Recently, when I visited Lecong Furniture City, I heard a lot of similar voices: "off-season, business is not easy to do", "business is getting worse year by year", "now the market is too competitive" ... Every year from April to July is a relatively cold season for furniture sales, but this year's off-season makes people believe that the market is the battlefield. Natural selection, survival of the fittest-both biological laws and market rules. Therefore, 2008 will enter a new round of reshuffle and restructuring.

The export market continues to fall It is understood that from June last year and July last year, the country has issued two restrictive policies on foreign trade. First, reduce the export tax rebate, so that some enterprises and foreign trade companies that rely on the tax rebate can only stay outside the export gate. Second, no longer approve incoming processing enterprises (OEMs) in the Hai'an area, and only allow these processing enterprises to go to the central and western regions of China.

In fact, these two policies completely restrict the export of products. The main reason why the country restricts the development of export-oriented enterprises is that China's foreign exchange reserves are too large, and it has now become the world's largest foreign exchange reserve country. However, the current US dollar is a hot potato, and it is a pity to taste it. By the end of this year, the U.S. dollar may fall to around 6 yuan, so export-oriented companies should make a good assessment. In the end, it is not multiplied by 6.5, but multiplied by 6. In this way, the more US dollar reserves, the greater China's losses. So why doesn't China throw the dollar? Because the storage of the US dollar is too large, the more and faster we throw, the faster and faster it will fall, which is why the country does not encourage the export of large amounts of furniture.

Although China still maintains the status of the world's largest furniture exporter, the impact of internal and external factors such as anti-dumping, rising raw materials,-> RMB appreciation, falling export tax rebate rates, and rising labor costs have caused China ( (View map) The export growth rate continues to decline. This year, Lecong ’s furniture market has more than 60% of its export space to be narrower than in previous years. According to the survey, the number of foreign merchants and daily container purchases from Lecong now come from the same period last year. It has dropped by about 50%.

The fierce competition in the domestic market has hindered the international market, which has led many large export-oriented enterprises to the domestic market in the past. Most of these enterprises are foreign-funded and large-scale enterprises. Most of them have turned to the domestic market. Most of them have extraordinary shots and rich money. Regardless of product design, quality assurance, Technological breakthroughs, or market development, marketing concepts, and after-sales services all create shortcuts, which adds more intense competitive pressure to the domestic market that has been born from the wind.

According to data released by the China National Association, the domestic market has maintained a growth of more than 15% for many years, with annual sales exceeding 400 billion yuan. Such a huge cake has continuously attracted a large number of companies to enter the furniture market, and the operating area of ​​the Chinese furniture market has also grown synchronously. Among them, especially the chain stores of well-known brand shopping malls and the Big Mac professional with an operating area of ​​more than 200,000 square meters The continuous emergence of the market is the most prominent, which has led to the rapid expansion of furniture stores from the original category 1 and 2 markets to the category 3 and 4 markets. This has led to competition in the domestic market throughout the urban and rural markets in the north, south, and north. Coupled with the rising rents of shops, the cost of labor and materials continues to rise. The companies that were not marginal in the competitive sea of ​​business are even more overwhelmed. Therefore, it is not difficult to find advertisements for Wangpu's leasing and factory transfers at the advertising posters of the land for sale and management of furniture in Lecong and Longjiang. It is understood that some small and medium-sized enterprises are unable to survive the phenomenon of forced transfer or debt "absence".

The development of any industry is from divergence to intensive, from profiteering to meager profit. "20 years" is the rule of the industry from the initial stage to the reshuffle stage, and the furniture industry is no exception. Therefore, 2008 is bound to be a very critical year for the furniture industry, and market competition and the market and market situation will withstand severe tests from international to domestic. In the sea of ​​business, who will win? Who will be eliminated? I believe that only the market has the right to speak and take the initiative, we will wait and see.

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