Home of chair industry orders soar! Only next year is the whole industry helpless

category:Finance
 Home of chair industry orders soar! Only next year is the whole industry helpless


One of the two chairs exported across the country is from Anji. Chair industry accounted for 68.6% of the total export of Anji County.

According to Wu ye, chief economist of Anji County Bureau of Commerce, as a big export County of Huzhou, Zhejiang Province, this is a year when Anji has set a new high in both production capacity and export. Some enterprises have already scheduled their orders to June next year, and there is no sign of the end of the peak season..

Two major dividends

Wu Ye told the first finance and economics reporter that the driving force of Anjis soaring orders is that, benefiting from the housing economy, Anji enterprises, whose main business is office furniture, have received a large number of overseas purchase orders; second, thanks to the penetration and acceleration of cross-border e-commerce, some enterprises that have arranged cross-border e-commerce in advance have caught up with the boom, and have also led to offline shipment.

Xue Dong, who started investing in cross-border e-commerce as early as 2017, is one of the beneficiaries.

In the years of OEM experience for third-party sellers of e-commerce, they have been aware of the growth trend of cross-border e-commerce earlier, and began to lay out multi-channel foreign trade markets such as cross-border e-commerce, self built stations and third-party platforms with their own brands three years ago. At present, the cross-border e-commerce has accounted for 80% of the business of Wanbao furniture.

We had expected an increase of about 50% this year, but the epidemic doubled the increase. Xue Dong said so.

Yongyi shares also attributed the accelerated penetration of cross-border e-commerce as an important growth point of enterprises this year. Home office on the one hand expands the C-end consumer demand, but also improves the penetration of online channels. The person in charge of Yongyis chair industry told first finance and economics that cross-border e-commerce enterprises have increased significantly this year, and some cross-border e-commerce companies in other industries have also started to sell furniture products this year.

Merchants in Xianghe International Furniture City are selling live. Information from Xinhua News Agency

In this years semi annual report, Yongyi has written the companys cross-border e-commerce business has grown rapidly, and the overseas e-commerce market sales channels have been accelerated to expand in the report card of export sales.

According to the financial data of Yongyi in the third quarter of this year, the companys operating revenue in the third quarter of this year was about 2.32 billion yuan, with a year-on-year increase of 31.1%. The net profit attributable to shareholders of listed companies was 207 million yuan, up 44.61% year on year.

Since its listing in 2015, Yongyi has started to expand the domestic market. Through the combination of online e-commerce, live marketing, offline major customer direct marketing and dealer channel construction, Yongyi has continuously expanded the domestic market sales share, but the proportion of export sales still accounts for more than 75%.

In Wu Yes words, in the first half of the year, the growth rate of traditional foreign trade enterprises was negative. In the third quarter, it could turn negative to positive and reach a range of more than 30%, which is very good..

As a major foreign trade County, Anji County accounted for nearly one-third (31.2%) of Huzhou Citys export from January to October this year, and its share in Zhejiang Province also reached 1.27%.

Profit squeeze

Xue Dong calculated an account for the first finance and economics reporter: this year, the sea freight has increased by 2-3 times, and the overseas express delivery industry is relatively nervous, which has reduced the profit by about 10%; the rise of RMB further thinned the profit of about 5%, and combined with the rising price of raw materials and other factors, this basically ate up the original profit of about 15%, which is equivalent to the balance.

That is to say, the continuous hot orders have saturated the capacity of the factory and the workers have worked overtime, but the production side has not retained much profit.

Xue Dong said the flat situation is good, because the company has established its own brand and laid a number of sales channels, and some enterprises may lose money.

In addition, during the period from July to August when various pressures were not obvious, Xue Dong and his colleagues made considerable profits. Overall, this years profit is expected to decline by about 10% year-on-year.

The person in charge of Yongyi shares believes that compared with small and medium-sized enterprises, the companys bearing capacity and stability as the industry leader will be stronger, but the current profits will inevitably be affected. However, in the case of insufficient supply in the downstream market, it is not difficult for the company to raise prices downstream, so the impact of raw material price rise and exchange rate fluctuation can be transferred.

For the appreciation of RMB, freight and raw material prices can not change the factors, enterprises must consider the cost.

For Yongyi shares, a key word to deal with is reducing cost and increasing efficiency.

For example, enterprises actively optimize production and logistics plans and do a good job in production and marketing coordination. In terms of shipping, strengthen the contact with customers and optimize the production plan according to the booking of shipping space. In response to exchange rate fluctuations, we should actively take measures such as foreign exchange locking, timely evaluate the supply and price of key materials, and place orders in advance to ensure supply.

Speed up the transformation response

Enterprises are also continuously increasing the ability of R & D and innovation, developing more new products to meet the needs of customers, and further improve the scientific management level of the company.

Even if there is no epidemic, Xue Dongs company is expanding its production capacity in accordance with the export growth rate of its own brand. In the housing economy, the company adjusted the stock plan, expanded the rental plant, increased production capacity, and made great efforts in overseas warehousing and logistics. At the same time, according to the international BFM Standard 1.2 times of procurement, production and processing, in order to better adapt to the European and American markets. For example, one of the companys E-sports chair brands has ranked among the top 10 sales of American Amazons E-sports chairs.

Intelligent production workshop of a furniture enterprise. Information from Xinhua News Agency

According to Wu Yes observation, this years foreign trade situation has taught many enterprises a lesson. Under the background of global epidemic situation and trade friction, they will actively seize the opportunity of double circulation and gradually start domestic sales, but this requires process. So far, most enterprises still try to focus on foreign trade and try to get the goods out as soon as possible. Wu Ye believes that from the current situation, to the first half of next year, orders are relatively saturated, bottomless is the situation in the second half of next year.. In her opinion, when the window bonus period is basically over, it is the time to really test the enterprise. Big companies are already on two legs. She believes that speeding up the pace of domestic and export sales and online and offline is a necessary condition for the continuous development of enterprises after the dividend wave. Source of this article: Guo Chenqi, editor in charge of first finance and Economics_ NBJ9931

According to Wu Yes observation, this years foreign trade situation has taught many enterprises a lesson. Under the background of global epidemic situation and trade friction, they will actively seize the opportunity of double circulation and gradually start domestic sales, but this requires process.

So far, most enterprises still try to focus on foreign trade and try to get the goods out as soon as possible. Wu Ye believes that from the current situation, to the first half of next year, orders are relatively saturated, bottomless is the situation in the second half of next year..

Big companies are already on two legs. She believes that speeding up the pace of domestic and export sales and online and offline is a necessary condition for the continuous development of enterprises after the dividend wave.