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When will the Chinese furniture industry in 2020 be fully restored?

  • Author:Tengye Smart Furniture
  • Release on :2020-04-29

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In a few days, the first "small holiday" will be ushered in, but the national home furnishing market is still "a calm."


Although, the National Bureau of Statistics released data on April 17: preliminary calculations, the gross domestic product in the first quarter was 206.54 trillion yuan, a year-on-year decrease of 6.8% at comparable prices. The decline in major economic indicators narrowed significantly in March.


Another set of data shows that in the first three months of 2020, the growth rate of value-added industries above designated size was -2.77%, -24.91%, and 32.13% respectively, and the total retail sales of social consumer goods were -13.21% and -3.64%, respectively. And 0.24%, in simple terms, it is that the manufacturing industry has recovered significantly since March, while the social consumer demand is slightly insufficient.


In the main statistics of March 2020 and the first quarter, furniture increased by -22.7% in March and -29.9% in the first quarter. Various data also reflect the current industry situation.


Originally, the International Famous Furniture (Dongguan) Exhibition and Shenzhen Fashion Home Design Week, which were postponed to June, will inject stimulants into the industry that is striving to recover and rebound in the second quarter.


However, the two major furniture exhibitions in Guangdong suddenly announced that both of them will be postponed to August, and it is still a long way to go before China's furniture will be fully restored in 2020.


When will the industry recover? Let ’s take a look at the impact of the epidemic on us.


1. Demand in the first half of the year is directly "waist cut"


First of all, the so-called "waist cut" of demand is not directly reflected in the inability of stores and stores to open. In the past years, during the Spring Festival, it was Xiaoyangchun in the property market. Many owners with decoration needs also chose to renovate in the opening year, which directly led to a decline in furniture purchase demand. In addition, home isolation during the epidemic caused serious market demand.

Secondly, the major impact of the epidemic is on employment and income issues, leading to a significant reduction in the original demand for home improvement and furniture purchases.


Third, the global epidemic has broken out, the international market has been turbulent, and furniture exports have been severely hit. Demand for exports has also been stagnant.

Therefore, the recovery of demand is inseparable from the recovery of the property market and the home improvement market, as well as the recovery of the economy and people's livelihood.


Second, the supply-side liquidity is seriously insufficient


Compared to insufficient demand, supply problems have also become a pain point for enterprises. On the one hand, the operating rate is insufficient, the production capacity cannot keep up, and the order cannot be completed on schedule;

On the other hand, domestic and international transportation is affected by the epidemic. Even if there are orders, they cannot be delivered. Without normal delivery, cash flow becomes the biggest problem.


3. Online marketing is not a "all-inclusive treatment"


Offline customer acquisition is stagnant, and order delivery is hindered. The furniture industry has begun to actively embrace the Internet and sell live online, which has become a "magic medicine" for enterprises.

It is true that many leading companies have received very good results through live broadcasts. The transaction data is booming and the performance is rising. However, there is basically a consensus for more companies to do this: online and offline must be combined.

Online is just the entrance to the flow, it is to release the discount and seize the customer ’s hand, but the characteristics of the furniture itself, product experience, systemic, professional, etc. can not be solved by a live broadcast, and the effect of traffic conversion also needs to be passed Offline unit price deactivation.

Therefore, the brands that really do well are those with more stores, which can digest and transform online traffic offline.


4. There are still four key points in industry recovery


In 2020, exports are severely blocked, and expanding domestic demand becomes the annual theme. On this basis, the demand for a better quality of life is the basic color of domestic demand. In addition, there are still four key points for the furniture industry to accelerate its recovery:


1. Economic recovery and enhanced liquidity

From the accelerated recovery of manufacturing to the resumption of production, to the accelerated recovery of social consumption, only when the effectiveness of national epidemic prevention and control is consolidated, the spread of the global epidemic is contained, the domestic economic environment is improved, and the supply chain liquidity is enhanced, is there sufficient momentum for the furniture industry recovery And a stable environment.


2. Embrace online, speed up digitally

Affected by the epidemic, furniture companies have begun to embrace the Internet and start online marketing and community operations. However, these are just one of the tools and approaches. The digital transformation of furniture also includes digital design, digital production, and digital marketing. Complete ecological chain.


3. Expansion of stores, integration of online and offline

With the advancement and diversification of consumer entrances, furniture terminal stores are declining, and the "online revelry" created by the epidemic has caused many people to sing down the entity. In fact, the characteristics of furniture products and services determine that it is impossible to completely separate from the entity, and online drainage also depends on offline experience and transactions.

However, the scene and entrance of this experience are not necessarily in the store, but can be shopping malls, commercial street flagship stores, community stores, real estate model stores, or even city shared experience centers, etc. This may be a new battlefield for future store expansion.


4. Channel transformation and integration into big industries

Channel changes are not starting today, but this year will definitely increase speed.

First of all, when the property market breaks through, housing companies will either launch some rough houses in order to speed up cash flow, increase the demand for home decoration and furniture on the side, or rely on platform advantages to accelerate the promotion of more hardcover;

Secondly, the reduction in furniture consumer demand, to a certain extent, prompts the demand for home improvement to first consider hard decoration and weaken soft decoration. In this regard, home improvement and decoration companies have an advantage;

Third, designers 'ability to bring goods, especially online celebrity designers, is recognized by everyone. Designers' voice and influence will also increase in future home consumption. They have become an important force that cannot be ignored in the big home furnishing industry.


In the future, enterprises will not only compete with the quality of products, but also with the humanization of services and the internationalization of design.

We firmly believe that the domestic epidemic will soon pass, and the recovery of the Chinese economy and Chinese furniture is increasing. Let us look for opportunities in the crisis created by this era, and see the rebound and outbreak of the furniture market in the next eleventh Golden Week, helping China's furniture and China's economic development.

Source: China Furniture Net