2014 furniture industry "merger integration" will be the mainstream of the market

In 2014, it is destined to be an extraordinary year for the furniture industry, and mergers and acquisitions will accompany the mainstream of the furniture market this year. The reporter understands that while the distribution store Red Star Macalline has acquired the Jisheng Weibang incident, the manufacturing industry has also undergone some new changes: the linkage and cooperation between brand enterprises has begun to shift from the former formal cooperation to the deep integration. Factory OEMs go to OEM integration between big brands, from manufacturing technology cooperation to small-scale capital annexation integration... More and more furniture companies have converted the runway, from the “running by themselves” track to “riding the horse "trail of. Nowadays, the deep reshuffle of the industry has given some corporate pressure, but it has also given other business opportunities. Under this environment and situation, mergers and integrations will be more rapid than ever. There are some substantive ones. The OEM cooperation of big brands has always been the case of OEM in the furniture industry. The processing factories are everywhere, such as processing and exporting enterprises, small factories helping large factories to process and so on. At the end of 2013, the three major furniture brands, Xilinmen, Yihua Wood and Huari Furniture, began to strengthen and unite, integrating resources and complementing each other with the model of mutual OEM. The furniture industry has truly entered the substantive stage of integration of large brands. At the end of December 2013, Xilinmen Furniture, Yihua Wood and Huari Furniture signed the strategic cooperation framework agreement for the first time. The main content of the tripartite strategic agreement is: the three parties will use mutual trust as the basis for cooperation, improve efficiency and common development as the fundamental goals and interests, give full play to the respective advantages of the three parties, enhance competitiveness through resource integration and complementary advantages, and jointly develop the market. We know that Yihua Wood is one of the large-scale furniture enterprises specializing in the production and sale of solid wood furniture, solid wood flooring and other wood products in China. It has obvious advantages in the export of solid wood furniture and flooring; Xilinmen is a leading enterprise in the domestic mattress industry, its hotel Furniture products enjoy high popularity in the industry; Huari Furniture is a large-scale furniture enterprise integrating scientific research, development, design, production and sales. Its production of civil solid wood furniture, children's furniture, wooden doors, overall wardrobes and other products are subdivided. The advantages in the market are obvious. Therefore, according to the agreement of the tripartite strategic cooperation, Xilinmen will produce mattresses and hotel furniture for Yihua and Huari, and respectively branded “Yihua” and “HuaRi”. Yihua will produce solid wood furniture and solid wood flooring. Solid wood doors and windows and other products are crowned with the names of the other two brands. Huari Furniture also produces children's furniture, overall wardrobes and other products in the same way. Liu Weihong, deputy general manager and secretary of the board of directors of Yihua Wood, said frankly that this cooperation is mainly to “trust two other OEM products and put them in our channels for sales”, so as to use the superior products of the three furniture brands to cooperate and complement each other. For Yihua Wood, it is mainly to make up the shortcomings in soft home decoration and children's furniture. This is a business model in which brands work with each other, mainly the complementarity and integration of superior products between brands. Recently, the market has found that many companies have integrated the terminal product line through this model. In particular, some companies with a single product category and temporary lack of expansion strength are increasingly looking for companies that have the same problems but complementary products to integrate resources in order to integrate the terminal home market. Qin Zhanxue, executive vice president of the Building Materials Circulation Association, believes that “this integration has played a role in the technology and production between the brand factories. The channel is still in the control of each brand. It is equivalent to selling the same product with three brands. The way is still relatively rough. Such innovation is worth encouraging, but the development and maintenance in the later stage is also very important, especially in the construction of the unified market. The best ending is that the three companies have joined forces to develop into a trust group, and then each brand uses a brand. Uniform sales of a certain category of products.” Xiong Xiaokun, a light industry researcher at China Investment Consulting, said that under this business model, the concentration of the home industry will be further enhanced, and companies with capital strength may cooperate through mergers and acquisitions in the future. The merger and integration has already seen large-scale mutual OEM cooperation between brand companies, and may eventually lead to large-scale mergers and acquisitions. Liu Weihong, deputy general manager and secretary of the board of directors of Yihua, said that the next development trend of the furniture industry is horizontal cooperation, and even large-scale annexation will occur. "The future trend is strong alliance, and there is no possibility that there will be greater mergers and acquisitions. The integration action appears." The annexation of the furniture industry has just begun. From the current situation analysis, this merger and acquisition tide may first appear from three types of enterprises: The first category is enterprises that urgently need to expand production capacity. Such enterprises are usually well-developed enterprises with fast terminal growth. The supply of terminals to the terminals is in short supply. Therefore, they need to acquire some small factories to quickly increase the production capacity of the factories. At present, some large-scale brand factories in the industry are annexing some small factories, such as Zhongzhixin Furniture and Jinfuya Furniture. The characteristics of this kind of annexation are that the funds for the annexation are not large, and the integration is not difficult. The small factories around the large enterprises are being annexed. The production capacity and technology can meet the requirements of the large factories. After the integration and integration, they can immediately join the production capacity. This is a bit like the outsourcing of large factories. When the performance of large factories is good, they can be networked and integrated into production. When the performance of large factories is not good, they can be kicked out to reduce the burden. The capacity expansion of large factories is very flexible. Of course, this is an unfair market competition for small factories, but they have no ability to reverse the situation. The second category is a single product category, such as sofas, mattresses and other soft furniture companies. From the perspective of the terminal market, companies integrating large household products are more competitive. Therefore, some companies with relatively single categories want to expand their terminal product lines in the case of existing production capacity of the factory, or like Xilinmen, Yihua Wood and Huari. Furniture cooperates with each other in this way. This is an integrated mode with low capital and relatively low risk. Or it is a very strong financial strength, and it can directly acquire and merge other factories and enterprises to fill their own shortcomings. The third category is to enter a new segment, for example, South China City wants to enter the home industry, it will acquire a hundred years of home; Xilinmen wants to enter the children's furniture, it chooses to cooperate with Huari Furniture, but the future does not rule out It will directly buy some children's furniture manufacturers to come in. Entering a new or unfamiliar segment, it takes a long time to start from scratch, but if the financial strength is sufficient, many manufacturers are willing to choose the merger mode to enter this segment, the purpose is to quickly participate in this Segmentation of the cake in the subdivision. Therefore, under the advancement of the industry reshuffle, the three types of enterprises in the future must first set off a wave of annexation. The various surges and contradictions in the market will also create different "splashes" in this tide of annexation. It is a choppy wave, or it may be a beautiful encounter. Optimization of the industry ecology However, the final trend of this annexation and reshuffle will definitely be the optimization of the industry ecology. At present, the concentration of China's furniture industry is low. Statistics show that the number of enterprises in the furniture industry has reached more than 70,000, and there are more than 200,000 corporate brands. The scale is relatively loose, and the overall efficiency is low, as it has not been washed. The home appliance industry before the card integration. Therefore, in the process of industry shuffling and transformation, the business model of mergers and acquisitions frequently appearing in modern enterprise management will be introduced into the furniture industry. Resource integration has become the primary task for major furniture companies to break through the bottleneck of the industry. The furniture industry will also experience the same process of shuffling and mergers, acquisitions and integrations as the home appliance industry. The final result is a circulation main body like Gome Suning, and the oligarchy dominated by the US Haier and Gree. This is an irreversible ecological trend.


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