Referring to China's furniture market this year, wave after wave of withdrawals has always left many furniture people with a lingering fear. Industry experts have said that the entire industry is now at its most difficult time, in the global economic recession and China's economic growth slows down. In the dual context, the future of furniture companies is worrying. Strategic transfer furniture companies fled the first-tier cities as the furniture industry most closely linked to the real estate industry. Before the real estate industry developed rapidly before 2008, it experienced a period of rapid development, many of which focused on first-tier cities in an attempt to grab a strong market. status. At that time, furniture companies in the second and third tier cities along the coast focused on the production and output of products. When the economic crisis broke out in 2008, the world economy began to decline, and China could not avoid being affected. Especially since 2010, the property control policy has been tight, which has the greatest impact on the four first-tier cities in the north, Guangzhou and Shenzhen, and the housing transaction volume is sluggish. In 2012, the relevant policies continued, and the transactions of commercial housing in the first-tier cities were still restricted, and the competition among furniture companies was extremely fierce. Although the property market is now slightly warmer, this has not eased the status quo of furniture companies. At the same time, the outbreak of inflation in recent years has made the situation of many enterprises worse, the rising prices of raw materials, the increase in production and labor costs, and the increase in rents that have not risen, which has made some furniture companies suffer. This year, Red Star Macalline rushed to withdraw from the store is the epitome of the current business situation of various enterprises. In addition, the rise of furniture e-commerce in the past two years is also a force that cannot be ignored. The first to be impacted is the traditional furniture enterprises in first-tier cities. In the first-tier cities, due to the relatively developed economy and the high acceptance of new things, online shopping has become a popular shopping method. In addition, the perfect logistics and distribution services in the first-tier cities have also prompted people to change their shopping thinking. For example, the price of online shopping furniture is more attractive than physical stores, so in these cities, the traditional furniture companies have less and less space to survive. Under the combined effect of the triple factors, the days of traditional furniture companies are even more difficult, and the furniture companies in the first-tier cities are the most difficult. The external favorable conditions prompted furniture companies to move to second- and third-tier cities. Under these multiple pressures, many furniture companies have turned their strategic development direction to second- and third-tier cities. For a time, this once-unappreciated market has shown a prosperous scene. The second and third tier cities have become the slogans of many companies. Some of the characteristics of the second and third tier cities themselves make them uniquely advantageous. First, the housing in the second and third tier cities is mainly rigid demand, which is not obvious due to the property control policy. The connection between the furniture industry and real estate is extremely close. Under the one-round and one-round real estate control policies of the real estate, the first-tier cities are mainly based on investment housing, so the transaction volume has shrunk dramatically. The second and third tier cities are mostly just in need of housing. Under the trend of declining real estate development in first-tier cities, the market potential of second-tier cities is highlighted, and the development potential of real estate-related industries is also demonstrated. Therefore, the huge potential purchasing power of second- and third-tier cities needs to be tapped. Second, policy support, second- and third-tier cities have better economic conditions. Since the economic crisis, the country has introduced a number of relevant policies to stimulate domestic demand and promote economic development. Second and third tier cities will usher in tremendous development opportunities. The opening of the investment environment will also bring new opportunities for the economic development of these cities, and the external economic environment will have little impact on second- and third-tier cities. At this time, many furniture companies will be stationed in an unprecedented opportunity. The follow-up development of the second and third-tier markets is yet to be tested. The huge temptation from the second and third-line furniture market has spurred countless enterprises. Not only the traditional furniture companies have been deployed, but many furniture e-commerce companies that are now extremely hot are also focusing on the second and third tier cities. Development. It is understood that in the offline experience hall that the furniture e-commerce company Melaleu has opened, the second and third-tier cities account for the vast majority, and only Jiangsu Province has opened 22 experience halls. The online shopping malls of major furniture companies that have recently launched online have combined with the physical stores opened in various cities to push the competition in the second and third-tier urban furniture markets to a climax. Taking Yixing City, Jiangsu Province as an example, in this third-tier city with a population of only 1.08 million, there are more than 130 furniture stores, and furniture companies have various forms of operation, not only the old furniture companies such as Red Star and Jinhaima, but also numerous self-operated companies. Furniture company, furniture e-commerce company Melody also opened its offline experience hall in Yixing City. The prosperity of the furniture industry in Yixing is a microcosm of the furniture market in the second and third tier cities in China, which fully proves the fierce competition in this market. In fact, whether it is the well-known chain furniture store business model, or the O2O business model implemented by furniture e-commerce companies such as Melaleuca, or the local self-operated furniture stores, they are striving to seize the market opportunities, second and third tier cities. The furniture market is ushered in spring. However, whether it can be successful, whether the entire industry can completely get rid of the current development dilemma, still has to be tested.
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