Raw materials, logistics costs, labor costs, and store rents are all rising, and the home furnishing industry has entered a "high-cost era." Since the end of last year, the discussion of the price increases of major home furnishing brands has spread. This year, many home furnishing companies have already raised their sales prices in the market. According to Li Yujie, secretary general of the National Association of Industry and Commerce's Home Improvement Industry Association, business owners have been burdened by rising costs since last year, and raising prices is also a helpless move.

Price adjustment by domestic enterprises to ease cost pressure

The reporter found in the market that many brand home furnishing brands have already “succumbed” under the pressure of high costs, and started to work on product price positioning, raising the selling prices one after another.

Many well-known home furnishing brands have already completed their price adjustment targets. For example, Bologna has raised the product price as early as this year. By the first quarter of this year, the adjustment range had reached 10% -15%. In addition, the current decoration will also increase the price by 5% in March this year. And Yaguangya's price increase has reached 15% -20%. The same price increase is the European cabinet, at the end of April, the European school also raised the price in an all-round way, with a price increase of 10% -15%. In addition to home furnishing companies that have clearly increased prices, there are still many brands that are secretly adjusting product prices. According to the survey, only in the first half of this year, the price increase has already involved home improvement and building materials such as floors, bathrooms, ceramic tiles, cabinets, and wardrobes. Among them, the prices of first-line bathroom brands and ceramic tile products have increased by more than 5%, while the first-line coating brands have increased by more than 10%, the first-line cabinet brands have increased by 5% -15%, and the prices of first-line flooring brands have also increased by 3% -15%.

Among them, the frequency of wooden floor price adjustment is the largest. It is understood that since November 1 last year, the wood flooring market has been raised several times in a row. Some market participants told reporters that many small and medium-sized brands in the flooring industry have raised their prices by around RMB 2 to RMB 3 per square meter, and at most not exceeding RMB 10 per square meter. However, some well-known brand floors rose more. For example, a large-scale brand's "Classic Teak" series flooring, its price soared from 93.5 yuan per square meter to 126 yuan per square meter. Home building materials have experienced a price increase around the Spring Festival, but the price increase is still continuing. After two upsurges in the previous year and the beginning of the year, China's home building materials prices have ushered in a relatively stable period. However, after the "May Day" and other major festivals, the price rise of building materials prices in July again staged. According to a person in charge of a well-known brand floor: "In early July, the price of some of its products was increased by 10% to 15%."

Gold, silver and silver may increase prices after ten

As a traditional peak sales season, this year's "Golden Nine Silver Ten" is not only an important period for home companies to sprint sales tasks, but also may be the beginning of a new round of price increases. Although many home furnishing companies have adjusted the price of their products in the first half of this year, some industry insiders expect that the prices of products such as wardrobes, custom furniture plates, and hardware are likely to face upwards again by the end of this year.

Although the heads of major home furnishing companies are currently unable to answer the question of whether the product price will be raised again, some analysis pointed out that due to the sprint annual sales task, September and October will still be the key nodes for promotion. It is unlikely that prices will increase during this period. However, the "Eleventh" holiday may be the last round of low prices in the home furnishing industry. After this, major home furnishing brands are likely to raise prices again. The chairman of Yuan Henry, Yang Bo, has revealed in a home furnishing forum that after "Eleventh", the price of red rosewood mahogany furniture will increase by 10% -15%.

Dialysis: corporate costs are rising

It is an indisputable fact that the operating costs of home furnishing companies are high. In the past year or two, despite the rapid development of the industry, home furnishing companies are also facing increasing cost pressures. According to reporters, these pressures come not only from the wages and salaries of production workers in the enterprise, but also from store operating costs, as well as logistics, raw material prices and so on.

Talent volatile wages are rising

As a labor-intensive industry, labor costs are one of the important costs for home furnishing enterprises. It is understood that the wages of skilled workers in the furniture industry in the market have started to rise as the market changes. Especially after the promulgation of the new labor law in 2008, this situation is even more serious. According to statistics, in the current home improvement industry, the cumulative increase in the cost of decoration workers has reached more than 40% in the past three years. Among them, the wage increase of bricklayers is the largest. At present, the monthly salary of a skilled bricklayer can reach 6000-7000 yuan, and some can even exceed 10,000 yuan. This has doubled from two years ago. The situation like this is also true in other home furnishing fields. For example, skilled workers such as carpenters and carvers in the furniture industry can earn an average monthly salary of more than 8,000 yuan.

It is understood that the wages of the household industry have been rising so fast, the most important reason is the current "short-term phenomenon" in the home improvement industry. Especially for jobs with a certain technical content, it is not easy to find experienced and skilled jobs in the market. In the past two years, there has been a “labor shortage” in the home improvement industry. This phenomenon is also often seen in furniture manufacturing enterprises, such as skilled senior craftsmen, carvers and even five-piece sawmen. These technical talents are not many even in the market, and many home furnishing companies are "iron warriors." A person in charge of a furniture manufacturing company told reporters that the biggest headache is recruiting people. Some veteran employees with skills often take away a batch of technical backbones as soon as they leave. Therefore, companies generally adopt high salary and regular salary increase strategies to stabilize people's hearts.

Store operating costs are too high

According to industry sources, in Europe and the United States, the rental cost of furniture stores is about 10% to 20% of the selling price of goods, while in China, furniture stores account for 30% or more of the selling price.

In recent years, the home store is still in the stage of continuous expansion. Data show that Red Star Macalline has attracted more than 40 stores and opened more than 30 stores last year alone. The number of stores opened in 2010 is more than the total number of stores in the past. And like Ouyada, Mercure Center, Jockey Club, etc., there were more than ten new stores opened in Guangzhou last year, with an added area of ​​nearly one million square meters. The rapid expansion of the store not only pushed up the vacancy rate, but also the rents.

According to dealers, in these large stores, 300 square meters of shops, the monthly rent is about 40,000 yuan, an increase of nearly 1/3 over the previous two years. And more importantly, due to the fierce competition in the industry, the battle between many home stores has entered a fierce battle. It is understood that if you enter a brand store and want to enter another brand store, you must pay an additional rent of at least 300,000 yuan per year. Therefore, excessively high operating expenses in the store have become another important reason for the high operating costs of home furnishing companies.

Rising material costs

The price of paint has recently increased by 10% over the previous year, the price of glue has increased by 8%, and the raw materials for furniture production such as molds, blades, sandpaper, and sandbags have also risen by more than 10%. The rise in raw material prices has directly led to a rise in production costs for home furnishing companies. It is understood that the price increase of the raw material market is the biggest problem including the coating companies. Due to the fierce market competition, it is difficult to digest the additional cost of raw materials through the price increase of the product terminal. The price increase of the raw material will eventually lead to a decline in the unit profit of the coating company.

The increase in timber prices directly increased the cost of furniture companies. It is understood that prices such as Northeast Timber and Myanmar Timber have risen by more than 10% this year. And since the beginning of this year, despite the fluctuations in wood sales, prices have always been upward. A few years ago, the forestry departments in various parts of the Northeast raised the price of logs in the Northeast, and the general increase was 200 yuan per cubic meter.

Logistics costs continue to rise

In addition to the rising costs of raw materials and talents, logistics costs are also a problem that the Chinese home furnishing industry has to face. A large part of the prices of home products in the market come from logistics. According to industry sources, a set of sofas with an ex-factory price of around 6,000 yuan entered the store and turned into a high-priced commodity of up to 12,000 yuan. In addition to the rental cost of the store, consumers have to pay for the high logistics costs. A person in charge of the company told reporters that logistics is very important for furniture companies. According to reports, logistics costs account for about 15% of the product terminal price. Due to the increase in logistics prices in recent years, the additional cost of furniture has gradually increased.

Break the situation: improve management innovation channels

"Squeezing out the middle water can make furniture return to rationality." In the face of the current high cost pressure, in addition to the uncontrollable factors of raw material prices, home furnishing companies are more faced with the problems of management and marketing channels. By improving the management system and opening up innovative marketing channels, companies will be able to get rid of the current high-cost dilemma.

Pay attention to brand value enhancement

The past ten years have been a period of rapid development of the home furnishing industry, and the future development model of the home furnishing industry will also change from quantitative expansion to improving quality. Some analysts pointed out that under this background, home furnishing companies must abandon the development model of making profits on the basis of low labor costs. In other words, the fundamental reason for the increase in employment costs is that the domestic home furnishing industry is still at a labor-intensive stage, and it has not created the value of the company's own brand and is insufficient in the technical gold content of the product. Some home furnishing companies are in trouble due to the increase in employment costs. The core of the problem is that the companies themselves are not strong enough. "Even if there is no new labor contract law, such companies will collapse in other crises." A brand home improvement company general manager told reporters.

Especially for export-oriented home furnishing companies, when cheap labor resources become a thing of the past, if the company's innovation ability, brand advantage and technical gold content cannot be rapidly improved, its comparative advantage will be greatly reduced, and its ability to participate in international competition will face a severe test. At the same time, he also believes that at present some very profitable companies that rely on hiring cheap labor to gain an advantage cannot really adapt to the current pace of development of the home furnishing industry. These home furnishing companies need to constantly optimize and upgrade, adjust their development strategies, especially the production management concept, should take into account the future development, by improving the technical content of products or services, so as to obtain space for survival and development.

Open up new marketing channels

Speeding up store expansion, rising rents and rising prices of raw materials, etc., are ultimately still marketing issues. For now, many home furnishing companies still stay in the stage of relying on hypermarkets to sell products. In these traditional sales channels, large brand stores occupy an absolute dominant position, which has created greater cost pressure for home furnishing companies. However, the reporter found in the market that many home furnishing brands have already embarked on an innovative marketing path, trying to develop a new marketing channel under the support of the current Internet.

According to incomplete statistics, currently well-known brands such as Qumei, Top 100, TATA Wooden Door, Green Island, Quanyou Furniture, Shengxiang, Kumanju, etc. have begun to test e-commerce, such as TATA Wooden Door, Green Island and other enterprises. Bringing it to the company's development strategy is enough to see the company's recognition of this new model.

The rise of the home network mall will likely become a new development model in the future home furnishing field. For example, TATA wooden doors make full use of the Internet platform in the marketing process, and have adopted the B2C e-commerce model for product sales. They have moved a certain product of the company to the TATA wooden door online mall for sale. At the same time, more than 800 stores across the country It has also opened a network zone to allow netizens to enjoy a true one-stop service from booking and payment to after-sales service. This model has become the first choice for most home furnishing companies involved in e-commerce.


Using the B2C e-commerce model has obvious advantages over traditional marketing methods. Not only has it avoided entering the store, but the entire process can be completed within the enterprise from the beginning of manufacturing to the direct sale to the end consumer. Not only greatly saves time, but also directly through the network according to customer requirements for product customization and post-service. At the same time, in the e-commerce model, by independent logistics delivery, even outsourcing to a professional logistics company at a lower price, it also greatly saves logistics delivery costs. In this way, online marketing can save costs by nearly 40%. Although at present, the development of the e-commerce model in the home furnishing industry is not too mature, many home furnishing companies involved are still in the exploration stage. But for the home industry is undoubtedly a new development idea.

In addition to online marketing, the implementation of the "direct store" business model by major home furnishing brands is also a great weapon to save costs. For example, Meikemeijia has always insisted on taking the "direct store" model. Not by entering the store, but directly opening a small showroom-style store. In this sales model, it is also possible to avoid paying high rents in the store. However, it is worth noting that the prerequisite for successfully opening a "direct store" is that the company's brand has a certain market reputation and can independently attract more customers. Such as European School, Qumei, Meikemeijia and so on. This sales model is relatively low for small and medium-sized home furnishing companies.





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