What are the pain points for furniture dealers?

The furniture industry is destined to coexist with chaos and irregularities during its development, which is an inevitable growing pain. Especially after the sudden outbreak of the pandemic in 2020, all industries were severely affected. In this environment of being "besieged from both inside and outside," how can furniture dealers find a way out? We often hear dealers lamenting that few people are making money in the furniture business anymore. The main reasons for this are as follows:

1. Intense Homogeneous Competition: What has never been lacking in the Chinese furniture market? Following trends! This directly leads to shorter market lifespans for successful products from some companies. Too many similar products make it difficult for consumers to distinguish between genuine and counterfeit goods, ultimately resulting in no one benefiting. In fact, many furniture dealers sell the same products; aside from different brands, they are essentially the same.

2. High Investment Costs: Aside from the cost of purchasing products, the investment in store decoration alone is extremely expensive, and the lifespan of such decorations is short, generally requiring renovation every two years. Furthermore, some furniture brands force dealers to passively change their store designs as their products evolve, resulting in wasted resources. This places significant financial pressure on furniture dealers.

3. Severe internal competition among furniture malls: At present, furniture malls of all sizes in China are showing a rapid expansion trend. A second- or third-tier city usually has 5 to 10 furniture malls, and the overall market is in a stage of oversupply. Moreover, the brands in furniture malls are very similar, which leads to severe internal competition for resources in a region.

4. Significant Channel Barriers: As is well known, the core areas of many furniture malls are basically occupied by major domestic and international brands. An ordinary furniture brand agent faces numerous difficulties in securing a decent location or even entering the market, as they are at a disadvantage in terms of capital chain and brand promotion.