The current commercial war is not just a price war, but a brand. Every furniture company wants to be a brand enterprise. Brand companies bring value-for-money returns. Brands make their furniture sell at a higher price than others. The brand is so attractive. So how is the brand made? Chinese furniture companies are now a bit famous. The longest period of time is only built before and after the reform. At the beginning, in a specific historical environment, under certain market conditions, relying on various opportunities to complete the original accumulation, but they In terms of brand building, it is still very immature, and it is still in the initial stage of consciousness.
Brand is not concentrated, low profitability
The total output value of China's furniture accounts for 70% of the world's total furniture output. It is a veritable big industry. It has several large furniture distribution giants with absolute financial power in the furniture industry chain, but only operates in a leasing mode. It is the property leasing company of furniture business; the furniture production warehouse industry is small in scale. For the largest manufacturing enterprise in China, the output value in 2009 is 6.7 billion yuan, still less than 1% of the total industry. Strategy master Michael Porter once said that the characteristics of scattered industries are that many companies are competing, and no company has a significant market share, and no one company can have a major impact on the development of the entire industry. The Chinese furniture industry is such an industry. An industry insider said that it is difficult for China's furniture industry to have a large share of the national market. There are three reasons: the furniture industry has low barriers to entry, the industry boss pays more attention to high profits, and does not care about brand development, furniture companies are everywhere, and furniture is slow. Product, so a single furniture company wants to do it is very difficult.
Look at the five major soft ribs of Chinese furniture brands
Brand concentration is not high. It seems to the outsiders that it does not have much impact on the industry. In fact, this is an industry immature performance. In a mature industry, the industry concentration of its top ten companies is generally around 70%, or higher. In this immature environment, the entire industry is still in the stage of competing war-torn countries, and the melee industry is not good for consumers. An industry insider said: "At present, furniture companies only occupy a small market share, so the competitiveness and profitability of enterprises are relatively low." He analyzed the reason why the furniture industry did not make the scale bigger: "Furniture industry Easy to enter, the average boss will only focus on profits and will not focus on market share. First, many companies have not yet established a modern marketing concept centered on customers; secondly, the benefits from increasing market share are not clear. Enterprises have doubts about improving the quality of market share.
To improve the quality of market share, companies must start from the customer satisfaction rate to do more intensive work, it takes a lot of manpower, financial and material resources, and it takes a long time. Because of the large quantity, high requirements, long time, and the inaccurate investment effect, this kind of investment is risky, and many enterprises finally give up the plan to improve the quality of market share. â€
The status quo of Chinese furniture brands
1. Blind show, not pragmatic
In terms of brand building, it can be used for the Eight Immortals to cross the sea, and each show its magic: "drugs rely on blowing, cosmetics rely on chasing, electrical appliances rely on sputum, health products rely on money piles." So what about furniture? Buying furniture is not as casual as buying a piece of chewing gum. The purchasers of furniture are mostly sensible. They don't care how the models perform. What the spokespersons say, before buying furniture, they tend to think about it before they shop. They only compare the three, only the "popularity" won by the show. "Finance", if there is no real connotation under the brand, there is no visible benefit, and it is not necessarily how far it can go.
2. Positioning errors, labor and wealth
Who is the brand positioning? The first thing to be clear about this problem is that the terminal-oriented and dealer-oriented propaganda is quite different; the products for the people and the products for the rich are also fundamentally different. In the home brand, the misplacement of materials and styles, the misplacement of specifications and grades, the misplacement of functions and appearance, the misplacement of style and price, etc., abound.
3. Short-term behavior, loss of credibility
The average age of Chinese companies is 3.9 years, and the brand's age is shorter. Every year, Chinese furniture companies have closed down countless enterprises. Every year, many new companies are building new ones. There are more and more new faces in the furniture exhibition. This dynamic prosperity is really worrying. Today, when the survival of the fittest is accelerating, short-term behavior leads to short-lived behavior. Many foreign-owned stores are only a hundred people. These are two very different brand strategies. They want to take a bite to eat a fat man, and they can only get on the body and break their stomachs.
4. Insufficient preparation, whatever you want
In modern society, all kinds of information are overwhelming, consumers are already paralyzed, more and less sensitive to stimuli, and brand promotion costs are getting higher and higher. When many enterprises are not mature, they will act rashly. If they find that they are not right, they will change it. The name will change three times a year. The trademark will change in the future, the image will be uncertain, the mouth will be too complicated, and people will be confused and waste resources.
5. Great success, increased burden
Furniture is furniture, unlike diapers, you can create a "diaper" brand overnight, and the tens of millions of baby's ass can make you rich. Furniture can't dance with one or two stars, and customers who pay for their thumbs are paying for it. There is a financial crisis behind it. Increasing the burden of business is not a good thing.
Brand awareness still needs to be strengthened
Although the level of China's export furniture manufacturing has reached the mid-to-high level in Europe, it lacks “brand awarenessâ€, so it is often “the real price is not trueâ€. The "goodness" mentioned here means that the materials and techniques of furniture are relatively advanced, and the "price is not true" means that the brand value of domestic furniture is poor, and the added value of the product is low, so the price is low, and thus cannot be satisfied. The needs of those who have identity.
Even designers with many years of design experience often have a strong desire to buy when they look at well-designed, well-made, well-crafted foreign-branded furniture. What about ordinary consumers? When a big brand brings satisfaction to the practicality, it will also bring people a sense of satisfaction, and this sense of vanity satisfaction, usually we call it product added value.
Fortunately, domestic furniture manufacturers and dealers have already begun to dig a lot of brand values. At present, the Pearl River Delta region, led by Dongguan and Shenzhen, has also developed some familiar brands. Guangdong furniture, which pays more attention to advertising awareness, usually invites popular stars to endorse, and the unique temperament of these stars will make the products get consumers' approval faster.
The furniture in North China and East China is generally easier to shape the brand, but those Chinese classical furniture, in the minds of middle-aged and old consumers, have a certain weight. In addition, some soft furniture also has a place for Huadong furniture in the national furniture brand. In the northeast region, due to the rich forest resources and the long history of the wood processing industry, especially in the revitalization of the old industrial base, the furniture brand has developed rapidly in recent years.
I have to admit that although these furniture are currently selling at a high price, due to factors such as brand culture, it is difficult to squeeze into the ranks of ultra-high-end international brands. The imported furniture produced in Europe and America still occupies the most high-end seats in the consumer market.
If more domestic furniture brands are good at tapping their own cultural connotations and strive to improve the cultural heritage and added value of their own brands, then it is difficult for domestic furniture brands to compete with “foreign brands†and will become a kind of past in the near future. formula.
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