Wood resources urgently how to transform and upgrade the mahogany furniture industry

 

Recently, the mahogany furniture lumber market is quite calm. The red rosewood , one of the three major materials for mahogany furniture , has been included in the International Animal and Plant Protection Convention, and exports have been restricted. Since April, the red rosewood has entered a period of great upsurge. The timber market was once out of stock.

 

 

It is reported that in recent years, Huanghuali, red sandalwood, red rosewood, three traditional furniture famous wood resources have rapidly reduced and dried up, making the material prices skyrocketing. The price increase is a double-edged sword. On the one hand, the mahogany furniture enterprise enjoys the joy of profit growth and doubled value due to the rise of materials. On the other hand, the industry is rapidly reshuffling because of the increase in the price of materials. The company was forced out of the production of precious wood and turned to wood processing at a relatively low price.

 

It is estimated that the price of Laos rosewood wood will continue to rise 1-2 times in the next 4 years, and the further depletion of resources is a predictable phenomenon. The current price of red rosewood is the price of Vietnamese yellow pear in previous years. Will the future development trend of red rosewood market and the status of the manufacturing enterprise become the current situation of Vietnamese yellow pear? Do you want to be the owner of redwood furniture production and production? Pay attention to these issues:

 

1. When the price of red rosewood timber increases 1-2 times, will your current customers be your customers?

 

If the customer income does not increase in the same proportion, the higher the timber price, the fewer and fewer consumers.

 

2. Is your current sales method still useful?

 

Enterprises that used to focus on processing, supply and wholesale will face a sharp decline in wholesale business; companies that focus on the retail of furniture to the end market will face fierce competition for quality and brand influence, while sales in second-tier cities will be greatly affected.

 

3. Are your current product quality and production methods still useful?

 

The higher the material price, the higher the customer's requirements for craftsmanship and quality. Craftsmanship and styling are not relevant, and furniture that does not reach the corresponding grade cannot sell the price of materials.

 

4. Will your current product model and market positioning be useful?

 

The price of red rosewood continues to rise, and consumers' purchase of red rosewood furniture will shift from practical to collection.

 

5. Can your profitability remain the same?

 

The price of materials is higher, the cost of labor is higher, the pressure on capital is greater, and the consumption group becomes smaller. What is the basis for making money?

 

6. Are you still doing Laos red rosewood?

 

Where to go? Restricted by the pre-market inventory of red rosewood furniture and the tossing out of the outgoing enterprises, the furniture in the market will also restrict the price of red rosewood furniture and the material link. In other words, the price of furniture and materials will be upside down for a while. If you have an order, you can't enter the material? If you buy the material, the price of the material can't be sold for the finished furniture; if there are materials in stock, the furniture is made to respond to the order. , Might as well sell materials directly to make money, what should I do?

 

7. How much do you have and where is your competitive advantage?

 

For example, there are several companies with more than 1,000 tons of red rosewood material in stock in the redwood industry. If these companies are gradually hoarding for about 3-5 years, taking the current 300,000 yuan per ton of materials as an example, they are divided into After several years of gradual purchase, the cost per ton may be only 150,000 yuan. Assuming that one ton of material can make 3 Arhat beds, the cost of each timber of the Arhat bed you make is 100,000 yuan, then the cost of others is only 50,000 yuan. If you sell 100,000 yuan, others will have double the gross profit, and You have to lose money, how do you compete? Conversely, looking at Vietnam Huanghua pear, basically every household has done it before, but now there are a few who dare to make it? Is there a high-end customer who can buy it? Can they sell it? The price of the materials? At present, there are absolutely no more than 10 enterprises that dare to buy materials and make materials for making Huanghuali furniture. This is the cruel market competition!

 

8. If you don't make red rosewood, what are you going to do? If the material is adjusted downwards and a relatively inexpensive material is used, how does this simple transformation solve the problem of balancing labor costs and wood costs?

 

Yesterday, red rosewood was used for furniture, and today Burmese rosewood is used, the labor cost will not be reduced. Material adjustment is the adjustment of the customer base and the adjustment of product types. The precious materials are more collectible, while the cheap materials are more practical. The adjustment of materials is also the adjustment of competitors: the relatively cheap field of materials is the sphere of influence of large-scale carrier-class and chain enterprises. So, how should the products of small and medium-sized enterprises be positioned? How to compete in the field where these princes of large enterprises divide the world?

 

So how to transform and upgrade?

 

In the Ming and Qing antique furniture style bold production mode of “one side of the house” in the industry, the differentiated, refined and artistic product structure adjustment within the antique furniture style framework system was carried out. Enterprises must first ask what they want to do and why do they do it? What advantages does my product have compared with others? In what ways do I recommend and sell to customers? These questions are about the structural adjustment of their products. Market accurate positioning and segmentation.

 

At present , most of the mahogany furniture products are the antique furniture of the Ming and Qing styles. If you insist on making antique furniture, you can make changes within the furniture style framework system, such as style, craft, style, grade, etc. Product positioning and adjustment . Secondly, it can also be produced by antique furniture, expand and innovate into the field of branded "Chinese home furnishing", and create a contemporary Chinese home furnishing brand and a new design and production model.

 

Let's sum up, an industry model that relies on the rapid consumption of natural materials does not have the possibility of long-term sustainable development; a market that can make money no matter what quality is made as long as it is made of mahogany furniture, it must not be a normal and mature Market. The use of precious and scarce natural materials, coupled with traditional handicraft production methods, and products that carry the tradition of millennium furniture culture, can only rely on the rise in wood prices to make a profit. It cannot transform from processing and production to design and production. The art value-added and enterprise brand value-added industries are not a mature and truly successful industry, nor can they win the respect of history!

 

In this regard, we do not need to avoid taboos, and China ’s economic rise since reform and opening up has followed this path. How can China get rid of the development stage of "the world's cheap processing factory", transforming from manufacturing to design and production, at the cost of relying on the consumption of natural resources and environmental damage, from low labor cost competition, to product design, brand building and consumer culture Transformation is the focus of China's economic and industrial restructuring. Similarly, it is also the key development direction of the mahogany furniture industry in the future.

 

We are in a prosperous world, and we are fortunate to have encountered a period of vigorous economic and cultural development. We have achieved our own business and also shouldered historical responsibilities! Let us work together to actively promote the second development of the redwood industry and open up a new World!

 

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