Horizontal expansion of furniture companies should be cautious

Big and complete, specific and precise is the two parallel lines of the furniture and building materials industry. From the industry development trend this year, “diversification” has overwhelmed the tendency of “specialization” to spread. Recently, the furniture industry has crossed the borders in other fields, and some furniture companies have laid out large furniture. Under the tide of diversification, it seems that companies that insist on deepening the single category have become less and less.

“Diversification” has become a trend, and horizontal expansion of the company needs to be cautious

Looking at the Chinese furniture industry, diversified development has become a trend. All major furniture companies have already carried out a diversified layout of horizontal expansion. For furniture companies, diversification is an important way to grab consumers and markets and seek breakthrough in fierce competition. However, diversification is not a panacea. There are many furniture and building material companies that blindly expand and destroy. Xu Jinghong, vice president of Xiyingmen International Commercial Chain Group, pointed out that large furniture has always been "pan", but not everyone can "pan" and should be careful "pan".

Then, what kind of conditions can enterprises achieve in order to "pan"? Insiders revealed that there are two forces to enter the big furniture. First, consumers have decoration phobias, furniture integration service is a market trend, and secondly, companies have leading advantages in this field and can naturally expand to other customized fields.

"Professionalism" is becoming less and less, and there are also springs in deep plowing.

Compared with the dilemma of “divergence” in layout, there are fewer and fewer enterprises that still insist on deepening the operation of single-specialized products. Does it mean that professionalism lacks a broad space for development? Insiders believe that specialization is a big market. "Being the best, doing well, doing fine, and doing fine is the most powerful company."

From a global and historical point of view, internationally renowned brands and centuries-old stores have indeed grown up through specialization. They have achieved their ultimate goal in a specific area and have become a well-deserved leader in their category. For consumers, they tend to believe that professional branded products and services are more professional, reliable and trustworthy. At present, most of the well-known domestic furniture companies that have been deeply pursuing professionalism have become leaders in the field.

It is reported that professional road selection is closely related to corporate culture. According to industry insiders, companies need to be dedicated, focused, and take the path of professional development. However, he also pointed out that companies need to choose a diversified or specialized road based on their own development characteristics, and they will adjust according to changes in the environment in the future.

Diversification and specialization in the furniture industry

Judging from the current situation, China's furniture industry is quite "diversified" overwhelmingly "specialized." Will more and more companies abandon their efforts to specialize in the future and choose to diversify?

The industry believes that from the perspective of furniture, it should be professional and diversified coexistence, mainly in the professional. He pointed out that the diversified layout, especially the “big furniture” strategy, has high requirements for talents, resources, funds, R&D and design of the company, and not every company is suitable. In the future, large furniture fields can really produce some powerful brands, but most of them need to return to specialization.

From the perspective of diversification, experts believe that companies should diversify on the basis of a deep degree of specialization in a single category. Because companies do cross-border other categories will be "unprofessional" risk, after all, most of China's furniture companies in the sub-category has no absolute advantage.

It can be seen from this that some people in the industry have made specialization and diversification the choice of different stages of the company's development. Liu Yongkang, a Chinese furniture brand alliance, believes that from the stage of enterprise development, it is believed that the first stage of enterprise development is to survive, that is, what to do when it comes to making money. This is the only way for the company to become bigger. "When you are big, you have to be strong. This time you have to go the path of specialization. Only specialization can form the core competitiveness."