Shorten furniture supply chain, how many business opportunities to be excavated?

Chinese furniture industry has already passed the savage growth period that demand exceeds supply, enter the fierce competition of the market "small profit" era. "Get the consumer, get the world", in the business environment of rising costs, declining profits and difficult industry, is forcing the traditional household supply chain to constantly upgrade to meet the demand of consumption upgrading. Furniture manufacturing enterprise and consumer more and more "close".

Furniture suppliers

Furniture suppliers are paying attention to supply chain issues

Modern management education defines the supply chain as "the supply chain is centered around the core enterprise. Through the control of commercial flow, information flow, logistics and capital flow, From the procurement of raw materials to the production of intermediate products and final products, and finally by the sales network to deliver products to consumers in the hands of a whole functional network chain structure by suppliers, manufacturers, distributors, retailers and end users. In traditional furniture supply chain, bad comment arrives consumer from manufacturer, total meeting experiences "manufacturer - distributor - sell a store - consumer" basic flow. In this process, the furniture prices continue to rise, the market price is ex-factory price 4 ~ 6 times, but after group-buying market promotion, sale, factory and so on title after the discount, the final price is often only half of the price is even lower, furniture factory and the dealer net margin optimistic point at 10% to 20%, some even lower. A lot of costs are wasted in marketing, logistics, store rent, inventory and other intermediate links in the supply chain.

In the consumer market environment, especially the appearance of furniture electric business, custom furniture in recent years, has already shown heavy unwieldy supply chain problems, traditional household consumption upgrade need to be able to quickly change your consumer information to ready-made furniture products and services of supply chain, which means to cut down a lot of intermediate link, So that furniture factories and consumers can directly face to face transactions. Shorten the supply chain, many furniture enterprises found hidden business opportunities.

Get "close" to each other's furniture manufacturers and consumers

Supply chain management, in order to reduce costs, reduce product delivery cycle, reduce turnover inventory, shorten product delivery cycle, so that the information flow of front-end consumers quickly flow, cash, open, optimize the supply chain, cancel or replace ineffective or inefficient links, this is the direction of many large furniture enterprises. Specifically in terms of external performance, one is to open factory stores. For consumers, they used to go to stores and dealers to buy furniture, but now they can go to directly owned stores, factory stores and independent stores of furniture enterprises to participate in factory Open Day activities held by enterprises, and get better and cheaper products and services at "factory prices". The second is the integration of online and offline channels, which means that consumers can experience products in offline stores and place orders by scanning codes online, so as to avoid the trouble of shipping large furniture products home. For enterprises, they can also save a lot of logistics and shopping guide costs by distributing goods in cross-regional physical stores. Third, the permanent exhibition platform, exhibition and trade integration, the famous furniture exhibition home Expo park, is a lot of factories' product display shops and sales shops.

And consumers are getting closer to the factory. They are not only able to choose from local furniture stores, but increasingly prefer shopping online, looking for products at furniture exhibitions, DIY their own homes in custom-made furniture offline stores, and even many of them go to furniture industry bases by plane to buy furniture. The rising middle class, the new generation of 90 consumer groups, their ability to obtain information has been very rich, they into the furniture factory way is more and more.

With the advent of the era of big data, computing and AI, manufacturing enterprises can obtain a lot of information about consumers' purchases of furniture. These information will help enterprises shorten the supply chain, and even consumers become an important part of the supply chain. Shorten the distance with consumer, it is challenge to furniture enterprise, also be the opportunity that realizes rebirth.

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