Foreign furniture brands compete for Chinese wolf smoke

It is also a high-profile "going out" of Chinese furniture brands, while foreign brands are also "strongly coming in". At this year's Shanghai Furniture Fair, the number of overseas exhibitors increased by 15% to 130. As early as many years ago, Fendi, Xiatu, Jieshangte, Vicente, Natuz, Senke and other well-known European and American furniture brands have already made a fortune in the Chinese market.

Foreign brands compete in China's "wolf smoke"

Just at the 16th China International Furniture Fair held in September this year, Wang Mingliang, chairman of the Shanghai Exhibition, the organizer of the furniture fair, said that the number of overseas exhibitors in this exhibition has increased by 15%. Among the 15% of the exhibitors, in addition to exhibitors from the world's furniture industry, such as Italy, France and Japan, they can also see the backs of pavilions from Southeast Asian countries such as Vietnam, Malaysia and Indonesia.

No wind, no wave. Behind the competition of foreign furniture companies in Shanghai, international people are looking forward to the universality of the Chinese furniture market. In the words of Larry Rogers, President and CEO of Sealy, China is a huge market with unlimited potential. “The Chinese mattress market has only really begun to emerge in the past 20 years. This market is still In development.” Rogers predicts that the average growth rate of China's furniture market will reach 15% in the next 5-10 years, and the growth rate of high-end products will be faster. It is with such predictions and expectations that Silken began to enter the Chinese market in late 2008 and opened its first store in Shanghai in January 2009. It is reported that in the past 18 months, Silk has opened a total of 16 silk brand stores in 12 major cities in China. “This year, the company expects bedding sales in China to be three times that of 2009.”

These are just the tip of the iceberg for foreign brands to enter the Chinese market. In fact, looking up, the competition of foreign brands in the Chinese market has long been "smoothed."

Foreign brands that have already settled in China

According to the data, the current investment in the furniture industry in China is mainly in the United States, Italy, Singapore, Germany, France, Sweden, Denmark, Japan and Southeast Asian countries.

It is reported that there are no exact statistics of American furniture companies in China, and it is estimated that there are nearly one hundred. 60% of China's exports to the United States are products manufactured by American companies in China. They ship raw materials, including accessories, to China, and then process them into products and then sell them back to the United States. The second largest furniture retail chain in the United States, the United States, production base in Dalingshan, the annual export of hundreds of millions of dollars. Haworth, the largest office furniture manufacturer in the United States, has annual sales of $3 billion and has four production sites in the Asia Pacific region. One of the production bases is located in Shanghai and its products are sold worldwide. The first manufacturer of bedroom furniture in the United States, Ashley Furniture Company of the United States, with sales of US$2.6 billion in 2004, has a wholly-owned factory in Kunshan, hiring Chinese workers to produce large-scale sofa sets for shipment back to the US market.

In 1998, Italy Diele Furniture Group established “Didi” Furniture Co., Ltd. in Shanghai, adopting the business model of Italian manufacturing and Shanghai assembly and sales; in 1999, the Italian furniture company Akuti Group established a production base in Jiading, Shanghai. At present, Italy's three major sofa dealers have set up factories in China. Latuz Group, the world's largest sofa manufacturer, opened four stores in Shanghai in 2003 and established production bases in Shanghai and Hangzhou. The world's second largest sofa manufacturer, Italy Decolo (Chinese name "Digao"), entered the Chinese market in 1997, in the past ten years, the peak period has 5,500 employees, playing "Italian quality, China's price The slogan of the "American market", in 2006, exports reached 500 million US dollars, becoming the world's largest furniture factory. The world's top furniture manufacturer Kalia Group is Italy's second-ranked software furniture manufacturer. The Kalia Group formed a strategic alliance with Zhejiang Gujia Craft Co., Ltd., and Gujia Craft became the agent of Kalia China. In addition, Italian furniture companies have joint ventures or cooperative furniture companies in Beijing, Shanghai, Jiangsu, Zhejiang, Fujian and Shenzhen.

Singapore's furniture companies in China, mainly concentrated in the establishment of industrial parks in Kunshan, Jiangsu, have gathered nearly 30 companies. Their products are mainly exported. Among them, “Hua Dali International” established the company's largest production base in Kunshan in 1994 (also set up in Yangzhou, Malaysia and China), producing 550 containers of leather sofas per month, sold to 25 countries on three continents, 2003 The company's turnover exceeded S$200 million (about RMB 1 billion).

At the same time, in Shanghai, we can also see the first German company in China - Shanghai Feng Shaxun Furniture Co., Ltd., France's first French furniture exhibition and trade center set up in Jin Yulan Square.

The global furniture retail giant, IKEA from Sweden, has opened stores in Beijing, Shanghai, Guangzhou, Chengdu, Dalian, Nanjing and Shenzhen in the decade from 1998 to 2008, and plans to go to Wuhan, Shenyang, Chongqing and other cities. expand. In addition, IKEA Beijing Second Store will create a shopping mall model, which will start in July 2010. It will be the second largest store in IKEA's global stores after the completion of the flagship store in the Swedish capital.

More foreign brands are still entering

On August 27, 2009, Italy's SAVIOFIRMINO products landed in China. On November 28th of the same year, Ruihuang Fine Furniture, a brand of Saint Laurent Group, was grandly opened in Hualun Building, North Fourth Ring of Beijing. Just entering 2010, the trend of importing high-end brand furniture has not been reduced. On January 11th, the top flagship store of FFDM American refined furniture brand from the United States officially opened in Beijing. In this regard, some media have made such a report, "FFDM is strong in the Beijing trend furniture market, setting off a feast for the consumers in Beijing."

In 2010, the first domestic store of the German furniture brand Domicil was officially opened in Pudong Red Star Macalline, announcing that the brand officially entered the Chinese market. It is reported that the German furniture brand Domicil was founded in 1978, in 2005, was acquired by Singapore HTL Furniture Co., Ltd. HTL Chairman Pan supplies said that the group plans to open 100 stores in China within three years. “In the Chinese market, Domicil will first open direct stores and franchise stores in first-tier cities such as Shanghai, Beijing and Guangzhou to see market performance and further expand into second- and third-tier cities.” It is understood that in addition to Pudong Red Star Meikailong Store In addition, Domicil is also located in the crowded business districts such as Huaihai Zhong Road and Xujiahui. This year, it plans to open four stores in the Shanghai market. In the early days of Domicil's opening up of the Chinese market, the sofa will be the first to introduce the product line. Chairman of the Pan supplies told reporters, "After watching the market performance, it is not excluded to introduce more series of curtains, sheets and so on."

Due to the large-scale entry of foreign brands, the channel structure of the Chinese furniture industry is also quietly changing. For example, in Beijing, COFCO Plaza used to be the “old brand” base of international high-end brands in the Beijing market, and the high-end shopping malls represented by the Financial Street Shopping Center and the Oriental Xintiandi also began to enter the ranks, and the stores such as the homes also opened up special imports. Home pavilion. Moreover, with the expansion of the imported furniture market, imported high-end brands have gradually transformed from entering high-end stores to opening brand flagship stores. For example, in the pan-CBD area of ​​the East Third Ring Road, there have been such a homeland, Klass flagship store, etc. Specialized in importing furniture channels.

However, foreign brands entering the Chinese market are not happy. “Despite the huge scale and potential of the market, there are also many furniture brands and furniture and building materials supermarkets that have failed due to poor management.” The furniture industry veteran analyzed. For example, Saint-Gobain of France entered the first building materials supermarket in Asia, “Mc. Paris” Dahua Store in July 2005, but closed its doors at the end of last year. In addition, DiGule, the world's largest furniture factory, also closed down in Shenzhen during the 2008 financial crisis. "The lack of product features, display categories are too rare; at the same time, the lack of understanding of the Chinese market, difficult to find the positioning is the main problem faced by many foreign furniture and building materials supermarkets when entering China." The analyst pointed out.

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