The furniture industry faces difficulties and should increase the concentration of brand development

In the past 30 years, with the rapid development of China's real estate industry, the furniture industry has also achieved rapid development. But finally this strong development stopped and entered a "cold period" of the industry. With the increase in domestic labor costs, factors such as the appreciation of the renminbi. The extensive production mode of the domestic furniture industry is no longer suitable for development.

At the “2013 China Home Furnishing Industry Summit Forum” held recently at Shanghai Global Harbor, the guests thought that the industry reshuffle effect had already appeared. Enterprises should develop towards branding, and the concentration of the industry should be improved. Wang Zhongming, secretary general of the National Federation of Industry and Commerce, said that China's household industry has an output value of more than 1 trillion yuan per year, but no company can account for more than 1%. The industry should create a stronger super-large enterprise and compete with international groups.

In fact, China's traditional textile industry has entered the "cold period" of the industry a few years ago. With the competition in the market, the textile industry has produced a large number of super-large enterprises. In the case that the international financial environment is not good, many small and medium-sized enterprises have stopped, and these excellent super-large enterprises still lead the textile industry to rise steadily.

For example, Youngor, a super-large enterprise in the textile industry, achieved operating income of 7.789 billion yuan last year, up 47.2% year-on-year; among which, the branded apparel business realized revenue of 2.149 billion yuan, a year-on-year increase of 3.97%. It is estimated that in the second half of 2013, 20 million meters of yarn-dyed fabric capacity will be added. Yago is a manufacturing leader with mature technology and scale production advantages, and will enjoy the concentration increase in the redistribution pattern after the global industrial transfer. The first bonus is coming.

In the current predicament of the furniture industry, we should increase the concentration of the industry, develop a number of outstanding enterprises, and achieve brand development. Through its own investment in technology research and development, effective integration of the supply chain, and the establishment of an effective business model, it attracts more human resources, and has acquired more market resources and at the same time obtained considerable benefits.

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