1. The industry is a good track and the industry has a vast space.
The furniture industry is a big industry. According to public data, in 2016, China's furniture industry enterprises above designated size achieved a revenue of 856 billion yuan, and realized a total profit of 53.75 billion yuan.
According to estimates, in 2017, the market capacity of customized wardrobes and cabinets exceeded 210 billion yuan, and the market capacity of other types of customized furniture was more than 20 billion yuan. The custom furniture segment is growing at a rate of 15%-20% per year, much faster than the furniture industry's 8-9% annual growth rate.
2, custom furniture has advantages over traditional furniture, the future growth rate is considerable, the proportion in the furniture industry is expected to continue to improve
First, it is more in line with the trend of consumption upgrading. Behind the sudden rise of custom furniture is the consumer demand that Chinese consumers continue to iterate and update. As the furniture consumer group becomes younger, the demand for personalized, fashionable and space utilization of furniture is also increasing, depending on the needs of consumers. The system is the biggest advantage for finished furniture.
Second, it is more in line with the development trend of Industry 4.0. Under the background of Industry 4.0, enterprises can combine the individualization of consumer demand with the standardization of mass production through the big data platform to provide consumers with more and more high-quality products and services. Third, custom furniture is cost-effective.
In the traditional production process of finished furniture, there is a large amount of raw materials and waste of manpower, which also leads to high prices of branded finished furniture. You stroll around the red star Macalline, you may find that you look at the finished furniture expensive to die, low-end furniture you are also embarrassed to buy in your new million homes.
At present, the penetration rate of China's custom furniture in the furniture industry is about 20%-30%, compared with 60%-70% penetration rate of developed countries such as the United States and South Korea, there is room for improvement. According to estimates, the annual compound growth of custom home brand enterprises in recent years is expected to continue to exceed 30%, and good is expected to exceed 40%.
3. Develop a moat for the furniture industry
The custom industry seems to have a low barrier to entry, but in reality it is digging deep into its moat.
The barriers to entry in the custom furniture industry include: First, branding, branding requires a lot of time and capital investment;
Second, the marketing network, the online and offline marketing network, the management system of mature specialty stores, dealer training system and after-sales service system are very important for enterprises;
The third is to design and develop capabilities, to make their own characteristics in the homogenized and serious custom home market, to produce products that can more impress consumers;
Fourth, the ability to use information technology, enterprises need to maximize the consumer's diversified needs through big data operation and flexible production;