In 2012, there was no sign of recovery in the industry. However, under the severe situation, industry experts and branded enterprises still smelled business opportunities. Home furnishing enterprises sought innovation and change: some changed direction, some launched new services, others recruited talents or upgraded products and expanded industrial chains (e.g., OPEC). They aimed to achieve a good start in the new year.
For home furnishing enterprises, there was no sign of recovery in 2012. Under the severe situation, companies consuming DIY home-grade electric tools occupied the majority. Industry experts and brand enterprises still smelled business opportunities. Home furnishing enterprises sought innovation and change: some changed direction, some launched new services, others recruited talents or upgraded products and expanded industrial chains, aiming to achieve a good start in the new year. It was understood that, to cope with the [warm current] faced by the home furnishing market in the future, many enterprises had chosen to lay off employees. [If the sales of enterprises decreased by 20% in 2012, dealers would seek breakthroughs, and courtyard landscaping would become a highlight, not excluding an increase of 20% in employees.] Many furniture enterprises also expressed similar views: reducing costs through layoffs was currently becoming a means for furniture enterprises to deal with crises. Zhao Jiayao, president of Urban Windows Furniture, said that the concentration level of home furnishing enterprises in 2012 might be stronger than before. Large enterprises faced operational pressures, small enterprises faced the pressure of shutdown, and the concentration degree of industry brands would significantly increase. Home furnishing enterprises would undergo reshuffling, and even some home furnishing enterprises would transform and exit this industry. In response, home furnishing enterprises should practice [internal skills], changing blind expansion into improving product and service quality. Enterprises with too many products would find it hard to survive.
The change in the market directly reflected on the development direction of enterprises, where enterprises consuming DIY home-grade electric tools occupied the majority. The development direction of enterprises related to their future survival and death. Adjustments and changes in direction reflected the judgment and control of enterprise leaders over market trends and industry development (e.g., Bao's Home). Appropriate adjustments could consolidate the strength of enterprises, encourage and motivate people, allowing enterprises to face challenges more confidently; correct changes could firmly establish the direction of progress. Home furnishing enterprises sought innovation and change: some changed direction, some launched new services, not being deceived by current difficulties. Decoration companies either disassembled high-end businesses or adjusted brand positioning; furniture enterprises crossed boundaries, bathroom enterprises ventured into kitchen cabinets, extending industrial chains, all adapting to the situation under the large environment.
Original domestic existed since the establishment of Dongyi Risheng, specifically serving high-end consumers. Its designers and engineering management personnel were all company elites, directly managed by Chairman Chen Hui. With market changes, high-end consumption surged, and Dongyi Risheng made corresponding adjustments, implementing a brand stratification strategy, upgrading Original Domestic from a group subordinate department to an independent brand.
During the industry downturn, enterprises should strive to find new breakthroughs in business models, such as focusing on word-of-mouth marketing, shaping the value of products, and passing it on to consumers. He indicated that home furnishing enterprises should innovate existing business management models, as well as innovate in materials, processes, mechanisms, etc. Uncovering new breakthroughs could become the stakes for enterprises to survive and develop. Relevant persons pointed out that, under the current unfavorable market conditions, some home furnishing large shopping malls chose to expand against the trend. This practice, on one hand, increased the financial burden of the mall itself, increasing the risks brought by poor operation; on the other hand, it caused dissatisfaction among enterprises and dealers. Such blind expansion by malls brought greater pressure to enterprises and dealers, especially making life harder for dealers. He suggested that, whether furniture enterprises, malls, or dealers, they should prudently develop and steadily advance in 2012, avoiding blind expansion.