The business situation is worse than 2008
"Compared with the beginning of the financial crisis, the difficulties we encountered were even greater." Tan Kunming, general manager of Yashe Furniture Co., Ltd. said that in fact, the situation in the 2008 financial crisis was not too bad, but now it is worse than that. At that time, labor costs and raw material costs were not too high, and the domestic real estate market has been booming, with little impact on the furniture industry. Even so, Shunde furniture companies have not experienced a situation of bankruptcy, which is a normal survival of the fittest.
Since the beginning of this year, it has been difficult to do business because of the country’s real estate control policies. As soon as the purchase restriction policy came out, the sales of the overall furniture industry were greatly affected. "This is a very direct impact. After the purchase restriction policy comes out, there will be less buying a house, and naturally buying furniture will be reduced." Tan Kunming told reporters.
The pressure of cost also makes furniture companies more headaches. “The cost has increased by 13% since the Spring Festival.†Zeng Xiangqing, the general manager of Shunde Lingtao Furniture Co., Ltd., said that most of their products are exported. The price is set at half price for half a year. If the price is to be changed temporarily, foreign investors will definitely disagree. The cost has grown so fast that it has brought a lot of pressure on the company.
According to reports, in terms of raw materials, nylon materials used to be 11,000 yuan / ton, and now has risen to 13,500 yuan / ton. The glue for furniture has been from 78 yuan/barrel to 235 yuan/barrel now. In addition, labor costs have generally risen. On the workers' side, last year, each person averaged 2,200 yuan to 2,300 yuan per month. Now it has risen to 2,500 yuan to 2,800 yuan per person per month.
"These costs are all expected." Zeng Xiangqing said that there are still some costs that I can't think of. From the beginning of this year to the summer, power cuts began, and there were three days of power cuts a week. The cost to the enterprise in this respect is no less than the increase in labor and raw materials. The rest of your business is usually Sunday, but the power limit is usually Friday, Saturday and Sunday. Therefore, on Friday and Saturday, I can only generate electricity by myself. This money is not a small amount.
Tan Kunming, general manager of Yashe Furniture Co., Ltd. said that under various costs, the current profit is very meager, and it can only be regarded as a capital preservation operation.
Many companies promote domestic strategies
In the face of meager profits, more Longjiang enterprises began to shift from focusing only on exports to the domestic market. This time, the company wants to be self-conceived rather than handed over to franchisees. In the interview, many furniture business owners said that the dealers are a bit unreliable.
"Most of our products are exported, but from the current situation, it is obviously unfavorable for the development of the company to ignore foreign countries." Tan Kunming, general manager of Yashe Furniture Co., Ltd. said that they are preparing to open their own stores in the Pearl River Delta region. The dealer is too unreliable. After all, the dealer is still profitable, his store can not only sell you a brand, which leads to the recognition of brand sales is not too high, is not conducive to brand promotion.
Tan Kunming told reporters that the follow-up is also preparing for online direct sales. I hope to reduce the intermediate links by developing DIY furniture that is relatively simple and easy to install, and attract customers with cost-effective furniture.
As one of the leading enterprises of Shunde Furniture, Zhida Furniture Manufacturing Co., Ltd. also actively promotes its domestic strategy.
Wen Bin, assistant to the chairman of Zhida Furniture Manufacturing Co., Ltd., said that the company has now begun to shift from export-oriented to domestic sales. At present, the company has 9 self-operated outlet stores and 400 franchisees. In October this year, it plans to open a direct storage store in the five districts of Foshan, targeting the low-end and mid-range. If successful, it will be replicated nationwide.
Technical workers are very difficult to recruit
Nowadays, it is not only costly but also talented to trouble Shunde furniture companies. “Many people think that furniture companies are lacking designers now. In fact, this is wrong. We don’t lack design, and we lack technical workers.†said Tan Kunming, general manager of Yashe Furniture Co., Ltd.
"The order is not a problem. The problem is that no one is going to take the order now." Zeng Xiangqing, general manager of Shunde Lingtao Furniture Co., Ltd. described the current situation. He said that in the first five years, he wrote a recruitment revelation at the factory entrance. There is a long queue. Now people first ask if we have a canteen and whether we arrange accommodation. And it is easy to recruit now, and you can't get it. He explained that the large number of people in the office is too easy to recruit, but the technical workers in the workshop are too difficult to recruit.
Zeng Xiangqing told reporters that the average wage of the lathe workers is at least 3,000 yuan, and it is necessary to set a limit of 2,800 yuan, otherwise no one can be recruited. Some enterprises will chaos in order to recruit people, and even open an average price of 3,500 yuan per month, first recruit people to say, messing up the entire talent market.
In order to retain people, Zeng Xiangqing thought a lot of ways. He said that a bonus will be given at the end of the year, and if the worker returns home, he will also have a round-trip ticket. Encourage old employees to introduce new employees into the factory and reward them.
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