Why do the furniture industry in the three northeastern provinces have a good position?

Speaking of furniture, it is easy to connect people with wood. According to this reason, the three northeastern provinces of China should be developed areas of the furniture industry, because the forestry resources there are one of the best in the country, but the geographical location is also good. This is the advantage of such a good time, the realization of the furniture industry in the three provinces in recent years is not satisfactory, then what is the reason behind it? [Heilongjiang] The oversupply of stores and the regulation of real estate in Heilongjiang is the "old and young and poor" area that people are impressed. The real estate that has been "squatting" for many years is hard to get hot. It just has to enter the golden period of development, but it has been splashed by the national real estate regulation policy. A cold water, real estate transactions slowed down, and the furniture market was implicated. Fortunately, only Harbin is “regulated” in the province, and other cities are not in regulation. Therefore, the market has sunk to the second and third tier cities of Heilongjiang, which has become a good choice for furniture merchants. But overall, the overall downturn in consumption is an unavoidable problem in the overall furniture market in Heilongjiang. It is also reported that there are more or less surpluses in the first- and second-tier cities in Heilongjiang. The total number of large and small home stores in Harbin has reached more than 20. Among them, the four main urban areas in Jiangnan have an average of five home stores. This excess situation is still intensifying. In December 2011, two new stores in Harbin opened. The result of excess store sales is bound to be an increase in market competition. According to the first-line dealers, every new store opened, often accompanied by an old store closed. In the context of continuing to implement real estate regulation and control, in the coming year, the days of Heilongjiang first- and second-tier cities in Harbin will not be better. Brand competitiveness is weak Heilongjiang's furniture enterprises have gaps with southern enterprises in many aspects, such as enterprise scale, design level, production technology, etc., which makes Heilongjiang really have few furniture brands out of the province market. Due to the lack of influence of the brand and the disparity of the company's strength, the Heilongjiang furniture brand is difficult to compete with the high-end brands in the field and can only compete for the low-end market in the province. In the low-end market, due to the large number of brands, it is easy to fall into price competition, and as a result, everyone can't make money. Therefore, in 2011, it is not surprising that the local furniture companies in Heilongjiang have closed down or changed frequently. In fact, the furniture industry in Heilongjiang is far more affected by its own developments than by policy factors. The real estate control policy only magnifies the impact of the drawbacks of local furniture companies. [Jilin] The overall increase in production in the industry does not increase. The Jilin furniture industry has the reputation of “Furniture Northeast Tiger”. Since 2011, it has been affected by monetary tightening, real estate purchase restrictions, the international market downturn and the rapid rise of various costs. The survival environment of enterprises is deteriorating. Under this environment, the overall performance of local enterprises in Jilin is not strong enough, and there is no bright spot. The Jilin furniture industry has not got rid of the fate of “increasing production and not increasing income” in the national chess game. It is understood that Jilin furniture enterprises generally have poor operating conditions in 2011, 70% of enterprises have declined in sales, and 30% of enterprises have remained flat or slightly increased. Even for companies with rising sales, their profits are extremely limited, often with sales rising and profits not increasing. The CEO of a furniture company revealed to the author that since the company opened a number of stores in and outside the province in 2011, the sales volume increased by 15% compared with the previous year, but after the operating cost was deducted, the profit was negative. The overall strength of the weak market space is compressed. The strength of Jilin furniture enterprises is generally weak. There has not been a large-scale well-known brand enterprise with an annual output value of one billion yuan and outlets all over the country. Most of the furniture enterprises are small in scale and low in grade, and private enterprises account for more than 80% of the total. Due to the quality and safety awareness of employees and the low standard awareness, the production and inspection conditions are relatively backward. The quality of Jilin local furniture products has been criticized by people. In addition, the local furniture market space is further compressed. On the one hand, many export-oriented enterprises in Jilin have sought to transform after export obstruction, trying to break through domestic sales and save sales. However, the popularity and influence of these export brands in the domestic market is limited, so the terminal sales are not satisfactory after the domestic sales. [Liaoning] From January to April, Shenyang furniture exports amounted to nearly 80 million yuan. According to statistics, from January to April this year, Shenyang City, Liaoning Province, exported 441 batches of furniture, with a value of 12.77 million US dollars, equivalent to about 80 million yuan. Export furniture products mainly include dining tables and dining chairs, accounting for about 40% of exported wood furniture. The products are mainly exported to the United States, the European Union, South Korea and Japan. Faced with the increase in domestic labor costs and rising raw material prices, the furniture export situation in Shenyang is becoming increasingly severe. 3% of dealers want to change the brand in the Liaoning furniture industry dealer survey shows: about 30% of dealers want to change brands. In the three types of cities, such as provincial capitals, prefecture-level cities, and county towns, the more “sinking” the market, the stronger the willingness of dealers to change brands. Shenyang, Dalian and other cities want to change brand dealers accounted for an average of 32.07%; prefecture-level cities averaged 49.19%; Benxi, Kaiyuan and other counties accounted for 75%, more than double the provincial capital. The market conditions at different levels are different due to different geographical conditions, economic environment, consumption level, dealer strength, marketing motivation, etc., which leads to the difference in the motivation of merchants to change brands. There are differences in the reasons for first-tier cities and second- and third-tier cities to change brands: first-tier cities want to change brands, mainly because of the pressure of survival. In Shenyang, Dalian and other first-tier cities in Liaoning, there are many hypermarkets, and the market is full of foreign high-end brands. When merchants represent these mid- to high-end brands, they need to pay a higher margin, take a large number of goods, operate more pressure, and change the brand more difficult; second- and third-tier cities want to change brands, mainly to expand business. In the second and third tier cities such as Fushun, Tieling and Dandong, in recent years, there have been many hypermarkets and a large number of mid-to-high-end furniture brands. The reason why dealers in these regions think about brands is mainly to look for more opportunities.

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