China's furniture industry is dominated by small and medium-sized enterprises, and enterprises above designated size account for less than 10%. Large enterprises can use information technology to digitize production and management to achieve the same production efficiency as other modern industries. Then, how do many small and medium-sized enterprises promote the modernization transformation pragmatically and gradually?
In the early 2010s, the Chinese economy entered a new normal. The dramatic changes in the international and domestic economic situation have presented major challenges to the further development of China's furniture industry. At the same time, the development of China's furniture industry itself requires a transformation from quantity expansion to quality and efficiency, and comprehensive modernization. Therefore, the transformation and upgrading of China's furniture industry is even more urgent and necessary.
The transformation and upgrading of China's furniture industry
The composition of China's furniture industry is very complicated. Although the industrial areas from north to south in recent years tend to be homogenized in terms of process level and product quality, they are generally high in the south, low in the north and low in the east. Even in the same region, the equipment and management levels of different types of enterprises vary greatly.
China's furniture industry is dominated by small and medium-sized enterprises. Among the 80,000 enterprises in China, the enterprises above designated size (annual business income of 20 million yuan) are about 4,500, accounting for less than 10%, and the annual output value is more than 100 million yuan. Enterprises are less than 5%. The comprehensive strength and market orientation of many small and medium-sized enterprises are also very different. This determines that it is impossible to use a model to realize the transformation of modernization. It is necessary to pragmatically and gradually promote modernization transformation according to different conditions. In order to simplify the problem, the paper only classified the enterprises into two types, namely, large enterprises (with an annual output value of more than 100 million yuan) and small and medium-sized enterprises (with an annual output value of less than 100 million yuan, of course, there are very complicated situations).
Modernization of small and medium-sized enterprises
The high-tech transformation of large enterprises requires a large amount of funds and a large number of high-quality talents. At present, China's small and medium-sized enterprises do not have such resource endowments. Therefore, small and medium-sized enterprises must adopt different paths to achieve modern transformation.
In the industrial area where China's furniture industry is concentrated, the trend of industrial agglomeration has begun to appear. Shenzhen, Shandong, Linyi, Zhejiang Wenzhou (Cangnan), Anji, Jiangsu Hai'an, Chengdu Xindu, etc. are all planned or substantively launched or completed. Industrial (garden) area. This is a new model for the development of China's furniture industry. Through the "specialized division of labor, socialized collaboration" to achieve industrialized economy, and thus modernization transformation.
(1) Industry chain in industrial agglomeration
The concentration of industry will inevitably lead to new industrial clusters or industrial zones. One of the characteristics of this industrial group (region) is that it has a relatively complete industrial chain. Furniture is a final product. Its industrial chain includes upstream industries such as wood processing industry, wood-based panel industry, leather industry, textile industry, metal products industry, etc. The supporting industries include adhesive industry, coating industry, hardware industry, decorative materials industry, etc. . Therefore, how to cooperate with upstream industries and supporting industries, and even use economic and geographical advantages to integrate these related industries under possible conditions is a noteworthy issue. Taisheng Company established the East China Plant, which has set up almost half of the land to set up a supporting factory, and uses the local wood processing industry and wood-based panel industry in Jiashan, Zhejiang Province to form a giant furniture industrial park that interacts with the upstream industry and supporting industries. Examples to draw on.
(2) Forms of enterprises and intermediaries in industry (park)
In the industrial zone (garden) formed after the agglomeration, the enterprise is the final force that determines its development. The power, vitality, innovative spirit, restraint mechanism and market competitiveness formed by the enterprise are the core of the internal growth of the industrial cluster.
Enterprises in industrial zones (parks) must carry out specialized division of labor and social cooperation. They must break the industrial organization structure of barriers between enterprises, that is, formally concentrate a large number of "big and complete" or "small but complete" in one region. The same industry, but the degree of specialization is very low. The industrial zone (park) must realize a highly specialized division of enterprises consisting of terminal enterprises, intermediate enterprises, supporting and service enterprises, and together with intermediaries, form a system or social network with strong "self-organization ability".
The terminal enterprise is a key enterprise directly facing the external market, so it must be responsible for design and sales. At the same time, it is the final assembly enterprise of the product, so it must have the ability to control product quality and provide good after-sales service to maintain the industry. The relative stability between the production system and the external market.
An intermediate enterprise is a company that produces parts or accessories. In an industrial zone, each specific or several production processes or auxiliary processes are completed by them. Intermediaries are important because they hold most of the know-how and have the ability to apply it in a variety of innovative ways.
Supporting and service companies. There are many supporting industries in the furniture industry, such as hardware industry, paint industry, decorative materials industry, etc., while service enterprises, such as transportation companies, information consulting companies and even catering businesses, not only provide various services for the main industry, but also increase A large number of employment opportunities to promote economic prosperity in the region.
Different forms of intermediaries, they are centered on local governments. These intermediaries can be private or can be commissioned by the government, such as associations, service centers, business offices, banks, training institutions, to handle business related to the industrial zone and the local economy.
(3) Endogenous growth mechanism after industrial agglomeration
The endogenous growth mechanism of the industry is the second issue to be considered. How to properly handle the relationship between government, market and enterprise is the key. The government provides a policy legal framework for economic regulation, market supervision, social management, and public services; enterprises make decisions on their own, take risks at their own risk, and create economic growth with the goal of benefit; social intermediary organizations provide information between government and enterprises, enterprises and enterprises, Communication, self-discipline, notarization and other services. The three are in place, and mutual coordination and interaction can form the internal growth mechanism of the regional economy.
(4) The status and role of associations in the endogenous growth mechanism
The modern market economic system is a "quaternary structure" in which the government, enterprises, markets and social organizations are linked together. From the organizational theory analysis of the new institutional economics, the government and enterprises belong to the same level (the hierarchy). In the modern market economy system, there is a broad middle ground between the pure-level organization and the pure market organization. There are many kinds of “economic intermediate system organizations†in this zone. From the trend analysis of the evolution of the market economy system, from the actual operation of mature market economy countries, these economic intermediate organizations can be said to be the most dynamic and most changeable part of the entire economic system. The status and role of the market economy system is increasingly strengthening.
Industry associations are one of the typical economic middle institutional organizations. It should be an organizational form in which enterprises benefit from the interests of the industry and develop voluntary organizations, and enterprise-level organizations are gradually market-oriented. Therefore, industry associations are not just intermediaries between enterprises and governments. They are also intermediaries between enterprises and enterprises, enterprises and social organizations, government and markets, government and social organizations, and markets and social organizations. After China's entry into the WTO, market rules are in line with international rules. Under the new historical conditions, industry associations are even intermediaries between enterprises, industries and foreign governments, multinational corporations, economic organizations of various countries, and various international economic organizations. In short, industry associations, as economic intermediate institutions, include all institutional organizations in the open market structure, and even economic individuals who engage in economic activities.
The functions of trade associations are gradually formed in the process of adapting to the operation of the market economy. In the free market economy system such as the United States and the United Kingdom, the "level mode" of industry associations formed by spontaneous organization and spontaneous activities of enterprises; Japan, Germany and other market economic systems with strong government administrative management have formed The administrative role of the government is involved, and the large enterprises play a leading role in the “vertical mode†industry associations in which SMEs participate. Although they are different, the functions formed in the market competition are generally consistent: information system functions that provide market information, technical information, social and political intelligence information; between government and enterprises, between enterprises and consumers, and industry Multi-directional coordination functions within the organization; development of industry standards, implementation of special supervision and other political functions and other special functions. In order to protect the interests of the entire industry, many industry associations have even formed the functions of participating in competition and business development in the process of providing services to enterprises in order to help member units develop together.
In the industrial zone, the role played by the association will be even more important. It is actually the organizer and coordinator of the micro-social system of the industrial zone. The interests of various enterprises, social organizations and even individuals are adjusted through it to resolve contradictions and enhance cohesion. For example, Italian economists believe that the role of associations must be emphasized in industrial zones on the grounds that:
First, in order to enable the basic industrial sectors in the industrial zone and local political and regulatory agencies to discuss and dialogue the long-term development goals of the industrial zone, to find ways to achieve this goal; in order to coordinate the interests of the various parties, each The credibility and development model of the party; in order to promote the commitment of the various industrial sectors to achieve this goal, to expand the awareness of subordinate local production systems.
Second, in order to establish and maintain the balance of supply and demand of the local labor force at any time, it is necessary to determine local common transaction conditions. They are essential for collaboration and are conducive to the improvement of innovation competitiveness of enterprises in industrial zones. Rather than expanding the contractual bias toward the labor supply and demand sides may not be strong.
Third, for providing specific group interests, local cohesion can help find an institutional solution, such as a trade fair organized to promote local products, or a school to train skilled workers. The interests of such groups depend on the specific situation, and it is necessary to create and improve the competitiveness of local industries. The interests of such groups communicated with the external economy, increased the productivity of existing businesses, and lowered the barriers to entry into new trade areas.
(5) Industrial zones (parks) must strengthen integrity and social credit construction
The market economy is a credit economy. At the same time of the economic system transition, China's credit system is facing a transition. Under the traditional system, credit resources are exclusively controlled by the government, and the government is the only credit subject. The relationship between government and enterprises makes the relationship between enterprises, enterprises and banks, and even between enterprises and employees directly or indirectly reflected in the relationship with the government. At that time, enterprises, banks, etc. were not independent entities, and they did not have any "credit" at all. With the improvement of marketization, the main body of property rights and the main body of interest are diversified, and the subject of credit is changing. Governments, enterprises and individuals are independent entities and must have their own credit. We are going through this difficult transition process.
Practice has proved that if a region loses its credit base, it will have disastrous consequences for economic and social development. Although individual places, individual companies and individuals may bring temporary benefits to themselves due to counterfeiting, fraudulent debts, contract breaches, non-implementation of guarantees, false disclosures, infringement of intellectual property rights, tax evasion, and bribery, the entire region Paying huge costs for untrustworthy behavior.
When talking about the integrity of industrial zones, Italian economists also pointed out: "In the industrial zone, one type of integrity is because it belongs to the same community, so its value and code of conduct is a long-term society and Formed by economic practice, they are effective for any time. Another kind of good faith is formed according to the multiple exchanges between agents, and mutual communication is also very easy, and the benefits can be expected in the mutual trade. The first type of integrity can be seen as a collective resource, and its grace extends to every member of the industrial zone. The second type of integrity should be seen as a personal resource."
The integrity awareness and social credit construction of China's furniture industrial zones are indispensable and require long-term and unremitting efforts. Because the insincereness of individual companies in industrial zones will lead to the loss of credibility of the entire industrial zone, integrity and credit are more urgent and important for industrial zones.
In the transformation of China's furniture industry modernization, small and medium-sized enterprises can achieve a modern industrial system by means of industrial agglomeration and “specialized division of labor and social cooperationâ€. If a large number of small and medium-sized enterprises can form an industrialized economy in such a way that they can accumulate more and more, and gather sand into towers, they can also have a high competitive advantage. We can learn from the advanced experience of the world and carry out creative transformation according to China's national conditions to realize the modernization transformation of small and medium-sized enterprises. We hope that the whole industry will be brave in reform, forge ahead, boldly innovate, and strive to realize the comprehensive modernization and sustainable development of China's furniture industry.
For more information about furniture and home, please pay attention to Xianghe Furniture City official website:
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