International furniture brands cut into the Chinese market and generally adopt the general agent system. Such a sales model restricts the extensive contact between furniture and consumers. Therefore, its operating amount is more important than the market share, and its products are enjoyed by top Chinese rich families or related institutions. However, this model has the purpose of testing water for well-known brands. Now, some international brands are optimistic about China's huge mid-to-high-end market potential and have decided to build their own sales channels. At the Houjie International Famous Furniture Fair, ASHLEY, the No. 1 brand of American furniture, released its strategic plan to fully develop the domestic market in China. In the next few years, the company will build a mixed sales channel featuring first-class direct store franchise promotion in Shanghai, Guangzhou and other first-tier cities.
With the entry of internationally renowned furniture brands, people in the industry instinctively think about whether foreign brands will be unacceptable. However, there is no doubt that the foreign brands' squeeze into the local market will become a reality. The most likely to be squeezed is China's existing mid- to high-end brand market.
The most likely market strategy for foreign brands should be to position mid- to high-end, lay out first-tier cities and potential cities with potential for consumption, such as Dongguan, a city where citizens frequently buy luxury goods and five-star hotels in Hong Kong. It is unlikely that foreign brands will fully blossom, and they will concentrate on cutting into the mid- to high-end market occupied by well-known Chinese furniture manufacturers.
Although foreign brands have the highest probability of positioning in the mid-to-high end, their impact on the market is comprehensive. In the face of the advantages of foreign brands, technology and capital, the existing domestic mid- to high-end market will be cut. In order to survive, it is possible for middle and high-end brands to flow downward, which will inevitably provoke competition in the furniture market as a whole.
The most feasible method for the market situation faced by Dongguan furniture companies is to do a good job in market segmentation, make their own product features and business model features, and rely on market segmentation to deal with possible market reshuffle impacts. Dongguan can also play the role of the supply base of the market headquarters, plan the pattern of large markets and large marketing, and respond to different shocks with a strategy of cost leadership and market concentration.
Of course, it is impossible for foreign brands to stir up the stormy waves all at once. The most realistic process will be slow, and practitioners need to prevent themselves from becoming frogs in warm water without knowing it. The future belongs to the strategic shift in the market today. Of the prophets.
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