What are the profound lessons to be remembered in the furniture industry in 2018?

The final countdown is entering in 2018. At this time, it is necessary to profoundly summarize the mistakes made by the furniture industry for the future healthy development.

Do not believe that environmental protection efforts continue to increase. We have lived too long in an environment where there are countermeasures under the policy, so that it is hard to believe that environmental protection can have a substantial impact on the ecosystem of the furniture industry. Under this guiding ideology, many furniture companies have passed and lost so much that they have suffered heavy losses in the ongoing environmental protection. Of course, the biggest losses are probably those that produce low-end furniture. Some furniture enterprises that were attached to the surrounding areas of the metropolis and were seriously polluted and unable to control were completely cleaned up and broken.

A listed company that believes in diversified ghosts. The acquisition of a film and television company by a listed company seems to be very tall, and the author is astonished by the breadth of its crossover. Obviously, after cross-border mergers and acquisitions that violate the laws of business, it is difficult for the target company to fulfill its promises and become a chicken rib that drags down performance. Although the acquisition did not occur in 2018, the adverse consequences were revealed in 2018.

Much of the mergers and acquisitions, the company is caught in a high debt dilemma. A listed company acquired an internationally renowned furniture company. After the acquisition, no profit surged. On the contrary, the debt ratio soared. Capital market investors voted with their feet and the stock price plummeted. At the end of the year, a big company that was proud of the spring breeze fell into a lot of worries.

Home improvement companies that madly seized the market at low prices have been exposed. This year, the home improvement companies that have exploded in the thunder have seized the ambitions of the furniture market, the decoration market and the building materials market, and have also harvested a large amount of traffic with a modern network platform. At present, many of these traffic has become sad tears. Many consumers who bought services with real money finally found that the good things under the sun are not as much as people promised.

Do not believe that customized finished furniture companies lose more market share. Customization or not, has always been a problem for some finished furniture companies. The general trend of custom furniture in 2018 is further highlighted. The trend of customization is not a question to be followed, but a question of how to follow.

Aggressive investment strategies are not suitable for the current market. For the market to have too good expectations, this is not in line with the current trend. Have confidence in the Chinese furniture market, but radical warfare will also cause losses. A furniture company will be willing to avoid a large amount of debt due to expire, willing to lose control of the sale of shares, this should be avoided as a business.

Inaccurate judgment on the international situation. The Chinese economy has long been integrated into the international economy and has become an important part of the international economy. There are many foreign trade companies that have benefited greatly from this international tide. However, many foreign trade companies lack the ability to judge the changes in the international market. The Sino-US trade war has long been a clue, but many foreign trade companies have almost no action, letting losses occur. Facts have proved that some powerful foreign trade enterprises are fully capable of taking precautions and adopting reliable evasive measures.

There is no long-term vision of the demographic situation. 2018 is a year of large-scale expansion of furniture production capacity, and most of the funds raised by listed companies are used to expand production capacity. The upgrade of China's furniture consumption is a fact, but in the long run, due to the large reduction in active consumer population, these accumulated production capacity will inevitably bring new pain to investors. This painful journey will not be seen in the beginning or even the second quarter, but the third quarter has begun to appear, and the fourth quarter will be more obvious.

I don't know what to focus on. Due to the popularity of the whole house customization, furniture companies have started a cross-border business. At first glance, the furniture industry seems to have no professional division of labor, and all of them are producing full-roof furniture. The furniture industry, which has been produced in such a mess, seems to be completely ignoring the common sense of focusing on operations. This will lay a major hidden danger for the future development of the furniture industry. There is never an all-around player in the world. Powerful, such as General Motors, can not be all-round players, powerful as Intel can not be all-round players, powerful, such as the International Business Machines Corporation can not be all-round players. It is also impossible for the furniture industry to produce a powerful all-rounder. In the end, it will inevitably return to the old road of focusing on management, and get the strongest competitiveness in the field where you are the best. The consequences have not yet appeared, and the problem is not serious.

After the huge amount of advertising bombing, the net profit was rampant. The most painful thing is that after spending a huge amount of advertising fees, the income has indeed increased, but the net profit has not increased correspondingly, but has decreased. Behind the huge amount of advertising, there must be substantial innovation in the product. For example, the rise of Huawei's mobile phones stems from the long-term technical accumulation of product development, and its performance indicators gradually beat competitors in the market. Its huge advertising investment is a icing on the cake. There is no substantial innovation in the product, only advertising, at best, only one marketing campaign. Consumers have paid attention to it and even purchased it, but it has not produced a ripple effect. When the advertisement stops, there is no concern.

The furniture industry has improved in 2018, but the happiness index of furniture people has not increased, but has decreased. The essence of the problem is that everyone has become stronger, and the degree of excessive competitiveness between them has not diminished.