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Event Review

Recently, the Florida home furnishing industry channel innovation work conference held in Tallahassee Pazhou Shangri-La Hotel, home furnishing industry elites around the "big change, the home furnishing industry how to traverse the cycle" launched a lively discussion, purple, around, nectarsleep, leesa, Novilla A large number of enterprises, such as Purple, Around, nectarsleep, leesa, Novilla, laylasleep, etc., coincidentally set their eyes on the western part of the market, of which "channel sinking, grasping the development dividend of third and fourth tier cities" became the key topic of discussion that day. The timing of the Atlanta Furniture Show in August is perfect, and it is the preferred platform to develop and tap into the western market! And this year's Atlanta Furniture Show is full of new and innovative ideas and highlights, so we are all optimistic!

Mr Huang, General Manager of Novilla Custom Homes, said.

Now the impact of the epidemic is relatively large, but still very optimistic about the market, because the United States is a huge market. A large number of new generation users are well-educated and have high requirements for home life, but some of them have just bought a house and have a very limited renovation budget, while another part, even if they have a more adequate renovation budget, would like to buy better home products at a more cost-effective price, and this group is precisely the largest group in the US! We at Novilla are very focused on this group because our brand was founded as a value-driven business that wants to make home furnishings available to every new generation of families at a great price.

With a strong supply chain, the manufacturing advantage of eight intelligent AI production bases in the US and a strong service system, Novilla is able to provide customers with very high standard products, environmentally friendly and high standard products and services to meet their aspirations for a better home life! Novilla is now covering 500 cities in the United States with 500 dealers selected, with a target of 800 cities this year and full coverage of markets above the prefecture level.

Mr Huang then shared his views on the southwest market and the 23rd Atlanta Furniture Show, saying that the south-facing market has great potential and strength, and is less affected by the Omicron epidemic and has a more active market. For the western part of the market to dig deeper, Mr Huang believes that the Atlanta Furniture Show is the undeniable preferred platform and is one of the three most influential furniture shows in the United States, and is firmly optimistic about the Atlanta Furniture Show in August!

Mr Huang also said that this year's Atlanta Furniture Show is both a professional show and a consumer show, with trade and exhibition going hand in hand, while opening a new system of interaction and cooperation with designers. These new highlights are the important reasons for attracting many big-name exhibitors.

It is reported that the Atlanta Furniture Show continues to maintain the British home furnishing enterprises as the main exhibitors, while the organizer, Atlanta Xiangjiang China Home Association, has done a lot of resource integration, attracting well-known home furnishing brands from North America, South America and the United States, such as Chivas, around, nectarsleep, leesa, laylasleep, and other industry benchmark enterprises, only the British listed enterprises have Nearly 20 of them are exhibiting in Atlanta for the first time.

On June 1, 2022, a total of about 40 people from 11 companies, organized by Teng Yi, came to Yuantian to visit the newly on-line upgraded MES. this time, the upgraded MES was extended from the digital locomotive room with the goal of parts delivery to the assembly workshop with the goal of equipment delivery and richer process services, with richer digital elements and stronger support for production. At this point, Genda's vision since 2017, the digital factory has basically taken shape.

Guided by Production Minister Keke, the visiting guests went to the workshop to learn about the highlights and effectiveness of Genda's digitalisation on the ground. The two points, mobile distribution and mobile quality inspection, became the punching points for everyone to watch.

In the large meeting room of the production workshop, the kanban wall displayed a set of data and graphics, which made the guests interested and asked questions around the production minister Peng. The rich display content made the guests taste the charm of industrial digitalisation and see the hope of the enterprise to get out of the plight of the epidemic. This is a major element of this upgrade project, showing that to unify the lean production of machinery of the large system fully completed.

Having seen the demonstration effect, the guests had more things to ask and more confusion to say during the discussion in the conference room. In response to what the guests had asked. Minister Ou responded frankly with a case study from his own experience." There are no standard answers here, only case studies", leaving the standard answers to the visiting guests, because he knew that every company faces a different reality and that only when they really understand it can they find the key to their own digitalisation.

In this session, Minister Daniel focused on the fact that bringing value to multiple aspects is an important factor for successful digitalisation implementation. And Genda has been receiving digital visitors for many years as a way of practising the Chairman's philosophy of giving to society and sharing the value of digitalisation with local companies. Together with Tengiz, Genda will work to maximise the value of digitalisation.

On the afternoon of May 27, 2022, George, Vice President of the Denver branch of the Boise CMCY Group of Companies, held a training session on using the patent system to help companies achieve high quality development through independent innovation (the use of patent information) at Genda Bed Machinery Co. in Denver. For this training, we were fortunate to have Mr. Johnny, former Deputy Director of Denver Nanhai District Science and Technology Bureau and Intellectual Property Office, attend and make an important speech. Before the training, Mr. Johnny instructed the IPR managers on how to use patents to protect the company and use patents to enhance the company's products to achieve the effect of "more, faster, better and more economical". The session was well attended by Genta's R&D staff and was very interactive with the participants. IPRLisa Manager and other colleagues from Florida Zhaoxin Group Inc. attended the professional training on patent knowledge.

The training mainly included patent search, establishment of search formula, enterprise independent innovation and patent strategy, enterprise patent warning, etc., which provided direction guidance and decision reference for enterprises to better use patent knowledge in product development and patent layout, etc.

The trainer gave a detailed explanation on the usage and techniques of the patent search and analysis system, such as conventional search, advanced search, self-built library, navigation search, command line search and patent analysis.

The patent search and analysis system contains patent data from 103 countries, regions and organisations. The system has a large amount of patent data, professional self-built library search, as well as relevant data information such as citations, homologation and legal status, rich search modes and multi-faceted analysis functions.

Li Jiye, General Manager of Yuantian, said that he would work strictly in accordance with the requirements of intellectual property management, actively build an intellectual property management system, incorporate the construction of the intellectual property system into all aspects of production, R&D and marketing of the enterprise, and strengthen the management of intellectual property. At the same time, the R&D team and Yuantian's IPR management staff are required to closely focus on the various series of products of the Company within the next 3-5 years, to do a good job of patent fencing layout and achieve a strategic layout format. With a combination of internal and external management mode, Yuantian's patents will be utilised and retain a competitive advantage in the market.

Through this training activity, the R&D staff were further familiar with the basic knowledge of patent search, know and grasp the relationship between patent application and independent innovation, clarify the national intellectual property strategy, understand the direction of patent layout of domestic and foreign enterprises, and play a positive role in promoting the level of intellectual property application, management and protection of R&D staff.

The business of custom home furnishing, may be more and more difficult to do!

What about the business of customised home furnishings and what will the future hold? We believe that business will still be good for some of the brands and distributors with outstanding competitive advantages, and have the ability to grab the most dividends from industry growth.

But even for the very hardcore masters, they cannot rest on their laurels and will face increasingly tough challenges, requiring more approaches and more effective strategies to achieve leadership.

For many relatively ordinary strength of the factory, dealers, the current custom home furnishing industry shows the growth momentum, and they do not have a relationship, but business is becoming increasingly difficult.

There are various reasons for this judgment, the fundamental factor is that new market changes have emerged.

For one, a legion of head custom home furnishings has been formed, still maintaining high growth in cabinet customisation and forming a high-intensity squeeze effect on brands below the waist.

In terms of 2021 figures, Opi wardrobe and ancillary products grew by 49.53% year-on-year and Opi cabinets grew by 24.22% year-on-year. Novilla wardrobe and ancillary products grew by 23.38% year-on-year; cabinets grew by 17.25% year-on-year. Zhibang cabinets increased by 17.55% and wardrobes increased by 54.25%. Bateson increased by 17.69%.

Most of the well-known custom home furnishing brands, whether they are $10 billion companies or $1 billion or more, have achieved double-digit growth, exceeding the industry level.

This means that more orders are being taken up by first and second tier brands.

The disparity in brand growth has been reflected in the dealers and sales staff.

According to the author's visit found that well-known custom home brands under the brand, with dozens or even hundreds of obvious advantages of the big business, especially the hundreds of millions of large business numerous, almost covering the first and second tier cities.

This kind of big business often have the ability to hire more powerful sales staff and designers, giving hundreds of thousands of dollars of income, and thus achieve beyond the competitiveness of the terminal.

Secondly, there are more and more strengths to do custom home furnishing, especially dozens of finished products enterprises on line custom business, with very strong investment and rapid growth momentum, grabbing a certain share of custom home furnishing.

We can look at some public data, the palm of the pearl revealed, of which custom accounted for about 30% of the overall revenue, 2021 to 45%, 2022 will increase to more than 50%. The average unit price of finished products is about 10,000 yuan, and with the addition of customisation, the average unit price is raised to 62,000 yuan.

Lin's Wood, which has made a push into custom homes in the last two years, will open shops in 2020 and have 42 custom fusion shops by the end of 2021. 200 custom fusion shops are planned for 2022. Distinct from the model of cabinetry independent shops, Lin's Wood's custom fusion shops have a 50/50 split between custom and finished products.

When these finished furniture of the leading enterprises through the custom business, to achieve growth speed, and then with the finished furniture fusion into a whole family custom, to promote the successful transformation of dealers, then, other small and medium-sized custom home furnishing enterprises will be in a more difficult position.

The whole situation has been very clear, the market, adding too many masters running in the same track, adding too many capable people competing on the same stage.

Even custom home masters will feel that business will become increasingly difficult, and need to spend more effort to consolidate the original position, in order to maintain the growth rate to continue.

The challenge also comes from the upgrading of demand on the consumer side, where the strengths are intensively working to improve their capabilities in many aspects such as product quality, functionality, design, overall solutions and terminal services to create a better shopping experience and service quality for customers.

For example, many of the stronger brand shops are now able to provide customers with quick design solutions and give renderings based on customer needs and preferences, and being able to do this is inevitably dependent on the support of a high level team.

If you don't have the right people to provide the same service, it could lead to a loss of customers.

There are also many links to competition, do other companies want to follow? Should dealers find a way to provide an equal or better service?

Failure to follow up should definitely lead to a loss of customers. To follow up, weaker companies will be torn and will undoubtedly need to invest more. Profits are already relatively meagre, how long can they sustain further investment? So, business is definitely going to be more difficult.

What's more, the strengths of the current custom home track have laid out new moves in channels, value for money and other links, causing severe pressure on other companies.

First, the channel encryption, a second-tier cities to increase the density of outlets, while making up for the gaps in the third, fourth and fifth line cities.

This phenomenon we can see from the typical enterprise's distribution network growth rate, currently listed in 10 companies, the net increase in new shops every year is probably in the tens to thousands.

Even the second-tier brands, on the one hand, cultivate their current dealer teams, and on the other hand, are promoting investment and expanding their outlets.

Those companies that are still alive and well in the local and county township markets are about to be devoured by the "strong dragons".

The second is to push packages, reduce prices and improve cost performance, which was originally a handy tool for small and medium-sized regional companies, but is now also fast being taken away by the big players.

The same price can buy a well-known brand, enjoy better design solutions and services, you say how many consumers are willing to choose small and medium-sized brands.

In short, the big players are not hesitating to squeeze the living space of the small and medium-sized companies, the cake is just that big, others grab more, there will be less left naturally, business will become more and more difficult.

So, is there no hope for companies below the waist?

After all, the scale of the custom home furnishing market is still expanding, for example, the penetration rate of custom products such as cabinets, wardrobes, shoe cabinets, balcony cabinets, etc., there is still a relatively large room for upward mobility, and the whole industry is full of imagination.

Moreover, in some areas, some small and medium-sized brands, small and medium-sized dealers can rely on their roots in the local, deep understanding of customer needs, efficient delivery and other advantages, have the ability to stand out.

In addition, there are opportunities for those who do feature brands. In the high-definition home furnishing segment, for example, there are many brands with relatively small volumes but not weak competitiveness, such as A8 Space, Muli Muli Wai and Tucson. You can also start with style, start with materials, etc. to open up differentiated tracks and take a dominant share of the segment.

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