The shortage of raw materials triggered the current round of rosewood furniture prices in China , and some furniture companies will face the situation of "no rice under the pot". Enterprises should improve their original design capabilities, adhere to the path of "finalization, specialization, and differentiation", actively adapt to market fluctuations, and turn crises into opportunities.
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On June 12 this year, the newly revised "International Convention on International Trade in Endangered Species of Wild Fauna and Flora" came into effect and became the fuse for this round of soaring domestic rosewood prices. According to the provisions of the new "Convention", in China's mahogany enterprise materials, Dalbergia sibiricum, Dalbergia sibiricum, Dalbergia sibiricum, Dalbergia sylvatica and Dalbergia rosenbergii are listed from Appendix III to Appendix II. This means that these timbers must have import and export licenses or re-export certificates before they can be traded internationally. At the same time, according to the relevant regulations, the country of origin of the mahogany material has started to prohibit the logging of mahogany and control the export volume. According to reports, Myanmar, one of the main exporters of rosewood, plans to stop exporting logs from April 1, 2014.
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The raw materials for making mahogany furniture are scarce resources in themselves, and some are almost extinct. With the expansion of the collection group and the increasing demand, the price of mahogany rose. The "restriction of purchase" of some rosewood materials in the new "Convention" means that the raw materials entering the market will be further reduced, and their prices may continue to rise.
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Can the "red fire" of rosewood drive redwood furniture manufacturers to follow suit? "In Beijing, about 80 of the 100 redwood furniture manufacturers use red rosewood, but now red rosewood and other raw materials Limited or even out of stock, manufacturers like ours can only store raw materials for about three years. â€Wu Xinjian, President of Beijing Jinfei Redwood Furniture Factory, said that due to the increase in raw material prices, the prices of their company ’s finished furniture products It has risen by about 40%, which is far lower than the rise of raw materials such as red rosewood. However, the purchasing power of consumers has dropped by 10%, and the company's profits have become less and less.
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      The cost of mahogany raw materials has risen sharply, labor costs have continued to increase, and some mahogany furniture manufacturers with insufficient funds and insufficient craftsmanship may face the risk of elimination. Because the prices of raw materials such as red rosewood have risen or even become out of stock, companies must find ways to transform and improve, otherwise they will not be able to survive. Some small enterprises have begun to use "substitutes" such as rosewood and black rosewood, and no longer use strictly restricted raw materials such as red rosewood.
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Experts believe that facing the exhaustion of raw materials, we need to promote the transformation and improvement of the traditional mahogany furniture industry. "To improve the original design capabilities of traditional mahogany furniture, it is particularly important to adopt a strategy of differentiated competition." Jiang Hengfu explained that mahogany furniture is not a general practical furniture, it is artistic and appreciative. To successfully cope with the “crisis†of raw materials, redwood enterprises must take the path of high-quality, specialization and differentiation. He said that some companies now use some commonly used mahogany materials for production and take the path of differentiated product development. In addition, they can also find other hardwood alternative materials and place their positioning on forward-looking materials and products .
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"Conservative thinking and weak brand awareness are common problems of many companies in the redwood industry." Yang Bo believes that many companies are doing well in the local market, but consumers may not be recognized in the national market. The reason is still lack of visibility and influence. The era of "wine is not afraid of deep alleys" has passed. He believes that media promotion should be emphasized, and he suggests that the entire mahogany industry should pay attention to the right to speak, open up horizons, and actively strengthen brand awareness.
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Yang Bo also specifically mentioned that enterprises should strengthen after-sales service. He said that mahogany furniture is not only furniture but also a work of art. In addition to the collection value, the brand value is an irreplaceable symbolic asset, and the after-sales service that reflects the brand value is naturally no longer just selling the furniture itself, but guiding consumers to recognize the brand value brought by the culture and art brand's processes and concepts , So it is important to provide emotionally satisfying after-sales service experience for collectors.
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At present, the transformation of mahogany furniture enterprises is imminent. In this regard, enterprises must have a clear strategic positioning. People in the industry generally believe that only by integrating product positioning, brand positioning and corporate positioning to unearth their own unique competitiveness that is difficult to be imitated and copied, companies can actively adapt to market fluctuations and turn crises into opportunities.
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