Sichuan furniture handed over 6 billion transcripts how to complete the butterfly change

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In 2009, the Sichuan furniture industry grew by nearly 40% over the previous year, more than twice the national average growth rate

Sichuan furniture enterprises have established more than 20,000 stores in more than 2,000 counties and cities across the country

6 billion yuan, which is the transcript of the Chengdu International Furniture Industry Exhibition that ended recently.

At the "Rongcheng Forum on Taoism-2010 China Furniture Industry Development Summit (Chengdu) Forum" held concurrently with the exhibition, the transformation, upgrading and transformation of Sichuan furniture became a central issue.

Furniture companies in other places are still keen to imitate. Sichuan Furniture, which used to be synonymous with "imitators", has turned around and started to upgrade. The rise and change of the furniture Sichuan Army has attracted the attention of the media outside the province. Some reports cited such a set of data: As of the end of 2009, there were more than 1,900 large-scale manufacturing enterprises in Sichuan with an output value of 44.1 billion yuan, an increase of nearly 40% over the previous year, more than twice the national average growth rate, and related employees 80 10,000 people, becoming one of the three major bases of the furniture industry in the country, and set up more than 20,000 stores in more than 2,000 counties and cities nationwide.

How does Sichuan Furniture complete the "Butterfly Change"?

Melee

Avoid the strong and weaken the vertical breakout

One day in July 2009, two old friends Xi'an clasped their hands together.

In the furniture industry of Sichuan and Shaanxi, these two are heavyweights: one is the chairman of the Sichuan Furniture Industry Chamber of Commerce and the chairman of Bayi Furniture Co., Ltd. Wang Xuemao, and the other is the chairman of Xi’an ’s largest furniture store, Pearl International. Jihe.

Seven years ago, when the Pearl Store opened, Li Jihe invited Wang Xuemao to go north, but unexpectedly it caused an embarrassment. At that time, the consumer market in Xi'an was small, and some coastal furniture brands heard that Sichuan furniture companies were coming, and they collectively withdrew. "At that time, Sichuan furniture had become a plagiarism, with poor reputation and poor reputation, and loved to fight price wars." Li Jihe said, "Setting up with Sichuan furniture on the same field is regarded as a loss of face."

After 7 years, the situation reversed. At the end of 2009, a delegation of ten Guangdong furniture manufacturers appeared in Bayi Furniture City. "We got the order from the Guangzhou Asian Games and came to discuss cooperation." Guangdong technology combined with Sichuan manufacturing capacity equals a win-win situation.

What happened in these 7 years?

When Southern Furniture dominated the first-tier market, several Sichuan enterprises attacked second- and third-tier cities, avoiding a direct confrontation with Southern Furniture, and also won considerable popularity in second- and third-tier cities.

The financial crisis in 2008 accelerated the continuous expansion of Sichuan furniture to the national market to some extent. Most of the sales share of southern furniture companies is abroad. When the crisis turns around domestically, the first-tier cities have become saturated, and the second and third-tier markets are occupied by Sichuan furniture. During the financial crisis, Sichuan furniture sales did not fall but rose, and even many companies sold out of stock.

Market share determines market position. Sichuan Furniture is now well-known, and many foreign provinces and cities have come to attract investment and provide favorable conditions for Sichuan furniture merchants to settle down.

Tactics

Anti-guest-oriented "Creation in Sichuan"

"Low quality" and "plagiarism", Sichuan furniture industry goes shamelessly

"I used to participate in the Furniture Fair. When I heard that people came from Sichuan, I had to strengthen inspections. I was afraid that I would secretly photograph the styles of the exhibits." For this embarrassing history, Sichuan Mingzhu Furniture President Wang Jianbin shrugged: "If you don't shy away from history, you will Let us pay more attention to product quality and enterprise innovation ability. "

In the early stages of industry development, Sichuan furniture was mostly small workshops, with weak innovation ability, uneven product quality, and low recognition among consumers and the industry. Due to imitation of style, disputes continued. With the brutal competition in the market, more and more people realize that grasping the high-end of the industry is inevitable. Wang Xuemao called almost all Sichuan furniture manufacturing peers to hold a meeting. The conference opened an era of "second entrepreneurship" in the Sichuan furniture industry. The theme was: "Made in Sichuan" turned to "Created in Sichuan".

Foreign advanced machine tool equipment and international quality standard system were introduced. In addition, the Sichuan furniture industry has established a number of research and development centers, and has established long-term cooperative relations with many scientific research institutes across the country and even world-renowned universities. Take Mingzhu Group as an example, in 2009 alone, it obtained more than 2,000 design patents.

In August last year, the General Administration of Quality Supervision, Inspection and Quarantine found that the mechanical properties of some bedside cabinets produced by an enterprise in our province did not meet the standard, and the slight vertical loading stability of the drawer was insufficient. This will have almost no impact on normal use, and no one would care before. However, in order to achieve "zero defects", this company still urgently started the product recall procedure, requiring all batches to be adjusted before returning to use. This is the first time a domestic furniture company has initiated a product recall procedure.

Nowadays, a "blacklist" system for the Sichuan furniture industry has been established. Anyone who has badly affected the Sichuan furniture industry due to non-compliance with laws and dishonesty will be included in the "blacklist" and announced to the public.
Attack plan

Road repair and win-win cooperation

The Sichuan furniture industry has come to the conclusion that the agency distribution system prevailing in other industries is not suitable for them. If you want to control the channel more, you must build more self-operated stores and take a channel model that combines brand stores and franchise stores.

Li Jihe appreciated this development path. In the past few years after entering Pearl International, the Sichuan Pavilion has occupied 46% of the stores and created 43% of the output value of the entire store.

In 2009, Li Jihe spent 3 billion yuan to build a "China Origin New City" in Xi'an. He offers attractive conditions: Sichuan Furniture can own a 52,000 square-meter "Sichuan Pavilion" in the new city of origin-this is by far the largest store owned by the Sichuan furniture industry outside the province.

When you control the channel, you control the initiative. Nowadays, it is not easy to obtain the agency right of Sichuan Furniture: in addition to going through a strict process review, it also depends on the location, business area, decoration, and employee training. Any one that fails to meet the standard may be out of the game.

The Sichuan Furniture Industry Chamber of Commerce is establishing branches in Xianghe, Hebei Province, and Likou, Jiangsu Province, in the south and north of the furniture manufacturing hinterland, and is proceeding to build a Sichuan Furniture Industry Park.

The Sichuan furniture industry started as a small workshop, but it has grown rapidly under differentiated competition strategies. An official of the Provincial Economic and Information Technology Commission revealed that in the next three years, Sichuan will focus on making breakthroughs in the construction of brands and large enterprises in the furniture industry, so as to make it another successor after Sichuan wine, Sichuan pig, Sichuan medicine, Sichuan shoes A "Chuanzihao" light industry brand.

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