Top 10 predictions for the furniture industry in the next decade!

With the in-depth development of the market economy, China's furniture industry has achieved rapid development, and tremendous changes have taken place in the industry, which can be described as ever-changing and magnificent. The industry has to think and speculate on the entire furniture market. In the next development, what kind of development model, what kind of development channel is the most suitable for furniture enterprises, these issues have become the focus of people's attention. . Recently, the industry has ten predictions for the future furniture market. For a time, it caused a heated discussion.

Prophecy 1: The share of e-commerce in furniture will account for about 40% of the overall consumption of furniture.

At the 2012 CCTV China Economic People of the Year award ceremony, Wang Jianlin and Ma Yun had a gamble: 10 years later, if e-commerce accounts for 50% of the retail market in China, Wang Jianlin gives Ma Yun a billion. If not, Ma Yun loses Wang Jianlin. One hundred million.

It is also foreseeable that the e-commerce business of furniture will encroach on the share of physical stores. Nowadays, with the rapid development of logistics enterprises, the “last mile” (upstairs, installation, after-sales, return, etc.) of furniture distribution will be effectively solved after a few years, which will make the physical store business more easily replaced by e-commerce. . In 2023, after spending 90 or 00, they grew up with the Internet, and their online shopping habits have already been developed.

Prediction 2: Destructive innovation will appear in the furniture industry, and the existing furniture pattern will change dramatically.

Disruptive innovation (English: Disruptiveinnovation), also known as destructive technology, refers to the product or service through technological innovation, with subversive characteristics targeting the target consumer group, breaking through the existing market can expect consumption changes It has a huge impact on the original market order.

In the IT industry, Apple mobile phones and WeChat are typical destructive innovations. More and more furniture companies pay more attention to combining various new technologies, new technologies and new models. This will completely overturn the existing market structure. Industry giants will fall rapidly because of this destructive innovation, and even collapse.

Prophecy 3: The home store will become a comprehensive, mid- to high-end home mall that combines leisure, experience and shopping.

After 2012, along with the development of commercial real estate and the rise of urban complexes, Red Star, Yuexing Shanghai Global Harbor, and Changsha Xiyingmen Fancheng were represented as the “shoppingmall-style, urban complex” The three-generation shopping malls combine various forms of department stores, home, entertainment and leisure to bring together more people to provide consumers with better convenience, experience and service. The general low-end shopping malls will be largely eliminated by e-commerce.

Prophecy 4: China's largest furniture factory will have annual sales of 10-20 billion.

For any industry, the development of a single product (such as sofa or solid wood) can easily reach the bottleneck. At this time, it can only be developed from “product operation” to “industry operation”, that is, by integrating resources, acquiring other brands, and transforming business models. The next level, and ultimately must pass the "capital operation" to reach the peak. Today, China's furniture factories are limited to "product operations," so even in the areas where they are best at the ultimate, they can only achieve 10-20 billion.

Prophecy 5: China's furniture exhibition will disappear by half, and the division and positioning of major exhibitions will be very clear.

In 2023, Guangdong's traditional September furniture fair will disappear completely, and March will be the only time for Guangdong Furniture Fair. Dongguan Exhibition and Shenzhen Exhibition will become the two main exhibitions for the domestic market. Guangzhou Exhibition will become the main exhibition platform for foreign trade in March. The Shanghai Exhibition in September will become the most internationally renowned foreign trade exhibition and become a Chinese furniture business card for the international market. Other exhibitions such as Chengdu, Suzhou, Shandong, etc., either disappeared or remained a local and regional exhibition. The investment promotion function undertaken by the furniture exhibition will be extremely limited, and it will become a window for releasing new products and promoting.

Prophecy 6: The concept of furniture brand hype will no longer work, and commercial packaging will return to rationality.

After 10 years, the furniture consumer will grow into an expert customer like the current computer consumer, and all the concept of nothingness will no longer work. It is king to do a good job in products and services. For household products that are highly homogenized, either expand the scale and reduce the cost of small profits but quick turnover, or increase the design to pursue added value. There is no third way to choose.

Prophecy 7: Furniture dealers will grow a number of better regional chains and even national chain operators.

Today, the market concentration of the furniture industry is increasing, and the industry reshuffle is gradually increasing. Furniture dealers will also emerge a number of better regional chains and even national chain dealers. Their strong capital and operational capabilities expand across the country, either by forming alliances with factories to promote factory brands, or by integrating the products of each factory to operate their own brands. Individual distributors of Maotai, Wuliangye and automobile brands have developed into listed companies. Distributors in the furniture industry will also appear in listed companies 10 years later, we will wait and see.

Prophecy 8: The market concentration of the furniture industry has increased significantly, and the reshuffle has arrived.

At present, China is said to have 50,000 furniture factories, which will be eliminated in half in 10 years. The remaining furniture companies will continue to develop and build their own brands; Sancheng will be completely unbranded as a foundry company.

Prophecy 9: “Furniture retailer” will be transformed into “furniture service provider”, the highest form is “living operator”.

“Furniture retailer” is to open a store in the mall, sell the product to the consumer, and then install it, there is no other value-added service. "Furniture Service Provider" is to provide customers with decoration design, overall collocation of home, soft decorations and so on. "Life Operator" is based on "furniture service providers", mainly for high-end products, providing consumers with a certain lifestyle, lifestyle and so on. That is to say, the furniture terminal in 2023 not only provides consumers with physical products, but also provides services for them, even a certain lifestyle.

Prophecy 10: People's view of furniture consumption will shift from "consumer materials" to "consumer design."

Nowadays, most consumers pay more attention to materials, so "solid wood furniture hot" and "imported material wind" are popular in the Chinese furniture consumer market. The main consumer of 2023 will return to the pursuit of furniture design, culture and function itself.

In the next 10 years, it is highly probable that the furniture industry will have such a destructive and innovative enterprise or business model, which will subvert the industry landscape with lightning speed. Or an offline physical space design experience service provider, or a revolutionary innovative furniture store, or a new product developed by a furniture company, may impact the existing industry order at any time. At present, the first-line brand of the furniture industry may only have 10% after 10 years, and another 90% will be taken over by the latter.

For more information on China's furniture industry, please pay attention to the official website of Xianghe Furniture City ().