Winning the rise of quality home manufacturing companies

In 2014, China was a year of comprehensive and in-depth reforms in economy, politics, and society. 2014 is also a critical year for China's manufacturing industry. On the one hand, as the country actively promotes energy-saving and emission-reduction in the manufacturing industry, the home industry sets off a “green” process, and companies are faced with the upgrading of production processes; on the other hand, the penetration of Internet thinking and the development of informatization technologies, traditional household enterprises are facing Business management model, marketing model, and multi-faceted upgrading of production technology; Moreover, in recent years, more and more home companies have started the road to listing, which also indicates that the future competition pattern of the home industry will accelerate change.

Manufacturing as a home-based industry As a traditional manufacturing industry, production capacity is fundamental, and production capacity and scale are important criteria for measuring whether a company can grow. Many well-known brand companies are trapped in the lack of manufacturing capabilities, resulting in the lack of market competitiveness of the brand, it is difficult to take off again.

On April 22, 2014, Qumei Furniture issued its initial public offering prospectus. The prospectus shows that Qumei plans to raise funds of approximately 1.087 billion yuan, of which 488 million yuan will be used for the production base project in Qumeidong District. According to industry analysts, Qumei’s product sales have grown rapidly, and productivity has been its biggest bottleneck. In 2010, the Eastern Production Base of Qumei Furniture Group announced its foundation. The base covers an area of ​​507 acres and the planned total investment is 1.09 billion yuan. After full production, Qumei Furniture will increase its production capacity by 3 billion yuan. The first investment project for raising funds is the production base.

Europa Home is the pioneer in the home furnishing industry in China, and it is also a practitioner who promotes brand upgrading through manufacturing. From the Chinese cabinet king to the integrated home enterprise, to the leader of the second home furnishing industry, the European school always stands in the position of consumer demand observers, constantly discovering new trends, and promoting the industry to a new height in a timely manner. . Yao Liangsong said: China's home industry has reached a critical period of transformation and upgrading, the external environment and internal conditions have been met, the home industry must have pioneers, leading the industry enterprises from the "product manager" into an integrated solution provider .

Not long ago, Zhongxinxin Furniture's new production base settled in Anhui Liu'an Yeji. It covers an area of ​​546 acres and a total construction area of ​​420,000 square meters. It plans to invest 1 billion yuan to build a large-scale production base of Zhongzhixin furniture leaf set. The company will introduce international advanced technology and production equipment across the board, and build the new industrial park into a world-class furniture and industrial park integrating modern furniture design, R&D, production and sales.

Environmental Protection Upgrade On January 1, 2015, at the beginning of the New Year, the new Environmental Protection Law, known as “the strictest in history”, was formally implemented. In order to comply with the implementation of the new environmental protection law, the Ministry of Environmental Protection has also successively introduced the "Interim Measures for Continuously Punishment against Environmental Protection by the Environment", "Interim Measures for the Implementation of Environmental Protection, Sealing and Seizure", and "Interim Measures for Restrictions on Production and Discontinuation of Environmental Protection" and other supporting documents. The penalties prescribed by the law are no longer a piece of paper, meaning that the cost of illegal businesses will be very high in the future, and the furniture industry will embark on an environmental survival battle.

In addition, Beijing Municipality issued the "Beijing Industrial Pollution Industry, Production Process Adjustment and Withdrawal and Equipment Elimination Catalogue (2014 Edition)", in which furniture and building materials accounted for a large part. Before this, Beijing also introduced a number of policies and regulations for shutting down and relocating furniture companies. It can be said that the furniture industry has become one of the key targets for the battle against environmental protection and has attracted the attention of the entire industry.

In June 2014, Qumei Furniture was the first company to announce the use of water-based paints across its entire line of products, becoming the first in the industry and setting off a “oil-to-water” environmental protection fever in the furniture industry. According to Zhao Ruihai, chairman of Qumei Furniture, Qumei Furniture spent two years in research and development of technology and transformation of production lines. Apart from being more environmentally friendly, the use of water-based paint on furniture has not been significantly different from traditional paint.

It is understood that as early as two years ago, Qumei Furniture began to transform the factory and explored the water-based paint process, finally overcoming one difficulty and achieving a full range of water-based paints. Qu Mei Furniture completely bid farewell to the production of oil paint, aroused the concern of the Beijing Environmental Protection Bureau, several times to enter the factory site inspections, and finally the Qumei Furniture as a pilot demonstration unit of a hundred water-based paint promotion project, to change the water After painting, Qumei Furniture's emissions of volatile organic compounds (VOCs) directly decrease by about 90%.

In this regard, Tan Chunlei, deputy secretary-general of the China Coatings Industry Association, believes that water-based paints will be the development trend of the industry regardless of environmental health or high-efficiency emission reduction. “Qumei’s initiative to start water-based paint across the board will have a landmark significance for the development and progress of the furniture industry.”

In addition, in the ceramic sanitary ware industry, which has been regarded by the public as a high energy consumption and high pollution industry, the policy pressure brought by the new environmental protection law is quite obvious. The industry believes that the new environmental protection law has forced ceramic companies to transform and upgrade, forcing companies to increase investment in environmental protection facilities, and the average production cost of the industry has shifted upwards. However, due to excess capacity, it is difficult to transfer costs to downstream consumers. In the end, most of the environmental protection costs will be borne by companies. Therefore, eliminating backward companies and implementing mergers and acquisitions will become the new normal for this year's industry.

Technology Promotion With the development of mobile Internet, e-commerce and other information technology, traditional furniture companies are transforming into modern enterprises, and the furniture industry has been optimized from manufacturing to brand chain operations and terminal services.

In the mighty Internet thinking into the traditional furniture industry, the traditional home industry's production and marketing model is also gradually being eroded by the Internet. Recently, the internet company Xiaomi has entered the fields of air purifiers, medical equipment, televisions, and food and beverage takeaways with its smart home concept. Lei Jun said it is to build a millet ecosystem, that is "hardware + software + Internet services." For Xiaomi, a new business model, some observers believe that it will lead the transformation and upgrading of traditional domestic industries.

Lei Wei, an internet carpenter who got Lei Jun A's tens of millions of investments, is familiar with this. According to Li Wei's founder Zhou Yuxiang, Li Wei family adopts the flat and brisk province's high-middle-price model. The idea is like Xiaomi. Integrate top suppliers and use the Internet to bypass traditional furniture distributor channels and directly put furniture of equal configuration. The price is cut to one-half or even one-third of the traditional channels. All products directly from the factory to the user, without any intermediate costs.

Pearl introduced the IBM, the Federation introduced Digital China, and the wardrobe leading company Sophia also announced its cooperation with Oracle, the world's largest enterprise software company. This shows that the combination of traditional furniture companies and high-tech companies is proceeding at a high speed. Furniture, as a traditional manufacturing industry, introduces more electronic high-tech elements, and in a more “accurate and efficient” way, it links the communication and delivery between factories, distributors and consumers, and seeks for enterprises through modernization, technology, and information technology. The new driving force for development and the enhancement of competitiveness are manifestations of advancing with the times.