Overcapacity leads to crisis, the furniture industry is facing a huge test

- Aug 03, 2018-

With the introduction of the new policy of the property market, it has triggered a boom in buying houses and decoration, which has driven the development of the furniture industry. Many companies have seen business opportunities and have joined the furniture industry, hoping to get a "one cup". Most existing furniture companies have also adjusted their development strategies and increased their production in the hope of selling more products, increasing sales, and gaining more benefits.

However, according to the survey, although the property market new policy triggered a decoration boom, the sales of furniture products were increased to some extent, and consumer demand is also growing at the same time, but it is far from keeping pace with the growth of industry output. Among them, some enterprises have unreasonable production planning, and have not adjusted their strategies according to market conditions. However, blindly producing products has led to excessive production. In addition, some furniture companies only see short-term benefits, in order to pursue product quantity and production speed, neglect product quality. Therefore, the product quality is not good and the product is homogenized, which is unable to attract consumers to purchase, resulting in serious product accumulation, and further increasing the problem of overcapacity.

Therefore, some insiders said that the current furniture industry is in a relatively "market saturated" state. Overcapacity has become an unavoidable problem in the industry, and industry competition is gradually becoming more and more intense.

It is true that although the furniture industry is facing a huge test, there are also a few companies that have actively stabilized the problem of overcapacity through reasonable and detailed strategic planning and have gained a foothold in the market.

Overcapacity is a problem that will basically occur in the development of the industry to a certain stage. And enterprises should plan and solve this problem from the aspects of rational production and product differentiation. Furniture companies should always formulate production strategies according to market conditions and their own development, and make production plans to avoid overcapacity and waste of resources. At the same time, companies need to create a professional R & D design team, committed to the differences, innovation and practicality of furniture products. Only when furniture companies produce differentiated products, so that styles and functions are superior to other enterprises, they can be favored by consumers, and sales will naturally climb.

In short, the furniture industry must truly avoid the problem of overcapacity, and more companies need to be aware of the importance of asking the question, and take relevant measures to ensure that the company itself does not have overcapacity, and naturally can effectively solve the industry's production capacity. Excess problem.

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