In 2011, the cost of logistics increased, furniture could not do anything to “hard price increase”

In 2011, when analyzing the macroeconomic situation, Lang Xianping pointed out that with the appreciation of the renminbi, the profits of China's manufacturing industry are close to “zero.” If the renminbi continues to appreciate, there will be countless manufacturing companies going bankrupt. Of course, the manufacturing industry here also includes the Chinese furniture industry. The original furniture manufacturing industry was based on “OEM” and a large amount of profits had been exploited by foreign companies. Nowadays, Chinese furniture brands have just stepped in the midst of shackles and are facing various “price increases”.
In addition to the macroeconomic situation such as the appreciation of the renminbi and the regulation of the real estate market, logistics costs have also become a major incentive for the Chinese furniture industry to raise prices. A home website reporter had in-depth market research to understand that the sofa with an ex-factory price of 6,000 yuan entered the store and turned into a "noble". The price reached 12,000, and consumers had to pay for high logistics prices. In various "price increases", furniture companies have to make a tough decision: price increases. Then consumers can't adapt to the sudden price increase, and the dealers can't accept it. The price increase makes the whole chain fall into an infinite loop, making the already bleak market appear colder, making the furniture company that is "the cloud is bleak" more worrying. .
For the “hard price increase” furniture companies such as rising raw material prices, increased labor costs, and appreciation of the renminbi, they are powerless and can only break through from logistics costs. Some insiders pointed out that we must "extrude the middle water of logistics to make furniture return to rationality." Mr. Jin, a professional in the furniture industry, said that for their large furniture factories, the unreasonable use of logistics can only be a loss. In the current Chinese furniture industry, logistics is of great importance to the success of enterprises, and the ability of enterprises to handle logistics is relatively Lower, the model of outsourcing to third-party logistics companies should be adopted to reduce logistics costs, diversify operational risks, and improve customer service levels to enhance market competitiveness. Perhaps this is just a self-sufficient logistics method for an enterprise. Perhaps this method has been “corrected” by some companies and needs to find a better way. However, “extrusion of intermediate water in logistics” is definitely the best solution for the furniture industry. The best way to cost.

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