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How Many Chinese Lighting Companies Will Escape In The End of 2010?
February.14.2011

It is an indisputable fact that the development of Chinese lighting industry is not booming this year. In the background of macroeconomic policy, the real estate GPS Antenna market cooled rapidly from the first heat, consumers kept wait-and-see attitude and accordingly it cooled suddenly. As household lighting industry, it maintains absolutely close contact with real estate industry, consumers don't buy houses or real estate speculators idle their houses, naturally, not to mention home decoration, it makes furniture, light and other industries suffer erosion by the cold air in different degrees. Coupled with the weak market consumption and the declining purchasing power that caused by the financial crisis after-effects, the RMB appreciation also has weakened the foreign trade market competitive power of led lighting products in different degrees, in the inflationary environment, the social economy also has made consumers' enthusiasm weaken. So since the second half of 2010, many lighting companies expressed in varying degrees that their sales performance have appeared greater decline, and the sales profit also has shrunk. For those small and medium enterprises with weak anti-risk ability, they are lack of strain capacity and measures adjustment in adverse uv light market environment, they are in the wandering state just like have suffered hurricane-ridden, and even bankruptcies.

Of course, we can not rule out some malicious escape phenomenon, because in lighting industry it is common, many non-performing companies default supplier's payment for goods in excuse of the quantity of low-end products is large, or overstock supplier's payment for goods with paying each one month, two months or three months; or produce a lot of junk products, then put on the market quickly and cash out for their escape. From the beginning of this year, there are a lot of escaping garment steam enterprises or rumors in lighting industry, especially after the Shunda Escape incident, during the few months some rumors that kitchen utensil enterprises bankrupt or escape have been come out in succession. Recently, it is said that a lamp company with some scale has closed up, it once known as the enterprise with a hundred million yuan annual sales and it also has escaped, so we really do not know who will follow its footstep next!

For the escape phenomenon in lamps enterprises, the upstream suppliers and related supporting service providers bear the brunt of suffering the greatest harm. Especially those small-scale suppliers, they have to accept manufacturers' unequal conditions for their survival and air cleaner development, such as paying each one month, two months and so on, the loan also is in the form of promissory notes. It has laid mines for production and management, if their service customers escape, by that time, all will suffer great drag jointly. In fact this escape phenomenon will not only hurt those associated supporting service businesses, it is also harm for the whole industry's image and reputation.

From the common escape phenomenon in lighting industry, we can easily see that the industry also exist many root cause of trouble, and it is in sub-health industrial environment state. Many enterprises have a weak basis generally in their development process, they lack adequate immunity and naturally lack anti-risk ability. However, under the overall situation, many corporate executives are mostly the type of carrying coals to Newcastle, their business management is led by so-called experience-style management, but lack scientific and advanced management knowledge and system, as well as process control mode, they easily get in self mud and the deviation of direction in operation and management.

Although from the normal social economic life, the failure or mismanagement is the enterprise's own behavior, but the rise and fall has some specific reasons. However, if such escape phenomenon often happens in an industry, what it reflects is not only the problem of individual enterprise's rise and fall, it also involves the destruction of the entire industry's integrity system, furthermore it is pure fraud. Actually, as for the prevention of lighting enterprises' escape phenomenon, some upstream support services enterprises can be easy to find it supposedly, if they can operate according to scientific process financial system strictly, collect more dynamic customer information, adjust the payment settlement and related warning mechanism with customers in time, they will naturally avoid the risks that brought by the escape phenomenon.

Above provided by SelectChina.com, and find more China lighting Manufacturers / China lighting Products.
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R & D on Brand Model——The Core of Chinese Furniture Sustainable Development
January.20.2011

The development model of Chinese furniture industry is using the experience of a selected spot to promote the work in the entire area, and therefore, the whole industry has formed certain commonalities, such as: earlier development, powerful manufacturing capacity and perfect industry chain. Chinese furniture industry is similar to other manufacturing industries in China; it depends on cheap labor, processes according to customer's kitchen utensil samples, and rapidly expands. However, just because of this, the industry has developed a common weakness: little originality, fatigue brand and single channel. In addition, under the encirclement of a good many pressures such as upgrading and garment steam transformation, labor shortages, wages rising and RMB appreciation, how can Chinese traditional furniture industry get rid of puzzledom and break through the bottleneck?

First, to strengthen the research and development:
First is the originality of design. We all know that the furniture industry is a typical labor-intensive enterprise, a number of production processes is not high tech, and the appearance design is easy to be copied. Therefore, enterprises are reluctant to invest too much in R & D; they think it is doing wedding dress for others. However, the chairs enterprises that really have insight and far-sight will do original development and they are not afraid of being copied. You do original development, others to copy you, so you will inadvertently become the industry leader and the maker of trend. Second is the R & D on new materials. The rapid development of science and technology has greatly expanded the use of materials, the materials of outdoor furniture are not single timber long ago, stainless steel, aluminum alloy, iron wire, glass, marble, composite rattan and other materials continue to join. It can be predicted that it will develop with science and technology simultaneously, and in the future more new materials will join in the materials chain of furniture. Third is the R & D on new technology.

Second, to focus on brand construction:
What is a brand? Brand is a sort of force, trust, value and an idea. Now even some relatively well-known furniture enterprises in China are still in the primary stage of naming and promoting the name on brand communication, they don't know what kind of culture and ideas will spread to the consumers. The method of brand promotion also is very simple, which is basically confined to television advertising, if for the rural market, they will follow the old way that brush the outer wall in large areas.

Although the furnitures industry is different with others, but it can fully learn from many other promotion tactics. First is to hold the Original New Product Conference, which is eye-catching and also can demonstrate the strength of enterprises and uv light brand influence, as well as spread the brand culture. Second, to actively participate in large public-spirited activity and establish the idea that the brand is used for serving people. Third, to join and be good at borrowing the influential activities that match their own brand culture.

Finally, the changes of production patterns:
The production pattern of furniture industry in the future will have many changes. First is the change of the foreign trade orders. The previous mass production orders of single product is shrinking, while the orders with little quantity but many designs are growing, the situation that one order includes dozens of products, but only one or two pieces (sets) of each product are needed even appeared. Naturally, it will greatly increase the production costs and difficulty for enterprises. The second change is the segmentation of export market. The buyers of rural market will still place large quantities of orders on the same product in a period of time. However, in Europe and other developed countries, as before, the order model with hundreds of thousands pieces (sets) on the same product will gradually shrink and even disappear, even if there is, it must also be extremely low-end products that the enterprises' manufacturing cost can not accept.

Personalization is the direction of future. In the consumer group in city, some categories of furniture have occurred this trend, such as cabinets, which has fully achieved the custom-made, after consumers choosing the right color and style, manufacturers will make cabinets according to the size, then deliver to consumers and be installed by specific person, it has achieved greater personalization. Even some individual enterprises are testing to custom full set of furniture, although the road is long, but some new models and ways can be explored in the process of moving.

Above provided by SelectChina.com, and find more information on China Furniture News/ China Furniture Manufacturers / China Furniture Products.
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Foreign Enterprises Laying Out Chinese Lighting Equipment Market, The Competition Increasing
December.22.2010

As a complete unit, the current led lighting market has been in a good development space. Chinese enterprises have increased to 10,000 with more than 1,000,000 practitioners, it also has attracted a lot of foreign investment, some well-known international enterprises have entered the field of domestic sales one after another, and the overall layout of foreign superior outdoor furniture enterprises has brought strong competition pressure for domestic lighting equipment.

Mr. He Zaihua, the Senior Research Officer of China Investment Consulting Company, he pointed out that the demand of LED lighting market has begun to emerge in 2010, demand drives market, a large number of skyrunner enterprises of LED industry have entered this industry, and it has brought large impact on the LED lighting industry, which is not stable originally. This kind of upstream and downstream development is very common in the whole LED industry, but the uv light enterprises, which have truly achieved the vertical integration and lateral spread of the industry chain, are very rare. Investigating its cause deeply, the grasping level of core technologies and the progress of brand fitness construction may be the main reasons.

According to the 2010-2015 China's Semiconductor light (LED) Industry's Investment Analysis and Forecast Report released by China Investment Consulting Company, as the prices of LED products are still relative high for Chinese consumers, the sales of Chinese LED application products are mainly in commercial lighting and municipal engineering, general consumer's acceptance is still at a low level, so the export of many LED lamp enterprises in Pearl River Delta region account for more than 50%.

General lamps companies devote to developing lower functional lighting products, of course, the market competition in this part is more intense, in such fierce competition, to get a lot of market share, the brand building is essential, which also is a true portrayal of most current garment steam enterprises in China. Because of the export share is large, so the construction of international brand is crucial for Chinese air cleaner enterprises. For enterprises regarding technology as a breakthrough, if they want to develop high-tech, high added value and intelligent products, continuous technology and capital investment is absolutely necessary, once the technology is lagging behind, the market share will be lost.

Above provided by SelectChina.com, and find more China lighting Manufacturers / China lighting Products.
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Chinese Furniture Export Has Both Happiness and Sadness in Connecting Rails With International Market
December.02.2010

Based on huge international furniture market, the domestic furniture industry begins to actively develop overseas markets after 10 years development, at the same time contest for domestic market share. At present, the exportation of China's furniture has expanded to India, Pakistan, Southeast Asia, the Middle East, Africa and other countries except the world's three major furniture market -- the United States, Japan and Europe. Recently General Administration of Customs has released a set of latest data: from January to June in the first half of 2010, China's furniture exports amounted to 15.972 billion U.S. dollars, up 32.4% over last year. After entering 2010, the Euro-rate once fell sharply, which even remained the same with last year. However, under this shock, Chinese furniture exports have seen a gratifying increase, which greatly inspired the morale of Chinese furniture industry. Therefore, both domestic economists and media hold an optimistic attitude on the furniture exports in the second half of 2010.

But under the bewildering development trend of global economy in nowadays, whether the exportation that ever regarded as one of the troika to increase Chinese economy can always become a source of wealth in China chairs manufacturing? Whether Chinese furniture industry, the export value of which accounts for more than 30% of the total sales all the time, can really meet the springtide of export trade? Whether the export road of China's furniture can be so flat in the second half of the year?

The external competitive pressures are increasing gradually, but the internal powers that support the furniture export to increase is clearly insufficient. While it is pleased to see the furniture export data of the first half-year released by the General Administration of Customs uv light, but the growth rate is obtained based on the first half of 2009, when is the most deeply affected year by the financial crisis. As the first half of 2009 is the gloomiest period for Chinese furniture export, the reduction of furnitures export amount has decreased the base of comparison. Meanwhile, the RMB appreciation is the incentive for the growth of furniture exports. After the financial crisis, many domestic furniture export enterprises have gave up US Dollars, and began to use RMB as trade settlement currency, which also has promoted the increase of Chinese furniture export.

In this connection, the reporter has interviewed Mr. Zhu Changling, the vice chairman of China Furniture Association. He said the export growth in the first half-year is not synchronized with the kitchen utensil quantity and price rise, although the exports show growth, but the total exports of Chinese furniture don't increase. In the not relieved export volume, there is a certain percentage of filling inventory phenomenon existing. The storage consumed during the financial crisis of European and American furniture dealers will fill their stocks. However, from the perspective of the consumption ability that can support long-term stable growth, there has been no signs of recovery in European and American furniture consumer market, and there will be no large number of orders after replenishment in short term.

External and internal troubles can drive Chinese export-oriented outdoor furniture enterprises to improve themselves. In the furniture-manufacturing base in the Yangtze River Delta, where gathered many export enterprises, the labor pains and transformation of Chinese furniture exports are being further bred. In addition to the introduction of modern management, which is a platitude in Chinese furniture industry, reporters saw a lot of the Yangtze River Delta furniture manufacturers are continually extending their product line. At the same time, the furniture companies in Yuhuan are working tightly together to develop emerging markets--the Middle East, which can fill the insufficient demand that caused by the weakness of European and American markets.

Above provided by SelectChina.com, and find more information on China Furniture News/ China Furniture Manufacturers / China Furniture Products.
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Competition in China Furniture Market
November.08.2010

With the rapid development of furniture industry in recent years, the competition in China furniture market has entered an ultra-competition state. So we should fully realize that our former success and effective strategy and means may not be workable in this new outdoor furniture marketing situation, we should be clearheaded and rational.

The homogenization is obvious increasingly, the degree and time of product differentiation is becoming limited: different furniture factories have same style, design and color, even the image packaging of some manufacturers seems like twins, and next is the price war round after round.

As the price of terminal intensivism, channels concentration, furnitures brand centralization and other marketing elements increasing, the operating costs of enterprises also have increased. The threshold is increasingly high, the breakeven point and key value that we operate in regional market is getting higher, and the risk is growing. High risk may not lead to high returns, many furniture companies and specialty stores seem very busy after they have laid a good foundation for the market, but in fact they have earned very little money when doing account in the end of the year.

Now, the integrated growth of China furniture consumption is about 12%, while furniture shopping malls are like bamboo shoots after a spring rain in these two years, the expansion rate of well-known uv lamp brand furniture mall is between 30% and 40%! And the rental of furniture mall has increased 10% to 15%. The contrast of these figures is far more than the GDP growth rate of real estate and national economy and sales growth rate of furniture specialty stores.

In recent years, especially the chairs anti-dumping and the financial crisis two years ago have influenced furniture export industry obviously. These manufacturers quickly realized that they can not completely depend on exports sale, they should learn to walk with double legs that is export sale coming with domestic sale, they started to develop domestic furniture market in recent two years by product development, image packaging, marketing plan, attending exhibitions, market promotion and so on. Many brands suddenly increased in China kitchen utensil market result in domestic marketers and dealers who have many years experience are not familiar with the concept of new furniture brand, of course part of domestic solar water heater market share is divided.

Dealers or manufacturers who want to have a relatively good position in furniture market will privately give red packets to the important principal that invited by property, and find a reason to directly withdraw the original furniture brands who will join in, this is a open secret in the industry.

In a word, in my opinion, China furniture industry will usher the second rapid development period in the next 3 to 5 years under the big background of the furniture industry gradual shift and national macro-economic. The task of this period is not primarily the amount expansion, but the quality improvement. Furniture industry will face new challenges in the next five years such as the tight supply of wood and other furniture raw materials resources, the increased price of energy and transport, the strengthening of environmental requirements and the shortage of technical staff and manager, which are all restrictions for industry development. Therefore, enterprises should transform traditional industry with high technology and change the solar mode of growth, and the key is improving the quality of product and marketing innovation.

Above provided by SelectChina.com, and find more information on China Furniture News/ China Furniture Manufacturers / China Furniture Products.

China UvoPower High-Tech Lighting Ltd.

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