The traditional home industry is out of place in the new consumer environment. Companies are looking for new ways to shorten the distance with consumers, and shortening the supply chain has brought new opportunities to many companies. How do home furnishing companies “close†with consumers by shortening the supply chain? This article leads us to “decryptâ€.
Shortening the supply chain, many furniture companies have found hidden business opportunities.
China's furniture industry has long been in a period of savage growth that is in short supply, entering the era of fierce competition in the market. “Getting consumers out of the worldâ€, in the business environment of rising costs, falling profits, and difficult industries, is forcing the traditional home supply chain to continuously upgrade to meet the needs of consumption upgrades. Furniture manufacturers and consumers are getting closer and closer.
Furniture companies are paying attention to supply chain issues
Modern management education defines the supply chain as “the supply chain is centered on the core enterprise. Through the control of business flow, information flow, logistics and capital flow, from the procurement of raw materials to the production of intermediate products and final products, and finally by the sales network. The product is delivered to the consumer in an overall functional network chain structure consisting of suppliers, manufacturers, distributors, retailers and end users. In the traditional furniture supply chain, the bad review from the manufacturer to the consumer, will always experience the basic process of "manufacturer - dealer - store - consumer." In this process, the price of furniture continues to rise, and the final market price is 4-6 times the ex-factory price. However, after discounts such as shopping mall promotions, store promotions, factory group purchases, etc., the final transaction price is often only half or even lower. The net profit margin of furniture factories and dealers is around 10%-20%, and some are lower. A lot of cost is wasted in the middle of the supply chain of marketing, logistics, store rent, inventory and so on.
In the consumer-led market environment, especially the rise of furniture e-commerce and custom furniture in recent years, it has shown that the traditional and complicated home supply chain has many problems. The consumption upgrade needs to be able to quickly transform the consumption information into products and services. The furniture supply chain means cutting a lot of intermediate links so that furniture factories and consumers can directly face-to-face transactions. Shortening the supply chain, many furniture companies have found hidden business opportunities.
Take the "near" each other's furniture manufacturing enterprises and consumers
Supply chain management to reduce costs, shrink product delivery cycles, reduce turnover inventory, shorten product delivery cycles, allow front-end consumers to quickly flow, realise, streamline, optimize supply chains, eliminate or replace ineffective or inefficient links. This is the direction of many large furniture companies. Specifically, in terms of external performance, the first is to open factory stores. For example, the large furniture companies such as Baiqiang and Qumei have opened factory stores. For consumers, in the past, they bought furniture and went to the store, but now they can go. To the furniture company direct store, factory store, independent store, participate in the factory open day activities held by the company, to obtain more affordable products and services at the "factory price"; second, the integration of online and offline channels, such as e-commerce companies Lin's wood industry has accelerated the layout of the offline experience store, implementing the same price online and offline, which means that consumers can go to the offline store to experience the products, scan the code on the Internet, and remove the large pieces of furniture products. Home troubles, but for enterprises, you can also save a lot of logistics and shopping guide fees through the distribution of physical stores across the region; Third, the permanent exhibition platform, exhibition and trade integration, the home furnishing exhibition of the famous furniture exhibition, is Many factory product display stores and sales outlets.
And consumers are getting closer to the "factory." They are not only only local furniture stores can choose, they are more and more like to shop around on the Internet, looking for products at the furniture exhibition, DIY their own home in the custom furniture line, and even many people fly to the furniture industry base to buy Furniture. The rise of the middle class, the new generation of post-90s consumer groups, their ability to obtain information is very rich, and they have more and more ways to enter the furniture factory.
The arrival of big data, computing, and the AI ​​era has enabled manufacturers to obtain information on how many consumers buy furniture. These messages will help companies shorten the supply chain, and even consumers become an important part of the supply chain. Shortening the distance from consumers is a challenge for furniture companies and an opportunity to achieve rebirth.
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