At present, the Chinese economy is undergoing an overall upgrade, and in the development of the home industry, the trend of industry upgrading is also very obvious. If home furnishing companies want to form strong competitiveness under the “new normal†of the economy, they must make positive adjustments. In the face of future development, what kind of road should home enterprises take? These are still to be practiced.
The overall economic upgrade is unstoppable. The spring of home furnishing enterprises is coming (Photo Source Network)
China's national economy maintains an amazing growth in wealth
In the past five years, the wealth of Chinese people has increased dramatically. Compared with the individual indicators of urban and rural residents' RMB deposits announced by the People's Bank of China, it reached 52.65 trillion yuan in 2015 and 38,000 yuan per capita. Only five years ago, residents’ RMB deposits were only 30 trillion yuan, an increase of 75% in five years. Compared with 14 trillion yuan a decade ago, it has increased by 276%, which is an increase of 2.76 times.
Looking at the macroeconomic indicator M2, which reflects the total wealth of a country, China’s M2 was 72.57 trillion yuan at the end of 2010. By the end of 2015, this figure had reached 139.2 trillion, an increase of 91.8% in 15 years, that is, an increase. Nearly doubled. Referring to the division of the International Monetary Fund, China's M2 is equal to cash + demand deposits + urban and rural residents' savings deposits + time deposits + other deposits. That is, it contains both cash and deposits from residents and businesses, institutions, and governments.
The reality is that although the total amount of money has nearly doubled, the CPI of the price index concerning the daily lives of ordinary people has not increased significantly in recent years. In the case of a large number of additional currency, China's renminbi has also successfully joined the SDR and become one of the international reserve currencies. That is, the world has recognized that the renminbi is a stable and reliable currency and is trustworthy. In the context of the national per capita RMB savings deposit reaching nearly 40,000 yuan, the per capita deposits of economically developed cities have reached between 80,000 and 120,000 yuan.
The trend of the fittest is obvious. Which home furnishing companies have the present?
Under such a blueprint for wealth, the overall situation of the home industry is not good, especially for SMEs to fall into the mud of price wars. On the one hand, labor costs have risen, environmental protection pressures have increased, and enterprises have struggled to survive; on the other hand, the industry has been severely divided, and traditional finished homes have been squeezed by custom homes. Traditional home furnishing enterprises have been squeezed by outside building materials companies, decorative enterprises, and design companies. Traditional channels are squeezed by online channels; on the consumer side, because the brand appeal is not strong enough, consumers cannot be persuaded to increase the purchase price. The good news in the home furnishing industry is that the days of big companies are generally better, and the operating income has maintained a sharp rise. Some even squeezed into the ranks of listed companies, obtained better financing channels, and have a capital base for development.
From a realistic perspective, the home industry is by no means a bleak. Not only the listed companies have a good business performance, but also the performance of many home furnishing companies outside the public eye is also good. Many large-scale home furnishing companies have begun the nationwide layout of the industry. Those who actively promoted the production base from a slightly remote area to the central provinces of Hubei, Henan, and Anhui, are closer to the home consumption center to seek greater Business profits, reducing operating costs. These are all strategic measures for the overall situation and long-term thinking. Some of the total sales volume is not huge, but the quality of the products, the home enterprises that attach great importance to product design, also have their own fixed customer base, have obtained good returns, gained market recognition, and have a solid development. basis. Although these enterprises are not famous, but the foundation of their survival is solid, they can also seize the opportunity of China's rapid economic development.
Economic rebound, the spring of home furnishing companies may be coming
China's economic development has shown a clear cyclical law. Will the Chinese economy have a U-shaped rebound? Since the L-shaped economic forecast, the U-shaped rebound has almost disappeared. It is unimaginable to see a growth rate of nearly 10% in the huge amount of the Chinese economy. But the differentiation and restructuring within the economy is clearly going on. For large enterprise clusters, the spring of economic development may come with this strong economic rebound.
The more mature the market economy, the higher the level of economic development, the greater the advantage of large enterprises, and the greater the survival test for SMEs.
Chinese residents are expecting that their income will really double on the basis of 2010. In terms of the achievements now, this does not seem to be an elusive goal; the country will definitely take this goal More measures to achieve the good wishes of the residents. But does this mean that all companies will benefit from this wave of income growth? The answer is no.
The competition between enterprises will become more intense, and the survival of SMEs will be more difficult. Home furnishing companies that have strong market appeal, strong financial strength, marketing strength, and design strength are more likely to survive because they have greater opportunities for profit; and small and medium-sized home furnishing companies with weaker strengths in all aspects. , you must have a unique skill that people can't, otherwise it will be difficult to resist the attack of big companies.
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