A number of listed home furnishing companies have released a bright 2017 performance report. While the home business giant is busy pursuing higher scale and higher profits, SMEs face the challenge of “changing and abolishingâ€.
Grasp the market segment to win the survival opportunities of SMEs
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This year's home industry competition is still fierce
The annual report released by Hao Laike on the previous day said that the net profit was 348 million yuan, a year-on-year increase of 37.95%. The performance of Daya Shengxiang said that the net profit was 737.44 million yuan, an increase of 38.06%. Sophia's results show that the net profit attributable to shareholders of listed companies was 907 million yuan, a year-on-year increase of 36.56%. Europa Home expects net profit attributable to shareholders of listed companies to increase by 29% to 39% year-on-year. The net profit attributable to shareholders of listed companies in Shangpin's home delivery increased by 43.24% over the same period of the previous year.
The industry believes that 2017 is a year of continued expansion of listed home furnishing enterprises: "The market situation is basically clear, but the market share has not been stable." In his view, 2018 is still a year of continued competition and development in the furniture industry. In this fierce battle, small and medium-sized home enterprises face challenges.
Chen Jiacheng is a “hometown enterprise†operator in Guangdong. He believes that over the past 11 years, the industry has undergone earth-shaking changes. Especially in the past seven or eight years, the industry has accelerated and the production enterprises have developed rapidly, giving the market more The choice, the industry sales pattern has changed dramatically, consumers have more information than ever before, industry transparency has increased, and market competition has intensified.
In Chen Jiacheng's view, higher market demands provide more opportunities for innovative companies, and for traditional “primitive†home businesses, this change poses considerable challenges. A merchant told reporters that such enterprises face two kinds of "killers", one is high inventory, and the other is the break of the capital chain.
Chen Jiacheng said that many traditional home furnishing companies are "developing one for three or four years," and the risk of this type of operation is high. Another risk is that many home furnishing companies are expanding their production when they are in good market. When high inventory and repayment pressure coexist, the problem of capital chain often makes them easily crushed by the last straw.
The market is extremely subdivided into opportunities for SMEs
Some insiders told reporters that while the giants are opening up the territory, small and medium-sized enterprises can only fall if they do not make their own way out. “In the past two years, I directly shut down the original company and started from scratch.†Chen Jiacheng changed his business ideas and adjusted the company into a partnership: “The current brand and operation are their own, and the production is divided into several factories in a partnership. In addition to this, he also changed the idea of ​​the main business: "I used to do everything except the outdoor and the kitchen, and the price paid is very high. Now I only focus on doing it. The sofa strives to be professional and take the initiative in a certain section."
An industry insider believes: "The extreme segmentation of the market still retains opportunities for SMEs." For SMEs, "changing the same" is the most painful insight.
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