After the outbreak of the international financial crisis in 2008, the Chinese furniture industry began to vigorously expand domestic sales. Within just three years, the domestic furniture sales channels have dropped from first-tier cities to second-tier cities, and even third- and fourth-tier cities. In view of the European debt crisis leading to the continued depression of the European and American economies, exports will continue to shrink, this year China has adjusted its economic growth rate to 7.5%.

Relevant persons in the furniture industry believe that in this wave of expansion of the domestic market, furniture sales channels will also sink completely from first-tier cities to second- and third-tier cities.



Domestic furniture sales increase due to industry transfer

Furniture consumption started in coastal areas such as Shenzhen, Guangzhou, and Shanghai at the earliest in China . This is mainly due to the reform and opening up that provided coastal cities with the first economic foundation for furniture consumption. Since then, with the economic development of the capital cities of the mainland, furniture consumption has also begun to rise in some cities in the interior.

In recent years, with the help of the continuous transfer of many coastal industries to the inland, the income gap between the inland and coastal residents is shrinking.

According to a Mr. Huang who returned to work in Chongqing from Shenzhen, before 2008, he was engaged in CNC machine tool operation in Shenzhen. The basic salary was only 2,000 yuan. If he worked overtime, the maximum monthly amount was about 2,500 yuan. In 2009, Mr. Huang returned Looking for a job in his native Chongqing, he quickly found a job with a base salary of 1,800 yuan in a machinery company. It is understood that the average salary in Shenzhen at that time was only about 300 yuan more than in Chongqing. Excluding the gap in the cost of living, the two places were basically the same.



It is also because incomes are constantly rising, so furniture consumption in these provinces has also started. In recent years, furniture stores in Hefei, Anhui have been rising, such as the first floor of Zhongzhou International Furniture Museum on Fengyang Road, the second floor of Hall B of Yisette Furniture Exchange at the intersection of Qianshan Road and Wangjiang Road, and Xindi Red Star Macalline Soft Decoration Museum On the first floor and other stores, all kinds of furniture products are on display . In Changsha, Hunan Province, there are also furniture markets such as BMW Home Decoration Plaza, Red Star Macalline Soft Decoration Hall and Wanjiali Home Furnishing , especially BMW Home Decoration Plaza on South Shaoshan Road, where there are more than 200 furniture dealers operating furniture There are many varieties, complete grades and different styles.



Furniture sales sink as the income gap between cities shrinks

With the deepening of reform and opening up, the income gap between domestic first- and second-tier cities has been shrinking in recent years. According to the survey of per capita income of 35 large and medium-sized cities by the National Bureau of Statistics, in 2002, the average annual per capita income of residents in the top five cities such as Shenzhen, Guangzhou, Shanghai, Ningbo, and Beijing was the same as that of the bottom five. The ratio of the average annual per capita income of residents in Xining, Lanzhou, Yinchuan, Changchun, Hohhot and other cities decreased from 2.37: 1 in the previous year to 2.19: 1.

In 2009, an online survey by an authoritative domestic survey agency showed that 21.6% of people believed that second- and third-tier cities developed faster than first-tier cities, and 23.9% believed that large brands in many industries had begun to enter second- and third-tier cities.

Sichuan furniture brands began to establish sales channels in prefecture-level cities around 2005 ; shortly after the sweetness was tasted, these Sichuan furniture brands began to sink their sales channels to the county. Coastal furniture brands, which have been slow to respond, did not start to expand into the second- and third-tier city markets until the 2008 international financial crisis.

Therefore, we can see that the second and third tier cities are about to become an emerging market for domestic furniture sales.



Furniture store opened with exquisite

It can be said that the domestic furniture industry has realized the importance of sinking channels. But how do you sink channels? Specifically, where should furniture stores be opened?

Four people in the furniture industry gave four suggestions:

1. Field visit is very important-after determining the location of the operation, you should further investigate the operation of some similar stores in this location. For example, you can go to a furniture store in the location to check to see if the traffic in front of the store, The number of customers who enter the furniture store and the number of customers who purchase products, so as to judge the operation of this furniture store and provide a basis for supporting them to open stores in this area.

Second, look at the effective flow of people-the flow of people in the location of the store is very important for the information dissemination and sales of furniture products , but not all the flow of people is an effective consumer group. First of all, it must be distinguished whether it is a fixed flow of people or a flow of people. For example, although the convenience store in the community has a large flow of people, it is basically a fixed flow of people. Only constant, mobile, and unsteady traffic will help spread information and sell products. Secondly, the level of consumption of people and cultural level should be analyzed in depth.

Third, choose a good location-consumers often buy furniture products when the hard clothes are nearing the end , so the final link of the decoration should be considered when opening a furniture store; second, the furniture store should choose to open in a more concentrated area of ​​handicraft stores, This can not only utilize its customer base, but also target professional consumer groups.

4. Choose a second- or third-tier city with a per capita GDP higher than US $ 5,000 to open a store—because this income level is the tipping point for furniture consumption.

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