for the level, and last year, China has surpassed the United States to become the world's largest auto market, ten years ahead of people's expectations. Hou Kepeng, secretary-general of the Shenzhen Furniture Association, expects that the furniture industry will also usher in the best opportunity for transformation. In the next five years, its market output value is expected to exceed the automobile industry and become China's largest industry.

Cao Hongfu, vice president of the China Brand Planning Alliance and director of the Furniture Committee, said in an interview that the Chinese furniture industry has experienced a period of infancy and early growth in the past 30 years. Now it is in the middle of growth and will not really be until after 2015. Enter the mature stage of growth.

The reshaping of the international furniture industry is taking place: on the one hand, a group of internationally renowned furniture brands have begun to enter the domestic market collectively and on a large scale, bringing a new wave of pressure to the already fierce domestic market. It also brings new choices to Chinese consumers. On the other hand, although there are many obstacles in the overseas market, some of the pioneers of furniture companies have bypassed the traditional path of simple foundry and OEM production. Beginning to test the internationalization of water brands, Chinese furniture brands have taken a valuable step in rushing out of the country. Even the best of the few furniture companies, although rooted in Asia, have gradually realized the internationalization and globalization of the brand.

One entry, one exit, industry convergence, market integration, and Vientiane update. However, in the process of convergence and integration, it is inevitable to experience various challenges and tribulations. Then, in the era of the reconstruction of the furniture industry, what is the path to re-establishing the future of the industry, and how to introduce new ideas? How to avoid all kinds of abnormal interference behaviors on the market, create a good market environment and competitive atmosphere, and finally achieve a win-win situation between international business rivals? How should the Chinese furniture industry expand its international market and achieve win-win with overseas professional buyers and consumers? What are the paths and models? How do foreign furniture brands enter the fast-growing Chinese furniture market, and while participating in the competition in the Chinese furniture market, what measures are there to avoid repeating the same mistakes? At the same time, how will local furniture brands respond?

What is the significance of the development of the Chinese furniture industry? How to promote the internationalization strategy of Chinese furniture companies?

Mr. Yang Yang, chief consultant of China's famous enterprise consulting management and brand marketing management expert, is the chief manufacturing company of furniture products in the world. And the two key indicators of "innovation ability", the gap between China and Japan, Germany, South Korea is still obvious. So far, China's internationally influential furniture companies are still few, and this status is not commensurate with China's "world's second largest economy" and "global furniture manufacturing base." What is urgently needed to break through in the Chinese furniture industry is brand and technology, especially the brand. It can be said that China does not break through these two major bottlenecks in one day, and it is not qualified to be called "global furniture powerhouse" in one day. Strive to achieve the brand breakthrough in the next 3-5 years, and then achieve technological breakthroughs, become the most realistic and urgent topic facing Chinese furniture companies. At the OEM stage of the Chinese furniture industry, the trend of industrial agglomeration is becoming more and more obvious, and Chinese furniture may face more anti-dumping in the international arena.

Brand strategy is a weapon for China's furniture industry to go international

Strengthening the construction of independent brands and promoting the transformation of manufacturing advantages of China's furniture industry to brand advantages will help maintain the sustainable development of the industry and help improve the competitiveness of the international market. However, not all companies can recognize this. There are always companies that believe that OEM risk is small, settlement is timely, and there is no potential risk of long-term lack of brand support.

According to incomplete statistics, there are at least 50,000 Chinese furniture companies, but no one company can occupy more than 1% of the market share of this industry. Although some enterprises have some popularity in China, they still have no place in the international market. Foot furniture brand. Experienced in a large number of furniture companies financial The brand's construction is particularly important in the context of the crisis, the appreciation of the renminbi, the export tax rebate, and the rise in raw materials, and the direct export to the domestic market. The lack of big brands has become the soft underbelly of the current development of China's furniture industry.

For many years, the furniture industry entrepreneur Many of them are doers, and they start from scratch, so they don't have the idea of ​​making a profit from the brand. But now the market has changed. The eyes of furniture manufacturers are not just quality, but rising to the brand.

With the strengthening of casual brand awareness, more and more enterprises have become more specialized, and at the same time, they have increased their advertising efforts and continuously expanded their publicity. Since 2006, the CCTV brand-building group headed by All-Friends has been born in the furniture industry. In fact, the advertising of furniture brands in CCTV began in the late 1990s, but the main methods of distribution are mostly suits and columns, with time difference, cheap price and less frequent. At this stage, the launch is bold and extravagant. In 2006-2007, the amount of investment by individual companies has exceeded 100 million. In particular, the Shuanghu took the lead in launching the CCTV bidding section advertisement, which used this as a starting point to set off a new situation for the furniture company CCTV. In 2008, the Hong Kong Dynasty furniture joined forces with the Olympics and became the sole supplier of furniture for the Beijing 2008 Olympic Games. This move will greatly enhance its brand image, and also take a solid step in the big brand strategy, but also play a leading role in the role of the leader, but the only one in the country's 50,000 furniture companies, it really seems to be weak. The huge team of the Chinese furniture industry really needs a general with an international image.

The trend of industrial brand aggregation is obvious

The international industry has turned to the trend of industrial concentration, and the development of the domestic furniture industry is in line with this. At present, China's furniture industry is still in the OEM stage, that is, it is in the stage of processing and order processing. Reducing costs is the most important step. Let's start with the scale of the industry, then get rid of the middle agents and pay attention to the marketing of the company. The development of China's furniture industry has entered the game stage, and the next step is definitely to take the cluster and scale development model.

So, how should companies respond to the trend of industrial agglomeration? The current market is for manufacturers to find dealers. If furniture companies want to be bigger and stronger, it is best to work together. "The furniture industry is already a strong player. Lin Li Only by doing the terminal well can the enterprise be invincible. ”

Mr. David Yang, the chief consultant of China's famous enterprise consulting management and brand marketing management expert, and the chief consultant of Yuanda International (China) Management Consulting Co., Ltd. believes that to make furniture go to the international market, the quality of the products must be improved first, such as sittings and beds. The technical grades of these products are still not enough, and they are currently products of the domestic general consumption level. To this end, furniture companies should promote new materials, cultivate international management talents, and strive for independent import and export management rights. The brand must scale, break through international trade barriers, and find ways to obtain international certification. After China's accession to the WTO, there are no major obstacles to tariffs, but there are technical barriers such as labor insurance and human rights.

In terms of sales, the proportion of export output is increasing, and after joining the WTO, the domestic market is becoming more and more difficult. In addition to the international market, the government and industry should do more in the domestic market to develop the upstream industry and supporting reforms.

Anti-dumping cannot be ignored

Domestic furniture companies may also encounter anti-dumping in one way or another. They should establish an early warning mechanism under the guidance of the government and strive for a complete market economy status. Enterprises should take the initiative to respond to anti-dumping, safeguard the rights of enterprises, and do not give up any market easily.

In the trend of furniture style, the minimalist style will undergo a major transformation. In recent years, the simple style has become popular, and even the pseudo-simple of individual products has appeared. The future trend will be combined with modern craft elements, combined with natural style, low-grade products will be difficult to make money. Companies can use new materials to increase the price of products, and modern materials to enhance the function of products, can attach importance to the design of furniture combined with real estate decoration genre.

Strengthen the proportion of R&D investment

Technology determines the product and the product determines the market. The low competitiveness of Chinese companies in the international market is directly related to the low level of technology of Chinese companies. At present, the proportion of R&D investment by Chinese enterprises (that is, the proportion of R&D investment to corporate income) is mostly less than 3%, and 5% can be considered high, while the R&D investment of international enterprises is generally 6-12%. At present, there are very few furniture companies in China that can reach this proportion.

Why are Chinese companies not willing to invest in research and development? The reasons are of course multifaceted. There are two main reasons for this: one is not enough attention to research and development. It is always considered that the investment in research and development is large, and it is not necessarily the output that is invested. It is better to invest the money in advertising. This is a matter of understanding. The other is that the heart is not enough. Although some companies also know that R&D is very important, they have no profitability and want to invest without money. As a result, the company is in a vicious circle: the lack of money for research and development leads to insufficient product strength, and the lack of product power in turn constrains the company's profitability. How to break this strange circle? I think that Chinese furniture companies must make up their minds, be willing to invest in research and development, and use technological breakthroughs to drive market breakthroughs.

Need to remind furniture companies that the development of the international market and the domestic market are very different, we must beware of "out of the fierce, come back fast", must do their homework before going out, the "Great Leap Forward" thinking is the most important,

In short, the development of China's furniture industry is a systematic project. It is necessary to coordinate both the domestic and international markets, as well as the brand and technology. At the same time, we must grasp the rhythm, stabilize and stabilize, step by step, avoid impatience. Advancing mistakes.