In 2015, the furniture industry was in a state of intense competition. According to statistics, over 270 furniture manufacturers in Shenzhen had shut down by that year. On one hand, new players from various industries entered the market, taking away a significant portion of the furniture market share. On the other hand, many small and medium-sized brands faced severe inventory issues, leading to business closures. The furniture sector was undergoing a painful transformation—from a "gold rush" to a "shake-up."
So, how are furniture companies responding to this new period of reshuffling? How can they avoid ending up as casualties in today’s challenging market, especially with the push for offline transformation and the integration of internet thinking?
**Internal Reflection: Finding the Root Causes**
Looking back at the development of the furniture industry over the decades, it's clear that things have changed dramatically. Traditional furniture companies once dominated the domestic market, but now, supply chain issues, channel problems, and excessive inventory have become major challenges. Many panel furniture brands were quickly overtaken by cross-border competitors like Shangpin Home and Xiaomi.
In the early days of reform and opening up, when goods were scarce, anyone with courage, determination, and the ability to follow trends could seize opportunities and build successful businesses. Many of the original furniture entrepreneurs started from scratch—without teams, capital, or experience—but through hard work, they built big names in the industry. However, today’s market is much more mature, and economic globalization has created clearer divisions of labor. Without innovation, no team, no funding, and no quality products, entering the market blindly is simply not viable. It's like an egg hitting a stone—it’s doomed to fail.
As Lenin once said, "A fortress is most easily breached from within." Internal factors are the primary drivers of success or failure. While external conditions matter, they’re secondary. Successful companies often share similar traits, while failures come in many forms. Instead of blaming the market, it’s better to look inward and identify weaknesses. Every company has its own pain points, and in today’s environment, waiting for the market to force change is not the way forward. True transformation must come from within.
**Lack of Integrity: A Major Weakness**
From "helping others with trust" to "swearing on one side, loyalty as a cloak"—integrity has always been the most valuable asset. Unfortunately, many furniture bosses drive luxury cars, wear designer clothes, and act like big shots, yet behind the scenes, they neglect workers’ wages, cheat suppliers, and deceive customers. Eventually, they blame the market for their downfall. Some who were once worth millions now find themselves begging for help, unable to repay debts, and their companies collapse—one after another. It’s truly heartbreaking.
If people don’t believe in you, you won’t last long. Honesty and trustworthiness are not just virtues; they are the foundation of any business. In the competitive world of retail, trust is like a mirror—if it breaks, it can never be fully restored. Running a business without integrity is like running blind. Employees lose faith, suppliers walk away, and the law may eventually intervene. There’s no turning back once you’ve lost your reputation.
**Adapting to Change: The Survival of the Fittest**
Silence can be deadly. The survival of the fittest has always been the rule of nature. In a downturn, the "Matthew effect" takes over—those who are strong grow stronger, while the weak fall behind. The phoenix rises from the ashes, and only those who survive the fire can emerge stronger. Apple, for example, started by selling computers, and many of the apps we use daily began in similar ways. Looking at the history of top global companies, they all rose during tough times, gradually capturing market leadership.
If you don’t innovate, the market will do it for you. Companies that lack creativity will be swept away by changing trends. Economic crises can also be a time for innovation. An industry that refuses to evolve will not have a future. Innovation is not just about technology—it’s about thinking differently. Breaking free from traditional frameworks is essential. Only those who think outside the box can achieve real change.
Furniture companies have learned that the market isn’t just about tricks anymore. Whether it’s O2O models, warehouses, or independent stores, success requires action and real value, not just flashy ideas.
**Embracing the Reshuffle: Facing Reality**
The furniture industry once enjoyed a calm period, but now it's facing a time of change. Due to low entry barriers, the market has become chaotic, and problems have multiplied. The reshuffle is not just about ranking strengths and weaknesses—it's a necessary process to clean up the market. For instance, starting in July, Shenzhen became the first city in China to ban the sale of paint, promoting water-based paints instead. This shift increases production costs and demands higher standards, naturally eliminating weaker players.
Currently, three major trends shape the industry: economic globalization, the information age, and the third industrial revolution. The furniture sector must move toward standardization, branding, and specialization. Even now, the industry hasn't reached Industry 2.0, let alone Industry 4.0. In the future, market forces will eliminate inefficiencies, pushing the industry toward greater professionalism, much like the digital and home appliance sectors.
Building a brand is like raising a child—it takes time, effort, and consistency. No matter which era we're in, successful companies are built on strong branding. Quality is still the foundation of any business. Inferior products, even in fancy packaging, can’t hide their flaws. Excellent quality combined with good service is what customers want, especially in today’s competitive environment.
For more insights into the Chinese furniture industry, visit the official website of Xianghe Furniture City.
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