China's small and medium-sized furniture enterprises break through six countermeasures

In recent years, under the influence of unfavorable factors such as shrinking consumption and rising costs, the pressure on the survival of furniture manufacturers has increased greatly. Many enterprises have either withdrawn from the market or struggled to survive. As a furniture manufacturer, Baisheng Tianmu actively explores countermeasures under the premise of ensuring product quality. Recently, the author interviewed Mr. Wang Tianzhu, the general manager of Baisheng Tianmu Company. The following is his suggestion of “safe winter” for various difficulties faced by the furniture industry.

Dilemma 1: rising raw material prices

Countermeasures: Improve the process to improve the utilization of raw materials

The biggest waste in the whole furniture making process is that there are too many scraps. Baisheng Tianmu is specially made of pine furniture. For the sake of beauty, it is necessary to cut off the place where the scorpion is cut, which causes a great waste. In the production process of furniture, under the premise of ensuring product quality, improving the production process and improving the utilization rate of wood can greatly save production costs.

Difficult two: labor shortage

Countermeasures: Establish and improve the training mechanism for professional talents

No matter how many programs the company has, no one can implement it. Since the beginning of this year, the wages of workers in the furniture industry have doubled. The average monthly wage of ordinary packaged workers is as high as 6,000 yuan; the proportion of labor costs in total costs has increased from the previous 10% to the current 30% to 40%. Even if such a high salary is difficult to find the right talent, in view of the lack of professional technicians in the industry, it is best to set up several professional and vocational colleges, such as furniture production, to train talents in batches, and to cultivate large-scale professional Furniture talent market. The talents cultivated in this way have good professional skills and high professional quality, which is conducive to the long-term healthy development of the furniture industry. In this way, we can not only choose excellent talents, but also the labor costs will decline.

Difficult three: rent rise

Countermeasures: Broaden the channel "all roads lead to Rome"

In the context of inflation, both the store and factory rents are rising. The increase in factory rental expenses has hindered the expansion of furniture companies and slowed down the flow of funds, which in turn affected the further development of enterprises. In response to rising rents, we can broaden our channels and actively look for other ways and means, such as trying to develop online marketing.

Difficult four: logistics risks

Countermeasures: Choose a logistics company with good reputation

Logistics costs currently account for a small proportion of total costs, but the risks are high. With the development of the logistics industry, the logistics situation of the furniture industry will get better and better. However, as far as the status quo is concerned, it is better for companies to choose large reputable agents that are shipped through the logistics terminal, so that the insurance factor will be higher and unnecessary risks will be reduced. In addition, the packaging of the product must be firm, able to withstand the "toss" of transportation, and try to avoid damage to the product during transportation.

Difficult five: dispersed passenger flow

Countermeasures: Improve the hardware environment

The furniture market is getting bigger and bigger, the brands are dazzling, and there are more and more stores and dealers, which spread the passenger flow and make the competition intensified. In so many stores, how to stand out from the crowd and attract customers' attention is the key. To this end, product quality must first be guaranteed, followed by the image of the store, the store environment from design to decoration must be done. Only when the guest enters your store, your product has a chance.

Difficult six: financing difficulties

Countermeasures: using VC as the main financing method

For private enterprises in China, the funding problem is often the first problem. Lack of people, lack of orders, lack of channels... Perhaps these can be solved, but once they lack money, they can't wait for a moment. Under the tightening of monetary policy, due to the credit rules and modes of operation of the current state-owned banks, large-scale projects of state-owned enterprises and governments are the priority for lenders to lend to customers. SMEs and private enterprises are hard to share, so the market situation deteriorates most. SMEs and private enterprises are always the first to fall. While small and medium enterprises and private enterprises to take up more than 80% of social employment, but for whatever reason, they did not receive government funds preferential treatment, in the face of crisis, the financing capacity become an important criterion for business viability.

In the past two years, the furniture industry has been crowded, and the costs of materials, labor, rent, logistics and so on have been rising. This has transformed the furniture industry from a high-profit industry to a low-profit industry. After the profit margin is compressed, the corporate capital pressure has doubled. . Nowadays, small and medium-sized private enterprises have major channels such as venture capital, private lending, and partnership. Among them, private lending has been criticized for the recent wave of high-profit loans, and the partnership seems to be unable to escape the fate of the final demolition. Therefore, venture capital has gradually become a new financing method. It can be said that mastering the specific operation of venture capital is the key to obtaining the autonomy of financing.

Finally, Mr. Wang also emphasized that it is the emphasis on research and development. The average annual research and development cost of a company is only two or three hundred thousand, which is very small compared with the labor cost, which is obviously not conducive to the development of a company. Only by continuously innovating technology and developing new products can we provide inexhaustible driving force for the sustainable development of the company.

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