Interview with Zhu Changling: The future of China's furniture industry lies in transformation and upgrading

Time flies, halfway through 2013. At the end of the year's small summary and inventory, the author was fortunate to interview Zhu Changling, chairman of the China National Furniture Association.

It can be said that Zhu Changling's experience represents the development of Chinese furniture. His ideas can influence the thinking of the Chinese furniture industry. His work can promote the development of the Chinese furniture industry. He has been in the furniture industry for more than 40 years. For nearly half a century, he has witnessed the changes in the Chinese furniture industry and adhered to a persevering attitude. In 2010, the chairman of the Rongrong Furniture Association, he can be said that he has stood at the highest point of the Chinese furniture industry, but because he looks farther and listens more, he thinks deeper. For the development of the Chinese furniture industry, he has more say and a unique perspective.

Transformation and upgrading have a long way to go

After 30 years of reform and opening up, the furniture industry has experienced rapid development, and consumers have made many changes to the demand for furniture. Although China is a big country in furniture production, a big exporting country and a big consumer country, the industry prospects are very good. However, due to the large size of the furniture industry and the uneven quality of enterprises, enterprises need to make more adjustments in the future development direction. Speaking of the current development direction of the furniture industry, Zhu Changling said: "I think it is four words - transformation and upgrading!"

First, this transformation and upgrading is that the traditional furniture industry should use the process of informationization and industrialization to improve the level, and replace the original production capacity with new equipment and technology. To transform and upgrade, it is necessary to apply digital information to manage, produce, and sell channels within the enterprise, and make full use of these modern means to enable our furniture companies to follow the development of society and the development of the times. We can shorten these ways. Our production cycle, reduce inventory, improve efficiency, and improve the internal management level of the enterprise, this is also an important aspect of transformation and upgrading. For the enterprise, the road of the furniture industry is still very long, we have not realized industrialization, informatization and industrialization. In the process of integration, the furniture industry has a lot to do.

Second, we must make extensive use of advanced technology and equipment at home and abroad, develop high value-added products, increase the technological content of products, and replace low-end products with high-tech products. At the same time, we will improve the core competitiveness of export products, attach importance to product value, and cast product brands. In the past two years, we have realized that our brand products are better sold, including the furniture mall, and the products of the brand's furniture mall are better sold, because the influence of the brand is also increasing.

Third, we must take the national policy as our guiding direction, rationally plan the development of the enterprise, implement a diversified market strategy, and actively explore the second and third tier markets while consolidating the main markets of the first-tier cities in China. There are many brand companies that are doing product innovation. When launching a dealership, they will launch a large number of new products. Research will be based on the different requirements of the market, to research their own products, launch some good products, and actively explore the market. In the past two years, the products of the furniture industry have greatly improved from the color variety, and the quality can be seen from the furniture exhibition.

Fourth, we must explore multi-channel operation methods and solve the conflict problems in online marketing online and offline. Now online sales have entered the furniture industry. On November 11 last year, Chengdu All-you Furniture sold over 100 million on the same day. Many companies have also begun to try, online sales is a good thing, can bring good benefits, but integrity is very important, if the integrity is not good sales will be defeated. At the same time, we also advocate the promotion of good industry models, methods and methods in the industry.

Fifth, we must strengthen the construction of corporate teams. The phenomenon of job hopping in the whole domestic professional managers is more, and there are more phenomena of digging people. The flow of people is normal, but it is not normal after passing. At the same time, we must strengthen the training of employees, encourage employees to further their own education, and also organize employees to get training. Deepen the combination of production, study and research, introduce high-end talents, and regularly train on-the-job employees to improve the overall quality level.

Dialogue Zhu Changling

The furniture industry seems to be still "scorpion touch"

Reporter: How do you view the development of the furniture industry in the first half of 2013?

Zhu Changling: From the overall situation, it is still a steady growth. Just need to occupy a large proportion, furniture is still an essential item in people's lives. Regardless of the economic situation, people still have a demand for this furniture item. Some reporters are also asking, what is the situation in the second half of the year? I don't think the situation in the second half will be too good. Because the overall economic situation is not an upward trend, it is not rising from the international, domestic, and consumption situation, so the furniture industry may have a difficult situation, but it is not a decline. Because we are now seeing industrial production, large machinery investment, foreign trade, and domestic demand are not driven by a large amount, so it should be a stable development stage.

Reporter: The situation of the furniture industry in the past two years has been called "cold winter" by many industries and media people. Do you think that the furniture industry is now out of the "cold winter" period?

Zhu Changling: The term "cold winter", I feel a bit too much, the furniture industry has not encountered as the industry said. Just saying that I have encountered some difficulties, it is not as easy as making money. Enterprises can make money as long as they expand, but now they are not that big, and the profit margin is compressing. This is already "cold winter"? I don't think so, because our overall economy has not fallen sharply, large companies have not been able to do large-scale, and SMEs have not had a whole collapse. Our judgment on the whole industry, whether it is the industry or the media, is an idiom that is “scorpion touch”. I just saw a part and didn't see the whole picture. From the situation reflected by the company, everyone is also good, and they are still able to pass. The whole industry is not so difficult.

E-commerce is a good model and not suitable for all industries and companies

Reporter: With the development of e-commerce and the improvement of SMEs' understanding of e-commerce, in recent years, the penetration rate of e-commerce in the furniture industry has shown a growing trend. How do you view the application status of e-commerce in China's furniture industry?

Zhu Changling: E-commerce is definitely a good business model for the furniture industry. This has been proved internationally, and it is also developing at home, and the speed of development is not slow. Some people say that the caller will replace the physical store, but the e-commerce is unlikely to completely replace the market demand, it will have some impact. Today's era has entered an era that may be subverted at any time. For example, the previously used PP machine was replaced at once, and Nokia was replaced by Apple and Samsung.

Our current industry, or a policy or a different consumer sector, will have such an impact on some industries. Therefore, we regard e-commerce as a relatively good model that can save costs and can develop rapidly, but it may still be long. I think there are two reasons, one is the issue of integrity. This integrity is not only the integrity of a certain enterprise, it may be the integrity of the whole society, the series of producers, logistics, network, and price. If the integrity of a certain link is not reached, it will cause problems. Second, from state management and tax issues. How to manage taxes and how the state controls them is also a very important aspect. Where is the bottleneck now? It is in logistics. Online can not be sent, and logistics with the rise in fuel prices, labor costs, logistics will slowly be overwhelmed. What became it? You set 100 pieces for one thing and 200 pieces for you. Therefore, logistics is the bottleneck restricting the development of e-commerce, and the country may adjust in the future. E-commerce is not suitable for all industries.

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