Domestic companies compete for second and third-tier markets
In March of each year, the same period is held at the Guangzhou Furniture Fair. Dongguan and Shenzhen Furniture Fairs have also been launched one after another. The three major furniture fairs can be regarded as the vane of the domestic and foreign furniture market during the year.
At the exhibition, well-known enterprises from Guangdong, Jiangsu, Zhejiang, Sichuan, Shandong, Beijing and other important domestic furniture industry bases all participated.
According to Jiang Kun, general manager of the Market Resources Department of the Federal Group, most of the brands participating in the Guangzhou Furniture Fair are well-known companies, and the channel network for many years is relatively mature. Chen Xiaotai, president of Beijing Century Top 100 Furniture, revealed that although the domestic furniture market had been predicted to be bleak, the sales growth of Top 100 in the first three months exceeded 50% over the same period in previous years.
In-depth expansion of market channels has become an important goal for many companies at this year's Guangzhou Furniture Fair. The Guangzhou exhibition provides the industry with the opportunity to expand the market. Enterprises that previously only deployed in the first-tier market also have the opportunity to adjust and sink to the second- and third-tier markets.
Wen Shiquan, chairman of Yifeng Furniture, said that under the continuous control of the property market, enterprises are facing greater market pressure, so they can use this exhibition to lower their posture and recruit some excellent dealers in second and third tier cities.
Many heads of local furniture companies said that whoever can quickly occupy the second and third-tier markets in the next one or two years will win the biggest furniture market cake.
Foreign businessmen explore the Chinese market
According to the person in charge of the Guangzhou Furniture Fair, the exhibitors and the number of visitors of the current Guangzhou Furniture Fair have set new records. The total number of exhibitors reached 3138, an increase of 11.2% over the same period last year. The exhibition registered more than 22,500 visitors, and there were overseas buyers from 152 countries and regions around the world, an increase of 28% over the same period last year.
ASHLEY from the United States, M / D and EFFEZETA from Italy, and companies from 13 countries and regions, including Australia, Singapore, Dubai, Japan and France, also expressed their optimism about the Chinese furniture market, hoping to find agents through the Guangzhou Furniture Exhibition Or franchisee. The increase in the number of overseas manufacturers has increased the overseas exhibition area to 10,000 square meters.
In addition, international production companies are also optimistic about the domestic market. The participation of ASHLEY, the largest furniture brand in the United States, illustrates this point. Wang Lanyu, general manager of Super Comfort International Home Furnishing Chain, acting as ASHLEY, revealed that ASHLEY will open the first large-scale single store in Shanghai, and its products are mainly based on simple panel furniture that has not entered the Chinese market.
Domestic merchants "go out"
Although the domestic home furnishing industry has a strong development momentum, furniture companies are still relatively small in scale. Companies in the industry are facing new resource integration in competition, and they need to seek more partners to expand their sales networks and expand foreign markets. One of the important driving forces for furniture companies to participate in the Guangzhou Furniture Fair.
According to industry insiders, for domestic merchants, there are not many overseas companies, but from the perspective of previous years, foreign orders have been better at the show. Zhou Liang, Marketing Director of Xilinmen Furniture Co., Ltd., said that there were many foreign merchants during the Guangzhou Furniture Fair. Xilinmen set up a booth of more than 500 square meters this time. In addition to displaying its image, it also strives to expand its export channels.
Ning Chunde, manager of the brand promotion department of Ai Ruisi, said that many foreign orders are on the spot, and domestic dealers have initially expressed their intention to join. Therefore, Guangzhou Exhibition generally gives priority to foreign orders. This year, buyers have exceeded the number of exhibitors. It is expected that in certain periods of time, the number of visitors must be limited.
Zhu Changling, chairman of the China Furniture Association, analyzed that although foreign markets are facing pressure for RMB appreciation in 2011, it does not mean that the foreign market is shrinking. The first three months of this year have increased over the same period.
Develop new products for young people
The reporter learned that the reason why many exhibitors have a special liking for the Guangzhou Furniture Fair is mainly because of its powerful trade function of "seeing samples". Industry insiders said that perhaps due to the increased competition in the domestic and foreign markets, the biggest difference between this year's exhibition and the past is that exhibitors are paying more and more attention to the brand's new product development and original design.
The software sofa brand Ai Ruisi exhibited this time, released the post-Expo concept sofa, invited Italian design masters to join, attracted extensive attention from domestic and foreign merchants, and the order quantity exceeded 100 containers.
At the exhibition, well-known enterprises such as Jianwei Human Furniture and Top 100 Furniture also launched new products designed independently. Compared with the low value added of many products before and hovering at the level of cost competition, furniture companies pay more attention to the higher value-added R & D part of the industrial chain.
The reporter saw in the modern exhibition area with the largest area of ​​civilian furniture that many brands are constantly developing new categories to adapt to the market in response to the emerging needs of young consumer groups.
Elvis Presley ’s “Post-80s Zero Living Combination†is a combination of steel and wood. It combines life, entertainment and work functions with bright lines and a sense of space. It is very suitable for small families after the 1980s. Ai Ruisi's "Crystal Love" series of products are mainly aimed at young people who are young and advocating fashion life. The old-fashioned solid wood furniture brand Federation has six major product fronts. Jiang Kun said that the Federation will also launch panel-type furniture for post-80s consumer groups. Many brands mainly based on Guangdong furniture companies also focus on modern and simple five-piece furniture sets. The price of a full set of 10,000 yuan is more suitable for rigid needs.
â– Industry statement
Beijing's brand competitiveness becomes stronger
The biggest feeling of this Guangzhou Furniture Fair is that many brands are launching new products, which reflects the increasingly fierce market competition, companies are increasing research and development to expand sales. They mainly promote products targeted at the post-80s and 90s consumer groups, comply with the country's regulatory policies, and are more suitable for the matching of affordable housing decoration within 80 square meters. The comprehensive competitiveness of Beijing furniture brands is becoming stronger. This time, it won two gold awards at the Guangzhou Furniture Fair. Among them, Beijing Century Top 100 Furniture won the gold award for manufacturing process and Beijing Royal Modern Furniture won the gold award for exterior design.
Increased demand in second- and third-tier cities
â— Liu Chen, Secretary-General of the Beijing Market Association Home Furnishing Branch
Although influenced by the upstream property market regulation policy, the intention of furniture distribution investment is still very strong, especially the dealers and franchisees in the second and third tier cities. A prominent feature this year is that most companies have launched new products, which also reflects the increased market competition from the side.
Home improvement market rises
â— Zhang Xiaoxia, Secretary General of the Home Furnishings Professional Committee of the National Chamber of Commerce and Industry Furniture and Decoration Chamber of Commerce
Guangzhou Furniture Fair pays more attention to highlighting the needs of subdivided industries. There are also some new features in this exhibition, that is, furniture sales tend to be stable, and the soft decoration market is rising. In this respect, since the opening of hypermarkets places great pressure on furniture companies, they have also increased the proportion of home accessories in retail terminals. In order to increase the profit per unit area, they have increased the sales of home accessories, and also reflected the market Demand has increased.
Develop new categories to meet market needs
â— Hong Xiaoshan, Executive Vice President of Left and Right Furniture
The overall passenger flow of Guangzhou Furniture Fair this year is good, the number of negotiations has increased slightly, the overall industry is more subdivided, the export and domestic sales enterprise market is very clear, and the goals of their respective product lines are more clear. Regardless of product or marketing, brands that stand out after competition have their own characteristics. We will pay more attention to the young consumer groups, but not to change the target customers, but to constantly develop new categories to meet market needs.
Dealer investment is more cautious
At the exhibition, dealers indicated that they had a lot of intentions for cooperation, but there were relatively few signing agreements or deposits on the spot. This is related to the market situation regulated by the domestic upstream property market. Furniture dealers have the intention to invest, but it is very cautious to establish franchise stores and specialty stores. Most of them need to be placed in the local area and followed up later. There are a lot of on-site orders for small accessories, and there are even hundreds of orders for a product, which is in sharp contrast to the cautious attitude of furniture dealers.
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