Crisis, not the 3 big business venture: furniture industry

Furniture industry: the countryside should be carefully

Risk index: ★ ★ ★ ★ ★

Development Status:

2009, exports hit the furniture industry had to attempt to expand the domestic market. 12 In view of domestic white-hot competition in the market, as well as the relative saturation, many people in the industry will have sights on the market 34.

The industry believe that the gap between rural and urban areas will become more and more small farmers to live the concept of furnishing consumer replacement changes have taken place, but the industrialization of the furniture market, mainly concentrated in large and medium-sized cities, has yet to touch on sale the majority of the rural market.

Open sources, Tibet, Guangdong and other local governments have put forward their own plans to the countryside furniture. Meet expanding domestic demand and open up the call of the majority of the rural market, a growing number of furniture manufacturers have begun to enter the rural market.

Statistics show that the first quarter of 2009, urban retail sales of consumer goods 1983.4 billion yuan, an increase of 14.1%; and below the county level retail sales of consumer goods 956.4 billion yuan, an increase of 17.0%. Above in the wholesale and retail, furniture retail sales grew 24.1 percent year-on-year. However, the furniture industry based on the data down in March, the domestic furniture industry experts say the consumer market will be subject to further observation.

"A great influence on the financial crisis." Shenzhen City, Hebei Province, a rural market-oriented operation of the furniture shop owner, said Wang Jianye, the end of last year are still good spring this year, they found that the situation is particularly serious, he expected the sales volume of less than 2009 one-third in 2008.
Wang Jianye under the factory has been forced to shutdown, "no one to patronize the store, and occasionally to individuals, only to see that only marriage was to buy furniture." Marriage problem is, after all, only a limited number of customers. In order to expand sales, so do a variety of Wang Jianye trick. The beginning of this year on the first furniture trade fair, a set of Wang Jianye furniture price cut for 400 yuan, almost nil, but it did not set out a set. Research on the market, Wang Jianye trying to develop new markets, whether or not busy with studies highlight the major manufacturers of furniture, but the results did not vary.

According to Wang Jianye, the Shenzhen City, shutting down small and medium-sized furniture in a few enterprises. Within two or three months if the situation is not improved, there should be a number of small and medium-sized furniture factories face closure.
Turning to the issue of their own furniture to sell, Wang Jianye analysis, in Hebei Province in 2008, farmers did not make any money, income is expected to decline in 2009, "reducing the income of the farmers did not mind to buy furniture."

Wang Jianye Hebei farmers will be divided into three parts. Part of the farming population, the first half of 2008, chemical fertilizer, pesticides, seeds and other agricultural supplies like a roller coaster up, after balancing the cost and revenue, these farmers are basically not too much income. Another part of the pig-rearing households, low-injury in 2008 pig farmers, the farmers in this part of the same income is not much. The third part is the large number of migrant workers.

15 Chinese Academy of Social Sciences in Beijing in 2009 published "Green Paper on the rural economy" (hereinafter referred to the Green Paper) will further prove that the judge Wang Jianye. The Green Paper points out, according to the country's 31 provinces (autonomous regions and municipalities) 68,000 rural households in sample survey of farmers in 2008 per capita net income 4761 yuan, more than 621 yuan to increase in 2007, an increase of 15%, after deducting price factors, the actual increase of 8% growth rate in 2007 declined by 1.5 percentage points.

Forecast:

The Green Paper points out, China's largest potential for expanding consumer demand in rural areas, but rural residents are still relatively low level of consumption. 2009 per capita net income of farmers will continue to maintain the increase, but growth will be lower than in 2008, the actual growth rate may be reduced to 6%.
The prices of agricultural products affected by the pressure and reduce the impact of non-farm employment opportunities, the Green Paper is expected in 2009 the per capita wage income of farmers may be only 5% growth rate in 2008 will decline by 10 percentage points, may be the lowest growth rate since 1984 .

Information gathered by the reporter found that in the rural market has been clearly successful or a small number of furniture manufacturers. Under the impact of financial crisis, lower income, lack of confidence in a variety of factors, such as is the revenue of the farmers on the lack of substantial re-own pocketbook.

Even excluding the price factor, furniture countryside there are also many obstacles. Speaking on condition of anonymity before the furniture industry in an interview with our reporter said that on the one hand, the furniture itself contains a certain degree of cultural, urban and rural areas of the aesthetic standards vary. On the other hand, brand recognition, the furniture industry is not yet clear brand. Both rural areas can not lead to the furniture and appliances to the countryside vigorous par.

Inflection point:

"Off the mark, only the past, such as the financial crisis. At present, everyone is watching." Says Wang Jianye.