Furniture enterprise cost control is a strange trick

“It is not enough to control the cost of furniture only from raw materials and production links.” Mr. Zhao, who has been engaged in the furniture manufacturing industry for many years, currently runs his own factory in Foshan. He believes that in general, 70% to 80% of the cost of the product is The design phase has been determined, and now most furniture companies lack awareness of cost control at this stage. "One-sided pursuit of cost control in the production process, the control means mostly rely on reducing the consumption of raw materials, is very singular," he said, even some manufacturers for this "cost control" instead of the "stolen work" extreme, in fact, is " Make fun of your own quality."

During the market downturn, many furniture companies generally responded by lowering the salary level or layoffs of employees, thereby reducing the internal cost of furniture enterprises. Secondly, strengthening negotiations with upstream suppliers and downstream distributors, and shifting to the outside of furniture enterprises. cost. The above practices are very effective in solving the urgent need. However, experts believe that simple cost transfer is highly undesirable. Passing the pressure of cost to suppliers and distributors will ultimately not reduce the sales price of the products, and even reduce the value added from the initial raw materials to the final consumer goods. Especially in an environment where production and sales are increasingly connected, if you rely too much on cost transfer, it will greatly damage the harmonious relationship between furniture companies and suppliers and distributors, so that furniture companies lose their good cooperation partners, which will affect the future strategy of furniture enterprises. aims.

Traditional marketing model needs to be improved

According to analysts from Shangpu Consulting, with the shortage of global resources, the price of raw materials has increased substantially, and the cost of furniture as a resource product will inevitably increase. However, the increase in the digestive power of the entire furniture market is no match for the growth rate of raw material prices, and sales are facing difficulties. Shangpu Consulting mentioned in the "2011-2016 China Furniture Industry Analysis In-depth Research Report" that the increase in the digestive power of the entire furniture market is not soaring the growth rate of raw material prices, and the market sales performance is bleak. Brand integration, capital operation, and more active enterprise alliances will be one of the most notable features of the furniture industry this year. Each brand has entered the stage of brand connotation construction. The establishment of related enterprises should also co-exist and cooperate with innovative marketing models to achieve mutual benefit.

Insiders pointed out that furniture meager profits will make the furniture industry face a huge test. The furniture enterprises that survived must rely on perfect internal management to improve quality and reduce costs to regain development opportunities. Facing the impact of e-commerce, the traditional distribution of furniture industry The marketing model of the business + store must also be improved, and the experiential consumption of experiential consumption also points out a new direction.